Master Notes

Investors seeking investment flexibility without sacrificing credit quality may be interested in an FHLBank Master Note. A Master Note is a negotiated agreement with initial maturities and indexed rates chosen by the investor, within a framework established by the FHLBanks. The investor may have the ability to vary the principal amount, and exercise a put option for early maturity. Conversely, the FHLBanks may have the ability to exercise a call option for early maturity.

Investor Options
Pricing Index - Various options for pricing indices and resets are possible with the agreement of the Office of Finance and the investor, including the Fed funds effective, T-bill, and custom Discount Note indices.

Investment Period - Investment principal generally can be varied daily from the Note's original principal within a specified range as agreed to by the investor and the Office of Finance. Minimum variations in principal are negotiable.

Put Option - After the Master Note has been in place for a predetermined number of days, the principal amount can be fully redeemed with an agreed upon number of New York business days' notice.

Original Settlement Dates - Negotiable in initial Master Note Agreement.

FHLBank Options
Call Option - The FHLBanks may have the option to call the Master Note with an agreed upon number of New York business days' notice, after the Note has been in place for a predetermined number of days.