Federal Home Loan Bank letters of credit (LOCs) are a valuable tool that members can use to support local communities across the country, allowing them to leverage the credit strength of their FHLBank for public good. LOCs are used for a range of purposes, including to attract and retain public unit deposits (PUDs), support municipal financing and revenue bond financing for housing and infrastructure projects, and lower borrowing costs for community development activities. Click here to learn more: FHLBank Issue Brief – Letters of Credit
