Floating Rate Advances
Floating Rate Advances provide funding with rate resets at periodic intervals, usually tied to Secured Overnight Financing Rate, effective federal funds, Federal Home Loan Bank discount note, or prime rates. These advances can be a valuable tool for members to manage interest-rate risk and fund adjustable-rate loans.
| Features | Open Line of Credit | FHLBank Chicago Federal Funds Effective Putable Floater* | Market Federal Funds Effective Floater | SOFR Floater | Callable Floating Rate Advance | Discount Note Floater | Discount Note Floater (non- prepayable) | Overnight Discount Note Floater | Capped Floater | Prime Floater | Prepayable Prime Floater |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Advance Code | A010 | A012 | A016 | A300 | A380 | A382 | A382 | A384 | A390 | A410 | A411 |
| Interest Rate Type | Floating | Floating | Floating | Floating | Floating | Floating | Floating | Floating | Floating; subject to cap/floor | Floating | Floating |
| Floating Rate Index | FHLBank Chicago Federal Funds effective rate | FHLBank Chicago Federal Funds effective rate | Market Federal Funds effective | Secured Overnight Financing Rate (SOFR) | Secured Overnight Financing Rate (SOFR) | 4-week, 13-week, and 26-week FHLBank Chicago Discount Note index | 4-week, 13-week, and 26-week FHLBank Chicago Discount Note index | FHLBank Chicago Overnight Discount Note index | Secured Overnight Financing Rate (SOFR) | Prime rate | Prime rate |
| Interest Rate Cap | . | ||||||||||
| Interest Rate Floor | . | ||||||||||
| Minimum Size | $5mm | $1mm | |||||||||
| Term | 1 day; auto-renews | 30 days | 1 week - 180 days | 28 days - 10 years | 3 months - 10 years | 28 days - 10 years (varies based on selected index) | 28 days - 10 years (varies based on selected index) | 1 - 92 days | 180 days - 10 years | 180 days - 3 years | 180 - 3 years |
| FHLBank Chicago-Owned Embedded Option | Putable on specified put date(s) | Member-sold interest rate floor (optional) | |||||||||
| Member-Owned Embedded Option | Callable on specified call date(s) | Callable on reset dates | Callable on reset dates (daily) | Member-bought interest rate cap | Callable on reset dates (daily) | ||||||
| Principal Repayment | At maturity | At maturity | At maturity | At maturity | At maturity | At maturity | At maturity | At maturity | At maturity | At maturity | At maturity |
| Prepayment Fee | No fee with two day prior notice by 2 p.m. | • | • | • | No fee on reset dates | • | No fee on reset dates | • | • | No fee on reset dates | |
| Community Advances Eligibility | • | • | • | • | • | • | |||||
| Activity Stock | 4.5% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% |
| Uses | Liquidity, match funding | Liquidity, funding | Liquidity, funding | Match funding, hedge interest-rate risk | Match funding, hedge interest-rate risk | Liquidity, blended funding | Liquidity, blended funding | Liquidity, blended funding | Hedge duration/ convexity | Match funding, hedge interest-rate risk | Match funding, hedge interest-rate risk |
Same-day funding is available for transactions initiated prior to 3 p.m. (Central Time).
*The member must review and provide acknowledgement of a disclosure statement regarding the risks associated with this advance.
For additional information on advance products and terms, please contact your Sales Director or review the Member Products Guide. Product terms above are subject to change. Other terms may be available upon request.