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 Deposits||Performance Guarantee||Bond Credit Enhancement|
|Use||Collateralize 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||•|
|Secure||Leverage FHLBank Chicago Aaa/AA+ rating||•||•||•|
|Payout||Pays out promptly in event of draw request||•||•||•|
|Convenient||Eliminates the need to monitor securities collateral||•||•|
|Can issue within 24 hours||•||•|
|Annual auto-renewal option||•||•||•|
|Low Cost||Competitively priced||•||•||•|
|Community Investment reduced rate available||•||•|
Learn more about letters of credit by contacting one of our product specialists at firstname.lastname@example.org or your Sales Director at email@example.com. Terms and conditions are subject to change.