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London Interbank Offered Rate (LIBOR) Advance by wvm21293


									London Interbank Offered Rate (LIBOR) Advance
An advance that serves as a source of liquidity and is priced according to
prevailing rates on 1 and 3 month LIBOR:
•   Can be used to replenish liquidity to targeted levels in the event of savings deposit withdrawals
•   Serves as an ongoing source of liquidity at rates comparable to or below other short-term liabilities
•   A means of funding other indexed rate assets (e.g., Home Equity loans) to achieve spread and
    potential arbitrage

Maturity                                 12 months to 10 years (120 months)

Rate                                     Adjustable monthly (1 month LIBOR) or quarterly (3 month LIBOR) based
                                         upon the prevailing LIBOR rate at the time of repricing

Accrual Basis                            Actual / 360 day basis

Interest is Paid                         Monthly

Principal is Paid                        At Maturity

Principal Prepayment Policy              Prepayable without fee on repricing dates (excluding any “lockout”
                                         periods established by the borrower at inception), with two business day
                                         notification; 1 month LIBOR advances can only be prepaid on repricing
                                         dates; any other prepayments on 3 month LIBOR indexed advances may
                                         be subject to prepayment fee (equal to the present value of 100% of the
                                         lost cash flow for the term to the next repricing, based upon the
                                         difference between the LIBOR rate in effect on the advance and the
                                         current yield on FHLB securities—if current yield on FHLB securities is
                                         >= rate on LIBOR advance, no prepayment fee is assessed)

Submission of Application                A LIBOR Advance application is required for each borrowing

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