In order to take advantage of the benefits offered by the Federal Home Loan Bank of Chicago, an institution must apply for membership and once approved, purchase stock. Through their capital stock investment, members are the sole owners of the FHLB Chicago. Those general benefits are:

• reliable source of liquidity;

• flexible products to manage interest rate and other risks;

• competitive products to fund needs and build business;

• access to the MPF^® Program, the FHLB Chicago's mortgage finance alternative;

• community investment and affordable housing products to assist in meeting objectives in these areas at a lower marginal cost;

• products that enable member institutions to fund their balance sheet at a lower marginal cost;

• borrowing advantages from marketplace power;

• high quality deposit and non-credit services; and

• term funds with maturities of 10 years or longer, rarely available through other sources.

Access to the FHLB Chicago's low-cost credit programs allows member institutions to realize additional benefits, including:

• enhance asset/liability management;

• hold less liquidity on member's books;

• lower cost of funds;

• offer mortgages that meet the needs of members' customers;

• reduce interest rate risk, basis risk, and prepayment risk exposure;

• manage mortgage pipelines; and fund community rehabilitation and redevelopment projects.

Products and services of the FHLB Chicago are developed to benefit the members twice - first as customers when they use the FHLB Chicago's products, and again as stockholders when they receive the FHLB Chicago's quarterly dividend. FHLB Chicago stock carries a fixed par value of $100 per share and dividends are paid entirely from operating profits.