Notes Payable and Open Line of Credit Notes Payable and Open Line of Credit

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Notes Payable and Open Line of Credit

Notes Payable and Open Line of Credit

FHLB Loans

On March 19, 2020, State Auto P&C entered into a short-term loan arrangement with the FHLB in the principal amount of $60.0 million. This loan arrangement, known as REPO based advances, is for general corporate purposes and is intended to provide additional liquidity to State Auto P&C. The REPO based advances can be drawn for a minimum of one day and may be drawn for longer periods of time subject to the FHLB agreement, which is for a one-year term. The REPO based advances are each at an interest rate determined on the initial date of such advance. All principal and interest is due at maturity of such advance and is not pre-payable. The REPO based advances are fully secured by a pledge of specific investment securities of State Auto P&C. As of March 31, 2020, a REPO based advances in the amount of $60.0 million was outstanding at a rate of 0.38%.

State Auto P&C also has two terms loans and a line of credit with the FHLB that are more fully disclosed in Note 8 of the Notes to Consolidated Financial Statements in the 2019 Form 10-K. The foregoing REPO based advances, line of credit. and term loans from the FHLB are collectively referred to as the "FHLB Loans."