Interest Rate Swap

Description
Interest rate swaps are an off balance sheet hedging instrument used to transform liabilities and assets and are offered in various sizes by the FHLBI, subject to availability.

Term
Various terms may be arranged, usually in the 1 to 10 year range.

Application
Call the FHLBI by 5:00 p.m. Indianapolis time to request a credit decision and to discuss notional principal amounts. Specific terms will be discussed after credit approval has been made.

Beginning date
The swap will begin within 30 calendar days of credit approval; a specific beginning date will be discussed as part of the conditions of the swap.

Rate
Specific terms will be negotiated after credit approval.

Commitment fee
None.

Collateral
The member will be required to post collateral in accordance with the requirements set forth in the Credit Policy.

Capital stock
A member must hold FHLBI capital stock equal to at least 5% of the amount of collateral required for the swap. This requirement is in addition to the capital stock required for advances and other credit products, and will be adjusted monthly with changes in the collateral requirement. Members will be notified of any required stock purchases.

Termination
Terminating a swap may be arranged with the FHLBI based on market conditions and the requirements of the particular interest rate swap agreement. Call for details.

Updated: February 25, 2008