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Fees

Any Letter of Credit (LOC) fee is subject to change in the future.

Standby Letter of Credit Fee

Upon issuance of a Standby Letter of Credit, the Bank charges a non-refundable fee which is calculated using the following formula: {Face Amount * FEE * (Term in Days/360)}.

  • The FEE used in the above formula is based upon the Face Amount of the Standby LOC and is currently 10.5 bps per annum
  • Billed at time of issuance
  • The minimum charge for any Standby LOC is $250.

Standby Fluctuating Balance Letter of Credit Fee

The Bank charges a non-refundable fee for a Standby Fluctuating Balance Letter of Credit, which is calculated and assessed quarterly using the following formula: {Certified Amount * FEE * (Term in Days/360)}.

  • The Certified Amount used in the above formula is based on the average daily balance of the funds on deposit for the preceding quarter
  • The FEE for this product is currently 11.5 bps per annum
  • The quarterly minimum charge for any Standby Fluctuating Balance LOC is $725.

Confirming Letter of Credit Fee

Upon issuance of a Non-Bond Issuance Confirming Letter of Credit, the Bank charges a non-refundable fee which is calculated using the following formula: {Face Amount * FEE * (Term in Days/360)}.

  • The FEE used in the above formula is based upon the Face Amount of the Confirming LOC and is currently 10.5 bps per annum
  • Billed at time of issuance
  • The minimum charge for any Confirming LOC is $750. 

Please contact the Money Desk for Bond Issuance Confirming Letter of Credit Fees.

Letter of Credit Draw Fee

A processing fee of $250 will be charged by the Bank for each individual draw request on a Letter of Credit.

Collateral Requirements

A Letter of Credit is subject to the same collateral requirements as Bank advances.

Activity Stock Requirements

Members will be required to purchase and hold activity stock in an amount equal to 0.10% for LOCs.

Contact the Money Desk.