Bulletins
June 1, 2020
Enhancements to the FHLBNY’s Refundable Municipal Letters of Credit
The Federal Home Loan Bank of New York (FHLBNY) is pleased to announce that our Refundable Municipal Letters of Credit (REMLOC) product has been enhanced with a new refund methodology; it is now based on the average balance of the underlying municipal deposit during the term of the Letters of Credit (LOC) instead of the peak balance.
FHLBNY REMLOCs can help to efficiently secure fluctuating municipal deposit accounts by allowing members to receive a refund provided that the average balance of the underlying deposit account does not reach the notional value of the LOC during its term* – Under the peak balance methodology member refunds were often muted due to temporary spikes in the underlying municipal deposit balances. The recent improvement to this product is designed to enable members to more tightly manage collateralization and reduce costs.
If you have questions on the REMLOCs change or on our Municipal Letters of Credit Product, please contact your Relationship Manager at (212) 441-6700 or the Member Service Desk at 1-800-546-5101 (option 1).
*Please note, REMLOC refunds will be limited to a maximum amount equal to 30% of the initial Letter of Credit fee, and members will not be eligible for a return of fees if the refund amount falls below $100.
Latest News
07/25/2024
FHLBNY Announces Second Quarter 2024 Operating Highlights
07/22/2024
The 2024 Small Business Recovery Grant Program
07/09/2024
Report from the President: Making an Impact
12/03/2021
Updates to the 2022 Fee Schedules
07/30/2020
FHLBNY CICA Disaster Relief Funding: Eligibility Expansion