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.