Standby Letter of Credit Application
To complete and submit an LOC application, simply follow the steps below:
1. Download the Standby Letter of Credit application form.
2. Complete all of the required application fields.
3. Save the application as a Word document using a file name of the beneficiary. This will save you time the next time you assist the same beneficiary.
4. Email the application to the Money Desk for processing. Applications must be received by 3:00 p.m. (CT) for same day processing. While members can fax the application to the Money Desk, emailed applications are the preferred submission method.
Please contact the Money Desk if you have any questions about the Standby Letter of Credit application form, need additional assistance or would like additional details about our Letter of Credit.
Use of the Bank’s LOC may be subject to state and/or federal regulations. As we do not provide any guidance on this matter, it is each member’s responsibility to ensure that the use of an FHLB Des Moines LOC complies with any regulation to which a member is subject to.
LOCs are subject to the same collateral requirements as Bank advances.
Activity Stock Requirements
Effective October 1, 2020, members will be required to purchase and hold activity stock in an amount equal to 0.10% for LOCs. This requirement will apply to any new, renewed or modified confirming or standby LOCs issued on or after October 1, 2020.