Correspondent Services Manual
April 2018
© 2017 FEDERAL HOME LOAN BANK OF NEW YORK • 101 PARK AVENUE • NEW YORK, NY 10178 • WWW.FFHLBNYNY.COM Correspondent Services Manual
TABLE OF CONTENTS 1. INTRODUCTION ...... 5
2. CASH MANAGEMENT SERVICES ...... 6
3. OVERNIGHT INVESTMENT ACCOUNT ...... 7
4. TERM DEPOSITS ...... 7
5. INTERNET ACCESS: 1LINK AND 1LINKSK ...... 8 GENERAL RULES GOVERNING MEMBER’S USE OF 1LINK AND 1LINKSK ...... 8 MEMBER AND FHLBNY OBLIGATIONS IN CONNECTION WITH 1LINK AND 1LINKSK ...... 8 FHLBNY’S LIABILITY IN CONNECTION WITH MEMBER’S USE OF 1LINK AND 1LINKSK ...... 10 INTERNET ACCESS SECURITY ...... 11 MINIMUM SYSTEM REQUIREMENTS ...... 13 USER REGISTRATION ...... 14 APPLYING FOR A 1LINK SECURITY DEVICE: ...... 17 APPLYING FOR A 1LINKSK SAFEWORD CARD: ...... 18 INFORMATION REPORTING...... 19 BOOK WIRES ...... 19 WIRE TRANSFERS ...... 19 ADVANCES ...... 21 CUSTODY AND PLEDGING SERVICES ...... 22 6. DAILY ADVICE OF ACCOUNT ACTIVITY ...... 24 CONTENTS COVERED IN DAILY ADVICE ...... 24 7. BILLING ...... 25
8. CHECK DEPOSITS ...... 25
9. FEDERAL RECURRING PAYMENTS ...... 26
10. CUSTODIAL MORTGAGE ACCOUNTS ...... 26
11. MORTGAGE PARTNERSHIP FINANCE® PROGRAM (MPF®) CUSTODIAL ESCROW ACCOUNTS ... 27
12. ACCOMMODATION ACCOUNTS ...... 27
13. WIRE TRANSFERS ...... 28 WIRES-OUT ...... 28 WIRE TRANSFER AGREEMENT ...... 29 WIRES-IN ...... 30 14. SETTLEMENT SERVICE...... 32
15. CUSTODY AND PLEDGING SERVICES ...... 33 RECEIPT AND DELIVERY SERVICES ...... 35 INTEREST/DIVIDENDS PAYMENT SERVICES ...... 35 MATURING SECURITIES SERVICES ...... 36 NON-DISCRETIONARY TRANSACTIONS ...... 36 CUSTODY AND PLEDGING SERVICES REPORTS ...... 36
April 2018 3 Correspondent Services Manual
16. FEDERAL RESERVE PASS-THROUGH ACCOUNTS ...... 37 PROCEDURE ...... 37 17. AUTOMATED CLEARING HOUSE PAYMENTS ...... 38
18. FEDERAL TAX ACCOUNTS ...... 38
19. CORRESPONDENT SERVICE FEES ...... 39
APPENDICES ...... 40
A. GLOSSARY ...... 40 B. CORRESPONDENT SERVICES AGREEMENT ...... 45 C. OFFICE OF FOREIGN ASSETS CONTROL (“OFAC”) OVERVIEW ...... 45 WIRE TRANSFERS ...... 45 ACH ...... 46 CUSTODY AND PLEDGING SERVICES ...... 46 D. CORRESPONDENT SERVICES FEE SCHEDULE – 2018 ...... 47
April 2018 4 Correspondent Services Manual
1. INTRODUCTION
The Correspondent Services Manual (“Manual”) of the Federal Home Loan Bank of New York (“FHLBNY”, “Bank”) is intended to outline and describe the various correspondent services of the FHLBNY in order to assist Members with the utilization of these services. All Members that have executed the Advances, Collateral Pledge and Security Agreement (the “Advances Agreement”) may utilize the Bank’s Correspondent Services provided a Correspondent Services Agreement has been executed. Definitions of terms used herein may be found in Appendix A – Glossary.
Occasionally the FHLBNY will change the terms of the services described in the Manual. On these occasions, such changes will be posted on the FHLBNY’s Website at www.FHLBNY.com . All changes become effective upon notice and publication of the updated Manual on the FHLBNY’s website.
The FHLBNY offers a comprehensive correspondent services program with numerous attractive features including:
» Under the Overnight Investment Account (”OIA”) program, the FHLBNY pays interest on a daily basis, equal to slightly less than the Federal Funds rate, on all collected balances in the Members’ OIAs. (The term "collected balances" and other key terms used in the Manual are defined in the Glossary [ see Appendices ].)
» The FHLBNY provides Members with a daily report of the prior day's transaction activity - the Daily Advice of Account Activity (“Daily Advice”) - plus numerous other periodic reports.
