Advance pricing

Advance pricing -
(1) General. A Bank shall not price its advances to members below:
(i) The marginal cost to the Bank of raising matching term and maturity funds in the marketplace, including embedded options; and
(ii) The administrative and operating costs associated with making such advances to members.
(2) Differential pricing.
(i) Each Bank may, in pricing its advances, distinguish among members based upon its assessment of:
(A) The credit and other risks to the Bank of lending to any particular member; or
(B) Other reasonable criteria that may be applied equally to all members.
(ii) Each Bank shall include in its member products policy required by ยง 917.4 of this title, standards and criteria for such differential pricing and shall apply such standards and criteria consistently and without discrimination to all members applying for advances.
(3) Exceptions. The advance pricing policies contained in paragraph (b)(1) of this section shall not apply in the case of:
(i) A Bank's CICA programs; and
(ii) Any other advances programs that are volume limited and specifically approved by the Bank's board of directors.

Source

12 CFR § 1266.5


Scoping language

None
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