The Federal Home Loan Bank of New York’s (FHLBNY) Advance Rebate Program provides members an opportunity to receive a cash rebate when prepaying an Eligible Advance1 and rebooking a new advance within a 30-day period. To receive the cash rebate, the prepaid advance(s) must have a remaining term of six months or longer and new advance(s) must have a term of at least six months or longer. Additionally, a member must designate a replacement advance as part of the Rebate Program at the time of booking a new advance.
The Advance Rebate Program is designed to:
- be responsive to member needs and enhance the value of our advance offerings
- provide members additional flexibility to manage their balance sheets
- strengthen and add value to your Co-op
How It Works |
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| 1 | 2 | 3 | ||
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Member prepays an outstanding eligible advance that has a term remaining to maturity of at least six months |
+ |
Member decides to obtain a new eligible advance with a term of six months or greater within 30 days for prepayment (called the Rebate Window). |
+ |
Member receives the rebate in cash via their OIA account. |
Determining The Rebate Pool |
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| When an Eligible Advance is prepaid, and a prepayment expense incurs, a potential rebate pool will be created of up to 20.5 bps (18.5 bps for Repo Advances) for the remaining duration of the prepaid advance using the following calculations: | ||||||
|
ADVANCE |
+ |
REBATE |
x |
REMAINING |
= |
REBATE |
For example, if a $10 million regular advance with a remaining duration of 2 years gets prepaid and is entitled to a maximum rebate of 20.5 basis points,* a rebate pool would be created in the amount of $41,000 ($10M x 20.5 bps x 2 years remaining duration). If $10 million of new advances with terms of 6 months or longer are booked within 30 calendar days of extinguishment, the member’s estimated maximum rebate could be as follows:
| FOLLOW-ON ADVANCE MATURITY YEAR |
FIXED/ARC ADVANCE (20.5 BPS) |
REPO/REPO ARC ADVANCE (18.5 BPS) |
| 0.5 | $10,250 | $9,250 |
| 1 | $20,500 | $18,500 |
| 2 | $41,000 | $37,000 |
Please view our Rebate Program FAQs for more information.
If you would like a review of your advance portfolio for rebate opportunities, please contact your Relationship Manager at (212) 441-6700, Member Services Desk at (212) 441-6600, or email fhlbny@fhlbny.com.
*Note: The amount of the actual rebate is dependent upon the characteristics of the prepaid and new advance(s), e.g., product type, origination date, principal amounts, and duration. It would never exceed the amount of the rebate pool which was established at the time of the advance prepayments, and the member would not get credit for new advance volume which exceeds the amount of the prepayments.
1Advances booked under Community Lending Programs are not Eligible Advances. The FHLBNY’s regular advance terms and conditions will apply, and the FHLBNY reserves the right in its sole discretion to amend, rescind, or reinstate the Advance Rebate Program at any time.