ARTICLE 2: Compensating Balance Agreement

To see if the Town will vote to authorize the Treasurer, with the approval of the Select Board, to enter into a Compensating Balance Agreement or Agreements pursuant to Massachusetts General Laws, Chapter 44, Section 53F, if necessary.

• This Article provides authorization for the Town to enter into a compensating balance agreement to obtain banking services.  A compensating balance is an arrangement by which a town maintains municipal funds on deposit in return for banking services.  Under such an arrangement, the earnings retained by the bank on the account balances “compensate” the bank for the services provided.

For further explanation of this article, please watch this video
clip on Northborough Cable's YouTube Channel: