| Key Features
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- Fixed rate
- Fixed term
- Customized repayment schedule
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| Common Uses
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- Fund mortgages and other loans to borrowers who
need a customized amortization schedule.
- Match the average life and amortization characteristics
of a mortgage, a mortgage-backed securities portfolio,
or other asset.
- Fund fixed- and adjustable-rate mortgages held in
portfolio.
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| Maturities |
- Two days through 20 years.
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| Disbursement
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- Next-day if requested by 3 p.m.
- Same-day possible if you call by noon.
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| Customized
Repayment Schedule |
- Customize the repayment schedule on the strip by
combining advances of different maturities.
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| Payment of
Principal and Interest |
- Principal due at maturity and interest due monthly
on the second business day of the month.
- For Member-Option advances, you may repay some or
all of the principal on the cancellation dates.
- For Classic advances with maturities of one year
or less, you may choose to pay principal and interest
at maturity.
- Interest is calculated on an actual/360-day basis.
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| Prepayment |
- Within the strip, each advance with a maturity of
more than six months is prepayable, subject to fee.
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| Forward Rate
Commitments |
- Lock in a guaranteed rate up to two years before
disbursement.
- Our forward rate commitment may add a premium to
the current rate.
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| Automatic Discount
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- We will give you an automatic discount off the posted
rate on any Classic or Member-Option advance with
a maturity of more than one year if your advances-to-assets
ratio is 10 percent or more.
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If Your Advances-
to-Assets Ratio Is: |
Your Automatic Discount
Will Be: |
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10 percent or more |
1 basis point |
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15 percent or more |
2 basis points |
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20 percent or more |
3 basis points |
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| More Information |
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