Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Federal Home Loan Bank of Atlanta | form8-kitem701for2013msr.htm |
[FHLBank logo]
Member Notice No. 2013-01
Subject: Annual Recalculation of Total Minimum Stock Requirement on March 22, 2013
Dated: February 6, 2013
FHLBank Atlanta (Bank) is notifying members of two important stock requirement computations scheduled for March 22, 2013, that may result in an adjustment transaction to your institution’s Daily Investment Account.1
• | Effective March 22, 2013: A decrease in the Membership Stock Requirement factor from 0.15% to 0.12% and a decrease in the Membership Stock Requirement cap from $26 million to $20 million. |
• | Occurring March 22, 2013: The annual recalculation of the Minimum Stock Requirement for the 2013 Directors' Election. |
Please find below the details of these important actions, which may affect your membership stock with FHLBank Atlanta. If you have questions or concerns regarding these changes, please contact us at 1-800-536-9650, extension 8011.
Adjustment in Membership Stock (Subclass B1) Requirement Factor and Cap
FHLBank Atlanta’s board of directors approved a decrease in the factor used to recalculate the member’s Membership Stock Requirement and the dollar cap of the Membership Stock Requirement. Effective March 22, 2013, the factor will decrease from 0.15% (15 basis points) to 0.12% (12 basis points) of the member’s total assets as of December 31, 2012, resulting in a recalculation of each member’s Membership Stock Requirement. The cap will decrease from $26 million to $20 million effective March 22, 2013.
The recalculation of the Membership Stock Requirement on March 22, 2013, will produce an adjustment transaction for some members. To the extent that any member’s Membership Stock Requirement increases as a result of the recalculation, the Bank will debit (charge) the member’s Daily Investment Account for the amount of such increase, and increase the amount of the member’s Subclass B1 Capital Stock on a corresponding basis. Conversely, to the extent that any member’s Membership Stock Requirement decreases as a result of the recalculation, the Bank intends to repurchase such excess Subclass B1 Capital Stock at the time of recalculation.
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1 All capitalized terms used in this notice are defined in the Capital Plan, a copy of which is available on the Bank's website at www.fhlbatl.com.
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Annual Recalculation of Minimum Stock Requirement for 2013 Directors’ Election
Under the terms of its Capital Plan, the Bank is required to recalculate annually the Minimum Stock Requirement of each member of the Bank.
On March 22, 2013, each member’s Membership Stock Requirement will be recalculated using the member’s total assets as of December 31, 2012, and the factor of 0.15% (15 basis points), subject to a cap of $26 million. The factor and dollar cap were those in effect on December 31, 2012, the record date for the 2013 Directors’ Election. The Bank also will recalculate the member’s Activity-based Stock Requirement (4.5% of outstanding advances) as of the end of the previous year.
The Minimum Stock Requirement is the sum of the member’s Membership Stock (Subclass B1) Requirement and its Activity-based Stock (Subclass B2) Requirement and will be used to determine the number of votes a member can cast in the 2013 Directors’ Election.
During the week of March 18, 2013, two reports will be placed on FHLBAccess® showing the results of the adjustment in Membership Stock Requirement for your institution and the annual recalculation of Minimum Stock Requirement for the 2013 Directors’ Election. If you have any questions about this notice or about these reports when they are available, please call the Funding Desk 1-800-536-9650, extension 8011.
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