Overview Regular L/Cs MULOCs Additional Information

 

Key Contacts

Calling Officers (212) 441-6700

Form a Strategic Alliance with an HLB Letter of Credit

As a key partner in financing, the Federal Home Loan Bank of New York (HLB) issues triple-A-rated Letters of Credit (L/C) on behalf of its members to support liquidity, asset/liability management, and housing, community, and economic development activities.  An HLB L/C is a promise, made at the request of an HLB member, to make payments to a third-party beneficiary in the event of a default of performance. Click here to view a sample of an HLB L/C agreement. 

L/Cs are low-cost, easy to use, and do not require a capital stock purchase.  The HLB offers two forms of L/Cs to members to support various funding needs:

 

Regular L/Cs
Can be used if you are looking to collateralize:
Mortgage Revenue Bonds Community Development Bonds Certificates of Deposit Funds Promissory Notes Construction Funding for Elderly Housing Complexes	Rental Achievement Guarantees Credit Enhancement for CRA or Community Support IDA Financing Interest Rate Swaps Lease Agreements

 

Municipal Letters of Credit (MULOCs)

As permitted by New York* and New Jersey laws**, MULOCs can be used if you are looking to collateralize:

State, city, court, or local government (municipal) deposits

*In New York, MULOCs can be used for Banking Development Districts and New York State Community Development Program Deposits. **Other states may allow MULOCs to be used as collateral for public unit deposits.