Flexible Funding for Challenging Times
The Federal Home Loan Bank of New York (FHLBNY) is pleased to introduce the Callable Advance. The Callable Advance was developed in consultation with our members to help meet their changing liquidity needs and to assist in their asset/liability management.
Simply stated, the Callable Advance is a Fixed-Rate Advance that gives members the option of calling (terminating) the advance on predetermined dates, prior to maturity, without incurring a prepayment fee. For example, a 5-year, non-callable 1-year (5NC1) Bermudan Callable is a 5-year advance that would permit a member to call the advance (in whole or partially), without penalty, one year from the origination date of the advance, or quarterly thereafter.
The Callable Advance could be especially beneficial for members seeking funding with added flexibility or for members purchasing jumbo residential mortgages, as it can be used to complement a consumer’s mortgage call option.
| Callable Advance Features: |
| Minimum advance size per trade: |
$5 million |
| Final maturities available: |
3, 5, 7, or 10 years |
| Lockout periods: |
1, 2, 3, or 5 years |
| Call options: |
Bermudan (quarterly) or European (one-time) |
| Required notification time to exercise call option: |
9 business days |
| Interest payment: |
Quarterly based on an Actual/360 day count |
For more information on how the Callable Advance can help meet your institution’s funding needs, contact a Calling Officer at (212) 441-6700.
› View HLB Advantage article on Callable Advances
Note: In order to use Callable Advances a member must complete a product disclosure certification agreement. The FHLBNY will require this agreement to be re-executed every 2 years. Prior to executing a trade, the member must also attest to observing and understanding the pre-disclosure examples posted on the FHLBNY website. Members will be sent a confirmation letter upon completion of a transaction.