» Reports, including the Daily Advice, are available through 1Link sm , the FHLBNY’s Internet banking system. Safekeeping reports are available through 1LinkSK sm .
» The FHLBNY charges Members fees that are set forth explicitly for each type of correspondent service used by the Member, and the FHLBNY provides Members with a Correspondent Services Activity Report of those fees at the end of each month via 1Link. The FHLBNY does not impose compensating or reserve balance requirements on any account.
» Members may maintain multiple accounts at the FHLBNY and can dedicate these accounts to specific uses. One Member account is designated as the primary OIA. This account will be charged for correspondent service fees and other applicable fees and credited with interest earned on the primary and all sub accounts. All member OIAs maintained at the FHLBNY are deemed to be the Member’s accounts.
» Members may arrange for deposit items to be processed by a third party for credit to their OIA at the FHLBNY.
» The FHLBNY provides for the disbursement of funds through Wire Transfers and settlement of ACH transactions.
» The FHLBNY offers comprehensive Safekeeping securities custody and pledging services.
» The FHLBNY offers special support services including settlement and pass-through accounts.
The FHLBNY's correspondent services program provides three important benefits to Members:
» Earnings - the FHLBNY pays interest on all collected balances on a daily basis- there are no reserve or compensating balance requirements.
» Cash Management - the FHLBNY provides Members with 1) comprehensive deposit and wire transfer services, and 2) daily and periodic reports to assist Members to manage their cash balances effectively.
» Convenience – the FHLBNY provides Members with account access via the internet and via telephone. FHLBNY staff is available daily to provide assistance with the FHLBNY’s correspondent services.
April 2018 5 Correspondent Services Manual
Many of the FHLBNY's correspondent programs include a variety of optional services. The FHLBNY's Calling Officers are available to assist Members in selecting the most appropriate of these optional services. In so doing, Members can design a correspondent services program that is tailored to their individual needs. The FHLBNY's correspondent services, along with the FHLBNY's Member Services (described in the Member Products Guide), gives Members the opportunity to consolidate many of their financial activities into one correspondent bank.
Members wishing to use the FHLBNY's correspondent services must enter into a Correspondent Services Agreement ("CSA") with the FHLBNY. The CSA establishes the legal relationship between the FHLBNY and its Members with regard to the services described in the Manual.
Members participating in the Safekeeping Service must also execute the following: Securities Account Control Agreement (“SACA”) as well as an Amendment to the Correspondent Services Agreement (1LinkSK Services). The SACA is a tri-party agreement between the Member, FHLBNY and Citibank, N.A. (the Safekeeping Custodian). The Amendment to the CSA expands on the legal relationship between the FHLBNY and its Members as set forth in the CSA by including 1LinkSK.
2. CASH MANAGEMENT SERVICES
The FHLBNY believes that there are two elements to effective cash management. First, Members should be able to earn interest on all collected funds in their accounts. Second, Members should receive detailed and timely information about all activity in their accounts, including the FHLBNY’s charges for correspondent services.
The OIA is probably the most important cash management tool offered by the FHLBNY. Under this program, the FHLBNY calculates and pays interest to Members on all collected funds on a daily basis. Please refer to Section 3 of this Manual for more information concerning OIA.
In addition to the OIA, the FHLBNY offers Members an investment option that generally permits Members to earn a better rate of return on their collected balances than they can earn under the OIA program. The FHLBNY’s Term Investment program permits Members to invest in instruments maturing generally in excess of 14 days, but less than 365 days.
Another key management tool available in connection with the FHLBNY’s cash management services is the Daily Advice. The Daily Advice is available electronically via our 1Link Internet banking application and provides Members with a comprehensive report each business day describing the prior day’s financial activity. The Daily Advice helps Members monitor their financial activity and facilitates timely settlement and reconciliation of all posted transactions. The Member is responsible for reviewing the Daily Advice, and must advise the FHLBNY of any monetary discrepancy, error, or omission by the close of FHLBNY business on the day the Daily Advice is made available to the Member.
Furthermore, 1Link and 1LinkSK, the FHLBNY’s internet banking systems, allow Members to initiate selected transactions electronically and monitor financial activity as it occurs throughout the business day. This access method puts Member accounts and reports within reach from anywhere that has internet access in a safe and sound manner, using advanced security technology.
Finally, the FHLBNY’s comprehensive billing service helps Members monitor the cost of correspondent services. On the last business day of each month, the FHLBNY produces a Correspondent Services Activity Report identifying, in detail, all correspondent service charges for that month. On the next business day (the first business day of the following month), the FHLBNY posts the service charge debit to the Member’s primary OIA. Members
April 2018 6 Correspondent Services Manual
with multiple OIA numbers may elect to have charges for all monthly services charged to one primary OIA. The billing system provides complete and timely information about all service charges with a convenient system for paying those charges.
3. OVERNIGHT INVESTMENT ACCOUNT
Under the OIA program, the FHLBNY pays interest to Members on all collected funds in their OIAs within their individual Member numbers. This program features variable daily interest rates based on collected balances. The interest is calculated and paid daily. For Members with multiple OIAs, the aggregation of funds is done on each individual Member’s OIA.
