The Federal Home Loan Bank of New York announced Thursday it had sold its item processing business to Systematics Financial Services Inc., Little Rock, Ark., for an undisclosed sum.

Under terms of the agreement, Systematics will take over the New York Home Loan Bank's check processing facility in Piscataway, N.J., which processes 122 million checks a year for 125 financial institutions in New York, New Jersey, and Puerto Rico. Last year, Systematics also purchased the check-processing business of the San Francisco Home Loan Bank.

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