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April 30, 2008
Subject to underwriting approval, the Bank allows members
to lock in a rate prior to disbursement of an advance. Commitment
fees are generally charged for advances to be disbursed beyond
next-day disbursement. The Bank's current commitment fee is
generally based on the following formula:
Fee = Principal amount of advance * (A-D) * (Days forward/360)
+ $100
where:
A = Rate for advance with same final maturity, including the
commitment period, for regular (next-business-day) disbursement
D = The Bank's deposit rate for period of commitment
The Bank may alter this fee based on market conditions and
other considerations. As with all of the Bank's credit products,
it is best to contact the Money Desk, at moneydesk@fhlbboston.com
or 1-800-357-3452, for prices on specific transactions. The
commitment fee is normally added to the advance's rate.
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