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Capital Stock Requirements

Members purchase stock in proportion to their borrowings from FHLB Boston (activity-based stock) and levels of certain assets (membership stock). The Bank's stock investment requirements are as follows:

Membership Stock Investment Requirements

  • 0.35% of the Membership Stock Investment Base (see Capital Plan for definition)
  • $10,000 minimum. $25 million maximum.


Activity-Based Stock Requirements

    Advances

    • 3.0% of the principal balance of advances with original maturities of 1 day
    • 4.0% of the principal balance of advances with original maturities of 2 days or longer

    Advances Commitments

    • 0.0% of principal balance

    Letters of Credit

    • 0.25% of the amount of the letter of credit [identical to 0.5% of amount of the letter of credit adjusted by the appropriate conversion factor in Table 2 of 12 C.F.R. §932.4(f).]

    Mortgage Partnership Finance Program / Acquired Member Assets

    Effective November 2, 2009, the Bank adjusted to zero percent (0%) the activity-based stock investment requirement for certain loans that members sell to the Bank under the Mortgage Partnership Finance® (MPF®) program. There is no activity-based stock investment requirement for loans members sell to the Bank under master commitments entered into on or after Monday, November 2, 2009.

    The activity-based stock investment requirement percentage is set as of the date a loan is funded and remains fixed for the life of the loan. Therefore, a member would not be required to purchase additional activity-based stock for a given loan, even if the activity-based stock investment requirement is subsequently adjusted by the Bank. The Bank's board of directors reserves the right to change the activity-based stock investment requirement for loans originated pursuant to master commitments executed on or after the effective date of the change to a level of up to 6.0% of the unpaid principal balance of each loan originated under such master commitments.

    The Bank retains the right to establish set limits on the total dollar amount of new master commitments that a single member may open. Since the inception of the Bank's capital plan in April 2004, the following activity-based stock investment requirements have been established for MPF loans originated under master commitments executed during the stated periods:

    • April 19, 2008 through November 1, 2009: 4.5%
    • October 16, 2004 through April 18, 2008: 0.0%
    • Prior to October 16, 2004: 4.5%

    Delivery Commitments for Acquired Member Assets

    • 0.0% of the amount of delivery commitments issued to a Member for Acquired Member Assets to be held on the Bank's balance sheet adjusted by the appropriate conversion factor found in Table 2 of 12 C.F.R. §932.4(f).
 
 
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