| Key Features
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- Fixed rate
- Fixed final term
- Nonamortizing
- Prepayable on specified dates
- One-time cancellation options also available
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| Common Uses
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- Manage long-term interest-rate risk, and lower funding
costs if rates decline.
- Fund residential and commercial loans that offer
fixed rates and prepayment flexibility.
- Fund adjustable-rate mortgages held in portfolio.
- Fund purchases of mortgage-backed securities.
- Manage the balance sheet.
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| Maturities |
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| Disbursement
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- Third-day if requested by 3 p.m.
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| Risks
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- 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 Member
Option Advance Primer for a discussion
of the risks and other considerations associated
with the Member 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.
- You may repay some or all of the principal on the
specified cancellation dates.
- Interest is calculated on an actual/360-day basis.
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| Prepayment |
- Prepayable, in full or in part, on specified cancellation
dates with no prepayment fee. Typically, the cancellation
dates are the first or third anniversary and semiannually
thereafter. (Other prepayment structures may be available.)
- On any date other than a specified cancellation
date, it is prepayable, subject to a fee.
- The member must provide notice of cancellation
in writing at least four business days before the cancellation
date.
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| Forward Rate
Commitments |
- 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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| More Information |
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