• September 24, 2024
• Bulletin No: 2024-32

The Federal Home Loan Bank of Dallas (Bank) has revised its Member Products and Credit Policy (MPCP) to incorporate two important changes. The revised MPCP will become effective on September 30, 2024.

First, the MPCP has been revised to reduce the maximum amount of credit that the Bank will extend to borrowers, which will now be capped at 35 percent of a borrower’s total assets (down from 50 percent). Institutions that are currently borrowing more than 35 percent of their total assets will be permitted to keep those borrowings until they mature or are prepaid. This revision is covered in section III.B.3.a: Other Limitations on Access to Bank Products and Services and Limitation on Availability of Credit based on a Percentage of a Member’s Total Assets.

Second, the tenor (term length) of advances for members with D or E credit ratings has been revised as follows:

• The maximum tenor for D-rated members is four years (previously, there was no term limit)
• The maximum tenor for E-rated members is two years (previously, there was no term limit)