Forward Starting Long-Term Fixed Rate Advances

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.

Term

Typical maturities from 1-Year to 10-Years

Rate

Remains fixed for entire term of maturity

Interest is Paid

Monthly and/or at Maturity

Principal is Paid

At Maturity

Principal Prepayment Policy

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.

Application

Prior to FHLBank Indianapolis issuing a rate commitment, a member must sign and return an Application for a Forward-Starting Fixed-Rate Bullet Advance

Forward Starting Long-Term Fixed Rate Advances

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