Products and Solutions Guide - Federal Home Loan Bank of Boston

Fixed-Rate Advances – Classic Plus Cap AdvanceClassic Plus Cap AdvanceNonamortizing, fixed-term advance withan interest rate that will adjust periodicallybelow the initial rate if LIBOR exceeds apredetermined strike rate you choose.Common Uses• Limit exposure to rising interest rateswith the added benefit of a reducedinterest rate if rates rise above the capstrike level.• Fund short- or long-term assets.Terms• Maturities are available for terms out to 20 years.• The advance contains an embedded LIBOR-indexedinterest-rate cap, which will reduce the advance ratebelow the initial rate, if LIBOR exceeds a predeterminedstrike rate you choose.• The notional amount of the cap must be at least equalto the amount of the advance and no greater than threetimes the amount of the advance.DisbursementFunds are available two business days after the trade date.Principal and Interest• Principal is due at maturity and interest is due at oneorthree-month intervals, in accordance with the index.• Interest is calculated on an actual/360 basis.PrepaymentAdvances may be prepaid, subject to a fee. Please see theClassic Plus Cap Advance Confirmation for moreinformation on prepayment fees.Additional InformationFor further details, including comments on risks, please seeClassic Plus Cap Advance.credit productsMain Telephone: 617-292-9600 • Customer Service: 1-800-358-9709 • Money Desk: 1-800-357-3452 • Relationship Managers, MPF, and Housing & Community Investment: 1-888-424-3863 8