The variable OIA rates at which the FHLBNY pays interest on collected funds are set by the FHLBNY each business day and will be equal to slightly less than the average Federal Funds rate observed for the day and determined by the FHLBNY in the FHLBNY’s sole discretion. The interest will be earned and reported on a daily basis and will be determined using an Actual/Actual methodology. Daily interest postings are value dated the next business day. For example, your Combined Daily Advice for the work of Monday, March 12, 2018 will show your interest posting with an effective date of Tuesday, March 13, 2018. Weekend interest is compounded with individual interest postings for each calendar day as follows:
Friday interest will post with a Saturday effective date. Saturday interest will post with a Sunday effective date. Sunday interest will post with a Monday effective date.
The FHLBNY charges interest on OIA loans. FHLBNY sets the OIA loan rate which will be greater than the Overnight Advance Rate. If a Member has a negative collected balance after aggregating all of the collected funds in the Member’s OIAs under an individual Member number, the Member’s accounts will be considered overdrawn and the FHLBNY will make an “OIA loan” or overdraft loan to the Member for the amount of the negative collected balance. For Members with multiple OIAs, the aggregation of funds is done on each individual OIA. The FHLBNY may treat an OIA loan as an advance under the Advances, Collateral Pledge and Security Agreement between the FHLBNY and the Member.
Note: Members wishing to borrow funds from the FHLBNY must enter into an Advances, Collateral Pledge and Security Agreement (“Advances Agreement”) with the FHLBNY. An executed Advances Agreement required for membership approval.
Notwithstanding the program described above, the FHLBNY reserves the right to pay no interest on deposits received and posted after the Treasury cash desk has closed.
4. TERM DEPOSITS
A Term Deposit is a deposit with the FHLBNY with a maturity generally ranging from 14 days to 365 days. Occasionally, the FHLBNY also offers special short-term deposits of 2 to 14 days. Members can receive information about the FHLBNY’s then-available Term Deposits, including any short-term deposits and rate indications, by logging on to the FHLBNY’s website at www.FHLBNY.com .
April 2018 7 Correspondent Services Manual
Under the Term Deposit Program, Members may deposit collected balances of at least fifty thousand dollars ($50,000) for a period of their choosing from 14 to 365 days. Members may make investments over fifty thousand dollars in one thousand dollar ($1,000) increments. The FHLBNY pays a fixed rate of interest on each Term Deposit. The rate of interest for each Term Deposit is quoted by the FHLBNY, individually, for that deposit. This rate may vary from time to time during each day with changes in market conditions, but it reflects the approximate borrowing cost for the FHLBNY in a particular maturity. The FHLBNY has sole discretion with respect to the rate offered on each deposit and, as a result of changes in market conditions or other factors, rates may differ from Member to Member, even with respect to deposits made on the same day.
Procedure for Making a Term Deposit Members should call the FHLBNY’s Member Services Desk by 3:00 p.m. to initiate a Term Deposit on that business day.
Notice of Rates Members may call the FHLBNY’s Member Services Desk for a rate indication, log on to the FHLBNY’s website at www.FHLBNY.com or obtain Advance and Deposit rates via 1Link. Members should bear in mind that, on occasion, the FHLBNY may quote particularly attractive rates to solicit new deposits. In order to obtain such new funds, the FHLBNY may contact Members whom the FHLBNY believes may be interested in depositing new funds at those rates. Members wishing to be contacted should alert their Calling Officer of their interest in such investments.
Maturity The Member’s Daily Advice will identify maturing Term Deposits ten business days before the maturity. Upon maturity, the principal and interest of the investment will be credited to the Member’s primary OIA.
Redemption Prior to Maturity Term Deposits are non-redeemable prior to their stated maturity.
5. INTERNET ACCESS : 1L INK AND 1L INK SK
General Rules Governing Member’s Use of 1Link and 1LinkSK
The CSA, as amended, and the Manual, as amended, governs the use of 1Link and 1LinkSK.
The FHLBNY may, in its sole discretion, amend any of the procedures and descriptions used in this Manual at any time. Members will be notified of such changes to procedures and descriptions through a 1Link Broadcast Message. The FHLBNY urges that Members check these procedures and descriptions (all available on the FHLBNY’s website at www.FHLBNY.com ) periodically for changes. If the Member accesses the FHLBNY’s website after the FHLBNY posts changes to the procedures and descriptions, the FHLBNY will deem that the Member has accepted the changes.
The FHLBNY reserves the right to monitor any and all use of the FHLBNY’s websites.
Member and FHLBNY Obligations in Connection with 1Link and 1LinkSK
Restrictions on Use of Software and 1Link and 1LinkSK
April 2018 8 Correspondent Services Manual
The FHLBNY and its software and vendor suppliers retain all title, rights (including, without limitation, intellectual property rights), and interest in the software. The FHLBNY may, at any time in its sole discretion, update or upgrade the software. The trademarks, logos, and service marks (the “Marks”) displayed on the FHLBNY’s website are the property of the FHLBNY and other parties. The Member should not use any Marks without the prior written permission of the FHLBNY or such third party that may own the Marks.
