Letters of Credit

Leverage the strength and security of FHLB Des Moines credit rating.

Letter of Credit Application

A Letter of Credit (LOC) from FHLB Des Moines is a product issued to guarantee payment for a member institution.

Letters of Credit are used for a variety of purposes, most commonly as an attractive alternative to pledging securities for public unit deposits. LOCs can also be used on other qualifying transactions -- bond issuances for community improvement projects, for example -- to improve the credit rating, thus lowering the cost of the project. The Bank's credit standing and capital market access substitutes for that of the member which helps to ensure a wide acceptance of our LOCs.

Confirming Letters of Credit

Used to provide credit enhancement and support for bonds, in turn lowering costs and encouraging growth in your community

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Standby Letters of Credit

An irrevocable agreement issued in favor of a public unit as an alternative to pledging securities to secure public unit deposits.

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Please contact the Money Desk with questions about Letters of Credit or for additional assistance and details.