Federal Home Loan Bank of Chicago

Correspondent Products & Services

April 2012

Correspondent Products & Services

I. Correspondent Products & Services Overview– Wire Transfer– Foreign Wire– ACH Settlement– FRB Correspondent Settlement– Summary of Benefits

II. Contact Information

III. Appendix A – Correspondent Products & Services Fee Schedule

IV. Appendix B – Sample Correspondent Products & Services Reports– Cash Management Statement (DID)– Daily Wire Statement– ACH Advices– Statement of Respondents Activity

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Overview: Correspondent Products & Services

Correspondent products & services are any non-deposit related products or services that enhance the management of the Daily Investment Deposit (DID) account including, Wires, ACH Settlements, FRB Correspondent Settlement.

• Available to all FHLBC members• Safe, secure, convenient, seamless• Debits / Credits cash settle out of the DID account• No forms to fill out to execute transactions• Consolidates cash management to a single account

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Wire Transfer

• Wires: Electronic funds transfer via the Fedwire system for movement of US Dollars:– Between various FHLBC accounts– To external accounts such as Correspondent & FRB

• Wire information transmitted securely through encrypted communications methods

• Compliant with Office of Foreign Assets Control (OFAC)• Convenient, no forms required & immediate confirmation

• *FHLBC processes over 73,000 transactions per year for over $2.3 trillion

4*Based on 2010 data

Foreign Wire Transfer

• An electronic transfer of US Dollars via the Fedwire system:

– To a correspondent bank in the foreign country– US Dollars are converted into local currency at the spot rate

• Compliant with Office of Foreign Assets Control (OFAC)

• Convenient, no forms required

• Immediate confirmation

• Satisfies member or their customers needs

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ACH Settlement

• ACH Settlement: Automated Clearing House settles out of a member’s DID account. Convenient for:– Payroll, vendor, utility, and rent payments– Funding FHLBC accounts such as monthly remittance, custodial

mortgage accounts, and MPF accounts• ACH information transmitted securely through encrypted

communications methods• Compliant with Federal Reserve Bank (FRB) and National

Automated Clearing House Association (NACHA)• Convenient, no forms required

• *FHLBC processes over 2.3MM transactions per year for over $104 billion

6*Based on 2010 data® “MPF” is a registered trademark of the Federal Home Loan Bank of Chicago

FRB Correspondent SettlementThe FHLBC’s correspondent Non-Credit Products and Services offer members a streamlined alternative method to settling and funding transactions at the Federal Reserve Bank. Members have the option of naming the FHLBC as their correspondent. By naming the FHLBC as its correspondent, the FHLBC settles a member’s Automated Clearing House (ACH) transactions, direct deposits, check presentments, and coin/currency. Settlement debits and credits pass through the FHLBC’s account at the Federal Reserve Bank and are then processed to the member’s DID account as a same day settlement. Regardless of whether a member selects the FHLBC to act as its correspondent, a member can have their ACH and check presentment settled into their DID account.

• Available to all members• Convenient for managing cash out of a single account• Requires one FRB form to be signed by the member and

FHLBC• Compliments other FHLBC products

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Correspondent Benefits

• Customer Service staff are very familiar with member relationships

• Multiple methods for movements of cash using a product that fits the member’s needs

• Convenient, streamlined way to manage cash

• Providing correspondent services for over 30 years

 

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Contact Information

• For information about Non-Credit Products & Services, call– James Ninni, Product Manager, jninni@fhlbc.com or

312-552-1274

Correspondent Products & Services:• Janet Lewis, jlewis@fhlbc.com or 312-552-1213• 8:30 a.m. to 3:00 p.m. CST – Member Wires• 8:30 a.m. to 5:00 p.m. CST – Third Party Incoming Wires

• For information about FHLBC’s competitively priced credit products, call the Member Transaction Desk at 855-435-2244 option 1, or visit www.fhlbc.com

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Correspondent Product & Services

Fee Schedules

Appendix A

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Correspondent Products & Services

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Sample Correspondent Products & Services Reports

Appendix B

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Cash Management Statement (DID)

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Daily Wire Statement

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ACH Advices

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Statement of Respondents Activity

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