Member’s Access to 1Link and 1LinkSK The Member will access 1Link through the Internet via the FHLBNY’s website. 1LinkSK can be accessed directly through Internet Explorer, Google Chrome or Firefox. The Member shall be solely responsible for:
» Determining which employees or non-employee designees shall be authorized to access 1Link and 1LinkSK and have access to the Member's accounts and information on the Member's behalf. » Advising the FHLBNY in writing of the identity of Member Users, Security Device holders and Safeword Card holders by executing the Global Authorization Form (“GAF”) and the Security Device Application Form (“SAF”) for various transaction entitlements. » Determining and advising the FHLBNY, via executing a GAF, which Member OIAs and information of the Member its Users are to have access to. » Notifying the FHLBNY’s Security Administrator by telephone and in writing (pursuant to a revised GAF) when any User’s access to 1Link and/or 1LinkSK and any of the Member's accounts or information is revoked or changed.
The Member authorizes and instructs the FHLBNY to rely on all Member’s instructions regarding access to 1Link, 1LinkSK, the Member’s accounts and information and the identity of employees and each employee's authorization as established by the Member in writing. The Member specifically acknowledges and agrees that the FHLBNY will rely on the entitlements and privileges granted to the Member’s employees by the Member.
Transactions The Member specifically must understand that to use 1Link and 1LinkSK for transactions, the Member’s Users must first have entered into and have in existence a valid and properly executed GAF with the specific transaction types (Wires, Book Wires, Advances and Safekeeping) authorized. The Member further understands that all transactions accomplished using 1Link and 1LinkSK must be made in accordance with all of the applicable terms, covenants, and conditions of the GAF and the appropriate sections of this Manual.
The Member must maintain a copy of all current GAFs submitted to the Bank. This will ensure continuity of service, via telephone or fax; in the event Internet access is unavailable for an extended period of time. The submission of subsequent GAF forms will supersede all prior GAFs on file with the FHLBNY.
Limits on Amounts and Frequency of 1Link and 1LinkSK Transactions The FHLBNY may impose limits on the number of transfers from the Member accounts and/or the amounts that may be transferred from such accounts in order to protect the FHLBNY and the Member. If limits are imposed, these will be defined and posted on the FHLBNY’s website. Transactional limits do not apply to 1LinkSK.
FHLBNY’s Provision of System Access The FHLBNY will provide a Member with access to 1Link, 1LinkSK and the software (1Link only) in accordance with the FHLBNY's then current security access protocols and procedures for the type of access being sought, provided that:
» The Member has been approved to do business with the FHLBNY and has executed a GAF for each employee authorized to access 1Link and/or 1LinkSK;
April 2018 9 Correspondent Services Manual
» The Member submits to the FHLBNY and the FHLBNY approves any and all forms, agreements, and information required by the FHLBNY for the Member’s use of 1Link and 1LinkSK, including the CSA , GAF(s), and Security Device Application Form; and, » The Member must adhere to the Minimum System Requirements necessary to access 1Link.
The FHLBNY will use commercially reasonable efforts to maintain 1Link and the software, system availability, and the Member's access to 1Link. In addition, 1Link employs extensive security features at all levels in order to create a secure banking environment for the Member and the FHLBNY. However, the Member should understand that the FHLBNY is only a provider of 1Link and does not own or control all of the software, hardware, and Internet access services that comprise and are used to run the system.
1LinkSK is accessed through the internet, no special software is required.
Once the FHLBNY has received an executed CSA and GAFs from the Member, the FHLBNY will establish the Users in 1Link; send to the Member a confirmation of the FHLBNY’s acceptance of the User’s enrollment, along with the Member’s assigned login and User IDs. The User passwords will be forwarded via a separate e-mail to the individual e-mail address on file for the User (as provided by the Member on the GAF). The FHLBNY does not e- mail passwords to generic e-mail addresses (e.g., [email protected]). The FHLBNY will implement security procedures designed to protect the FHLBNY and the Member and will require Members to use the proper security devices to access and process transactions through 1Link. In addition to the agreements above, a SACA and Amendment to the CSA are required from the Member for the FHLBNY to establish Users in 1LinkSK. Once completed, Users will be sent User IDs, Safeword Cards, and pin numbers to access 1LinkSK via the internet. The pin number will be sent independently of the Safeword Card and the User ID will be emailed by CPS staff once the User setup is finalized.
1Link and 1LinkSK shall be used to access only the FHLBNY accounts that are designated on the GAF(s). The Member can add or delete any of the Member’s accounts by completing and submitting an updated GAF. Access to the Member’s accounts through 1Link and 1LinkSK will be based upon the identification of the Users and authority levels specified by the Member for those Users. Beyond such identification, the FHLBNY undertakes no obligation to monitor transactions through 1Link or 1LinkSK to determine that the transactions are made on behalf of the Member accountholder.
