| Key Features |
- Fixed rate
- Fixed term
- Customized repayment schedule
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| Common Uses |
- 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 |
- Next-day if requested by 3 p.m.
- Same-day possible if you call by noon.
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Customized Repayment Schedule
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- 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
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- 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 |
- 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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| Notes: |
- Calculating the Advances-To-Assets Ratio for an Automatic Discount
The balance of advances used to calculate the discount will be
as of the close of business on the previous day, plus previously
committed advances to be disbursed on the transaction day, and
less advances that mature on the transaction day. Unused lines
of credit, which include IDEAL Way, will be excluded from the
ratio. The most recent call report available will be used to determine
total assets. Ineligible for the automatic discount are discounted
advances, which include Community Development advances, Affordable
Housing Program advances, and special offerings.
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