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Credit Products – Member-Option Advance

Protects your cost of funds against future rate changes, whether rates move up or down. (The Member-Option advance replaces the Bank's Putable advance.)


Key Features
  • Fixed rate
  • Fixed final term
  • Nonamortizing
  • Prepayable on specified dates
  • One-time cancellation options also available
Common Uses
  • Manage interest-rate risk sensitivity.
  • Fund short- or long-term assets.
  • Manage exposure to prepayment risk of assets.
Maturities
  • Out to 20 years
Disbursement
  • Third Boston business day if requested by 3 p.m.
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 Member-Option Advance Primer Adobe PDF icon for a discussion of the risks and other considerations associated with the Member-Option advance.
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.
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.

  • Partial prepayments may be in amounts as small as $100,000 and in intervals of $100,000 thereafter.

  • The member must provide notice of cancellation in writing at least four business days before the cancellation date.
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.
More Information
 
 
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