Change in Letters of Credit (LOC) Fulfillment Period
Effective November 3, 2025, if a default occurs and a LOC draw certificate is submitted, the FHLBNY will disburse payment no later than the close of business on the next business day following its receipt of the draw certificate. Previously, payments were made the same day if the LOC draw certificate was submitted before 11:00 a.m.; otherwise, payment was processed the next business day. This modification only applies to LOCs issued on or after November 3, 2025.