Overdraft Line of Credit

Description
Overdraft lines of credit offer immediate short-term funds through an institution's CMS account. Members approved for the overdraft line of credit will be assigned a ceiling level for such overdraft privileges. This line of credit will allow members to fund short-term cash needs without submitting a new application for each request for funds.

Overdrafts in excess of the ceiling or in the absence of an approved line are explicitly not authorized and will be assessed a penalty.

Term
Up to one year.

Application
Call the FHLBI by 5:00 p.m. Indianapolis time. A credit decision will usually be available by 4 p.m. the next day. Until such a line is approved, each member is subject to an overdraft penalty rate equal to 200 basis points over the variable advance rate.

Rates
Within the range of funding approved, a rate equal to the current variable advance rate will be charged.

Takedown
The member may draw funds any business day during the one-year term of the credit line by simply accessing its CMS account with the FHLBI.

Commitment fee
A nonrefundable commitment fee of .0002 (two basis points) of the amount of the line approved will be charged upon credit approval. (If the FHLBI cancels the line during the year for any reason, a prorata portion of the fee will be refunded.)

Collateral
The full amount of funds authorized by such a line of credit must be collateralized as any other advance would be, and is subject to regular borrowing limits. Collateral and capital stock will be adjusted at the time the line is approved.

Prepayment
May be paid at any time without fee by depositing funds to the CMS account.

Updated: February 25, 2008