Bulletin No.: 2008-03
April 9, 2008

TO: STOCKHOLDERS

SUBJECT: Changes to Collateral Verification Guidelines; Extension of Wire Deadline; and 2008 Membership Investment Requirement

The Federal Home Loan Bank of Dallas’s(Bank) collateral verification policies, as more fully described in the Bank’s Member Products and Credit Policy on fhlb.com, requires members with blanket lien usage to undergo periodic collateral verifications.

A member is considered to be using the blanket lien when the member’s outstanding advances and other obligations to the Bank exceed the sum of securities, Bank term deposits and eligible loans delivered to the Bank.

Prior to January 1, 2008, a member using the blanket lien was required to undergo periodic on-site collateral verifications and trial-balance reviews regardless of the amount of the member’s blanket lien usage.

Effective January 1, 2008, the Bank is reducing the collateral verification requirements for members with limited blanket lien usage.  The collateral verification for any member with an average daily blanket usage during the prior calendar year equal to or less than $200,000 will consist only of a trial balance review that will be conducted after the end of the third calendar year following the member’s most recent review, provided the member does not exceed an average daily blanket lien usage of $200,000 in any year during the three year period. If in any one year during the aforementioned three year period the member does not use the blanket lien, the Bank will not require a collateral verification trial balance review for the member.

 Extended Wire Deadline

Effective April 15, the incoming wire deadline has been extended from 3:00 p.m. to 4:00 p.m. Central Standard Time.

Membership Investment Requirement for 2008

The annual adjustment to the membership investment requirement will be implemented on April 15, 2008.  The membership investment requirement will remain at 0.06 percent of members’ total assets as of December 31, 2007, subject to a minimum amount of $1,000 and a maximum amount of $25 million.  This adjustment may increase or decrease the amount of capital stock that members are required to maintain.

The activity-based component of members’ minimum investment requirements will remain at 4.10 percent of members’ outstanding advances.  Your institution should have already received a separate notification of the new amount of your membership investment requirement.

For additional information or to discuss these changes, please contact your Member Sales Officer at 800.442.9841.

Sincerely, 

Terry Smith
President and Chief Executive Officer

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