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Bulletin No.: 2020-18
July 1, 2020

TO: MEMBERS

SUBJECT: Modification to Special Advances Offering with Reduced Capital Stock Requirement

The Federal Home Loan Bank of Dallas (Bank) is pleased to announce that our Board of Directors has authorized the Bank to expand the population of advances that are eligible for the current reduced capital stock investment requirement.

Under the current special advances offering (that is, the offering prior to the modifications discussed in this bulletin), the activity-based capital stock investment requirement has been reduced from 4.1 percent to 2 percent for up to $5 billion of advances that: (i) are funded during the period from April 1, 2020 through December 31, 2020 and (ii) have a maturity of one year or greater.

As modified, the Bank's activity-based capital stock investment requirement will be reduced from 4.1 percent to 2 percent for advances that: (1) are funded during the period from August 1, 2020 through December 31, 2020 and (2) have a maturity of 28 days or greater. For advances that are funded on or prior to July 31, 2020, the current reduced activity-based capital stock investment requirement will continue to apply to advances that have a maturity of one year or greater, consistent with the terms of the original offering.

At any time during the period from April 1, 2020 through December 31, 2020, the maximum balance of advances to which the reduced activity-based capital stock investment requirement can be applied is $5 billion. If, at the time of funding an advance that would otherwise be eligible for the reduced capital stock investment requirement, the then outstanding balance of advances made pursuant to this offering totals $5 billion, then the standard capital stock investment requirement of 4.1 percent will apply.

Except as described in this bulletin, the standard capital stock investment requirement of 4.1 percent will continue to apply to all other advances that are funded during this period. All other minimum investment requirements will also continue to apply.

As always, thank you for being a valued member.

 

Sincerely,

 

Sanjay K. Bhasin
President and Chief Executive Officer