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Bulletin No.: 2020-01
February 28, 2020

TO: MEMBERS

SUBJECT: Special Advances Offering with Reduced Capital Stock Requirement and Membership Investment Requirement for 2020

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 reduce the activity-based capital stock investment requirement from 4.1 percent to 2 percent for up to $5 billion of advances that are funded during the period from April 1, 2020 through December 31, 2020. To be eligible for the reduced activity-based investment requirement, the advances must have a maturity of one year or greater.

As further described below, 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.

Membership Investment Requirement for 2020

Separately, the Bank will implement the annual adjustment to members' minimum investment requirements on April 20, 2020. This annual adjustment may increase or decrease the amount of capital stock that individual members are required to maintain.

The membership investment requirement percentage for 2020 will remain at 0.04 percent of each member's total assets as of the most recent year end, subject to a minimum amount of $1,000 and a maximum amount of $7 million. In early April, your institution will receive a separate notification of the new membership investment requirement based on your December 31, 2019 total assets.

The activity-based component of the minimum investment requirement will remain at 4.1 percent of each member's outstanding advances, except for advances that were funded as part of the Bank's special advances offering with reduced capital stock requirements during the fourth quarter of 2015 and any advances that are funded as part of the special advances offering described in this bulletin. In each case, the minimum investment requirement for those advances will remain at 2 percent following the annual adjustment.

As always, thank you for being a valued member.

Sincerely,

 

Sanjay K. Bhasin
President and Chief Executive Officer