JOINT CAPITAL ENHANCEMENT AGREEMENTJoint Capital Enhancement Agreement • March 1st, 2011 • Federal Home Loan Bank of San Francisco • Federal & federally-sponsored credit agencies • New York
This Joint Capital Enhancement Agreement ("this Agreement") is entered into by each of the undersigned Federal Home Loan Banks (each a "Federal Home Loan Bank" and collectively the "Federal Home Loan Banks") as of the Effective Date provided in this Agreement.
Joint Capital Enhancement Agreement Questions and Answers March 1, 2011Federal Home Loan Bank of San Francisco • March 1st, 2011 • Federal & federally-sponsored credit agencies
A 1: The Joint Capital Enhancement Agreement among the 12 Federal Home Loan Banks ("FHLBanks") is intended to provide a Systemwide framework for the use of that portion of the FHLBanks' earnings historically paid to satisfy their Resolution Funding Corporation ("REFCORP") obligations. The FHLBanks' REFCORP obligations are expected to be fully satisfied during the 2011 calendar year. The intent of the Agreement is to set aside that portion of each FHLBank's earnings historically used to satisfy its REFCORP obligation to enhance the capital position of each individual FHLBank and the FHLBank System.
