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Contact Information:
- Fax completed form(s) to the Member Sales Group at (214) 441-8551.
- Call the Member Sales Group at (800) 442-9841 or email lend@fhlb.com to confirm the Bank's receipt of the form(s).
STANDBY LETTERS OF CREDIT
The Bank offers Standby Letters of Credit, Confirmations and Custodial Letters of Credit on behalf of members to facilitate business transactions the member may have with third parties as defined in the Bank's Advances Products Guide.
Issuance Fee
The Bank will charge an issuance fee per annum, per million in connection
with each Letter of Credit issued. Issuance fees are nonrefundable, regardless
of whether the Letter of Credit is canceled or drafts are presented prior
to the expiration of the Letter of Credit.
An additional $250 fee for a Letter of Credit when the application (including an application to renew an expiring Letter of Credit) is received after 3:30 p.m. central time and the Bank is instructed to process the Letter of Credit the same day. The $250 fee will be applied in addition to the standard fees charged for Letters of Credit.
New Pricing Fee Structure Effective September 15, 2006
|
Product |
Minimum Fee |
<=180 days |
>180 days and <= 365 days |
>365 days |
Standby LOC |
$125 |
16 bp |
14 bp |
12 bp |
Community Investment Standby LOC |
$125 |
10 bp |
8 bp |
6 bp |
|
Product |
Processing Fee |
<=1 year |
>1 year and <=5 years |
>5 year and <=10 years |
Confirmations of LOC including Taxable Bonds
|
$3500 ($1500 for renewal) |
20 bp |
25 bp |
30 bp |
Confirmations of LOC Tax-exempt Bonds
|
$5000 ($2500 for renewal) |
20 bp |
25 bp |
30 bp |
Community Investment Confirmations of LOC including Taxable Bonds |
$3500
($1500 for renewal) |
15 bp |
20 bp |
25 bp |
Community Investment Confirmations of LOC for Tax-exempt Bonds |
$5000
($2500 for renewal) |
15 bp |
20 bp |
25 bp |
Terms
1 day to 10 years
Letters of Credit will not be issued for terms exceeding 10 years. Once issued, a Letter of Credit shall remain in effect until the stated termination date, unless all parties, including the beneficiary, agree in writing to an earlier termination.
Availability
The member must execute an Agreement for Standby Letter of Credit Advances/Confirmation
Collateral Pledge and Security Agreement, that sets forth the terms
and conditions of the issuance of Letters of Credit by the Bank. A separate
application form acceptable to the Bank must be submitted for each Letter
of Credit, identifying the beneficiary, the purpose of the Letter of Credit,
and other information required by the Bank.
All Letters of Credit issued by the Bank will be secured by the pledge of, and creation of a security interest in, collateral as provided for in the Bank's current Member Products & Credit Policy . The principal amount of the Letter of Credit/Confirmation will be added to the members' outstanding advances for the purposes of calculating collateral requirements.
The Bank does not anticipate that a Standby Letter of Credit or Confirmation will be funded. However, if funding does occur an appropriate term and interest rate will be determined at that time, and any required capital stock purchases will be calculated at the time of such funding. A negotiation fee equal to 1 percent of the amount funded pursuant to the Letter of Credit will be charged to the member.
Renewal
Letters of Credit are not automatically renewed. At maturity, new Letters
of Credit may be requested by a member.
Send comments, and questions to lend@fhlb.com
© 2005 Federal Home
Loan Bank of Dallas. All Rights Reserved.