Members interested in extending the maturity and reducing the rate of their existing advances have an alternative to consider: FHLB Boston’s Advance Restructuring solution.

Through this solution, members can restructure outstanding advances for certain eligible product types and blend the contractual prepayment fee into the rate of a new long-term advance. There is no cash settlement of the prepayment fee since it is blended into the rate of the new advance. This allows members to extend the maturity of their existing advances at a potentially lower rate on the new advances compared with the rate on the original advances — and without taking additional cash or purchasing additional stock.

The Bank will also remodify advances that were restructured more than 12 months ago.

For more information, see the Advance Restructuring Solution presentation or contact your relationship manager or the Member Financial Strategies department. For a fully functional Advance Restructure Calculator, please email Kevin Martin .

Key Features

• Members can blend the prepayment fee of an existing advance into the rate on a new advance.
• No cash settlement of the prepayment fee will be required.
• Old advance is closed out and new advance is initiated.
• Accrued interest on old advance is due when the new advance settles.
• Next-day settlement, if requested by 1 p.m.
• Advances restructured more than 12 months ago are eligible for remodification.

Eligible Product Types

This statement does not purport to disclose all of the risks and other material considerations associated with an Advance Restructuring. Members should not construe this disclosure statement as business, legal, tax, or accounting advice from the Bank. Members should consult with their own business, legal, tax, and accounting advisers with respect to the Advance Restructuring solution and should refrain from using this solution unless they have fully understood its terms and risks.