Duly authorized Members shall be permitted to use 1Link and 1LinkSK during normal business hours / days, although some or all 1Link and 1LinkSK services may not be available occasionally due to scheduled or unscheduled system maintenance. The FHLBNY shall endeavor to post notice of any extended periods of non- availability on the FHLBNY’s website. The FHLBNY will define and post cut-off times for transactions by product and transaction type. 1LinkSK is available for use 24 hours a day except between Saturday 10am until Sunday at 10am for routine maintenance.
FHLBNY’s Liability in Connection with Member’s Use of 1Link and 1LinkSK
Articles V of the CSA and the Amendment to the CSA, titled Standard of Care and Damages, limits the FHLBNY’s liability in connection with the Member’s use of 1Link and 1LinkSK. The Member should become familiar with that CSA article and understand the following:
» The FHLBNY is not liable for damages or injuries, including, but not limited to, damages or injuries caused by any delay in operation or transmission, computer virus, or communications line failure.
April 2018 10 Correspondent Services Manual
» The FHLBNY is in no way responsible for the content of any site owned by a third party that may be linked to the FHLBNY's site via hyperlink, whether such hyperlink is provided by the FHLBNY or by a third party. No representation or warranty is made with respect to the accuracy, timeliness, or suitability of the content of any site to which access from the FHLBNY site may occur, including information on the site regarding the FHLBNY. The FHLBNY likewise is not responsible for content that appears on its site that may be provided by a third party. The FHLBNY is not responsible for the accuracy of information provided by other sites. » The FHLBNY incurs no liability for decisions made by Members based on calculations Members may make using tools or calculators provided in 1Link, whether the FHLBNY or a third party provides those tools and calculators. » Each Member is hereby notified that all transactions processed on 1Link and 1LinkSK using the Security Access Tools and Safeword Cards, and are within the current parameters, are deemed to be individually authorized and approved by the Member, and the Member takes full responsibility for such transactions. The Member specifically acknowledges that the security procedures set forth or described in this section and/or elsewhere in this Manual are commercially reasonable, and that the FHLBNY is under no obligation to take any action of any type or kind whatsoever beyond those set forth in this Manual and the Member’s GAF(s) to determine the validity of, or authorization for, any transactions. The Member shall exercise such care as is necessary to determine whether any transaction processed on 1Link or 1LinkSK was either erroneous or not authorized by the Member, and the Member shall notify the FHLBNY in writing and via a phone call, of all such erroneous or unauthorized transactions within a reasonable time not to exceed the amount of time granted elsewhere in this Manual, or in any applicable Transaction Agreement, to discover and disclose such errors or unauthorized transactions.
Internet Access Security
The FHLBNY’s 1Link program requires extensive security features at all levels in order to create a secure banking environment for the Member and the FHLBNY. Various security features and functions, both in terms of hardware and software, have been incorporated into 1Link to help protect Member accounts and confidential information. The security features, and how Members must interact with these features to maximize their usefulness, are described below.
Internal Security Systems 1Link provides the capability to define a personalized secured environment for each Member User, detailing which functions can be accessed and which data can be viewed. This personalized work environment is based on a combination of internal security functions such as the User identification, the individual User entitlements, and the selective issuance of security devices. In addition, a detailed audit log is kept.
The FHLBNY establishes a profile for each Member User in 1Link based on information provided on GAFs submitted by Members. The FHLBNY Administrator registers the User profiles into 1Link, assigning certain entitlements to each User, as defined on the GAF. The FHLBNY’s Security Administrator then registers and distributes security devices directly to Users authorized with transaction permissions by the Member.
User Identification “User ” is the term the FHLBNY applies to define the individual Member employee using the 1Link (or 1LinkSK) application who is the agent of the Member. This can be a person in the Member’s financial department, in the sales department, or a manager working in a remote location. Before Users access 1Link, they must be registered by a FHLBNY Administrator and approved by a second FHLBNY Administrator.
April 2018 11 Correspondent Services Manual
During the registration phase, the FHLBNY Administrator will assign each User a User ID and a password. This password will be used in the initial connection procedure. Logon and User ID will be sent via e-mail to the e-mail address provided on the GAF. Individual passwords will be sent to each User via e-mail. Every User is granted access to the functions and data in 1Link in accordance with the GAF submitted on his/her behalf. To ensure a secure banking environment, only a limited number of Users should be authorized to perform sensitive actions, such as signing transactions. 1Link uses three methods to define the authorization of each 1Link User: first, by specifying which modules a 1Link User can access; second, by limiting their access to certain payment methods and reporting information; and third, by restricting which accounts the User may access. The accuracy of the information supplied by the Member to establish these three levels of authorization during the registration phase is of paramount importance for the security of 1Link.
