§ 1266.6. Fees.
274 words·~1 min read·
/us/cfr/t12/s§ 1266.6·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Fees in member products policy. All fees charged by each Bank and any schedules or formulas pertaining to such fees shall be included in the Bank's member products policy required by § 917.4 of this title. Any such fee schedules or formulas shall be applied consistently and without discrimination to all members.
(b)Prepayment fees.
(1)Except where an advance product contains a prepayment option, each Bank shall establish and charge a prepayment fee pursuant to a specified formula which makes the Bank financially indifferent to the borrower's decision to repay the advance prior to its maturity date.
(2)Prepayment fees are not required for:
(i)Advances with original terms to maturity or repricing periods of six months or less;
(ii)Advances funded by callable debt; or
(iii)Advances which are otherwise appropriately hedged so that the Bank is financially indifferent to their prepayment.
(3)The board of directors of each Bank, a designated committee thereof, or officers specifically authorized by the board of directors, may waive a prepayment fee only if such prepayment will not result in an economic loss to the Bank. Any such waiver must subsequently be ratified by the board of directors.
(4)A Bank, in determining whether or not to waive a prepayment fee, shall apply consistent standards to all of its members.
(c)Commitment fees. Each Bank may charge a fee for its commitment to fund an advance.
(d)Other fees. Each Bank is authorized to charge other fees as it deems necessary and appropriate. [58 FR 29469, May 20, 1993; 65 FR 8263, Feb. 18, 2000. Redesignated and amended at 65 FR 44429, July 18, 2000]