Our members have access to the FHLB's highly rated Letter of Credit (LOC) to enhance their liquidity position. Members frequently use our LOC program to collateralize public unit deposits, freeing up securities for other purposes. LOCs are fee based, collateralized the same way as Advances and require capitalization.
Eligible Activities
FHLB can issue or confirm standby LOCs on behalf of members to facilitate the following types of financial transactions with third parties:
- Public unit deposits
- Financing of residential housing
- Community lending
- Asset/Liability management
- Liquidity
Types of LOCs
- Standby
- Direct Pay
- Public Unit Deposit Standby
To learn more about our Letters of Credit products, contact Credit Operations at 800-828-4191.