Products and Solutions Guide - Federal Home Loan Bank of Boston

Long-Term Variable-Rate Indexed Advances –Discount Note Auction-Floater AdvanceDiscount Note Auction-FloaterAdvanceNonamortizing, fixed-term advance withan interest rate that adjusts periodicallyaccording to changes in the Federal HomeLoan Bank System’s Office of Financediscount note auction rates.Common Uses• Manage liquidity needs.• Fund adjustable-rate assets.• Manage exposure to declining interestrates.• Long-term funding commitment atshort-term interest rates.TermsMaturities are available in terms out to 20 years.DisbursementFunds are available the next day.Principal and Interest• Principal is due at maturity. Interest is due on therate-adjustment date.• Rates reset every four or 13 weeks, depending on theindex you choose, on indicated reset dates, based onthe result of the prior day’s discount-note auction.• The minimum offering size is $10 million. Offering sizeorders for less than $10 million will be aggregated withother requests for advances with identical terms andwill be executed when orders total $10 million.• Interest is calculated on an actual/360-day basis.PrepaymentAdvances may be prepaid, subject to a fee. There is no feeif paid at reset dates. Please see the Discount NoteAuction-Floater Advance Confirmation for more informationon prepayment fees.Additional InformationFor further details, including comments on risk, please seeDiscount Note Auction-Floater 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 24