Corporate Governance

The FHLBI is dedicated to the principles of excellent corporate governance and strives to ensure that its employees, vendors, and stakeholders operate under the highest ethical standards. These principles include timely and accurate financial disclosure in accordance with the FHLBI's Disclosure Policy, an open dialogue between the Board of Directors and management, accountability to its member shareholders and the public, and the utmost integrity in all of our actions. The FHLBI has adopted the following policies: the Anti-Fraud Policy , the Policy Prohibiting the Insider Trading of Securities , and the Whistle-blower Policy, which are designed to protect the confidential information of FHLBI and its members and ensure the integrity of transactions involving stock of FHLBI and member institutions.

The Board of Directors of the FHLBI strives continually to uphold these principles by attendance at committee and board meetings, advance preparation for such meetings, and active participation in educational and informational programs at the FHLBI, member gatherings, and with the regulators in Washington, D.C. The Board has implemented a Code of Conduct, including a conflict of interest policy, which is applicable to, and must be annually acknowledged by, all directors, officers, advisory council members, and FHLBI employees. The Code of Conduct requires that all those who are subject to it act only in the best interests of the FHLBI, its stakeholders, and its mission.

The majority of the Board is elected by the shareholder members from among their ranks. The remaining directors are appointed by the Federal Housing Finance Board to represent the communities served by the FHLBI and its members and to help focus the FHLBI on its housing and community development goals and objectives. The Board is responsible for ensuring that the FHLBI obtains favorable returns and that the development and delivery of mission-related products remains responsive to the needs of the members. All of the Board members have the same duties and take their responsibilities seriously.

Management of the FHLBI is accountable to the Board and is responsible for making sure that the Board is regularly provided with accurate, current information about the financial and operational condition of the FHLBI. The FHLBI's website provides a direct, secure link to all of the FHLBI's policies and procedures and access to meeting agendas, minutes, and other information. The staff makes sure that this information, as applicable, is relayed to the members, the regulators, and the public through quarterly and annual financial statement publications and posting on the FHLBI's website and, as applicable, the Office of Finance website.

The FHLBI has selected Ethicspoint to provide vendors and other users of FHLBI services, including the Affordable Housing Program (AHP), multiple ways to anonymously and confidentially report wrongdoing. Listed below are the different ways to contact and report to Ethicspoint.

• Telephone – Dial the toll free number 866.850.1408
• Click the Ethicspoint icon
• Log onto www.ethicspoint.com

If anybody discovers a potential safety violation, fraud, theft, wrongdoing, unauthorized destruction of FHLBI records, or material omission in reporting that could harm the FHLBI or its employees, shareholders, customers or vendors, he or she is encouraged to report such concerns to Ethicspoint. All reports will be treated seriously and will be investigated. Anyone making a good faith report will be protected from retaliation and harassment by the FHLBI and applicable whistleblower laws. Additionally, anyone making the report should immediately provide a follow-up report to Ethicspoint if that person believes he or she is or has been subject to any harassment, retaliation or other disadvantage as a result of filing a report with Ethicspoint.

The FHLBI is continuously working to improve corporate governance and promote the highest ethical standards. The Board and management are dedicated to complete and open financial disclosure and to providing the best service to the membership in the performance of the FHLBI's government-mandated mission of increasing home ownership and community economic development.

Updated: February 25, 2008