 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
|
|
||
|
Standby Letters of Credit: Frequently Asked Questions
What types of community projects can be financed using the Bank's standby letters of credit? Standby letters of credit can facilitate a variety of third-party transactions including affordable rental housing and community economic development projects such as small business loans. Top
What is the rating for the Bank's standby letter of credit? Because the Bank is rated Aaa by Moody's Investors Service and AA+ by Standard & Poor's, using the Bank's standby letters of credit may result in a Aaa or AA+ rating on the issuance of commercial paper or medium-term notes, reducing financing costs. Top
Can the Bank's standby letters of credit be used to support non-housing related tax-exempt bonds? Recent federal legislation has made it possible for member institutions to use FHLBank standby letters of credit to support non-housing related tax-exempt bonds until December 31, 2010. For more information, see FHLBank Letters of Credit to Support Community Development. Top
|
|
|
||