The way to show borrowing capacity to execute a credit transaction.

Ability to Show Borrowing Capacity

Once you've become an member, there are some additional steps required to establish borrowing capacity and establish the ability to execute a credit transaction:

1. Complete Borrowing Agreements

FHLBank Indianapolis requires all members to provide executed and signed Certified Resolution for Advances and Advances Pledge & Securities Agreements (APSA), as well as a Correspondent Services Agreement (CSA) outlining terms of use for our correspondent services and cash transfer capabilities. Additional agreements may also be required based on individual member standing and collateral arrangement. FHLBank Indianapolis Account Managers and Credit Dept staff will work with you to help you complete the process.

2. Pledge Collateral

To protect all members' interests, FHLBank Indianapolis I requires that all borrowings and outstanding lines and letters of credit be fully collateralized. The bank accepts a wide menu of securities, loans, and cash assets as collateral for securing advances and other credit products. Borrowing by members is limited by the amount and value of the member’s total eligible collateral pledged to the FHLBank Indianapolis. Further ?information regarding collateral eligibility, market valuation, pledge requirements, and over-collateralization requirements can be obtained by contacting an FHLBank Indianapolis Marketing Department Account Manager
at 1-800-442-2568.

3. Hold Stock to Support Activity

When joining FHLBank Indianapolis, an institution becomes a member after completing the application process and purchasing the required amount of FHLBank Indianapolis stock. However, when activity is done by a member, such as executing a credit transaction, an additional stock purchase may be needed.

The FHLBank Indianapolis Capital Plan provides an overview of the activity stock requirement.

capital plan

To learn more about becoming an FHLBank Indianapolis member and the process for obtaining credit, access the Department Directory to view contact information for an FHLBank Indianapolis Account Manager.

department directory