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.
FHLBNY Awards $36.9 Million for 46 Affordable Housing Initiatives
Dividend Announcement 3Q20: The FHLBNY Declares a 5.10% Dividend for the Third Quarter of 2020
Amendments to the FHLBNY Capital Plan (Effective October 2, 2020)
A Review of Housing Statistics at the End of 2019
Five Ways to Manage Your Balance Sheet in a Volatile Rate Environment