| Key Features
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| Common Uses
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- Macrofund balance sheet.
- Fund specific assets.
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| Maturities |
- Typically six months to 15 years, but always
with the condition that the Federal Home Loan Bank
of Boston may cancel the advance prior to final maturity.
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| Lockout Periods |
- An HLB-Option advance is offered with an initial
lockout period during which the Federal Home Loan
Bank of Boston cannot cancel the advance.
- You may choose a lockout period of three months
to 10 years.
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| Cancellation |
- After the initial lockout period, the Federal Home
Loan Bank of Boston may cancel the advance only on
a scheduled cancellation date.
- The Federal Home Loan Bank of Boston makes no warranties
as to the circumstances under which it might cancel
an advance.
- The Federal Home Loan Bank of Boston will provide
notice of cancellation in writing at least four business
days before the cancellation date.
- Some HLB-Option advances are offered with only one
cancellation date. Others are offered with a series
of cancellation dates at regular intervals, usually
quarterly.
- If the Federal Home Loan Bank of Boston exercises
its option to cancel, you must repay the advance, but
you may replace the advance with a new advance. The
new advance may be for any structure and term to maturity
agreed upon between you and the Bank, subject to the
Bank's Products
Policy. The rate on the new advance will be that
in effect at the time the new advance is taken.
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| Availability |
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| Disbursement |
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| Offering Size |
- Orders for HLB-Option advances of less than $10 million
will be aggregated with other requests for advances
with identical terms and will be executed when orders
total $10 million.
- The Federal Home Loan Bank of Boston will make
its final pricing determination when the transaction
can be executed.
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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 HLB
Option Advance Primer for a discussion of the
risks and other considerations associated with the
HLB Option advance.
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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.
- If canceled, principal and interest are due on the
cancellation date.
- Interest is calculated on an actual/360-day basis.
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| Member-Initiated
Prepayment |
- Prepayable at any time, subject to a fee, which
may be substantially greater than those associated
with Classic advances of the same maturity.
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| More Information |
- For details on the terms and conditions of the HLB-Option
advance, consult the application form, which is available
from the Money Desk at moneydesk@fhlbboston.com
or
1-800-357-3452.
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