Regular Letters of Credit (L/Cs)
When L/Cs are used for general purposes, they:
- Provide credit enhancements for collateral subordinated obligations or other mortgage-backed securities
- Provide credit support in the sale of whole mortgage loan portfolios
- Facilitate the beneficiary's drawing of interest payments from a bond issue
- Support tax-exempt municipal bonds
When L/Cs are used for eligible housing and community lending,* they:
- Provide funds at a discounted price, below regular L/C prices, to finance lending activities
- Facilitate transactions that promote home financing, housing activity, or financing of commercial and economic development
*Projects must qualify for the FHLBNY's Community Investment Cash Advance Programs (CIP, RDA, and UDA). For more information on eligible projects, click here or call (212) 441-6850.