Audit Log The 1Link application produces an Audit Log that allows the FHLBNY to trace the actions performed by any User throughout the application. The Audit Log allows the FHLBNY to view, filter, and sort details of all performed actions, through the maximum retention period, as defined by the FHLBNY. The Audit Log records essential information for each action, such as module/sub-module, function triggered, date and time stamp, and the User ID. The following actions are included in the Audit Log:
» The creation, modification, verification, signing, purging, viewing, and deletion of any transaction. » All attempts to login and logout; either successfully or not. » All maintenance actions performed in 1Link.
Members may contact the FHLBNY at 800-546-5101 (Option 1) to obtain information about any/all User activity on their account.
Transaction History Log In addition to the Audit Log, each transaction is entered in a Transaction History Log that tracks the User who created the transaction, last modified it, signed it, and the confirmation or rejection message.
Access to Transaction Functionality Users entitled to access transaction modules, such as Book Wires and Wire Transfers will be assigned a security device upon the completion of a properly executed Security Device Application Form (Form HLB-128). This security feature provides another level of protection for these important functions.
Only the FHLBNY’s Security Administrator will be involved in the issuance and maintenance of security devices. All communication by the Member with the FHLBNY having to do with security devices must be directed only to a FHLBNY Security Administrator. The process of obtaining a security device is provided in detail in the Applying for Security Device section below.
It should be stressed to all Users the importance of keeping the security device in a secure place at all times and of safeguarding user passwords, PINs, or other protection mechanisms.
User/Agent Security Rules Access to 1Link is limited to Users with a valid User ID and password. The User shall be required to change the User’s temporary password upon initial login to 1Link. At that time the User shall determine his/her own password for use with 1Link. The Member agrees that the FHLBNY is authorized to act on instructions received under the Users’ IDs and passwords. The Member accepts responsibility for the confidentiality and security of the Users’ passwords and the Member agrees to cause each User’s password to be changed every 30 days. Upon three unsuccessful attempts to use the User’s password, the User’s access to 1Link will be revoked. To reestablish the
April 2018 12 Correspondent Services Manual
User’s authorization to use 1Link, the User must contact the FHLBNY Administrator to have the User’s logon password reset.
Users who have not logged into 1Link for a period of 90 days will be automatically deactivated from 1Link and must contact the FHLBNY Administrator to have his/her password reset and to obtain a new temporary password.
The FHLBNY requires that each User create a password of 6 to 9 characters, containing at least two alphabetic and two numeric characters. The User’s password should not be associated with any commonly known personal identification information, such as social security numbers, address, date of birth, and names of children. The FHLBNY suggests that Users also include upper-case letters, lower-case letters and special characters in their passwords; this password is not case-sensitive. Passwords should be memorized rather than written down.
The Member shall be solely responsible for:
» Ensuring that each User uses his or her individual User ID and password each and every time the User accesses 1Link. » Ensuring that each User individually determines his or her own User password. » Ensuring that each User provides for the safety and security of his or her User password. » Ensuring that each User's password is neither disclosed nor known to anyone other than the User. » Immediately notifying the FHLBNY Administrator if there is any reason to believe that a User’s password has been stolen or has become known to any unauthorized individuals. » Ensuring that each User changes his or her User password at the designated intervals and immediately if any User password becomes known to any unauthorized individuals.
General Security Statement The Member agrees to take all actions necessary to preserve the security and confidentiality of all information related to 1Link. The Member agrees to protect the confidentiality of the Member’s accounts and account numbers, and the Users’ personal identification information, and shall not reveal any such information to any individuals or entities other than to Users on a need to know basis. User passwords and login IDs are intended to provide security against unauthorized entry and access to the Member’s accounts. If the Member becomes aware of the unauthorized use of any information regarding 1Link, including but not limited to any unauthorized use of any User ID and/or password, or if the Member suspects that any unauthorized use may occur, the Member must immediately instruct the FHLBNY to revoke authority for said User. Data transferred via 1Link shall be encrypted in an effort to provide transmission security. However, notwithstanding the FHLBNY’s efforts to insure that 1Link is secure, the Member acknowledges that all data transfers, including electronic mail, occur openly on the Internet and potentially can be monitored and read by others. The FHLBNY cannot and does not warrant that any or all data transfers utilizing 1Link, or e-mail transmitted to and from the FHLBNY, will not be monitored or read by others.
Minimum System Requirements
The following hardware and software as found in http://www.fhlbny.com/news-events/bulletins-memos/prior- bulletins-memos/2017/bulletin011117.aspx is required to run the 1Link and 1LinkSK applications:
Firewall or Proxy Settings: 1Link.fhlbny.com will reside within the FHLBNY networks of 206.28.71.0/24 and 206.128.172.0/24. • Ensure port 443 (HTTPS) is open outbound to 1Link ranges.
