An adjustable rate advance indexed to the prime rate of interest:
- Serves as an alternative source of funding for adjustable rate assets.
- Can assist in the funding of loans indexed to prime (such as home equity loans)
Maturity
1, 2 or 3 years
Rate
Adjustable based upon the consensus prime rate of the top 25 U.S. commercial banks; spread to prime will remain fixed over the entire term to maturity
Accrual Basis
Actual / 360 day basis
Interest is Paid
Monthly
Principal is Paid
At maturity
Principal Prepayment Policy
Prime Rate Advances are not prepayable
Submission of Application
A Prime Rate Advance Application is required for each borrowing.
To learn more about our Advance products, contact Credit Operations at 800-828-4191.