Products and Solutions Guide - Federal Home Loan Bank of Boston

Underwriting Requirements cont’d.Underwriting RequirementsMember Requests for Extensions of CreditMembers may request an extension of credit from the Bankby calling the Money Desk at 1-800-357-3452.Category 3 depository institution members are required tocomplete and submit the Supplement-A to Application forAdvance (Supplement-A) when requesting an extension ofcredit from the Bank.Insurance company members are required to complete andsubmit the appropriate Supplement-A to Application forAdvance, Insurance Company Members (Supplement-A),when requesting an extension of credit from the Bank.Supplement-A, which provides essential underwritinginformation, should be submitted to the Bank at least threebusiness days prior to the expected commitment date ofthe extension of credit. In a situation where there is animmediate need for liquidity and three days prior notice isnot possible, and when the advance is fully secured byeligible collateral delivered to the Bank, we may provide anexpedited disbursement. Please call the Credit Departmentat 617-292-9795 for further discussion.For purposes of the Supplement-A process, the Bankconsiders the transfer of an IDEAL Way advance to anovernight or other regular advance to be a disbursementof new funds because the IDEAL Way line of credit revertsto its original amount when an IDEAL Way advance istransferred.Note: Supplement-A is generally not required for a requestto roll an existing maturing advance into a new advancewith a maturity of six months or less and does not involvethe disbursement of new funds. Please direct any questionsregarding Supplement-A to the Credit Department at617-292-9795.Maturity and/or Other Borrowing RestrictionsThe Bank may impose a maturity and or other borrowingrestrictions on a member if the Bank determines that themember’s financial condition presents the Bank with anelevated level of risk, such as, if a member fails to complywith any of its regulatory capital requirements. Restrictionsmay also apply to a member that is affiliated with a holdingcompany or other affiliated entity that is not in compliancewith its regulatory capital requirements or that is operatingin receivership, conservatorship, bankruptcy, or under thecontrol of the regulatory entity.Statutory RestrictionsFinance Agency regulations prohibit the Bank from extendingnew credit to a member that becomes insolvent on atangible equity capital basis. However, the Bank, in its solediscretion, may renew maturing advances to such a memberinto an overnight Rollover Cash Manager Advance, ormay require prompt repayment of maturing advances. Aninsolvent member also may not maintain an IDEAL Way lineof credit with the Bank. In addition, the Bank may deem amember that is operating under the control of its primaryregulator to be insolvent on a tangible equity capital basis.underwriting requirementsMain 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 36