April 2018 13 Correspondent Services Manual
PC Settings: Browser – Microsoft Internet Explorer 11 • (Microsoft Internet Explorer 7,8,9 or 10 are no longer supported by Microsoft) https://www.microsoft.com/en-us/WindowsForBusiness/End-of-IE-support
http://www.fhlbny.com/pdf/1link/supplementalsystemrequirements.pdf
» The browser must be configured to accept cookies and must have Java, JavaScript and frames enabled. » Browser Settings: o First-Party Cookies Accept or Prompt o Active Scripting Enable or Prompt o Scripting of Java Applets Enable or Prompt o Third-Party Cookies Accept or Prompt o Do not save Encrypted pages to disk Checked to support PDF reports and downloads o Trusted Sites: https://1link.FHLBNY.com
» Enrollment: o Compatibility View Settings
» Java Support: o Sun Java Plug-in 1.8 http://www.oracle.com/technetwork/java/javase/downloads/jdk8-downloads-2133151.html http://www.fhlbny.com/images/javacontrolpanel.jpg
Troubleshooting: Clearing Internet Browser History, Java Cache. Setting up Compatibility View Settings http://www.fhlbny.com/pdf/1link/clearingwebbrowserhistory.pdf
User Registration
Registering with the FHLBNY for 1Link and 1LinkSK To be eligible to use 1Link, Members must have signed and forwarded to the FHLBNY the CSA along with a completed GAF for each employee of the Member authorized to access 1Link and 1LinkSK, the FHLBNY’s internet banking applications. The GAF will be used by the FHLBNY to establish User profiles in 1Link and 1LinkSK. In addition to the above, 1LinkSK access also requires the completion of the SACA and Amendment to the CSA.
When completing the GAF, the Member will be assigning entitlements and transaction permissions to the Member’s employees. These entitlements include transaction initiation and signing (“authentication”) privileges. Therefore, careful consideration must be given to the entitlements given to each employee granted access to 1Link and 1LinkSK, as these will be critical to the security of the Member’s accounts and records at the FHLBNY.
If the Member wishes to extend an entitlement to a User who does not currently have User permissions, a new GAF for this User must be executed. For example, if the Member wishes to entitle a User to create Wire Transfers, and that User does not have Wire Transfer permissions as specified by the current GAF, a new GAF must be executed that provides the User with Wire Transfer permissions. Because all newly submitted GAFs supersede existing GAFs, it is imperative that all sections of each GAF are filled out completely.
April 2018 14 Correspondent Services Manual
Every User authorized to access 1Link will be granted certain entitlements, such as viewing Prior and Current Day Activity, and Special reports. Users can also navigate other areas of the secure site, such as Manuals and Guides, and receive Automatic Customer Notifications. However, only those Users with access to transaction modules, or who are Signers, can view transactions.
All 1LinkSK Users will be granted access to the Custody Reporting module. Only those Users authorized to process transactions will be granted permissions to Transaction Manager for trade and pledge transactions.
The GAF and instruction for completing the GAF can be found, in an interactive format, on the FHLBNY’s public website (Form # HLB-106). Users can save the form to their hard drive and enter the required information in the highlighted fields. Once completed, the form can be printed and then executed by the Member’s Corporate Secretary or Assistant Corporate Secretary, and attested to by a second Member officer.
A User must have a security device and/or Safeword Card to process any Transactions. A User needs only one security device regardless of the number of Transaction modules they can access on 1Link. For more information concerning this, please refer to Section 5 , 1Link - Applying for security device of the Correspondent Services Manual. 1LinkSK requires the use of a Safeword security device to access Transactions.
Acknowledgement of the GAF: » Executed – Required The Member’s Corporate Secretary or Assistant Corporate Secretary must execute the GAF. The Corporate Secretary or Assistant Corporate Secretary who executes the GAF cannot be listed as authorized to initiate or verify transactions. » Attested – Required The attesting individual must be an officer of the Member whose signature is on file at the FHLBNY. An attesting officer may not attest to his/her own GAF.
Note: only one signature (Executor or Attester) is required if this form is intended to delete a User. If the authorizing signature is not on file a phone call on a recorded line is made to the institution to verify the authorizing individual.
Completed GAFs should be sent to:
Member Services Representatives Federal Home Loan Bank of New York 101 Park Avenue, 7th Floor New York, NY 10178 – 0599
Upon completion of the User setup, Credit Operations will send the Member User a ‘Welcome’ letter confirming that the requested Transaction entitlements have been set up as provided for on the GAF. The Member must notify the FHLBNY Administrator within twenty-four hours if there is a discrepancy.
Getting Started Once the Member submits to the FHLBNY and the FHLBNY approves the CSA and GAFs, Member Users will next receive a Member logon ID, User ID and individual passwords for 1Link. A SACA and Amendment to the CSA are also required for 1LinkSK. The FHLBNY will already have set up the Member in 1Link and 1LinkSK based on information provided on the GAFs:
April 2018 15 Correspondent Services Manual
» Each User will be set up with fixed entitlements according to the User’s authorizations (e.g., User-1 may be permitted a single function, such as reviewing selected prior day reports; User-2 may be permitted to review all prior day and current day reports, and access to the Transaction modules; further, User-3 may be permitted access to the Transaction modules and to create transactions, but not sign transactions; and so on). » Users can be restricted to certain accounts. » Users can be assigned daily maximum dollar limits for all monetary transactions (1Link only). » Users must have a security device to access the Funds Transfer module. » Users must have access to a Transaction module and security device to be a signer of Wire transactions. » All transactions must be signed before release to 1Link. In some cases, the creator of the transaction can also sign the transaction, while in other cases; the signer must be a second User.
