Floating Rate Advances provide funding with rate resets at periodic intervals, usually tied to one-month or three-month LIBOR, 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||Fixed Rate with Floating Spread*||SOFR Floater||Discount Note Floater||Overnight Discount Note Floater||LIBOR Floater*||Callable Floating Rate Advance||Prime Floater||Prepayable Prime Floater|
|Term||1 day; auto-renews||30 days||1 week–|
|28 days - 10 years||28 days–|
|1–92 days||180 days–|
|1 – 10 years||180 days–|
|Term Extension Option|
|Put Option Owned by FHLBank Chicago||•|
|Call Option Owned by Member||On reset dates||On reset dates (daily)||On reset dates||On reset dates|
|Same-Day Funding (prior to 3:00 p.m.)||•||•||•||•||•||•||•||•||•||•||Prior to |
|Available for Community Advances||•||•||•||•||•||•|
|Rate Index||FHLBank Chicago federal funds effective||FHLBank Chicago federal funds effective||Market federal funds effective||3-month LIBOR and 3-month advance||Set daily at a fixed spread to the Secured Overnight Financing Rate (SOFR)||4-week, 13-week, and 26-week discount note index||Overnight discount note index||1-month and 3-month LIBOR||Set daily at a fixed spread to SOFR||Prime rate||Prime rate|
|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 on reset dates||No fee on reset dates||•||•||•||No fee on reset dates|
|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%|
|Benefits||Liquidity, match funding||Liquidity, funding||Liquidity, funding||Funding, hedge interest-rate risk||Match funding, hedge interest-rate risk||Liquidity, blended funding||Liquidity, blended funding||Match funding, hedge interest-rate risk||Match funding, hedge interest-rate risk||Match funding, hedge interest-rate risk||Match funding, hedge interest-rate risk|
* From now until March 31, 2020, members can continue to execute the advance products with a LIBOR component with no tenor restrictions as long as the transactions settle by March 31, 2020. Beginning April 1, 2020, members can still transact the indicated advance products with a LIBOR component as long as they mature by December 31, 2021. Beginning April 1, 2020, transactions with maturities settling beyond December 31, 2021, are expected to be suspended.
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.