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7th District (Chicago) Seasonal Credit Program Please note: the information on this page is only for the Federal Reserve Bank of Chicago's Seasonal Credit Program. Information about your Federal Reserve Bank's Seasonal Credit Program may be available on your Federal Reserve Bank's 'Contacts & Resources' page.Table of Contents Introduction The Federal Reserve Bank of Chicago's Discount Window is accepting applications for the Seasonal Credit Program. Under the program, your institution may obtain longer-term credit, up to nine months in duration, to satisfy the cyclical credit needs resulting from the deposit and borrowing activities of your customers. The program is available to qualifying depository institutions with less than $500 million in deposits, and that have a demonstrated cyclical funding need that persists for at least four weeks. Smaller institutions that experience fluctuations in deposits and loans—caused by construction, college, farming, resort, municipal financing and other seasonal types of business—frequently qualify for the program. General Requirements To qualify for the program, an institution must meet the following requirements:
Institutions are not permitted to use the program to increase sales of federal funds or to purchase other assets. However, net sales of federal funds are appropriate, as long as they are consistent with the institution's normal operating pattern. When borrowing under the seasonal program, institutions must submit weekly data Form FR2046; on deposits, loans, securities and federal funds balances to the Reserve Bank. Under the Seasonal Credit Program, there are no commitment fees, stock purchase requirements or other expenses or penalties involved in setting up and maintaining a line of credit. Credit may be drawn down incrementally as needed; both partial and full prepayments are allowed without penalty. If the line is unused during the year, there is no cost involved. To apply for the Seasonal Credit Program, please review the information below and complete the application [MS Excel; 20K]. If you have questions or need additional information about our lending programs, collateral arrangements or borrowing requirements, please call our toll-free number at (800) 380–3762. Completing an Application To participate in the program, an institution must complete an application worksheet (MS Excel; 20K) and provide:
Once a completed application is received, Loans personnel will process the data and contact you regarding the amount and duration of the approved seasonal line. Advances under the seasonal line are available daily and are due on the first business day of the next month. Seasonal Rate A flexible, market-based interest rate is applied on all seasonal credit. The rate is set biweekly and applies to all outstanding seasonal loans. The rate is reset on the first day of each reserve maintenance period (every other Thursday).  How to Contact Us For additional information on this or any other credit program, please contact the Loans and Reserves division at the Federal Reserve Bank of Chicago. Mailing Address: Federal Reserve Bank of Chicago Loans, 12th Floor 230 S. LaSalle Street Chicago, IL 60604 E-mail Address: loanschicago.chi@chi.frb.org Phone/Fax Numbers: Toll Free: (800) 380-3762 Loans Fax Number: (866) 933-8614 |
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