Delayed Amortizing Advances

A flexible, fixed-rate amortizing advance that is easily customized by members. A delay feature has been added to the Bank’s Amortizing Advance product line which gives you control over the timing of the principal cash flows and for the repayment of the advance. Advance proceeds are made available on day one, but the commencement of the repayment of the principal can be delayed for up to five years!

Terms and Conditions

  • $100,000 minimum advance size
  • Maximum term to maturity (including delay) up to 20 years
  • Amortization delay up to 5 years
  • Only interest is paid during the delay period
  • Level principal payments or level payment schedules available
  • Fully amortized
  • Available with or without a prepayment option

The Uses

Tailor your funding channels to deliver the services your customers demand:

  • Accommodate a front-end construction period
  • Match the duration of an agricultural loan
  • Finance a land or building purchase for an agriculture or commercial customer
  • Availability is one call away, so you can bid on deals and know you will get funds quickly and efficiently.

The Strategy

While you can’t control rates, you can control spreads and closely match the cash flows of the loans. When properly applied, the Delayed Amortizing Advance can be a sound choice for your institution.

Please contact your Relationship Manager if you have further questions.