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