Effective financing tool to match fund various types of
intermediate term loans (e.g., home improvement loans)
·
Can be used to fund investments of comparable maturity
which are expected to be held in portfolio for the entire life
Rate
Fixed for the entire term to maturity
Accrual Basis
30 / 360 day basis
Interest and Principal are Paid
Monthly (payment is first credited to interest
due, then to principal reduction)
Principal Prepayment Policy
Prepayable subject to prepayment fee (equal to the
present value of 100% of the lost cash flow to the Bank based upon the difference between the rate on the
advance and the current yield on FHLBank securities of the same remaining effective weighted average
maturity, discounted at the current yield)
Submission of Application
A CMP Advance application is required for each borrowing
