NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES 11. SHORT-TERM BORROWINGS Selected financial information pertaining to the components of Key’s short-term borrowings is as follows: Rates presented in the above table exclude the effects of interest rate swaps and caps, which modify the repricing and maturity characteristics of certain short-term borrowings.  For more information about such GLYPH<222>nancial instruments, see Note 19 (GLYPH<210>Derivatives and Hedging ActivitiesGLYPH<211>), which begins on page 80. Key has several programs that support short-term financing needs. Bank note program. This program provides for the issuance of both long- and short-term debt of up to $20.0 billion ($19.0 billion by KBNA and $1.0 billion by Key Bank USA). At December 31, 2003, $16.6 billion was available for future issuance under this program. Commercial paper program. KeyCorp has a commercial paper program that provides funding availability of up to $500 million. At December 31, 2003 and 2002, there were no borrowings outstanding under the commercial paper program.  In 2003, Key established a separate commercial paper program that provides funding availability of up to $1.0 billion in Canadian currency or the equivalent in U.S. currency. As of December 31, 2003, borrowings outstanding under this commercial paper program totaled $787 million in Canadian currency and $27 million in U.S. currency (equivalent to $35 million in Canadian currency). Line of credit. KBNA has overnight borrowing capacity at the Federal Reserve Bank. At December 31, 2003, this capacity was approximately $16.2 billion and was secured by approximately $20.9 billion of loans, primarily those in the commercial portfolio. There were no borrowings outstanding under this facility at December 31, 2003 or 2002. Euro note program. Under Key’s euro note program, KeyCorp, KBNA and Key Bank USA may issue both long- and short-term debt of up to $10.0 billion in the aggregate. The notes are offered exclusively to non-U.S. investors and can be denominated in U.S. dollars and many foreign currencies. During 2003, there were $197 million of borrowings issued under this program. At December 31, 2003, $4.0 billion was available for future issuance. KeyCorp medium-term note program. In November 2001, KeyCorp registered, under a universal shelf registration statement filed with the Securities and Exchange Commission, $2.2 billion of securities. At December 31, 2003, the entire amount registered had been allocated for the issuance of medium-term notes and the unused capacity totaled $1.4 billion. 68 PREVIOUS PAGE SEARCH BACK TO CONTENTS NEXT PAGE dollars in millions 2003 2002 2001 FEDERAL FUNDS PURCHASED Balance at year end $ 919 $2,147 $2,591 Average during the year 2,798 3,984 3,575 Maximum month-end balance 4,299 5,983 5,034 Weighted-average rate during the year 1.14% 1.71% 4.00% Weighted-average rate at December 31 1.28 1.19 1.72 SECURITIES SOLD UNDER REPURCHASE AGREEMENTS Balance at year end $1,748 $1,715 $1,144 Average during the year 1,941 1,543 1,622 Maximum month-end balance 2,260 2,313 1,807 Weighted-average rate during the year .98% 1.49% 3.39% Weighted-average rate at December 31 .64 1.26 1.80 SHORT-TERM BANK NOTES Balance at year end $ 479 $ 575 $3,748 Average during the year 877 1,700 4,649 Maximum month-end balance 1,628 3,048 6,098 Weighted-average rate during the year 1.94% 1.94% 5.01% Weighted-average rate at December 31 1.14 2.05 2.16 OTHER SHORT-TERM BORROWINGS Balance at year end $2,468 $2,248 $1,801 Average during the year 1,735 1,243 2,179 Maximum month-end balance 2,468 2,248 2,841 Weighted-average rate during the year 1.15% 1.29% 2.39% Weighted-average rate at December 31 1.03 .83 2.18