December 31, 2009

The Bank participates in the MPF® program, which is administered by the Federal Home Loan Bank of Chicago, as the MPF Provider. The MPF Provider sets prices, rates, and fees associated with various MPF products using observable third-party pricing sources as inputs to its proprietary pricing model. The MPF Provider publishes updated quotations on its eMPF web site during normal business hours. Participating members can execute delivery commitments of less than $1 million directly via the web site. Larger commitments require telephonic communication with the MPF Provider. This practice ensures the accuracy of the price quotation. The Bank does not adjust pricing based on the size of the delivery commitment or other factors.