Capital Stock

The Federal Home Loan Bank of New York has compiled a list of Frequently Asked Questions and their answers below. If there is an area of interest that is not on the list, please feel free to contact a Calling Officer at (212) 441-6700 or e-mail fhlbny@fhlbny.com.

About Capital Stock

 

  1. Does the Federal Home Loan Bank of New York (FHLBNY) pay the same dividend on Membership and Activity-Based Stock? 
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    • Yes.
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  2. Is the dividend calculation based on quarter-end balances or averaged over the quarter?
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    • The dividend is paid on a date set by the FHLBNY’s Board of Directors, pro rata, upon the average paid-in value of the FHLBNY’s Capital Stock outstanding during any portion of a quarter. As such, each member that continues to hold Capital Stock is entitled to receive dividends that are declared on all Capital Stock held during the applicable quarter for the period of time the member owns the Capital Stock.
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  3. When is the dividend paid?
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    • Normally, the dividend will be announced following a vote that will occur at a Board of Directors meeting that takes place about six to seven weeks after the quarter ends. The FHLBNY will use its best efforts to pay the dividend as quickly as practical after the announcement.
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  4. Who decides and declares the dividend?
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    • The Board of Directors, in its discretion, declares the dividend to be paid on the Capital Stock. Currently the dividend rate is determined by the Board of Directors without regard to any particular index.
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  5. Is the dividend taxable?
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    • We suggest that our members consult with their tax advisors regarding tax issues.
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  6. Would you ever consider paying out dividends in Capital Stock instead of cash?
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    • Dividend payments may be in the form of cash, additional shares of Capital Stock, or a combination thereof as determined by the Board of Directors. To date, the FHLBNY has never paid a stock dividend.
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  7. How are Membership and Activity-Based Stock purchase requirements determined?
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    • For Membership Stock, each member is required to purchase Membership Stock in an amount equal to the greater of (i) $1,000 or (ii) 0.125% of the Mortgage-related Assets held by the member, as listed and described in the Capital Plan located at www.fhlbny.com/capitalplan. In March of each year, the FHLBNY recalculates each member’s Membership Stock purchase requirements based on previous year-end financial information.

      Each member is also required to purchase Activity-Based Stock currently in an amount equal to 4.50% of the dollar amount of any outstanding advances. In addition, members participating in the FHLBNY’s Mortgage Partnership Finance® (MPF®) Program are required to purchase Activity-Based Stock in an amount equal to a specified percentage (currently 4.50%) of the outstanding principal balance of MPF delivery commitments originated for or sold to the FHLBNY, plus the principal amount of delivery commitments issued to the member by the FHLBNY (as further defined in the Capital Plan).
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  8. What is the par value of the FHLBNY’s Capital Stock?
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    • The par value of FHLBNY Capital Stock has been set by the Board of Directors at $100 per share
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  9. When is the Activity-Based Stock redeemed?
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    • Activity-Based Stock is redeemed daily when advances mature or are prepaid.
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  10. Can I purchase additional FHLBNY Capital Stock?
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    • The voluntary purchase of stock in excess of the requirements contained in the Capital Plan described above is currently not permitted.
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  11. Do members receive stock certificates for the FHLBNY Capital Stock they own?
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    • Shares of FHLBNY Capital Stock are recorded electronically and no stock certificates are issued.
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