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Letters of Credit

Learn more about how other FHLB Dallas members are using Letters of Credit to provide flexibilities and efficiencies over pledging securities against deposits.


Standby Letters of Credit (LOC), Confirmations of Letters of Credit and Custodial Letters of Credit are issued on behalf of members by FHLB Dallas to facilitate business transactions with third parties.

Letters of Credit assist in providing:

  • Residential housing finance
  • Community lending
  • Asset and liability management
  • Secure liquidity or other funding
  • An alternative to purchasing securities to secure public unit deposits