A forward starting long-term fixed-rate advance provides members the opportunity to secure future fixed rate bullet advances at current forward rates.
This advance:
- Combines a forward-rate commitment during the forward-starting period and a fixed-rate bullet advance upon settlement and
- Can protect against rising rates for funding needs at a later date.
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Term
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Typical maturities from 1-Year to 10-Years
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Rate
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Remains fixed for entire term of maturity
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Interest is Paid
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Monthly and/or at Maturity
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Principal is Paid
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At Maturity
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Principal Prepayment Policy
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The prepayment fee for cancellation of the mandatory rate commitment prior to the settlement date of the advance is described in the Confirmation of Mandatory Takedown Rate Commitment for Term Advance. After settlement and funding, member may prepay subject to applicable prepayment fees described in the Repayment Procedures section of the Credit Policy.
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Application
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Prior to FHLBank Indianapolis issuing a rate commitment, a member must sign and return an Application for a Forward-Starting Fixed-Rate Bullet Advance
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Contact Us
For more information or questions about our products, call the
FHLBank Indianapolis Advances Desk at 800.442.2568.