Changes to FHLBank Topeka's Member Products Policy

The FHLBank Topeka board of directors, at its December 18, 2008, meeting, approved changes to the Member Products Policy. The changes identified below are effective immediately. We encourage you to place this memo detailing the policy changes with your hard copy of FHLBank Topeka’s Member Products and Services Guide. The changes have published to the online version of the Guide.

Changes to the Standby Credit Facility (SCF) - New SCF commitments will no longer be required to be collateralized at the time of issuance. However, all SCF draws must be fully collateralized prior to disbursement. Additionally, new SCF commitments will no longer be included in total credit obligations until the commitment is drawn upon.

Private Issue CMOs - The Schedule of Eligible Collateral was modified to clarify that inverse floater tranches are considered eligible collateral, but are considered on a case-by-case basis. If approved, inverse floater tranches will be classified as restricted collateral. The aggregate amount of restricted collateral is limited to 25% of a member’s total assets.

If you have any questions regarding these changes to the Member Products Policy, please contact Sonia Betsworth, Director of Member Products, or Alan Scheef, Credit Administration Officer, at 800.809.2733.