(10) Borrowings

Short-term Bank Loans

The Company’s international securities clearance and settlement activities are funded with operating cash or with short-term bank loans in the form of overdraft facilities. At September 30, 2013, there was $52.5 million outstanding under these facilities at a weighted average interest rate of approximately 1.4%, associated with international settlement activities.

In the U.S., securities clearance and settlement activities are funded with operating cash, securities loaned or with short-term bank loans under a three-year committed credit agreement for up to $150 million entered into with a syndicate of banks and JP Morgan Chase Bank, N.A., as Administrative Agent in January 2011 (the “Credit Agreement”). At September 30, 2013, there were no amounts outstanding under the Credit Agreement.

Term Debt

At September 30, 2013, term debt is comprised of the following (dollars in thousands):

Term loan	$	10,494
Obligations under capital leases	22,825
Total	$	33,319

On August 10, 2012, Investment Technology Group, Inc. (“Group”) entered into a $25.0 million master lease facility with BMO Harris Equipment Finance Company (“BMO”) to finance equipment and construction expenditures related to the build-out of the Company’s new headquarters in lower Manhattan. The facility contained an initial interim funding agreement, which was succeeded by a capital lease. During the first nine months of 2013, the Company borrowed $20.6 million under the BMO facility following borrowings of $0.6 million in 2012.

Under the terms of the interim funding agreement, Group was reimbursed for expenditures made during an interim funding period which ended on July 29, 2013 (“Interim Funding Period”). Interest-only payments on the aggregate outstanding borrowings during the Interim Funding Period were paid monthly at an annual rate of 2.25% plus the 30-day LIBOR. On July 29, 2013 the $21.2 million of interim borrowings were converted to a 3.39% fixed-rate term financing structured as a capital lease with a 48-month term, at the end of which Group may purchase the underlying assets for $1.