Note 8. Short-Term Borrowings

Our short-term borrowings include securities sold under repurchase agreements, federal funds purchased and other short- term borrowings, including borrowings associated with our tax-exempt investment program, more fully described in note 11, and commercial paper issued under our corporate program. Collectively, short-term borrowings had weighted-average interest rates of 0.64% and 1.10% for the years ended December 31, 2011 and 2010, respectively.

The following tables present information with respect to the amounts outstanding and weighted-average interest rates of the primary components of short-term borrowings as of and for the years ended December 31:


	Securities Sold Under Repurchase Agreements									Federal Funds Purchased
(Dollars in millions)	2011			2010			2009			2011			2010			2009
Balance at December 31	$	8,572		$	7,599		$	10,542		$	656		$	7,748		$	4,532
Maximum outstanding at any month-end		9,853			9,058			12,993			8,259			7,748			7,166
Average outstanding during the year		9,040			8,108			11,065			845			1,759			956
Weighted-average interest rate at year-end		.04	%		.04	%		.03	%		.05	%		.01	%		.01	%
Weighted-average interest rate during the year		.11			.05			.03			.05			.05			.04



	Tax-Exempt Investment Program									Corporate Commercial Paper Program
(Dollars in millions)	2011			2010			2009			2011			2010			2009
Balance at December 31	$	2,294		$	2,484		$	2,736		$	2,384		$	2,799		$	2,777
Maximum outstanding at any month-end		2,473			2,690			2,838			2,825			2,831			2,851
Average outstanding during the year		2,404			2,594			2,774			2,449			2,791			1,993
Weighted-average interest rate at year-end		.18	%		.37	%		.33	%		.22	%		.31	%		.21	%
Weighted-average interest rate during the year		.26			.33			.47			.23			.31			.30


	Conduit Commercial Paper Program
(Dollars in millions)	2011			2010			2009 ⁽¹⁾
Balance at December 31				$	1,919		$	12,071
Maximum outstanding at any month-end	$	271			7,275			15,645
Average outstanding during the year		113			6,339			10,691
Weighted-average interest rate at year-end		—			.57	%		1.31	%
Weighted-average interest rate during the year		.47	%		.32			1.26

⁽¹⁾	Amounts other than balance and weighted-average interest rate at year-end related to the period subsequent to the May 2009 conduit consolidation.

The following table presents the components of securities sold under repurchase agreements by underlying collateral as of December 31, 2011:


(In millions)
Collateralized by securities purchased under resale agreements	$	5,651
Collateralized by investment securities		2,921

Total	$	8,572

The obligations to repurchase securities sold are recorded as a liability in our consolidated statement of condition. U.S. government securities with a fair value of $2.98 billion underlying the repurchase agreements remained in investment securities at December 31, 2011. The following table presents information about these U.S. government securities and the related repurchase agreements, including accrued interest, as of December 31, 2011. The table excludes repurchase agreements collateralized by securities purchased under resale agreements.

U.S. Government
Securities Sold

Repurchase
Agreements

(Dollars in millions)

Amortized
Cost

Fair Value

Amortized
Cost

Rate

Overnight maturity

2,931

2,978

2,921

.001

We have entered into an agreement with a clearing organization that enables us to net all securities purchased under resale agreements and sold under repurchase agreements with counterparties that are also members of this organization. As a result of this netting, the average balances of securities purchased under resale agreements and securities sold under repurchase agreements were each reduced by $20.97 billion for 2011 and by $16.27 billion for 2010.

We maintain a corporate commercial paper program, under which we can issue up to $3 billion of commercial paper with original maturities of up to 270 days from the date of issue. At December 31, 2011 and 2010, $2.38 billion and $2.80 billion, respectively, of commercial paper was outstanding under our corporate program.

State Street Bank had initial Board authority to issue bank notes up to an aggregate of $5 billion, including up to $1 billion of subordinated bank notes. Approximately $2.05 billion was available under this Board authority as of December 31, 2011. At December 31, 2010, $2.45 billion of senior notes was outstanding (refer to note 9), all of which matured during 2011. State Street Bank currently maintains a line of credit of CAD $800 million, or approximately $787 million as of December 31, 2011, to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancelable by either party with prior notice. At December 31, 2011, no balance was outstanding on this line of credit.