Funding Agreement

Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time.

Investopedia Says:
Funding agreements are marketed to mutual fund companies and municipal reinvestments. These products are generally used for their security and flexibility as they can be altered to meet the specific cash-flow needs of the contract holder.

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Private placement investment contract sold by insurance companies. This product has no registration requirement and pays the investor a higher rate of return than commercial paper. Frequently associated with this product are Put Options that permit the investor to terminate the contract provided 7, 30, 90, or 180 days' notification is given.