Determined on an individual transaction basis. Interest is payable and charged to the member's DID account on the fifth calendar day of each month using the following business day convention.
Day Count Fraction:
Actual/360
Strike Rate:
The LIBOR rate specified in the related application for advance, typically available in 25 bps increments beginning at the current "spot rate" (specific rates may be priced upon request.)
LIBOR:
The rate per annum for deposits in U.S. dollars (relative to the related interest period) having a tenor equal to the Payment Frequency, which appears on Telerate Page 3750 as of 11:00 a.m. London time on any given date that a LIBOR determination is necessary.
Option Type:
Either Bermudan or European.
Determination Date Frequency:
Quarterly (monthly, semi-annual or annual frequency may be priced upon request.)
Determination Date:
Five business days prior to the relevant Termination Date, from and including the Lockout Date, up to but excluding the Maturity Date, in each case subject to the following business day convention.
Determination Agent:
Federal Home Loan Bank of Chicago
Automatic Exercise:
If on the relevant Determination Date, LIBOR is equal to or greater than the designated Strike Rate, the advance shall terminate on the immediately following Termination Date.
Notification to Borrower:
Standard FHLBC practice will be to notify borrowers on the Determination Date by facsimile if an Automatic Exercise will occur. Even if such notice is not received by the borrower, the Automatic Exercise will still occur.
Prepayment:
Permitted pursuant to standard FHLBC policy.
Availability:
Same-day funding is available for transactions initiated prior to 2 p.m. (Chicago Time.)
Commitment:
Optional draw forward commitments are available for up to six months.
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