February 10, 2021
FHLBNY Capital Stock Purchase Requirement for Letters of Credit
Effective March 1, 2021
Through this notice, the Federal Home Loan Bank of New York (“FHLBNY”) hereby announces that, effective March 1, 2021, the FHLBNY will implement an activity-based capital stock purchase requirement of 0.125% on the outstanding principal balance of new and renewing Letters of Credit issued by the FHLBNY on a Member’s behalf.
Previously, on September 2, 2020, the FHLBNY notified its members of its amended Capital Plan (Plan) which became effective October 2, 2020. The amended Plan included a capital stock purchase requirement for all new and renewing Letters of Credit. At that time, the FHLBNY said that the specific purchase requirement would be announced by the FHLBNY at least 10 days ahead of the implementation date, that the implementation of the new purchase requirement was expected to take place no later than March 31, 2021, and that the purchase requirement would in no event be less than 0.10% or more than 2.50% of the outstanding principal balance of new and renewing Letters of Credit.
A copy of the Plan that will go into effect on March 1, 2021, is available at www.fhlbny.com/capital-plan.
If you have any questions about the Capital Plan, please call your Relationship Manager at (212) 441-6700.
Thank you for your support.
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