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Functional responsibility includes:
- Tender offers;
- Conversions;
- Mergers;
- Exchanges;
- Called bond rights;
- Warrants liquidations;
- Bankruptcy class actions;
- Stock dividends/splits and distributions;
and
- Put bonds.
Member Notification
On optional reorganization functions with an expiration
date, a critical notice with all available pertinent information
will be faxed to the member within one business day of receipt.
The purpose of this notice is to solicit a response from
the member by 3 p.m. two business days prior to the expiration
to successfully execute the function. Responses received
after this will be executed on a best-effort basis.
Advance notices are faxed to all members holding called
bonds to ensure that fund availability is utilized in an
effective and timely manner.
Advance notices on full-call redemptions and partial-call
redemptions will be faxed to the members within one business
day of receipt.
Bonds with built-in put features frequently require that
the investor originate the action to put the bond without
any formal notice that the bond is eligible to be put. These
put features are fully described in the bond's prospectus
and it is the responsibility of the member to notify the Federal
Home Loan Bank of Boston according to the time deadlines defined
in the prospectus if the member wishes to put the bond. The
Bank will not be responsible for notifying the member each
time one of these issues is eligible to be put.
Cash/Asset Payments
Cash payments will be credited to the IDEAL Way Account on
payable date on called bonds. If a sale is executed after
the record date on called bonds, and after the receipt of
written instructions on tender offers, the member will assume
responsibility for any exposure.
Cash payments on all other functions will be credited to
the accounts on the same day the funds are available to the
Federal Home Loan Bank of Boston.
Securities will be posted within 48 hours of receipt, except
for stock splits/dividends and distributions, which are posted
on payable date plus one.
For more information, contact the Safekeeping Department
at safekeeping@fhlbboston.com
or 1-800-358-9709.
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