As used in this part:
means the Federal Home Loan Bank Act as amended (12 U.S.C. 1421
Applicant means a person or entity at whose request or for whose account a standby letter of credit is issued.
written in title case means a Federal Home Loan Bank established under section 12 of the Act (12 U.S.C. 1432
Beneficiary means a person or entity who, under the terms of a standby letter of credit, is entitled to have its complying presentation honored.
means providing financing for economic development projects for targeted beneficiaries, and, for community financial institutions (as defined in § 1263.1
of this title), purchasing or funding small business loans, small farm loans or small agri-business loans (as defined in § 1266.1
of this chapter).
Confirm means to undertake, at the request or with the consent of the issuer, to honor a presentation under a standby letter of credit issued by a member or housing associate.
Document means a draft or other demand, document of title, investment security, certificate, invoice, or other record, statement, or representation of fact, law, right, or opinion that is presented under the terms of a standby letter of credit.
Investment grade means:
A credit quality rating in one of the four highest credit rating categories by an NRSRO and not below the fourth highest credit rating category by any NRSRO; or
If there is no credit quality rating by an NRSRO, a determination by a Bank that the issuer, asset or instrument is the credit equivalent of investment grade using credit rating standards available from an NRSRO or other similar standards.
Issuer means a person or entity that issues a standby letter of credit.
NRSRO means a credit rating organization registered with the Securities and Exchange Commission as a nationally recognized statistical rating organization.
Presentation means delivery of a document to an issuer, or an entity that has undertaken a confirmation at the request or with the consent of the issuer, for the giving of value under a standby letter of credit.
Residential housing finance means:
The purchase or funding of “residential housing finance assets,” as that term is defined in § 1266.1 of this chapter; or
Other activities that support the development or construction of residential housing.
means a housing associate that is a “state housing finance agency,” as that term is defined in § 1264.1
of this chapter, and that has met the requirements of § 1269.3(b)
of this chapter.
Standby letter of credit means a definite undertaking by an issuer on behalf of an applicant that represents an obligation to the beneficiary, pursuant to a complying presentation: to repay money borrowed by, advanced to, or for the account of the applicant; to make payment on account of any indebtedness undertaken by the applicant; or to make payment on account of any default by the applicant in the performance of an obligation. The term standby letter of credit does not include a commercial letter of credit, or any short-term self-liquidating instrument used to finance the movement of goods.
[63 FR 65699
, Nov. 30, 1998, as amended at 65 FR 8265
, Feb. 18, 2000; 65 FR 44431
, July 18, 2000. Redesignated and amended at 67 FR 12853
, Mar. 20, 2002; 75 FR 8240
, Feb. 24, 2010; 75 FR 76623
, Dec. 9, 2010]