Advance Programs

Common Uses

·	Serves as no-cost liquidity insurance for unanticipated daily cash needs

·	Enables the institution to hold less liquidity

·	Priced to compete with Federal (Fed) Funds

Rate

Fixed Rate: Remains fixed for entire term to maturity
Variable Rate: Subject to daily rate adjustments

Accrual Basis

Actual / 360 day basis

Interest is Paid

Monthly

Principal is Paid

At maturity

Principal Prepayment Policy

Fixed Rate: Not Prepayable
Variable Rate: Prepayable at any time with no prepayment fee

Submission of Application

A CMA application is required every 12 months