Products and Solutions Guide - Federal Home Loan Bank of Boston

Fixed-Rate Advances – HLB-Option AdvanceHLB-Option AdvanceNonamortizing, fixed-rate and termadvance. The Bank holds the option tocancel the advance on specified datesprior to maturity.Common Uses• Generally used in a flat yield-curveenvironment to obtain a lower cost offunding than a Classic advance with amaturity equal to the lockout period.• Fund short- or long-term assets.Terms• Maturities available for terms out to 20 years, but alwayswith the condition that the Bank may cancel the advanceprior to final maturity.• There is an initial lockout period during which the Bankcannot cancel the advance. You may choose a lockoutperiod of three months to 10 years.• We may cancel the advance only on scheduled cancellationdates, after the initial lockout period. The Bankmakes no warranties as to the circumstances underwhich it might cancel an advance.• The Bank will provide notice of cancellation in writing atleast four business days before the cancellation date.• Some HLB-Option advances are offered with only onecancellation date. Others are offered with a series ofcancellation dates at regular intervals, usually quarterly.DisbursementFunds are available two business days after the trade date.Principal and Interest• Principal is due at maturity and interest is due on thesecond business day of the month.• The minimum offering size is $10 million. Offering sizeorders for less than $10 million will be aggregated withother requests for advances with identical terms and willbe executed when orders total $10 million.• If the Bank exercises its option to cancel, you must repaythe advance, but you may replace the advance with anew advance. The new advance may be for any structureand term to maturity agreed upon between the memberand the Bank. The rate on the new advance will be that ineffect at the time the new advance is taken.• Interest is calculated on an actual/360-day basis.PrepaymentAdvances may be prepaid, subject to a fee. Please see theHLB-Option Advance Confirmation for more informationon prepayment fees.Additional InformationFor further details, including comments on risks please seeHLB-Option 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 12