Letters of Credit
Overview Regular L/Cs MULOCs Additional Information



Calling Officers
(212) 441-6700


Form a Strategic Alliance with an FHLBNY Letter of Credit

As a key partner in financing, the Federal Home Loan Bank of New York (FHLBNY) issues triple-A-rated Letters of Credit (L/C) on behalf of its members to support liquidity, asset/liability management, and housing, community, and economic development activities.  An FHLBNY L/C is a promise, made at the request of an FHLBNY member, to make payments to a third-party beneficiary in the event of a default of performance.
View a sample of an FHLBNY L/C agreement.

L/Cs are low-cost, easy to use, and do not require a capital stock purchase.  The FHLBNY offers two forms of L/Cs to members to support various funding needs:


Regular L/Cs
Can be used if you are looking to collateralize:
  • Mortgage Revenue Bonds
  • Community Development Bonds
  • Certificates of Deposit
  • Funds Promissory Notes
  • Construction Funding for Elderly Housing Complexes
  • Rental Achievement Guarantees
  • Credit Enhancement for CRA or Community Support
  • IDA Financing
  • Interest Rate Swaps
  • Lease Agreements

Click Here for More Info


Municipal Letters of Credit (MULOCs)
As permitted by New York*, New Jersey**, Puerto Rico and U.S. Virgin Islands laws, MULOCs can be used if you are looking to collateralize:
  • State, city, court, or local government (municipal/public fund) deposits

Members, Click Here for More Info  Municipalities, Click Here for More Info
Lear more about NJ GUDPA Participation


*In New York, MULOCs can be used for Banking Development Districts and New York State Community Development Program Deposits.

**Other states may allow MULOCs to be used as collateral for public unit deposits.



Calling Officers
(212) 441-6700


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