The Federal Home Loan Bank of Chicago offers irrevocable letters of credit that provide members a low-cost and effective way to attract and secure agreements with third parties. Using a letter of credit from FHLBank Chicago allows members to leverage our Aaa/AA+ credit rating at a competitive price.


Public Unit DepositsPerformance GuaranteeBond Credit Enhancement
UseCollateralize Public Unit Deposits above the FDIC limit  
Secure performance obligations such as: construction projects, insurance payments (e.g. workers’ comp), lease payments, working capital guarantees  
Credit enhancement for bonds issued to finance housing development projects and taxable community economic development projects  
SecureLeverage FHLBank Chicago Aaa/AA+ rating
PayoutPays out promptly in event of draw request
Confirming option 
ConvenientEliminates the need to monitor securities collateral 
Can issue within 24 hours 
Annual auto-renewal option
Low CostCompetitively priced
Community Investment reduced rate available 


Learn more about letters of credit by contacting one of our product specialists at or your Sales Director at Terms and conditions are subject to change.