London Interbank Offered Rate (LIBOR) Advance

An advance that serves as a source of liquidity and is priced according to prevailing rates on 1 and 3 month LIBOR:

  • Can be used to replenish liquidity to targeted levels in the event of savings deposit withdrawals
  • Serves as an ongoing source of liquidity at rates comparable to or below other short-term liabilities
  • A means of funding other indexed rate assets (e.g., Home Equity loans) to achieve spread and potential arbitrage
Maturity
12 months to 10 years (120 months)
Rate
Adjustable monthly (1 month LIBOR) or quarterly (3 month LIBOR) based upon the prevailing LIBOR rate at the time of repricing
Accrual Basis
Actual / 360 day basis
Interest is Paid
Monthly or on repricing dates (determined at the time of application)
Principal is Paid
At maturity
Principal Prepayment Policy
Prepayable without fee on repricing dates (excluding any “lockout” periods established by the borrower at inception), with two London and New York business day notification; 1 month LIBOR advances can only be prepaid on repricing dates; any other prepayments on 3 month LIBOR indexed advances may be subject to prepayment fee (equal to the present value of 100% of the lost cash flow for the term to the next repricing, based upon the difference between the LIBOR rate in effect on the advance and the current yield on FHLB securities—if current yield on FHLB securities is >= rate on LIBOR advance, no prepayment fee is assessed)
Submission of Application
A LIBOR Advance Application is required for each borrowing.

To learn more about our Advance products, contact Jeff Berryman or Lisa Wishart at 800-828-4191.

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