| Key Features |
- Fixed rate
- Fixed term
- Nonamortizing
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| Common Uses |
- Provide liquidity and enhance balance-sheet management.
- Fund construction lending.
- Fund fixed- and adjustable-rate mortgages.
- Fund commercial and consumer loans.
- Temporarily fund loans that will be sold.
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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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| Payment of Principal and
Interest |
- Principal due at maturity and interest due monthly on the second
business day of the month.
- For 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 |
- Any Classic advance with a maturity of more than six months
is prepayable, subject to a 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 adds 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 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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| Risks |
- The Federal Home Loan Bank of Boston does not
act as a financial adviser, and members should independently
evaluate the suitability and risks of these advances.
Please see the Classic
Advance Primer for a discussion
of the risks and other considerations associated
with the Classic advance.
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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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