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FHLBNY Advance Rebate Program

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
1   2   3

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
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
AMOUNT

 +

REBATE
RATE

 x

REMAINING
DURATION

 =

REBATE
POOL

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.

Disclaimer: Notwithstanding any language to the contrary, nothing contained in these disclosures is intended to constitute an offer, inducement, promise, or contract of any kind. Any product descriptions and pricing may be subject to change without notice.

The content provided in these disclosures is presented as a courtesy to be used only for informational purposes and is not represented to be error free. The FHLBNY makes no representations or warranties of any kind with respect to the content contained herein, such representations and warranties being expressly disclaimed. The FHLBNY is not a financial or investment advisor.

Moreover, the FHLBNY does not represent or warrant that the content of these disclosures is accurate, complete or current for any specific or particular purpose or application. It is not intended to provide nor should anyone consider that it provides legal, accounting, tax or other advice. Such advice should only be rendered in reference to the particular facts and circumstances appropriate to each situation. The FHLBNY encourages you to contact appropriate professional(s) and consultant(s) to assess your specific needs and circumstances and to render such advice accordingly. In addition, the FHLBNY is not endorsing or recommending the use of the means or methods contained in or through these disclosures for any special or particular purpose.

It is solely your responsibility to evaluate the risks or merits of any funding or investment strategy. In no event will FHLBNY or any of its officers, directors or employees be liable for any damages — whether direct, indirect, special, general, consequential, for alleged lost profits, or otherwise – that might result from any use of or reliance on these materials.

Key Contacts

Relationship Managers
(212) 441-6700
FHLBNY@fhlbny.com

Member Services Desk
(212) 441-6600
MSD@fhlbny.com

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