Our Letter of Credit is the simple way to secure public unit deposits in Colorado, Kansas, Nebraska and Oklahoma.
OUr LETTERs OF CREDIT are Easy as pie
No matter how you slice it, letters of credit are the easy choice for securing public unit deposits. The FHLBank Topeka Standby Letter of Credit is issued to the municipality or state that is depositing funds with your institution. You set the amount and the maturity date and let our helpful staff do the rest.
Check out our videos at the right to see why the letter of credit is a smart choice for your financial institution. If you're a public unit depositor, we have a video for you, too.
HOW DOES MY INSTITUTION BENEFIT?
Our Standby Letter of Credit gives you more flexibility.
- Strengthens your depository relationships by guaranteeing the return of funds
- Promotes higher yields on assets by reducing portfolio investments in low-yielding Treasury and agency securities, and increasing allocation to higher-yielding securities and loans
- Eliminates monitoring market values and maturity dates because our letter of credit's value never changes
- Reduces paperwork and administrative fees associated with pledging and releasing securities and replacing maturing or called instruments
- 0.125% per annum on the day of issue ($125 minimum fee)
- Fees on letters of credit of $5 million or more may be charged on a quarterly basis
ACCESSING OUR LETTER OF CREDIT
Once you experience our blue ribbon, same-day service, you won't want to secure funds any other way. The forms you need to facilitate a letter of credit are on the right. Simply click on your state's link to download all the materials you need.
Please contact Lending at 800.809.2733 for more information.