Renewable Term Feature for Letters of Credit: Long-Term Credit Enhancement for Mission-Related Activities

The Federal Home Loan Bank of New York (FHLBNY) has enhanced its Letters of Credit (LOC) offering by adding a renewable term maturity structure for housing, community, and economic development initiatives. This feature enables members to access longer-term credit enhancement, with automatic annual renewals through a stated final maturity date.*

Key Benefits

Long-Term Credit Support:
Provides longer-term credit enhancement that aligns with housing, community, and economic development projects.
Reduced Administrative Burden:
Helps minimize the need for frequent amendments and reissuances through automatic annual renewals.
Transaction Efficiency:
Delivers stable and predictable credit enhancement to support long-term financing structures.
Member Flexibility:
Offers long-term support while providing an annual opportunity to discontinue the LOC if project needs or timelines change.
Mission-Focused Support:
Enables members to advance housing, community, and economic development activities aligned with the FHLBNY’s mission.

The renewable term maturity structure offers a streamlined approach to supporting mission-driven projects, combining long-term credit enhancement with the flexibility and efficiency members need to meet evolving financing objectives.

For additional information, please contact your Relationship Manager, Tom Settino, Director of Member Relations, at (212) 441-6838, or a Member Services Desk Representative at (800) 546-5101, option 1.

*Both the member and the FHLBNY may provide notice of non-renewal in accordance with the terms of the LOC. The final maturity of the LOC may not exceed the member’s maximum borrowing term or the project duration and is subject to credit, collateral, capital stock requirements, and lending parameters under the Credit Risk Management Framework.

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This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the Risk Factors set forth in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC, as well as regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update publicly any forward-looking statements for any reason.