As a security measure, Members should request the FHLBNY Administrator to place a User’s entitlements in an inactive status when that User is on vacation or extended leave.
Reporting Status Changes to the FHLBNY Members will be in complete control of its Users and the individual entitlements granted to the Users. Members can add or delete Users, change User entitlements, add or delete accounts and authorize or remove* security device privileges. Changes can be requested by completing a GAF and checking off the Update User box. The form should be sent to:
Member Services Representatives Federal Home Loan Bank of New York 101 Park Avenue, 7th Floor, New York, NY 10178 – 0599
* Removal of a User’s security device and Safeword Card privileges should be initiated by a telephone call to the FHLBNY’s Security Administrator (800 546-5101, option #2-3) and followed up by completing a GAF and checking off ‘delete user’.
FHLBNY Contacts Members can contact the FHLBNY in a number of ways: » 1Link Help Desk (800) 546-5101
Press 1: For Advances Press 2: For All Other Services Press #: To Repeat Menu
All Other Services:
Press 1 for Wire and Book Wires Press 2 for Custody and Pledging Services (1LinkSK) Press 3 for 1Link Press 4 for Settlement Services Press 5 for Overnight Investments Press 6 for Collateral Services Press 7 to Return to Operator Press # to Repeat Menu
» E-mail Address [email protected]
April 2018 16 Correspondent Services Manual
Applying For a 1Link Security Device:
Users entitled to access Transactions modules, such as Book Wires and Wire Transfers must be assigned a security device. This security feature provides an additional level of security and should only be granted to those Users who will initiate and/or sign transactions. Security device Holders with signing privileges will have the final approval status on all payments and other transactions.
The FHLBNY’s Security Administrator will issue and administer security devices. Only the FHLBNY Security Administrator has the authority to process requests for security devices and/or assists the Member, in any manner, concerning security devices. Therefore, Members must not forward documents or discuss security device issues with any other FHLBNY employee, other than to leave a message with the 1Link Help Desk, if the FHLBNY Security Administrator is not immediately available.
Authorized Users will apply for, and receive security devices as follows:
» The User must be registered with transaction privileges on a GAF currently on file at the FHLBNY. » Security Device Application Forms (Form HLB-128) can be obtained via the FHLBNY’s public website at www.FHLBNY.com by clicking on “About Us,” then “Bank Forms and Agreements.” » The requesting User will complete all fields on a Security Device Application Form including the confidential Personal ID Word field at the bottom of the form, insert the form in the envelope supplied by the FHLBNY, seal, and send it to:
FHLBNY Security Administrator Federal Home Loan Bank of New York 30 Montgomery Street Jersey City, NJ 07302
Note: The Personal ID Word will be used by the FHLBNY Security Administrator to confirm the identity of the User when he/she calls regarding the security device the security device. » The FHLBNY Security Administrator will verify that the User is registered on a GAF. » The FHLBNY Security Administrator will verify that the security device Application Form is complete and the User signature is valid. » The FHLBNY Security Administrator will assign a security device and send directly to the User at the address shown on the GAF via an overnight delivery service. » The FHLBNY Security Administrator will verify the security device reached its destination using the overnight delivery system’s Internet Tracking system.
The User must give his/her name, Member institution, and the Personal ID Word to the FHLBNY Security Administrator at this time. » The FHLBNY Security Administrator will immediately call back the Member’s main office and ask to be forwarded or otherwise directed to the User. » The FHLBNY Security Administrator will notify the FHLBNY Administrator of the Token ID by e-mail. » The FHLBNY Administrators will modify and approve the User’s profile accordingly. » Once completed, the Member User can access the Transactions modules.
April 2018 17 Correspondent Services Manual
Users must safeguard the security device and any protection mechanism (such as password or PIN) to prevent unauthorized use by another person. Users are personally responsible for any activity transacted with the FHLBNY authorized with the device. To protect their institution, Users should follow these rules concerning the security device at all times: » Immediately notify the FHLBNY Security Administrator (800 546-5101, option #2-3) if User thinks someone has learned his/her personal word, PIN, password, or if the security device is missing. » Direct any and all communication with the Home Loan Bank regarding the security device only to the FHLBNY Security Administrator. » Users should not attach PIN numbers or passwords to the security device. » Be prepared to give Personal ID Word whenever calling the FHLBNY Security Administrator for security device support. » If User forgets his/her Personal ID Word, he/she must reapply for a security device. » The private certificate is not transferable. If User’s work assignment changes and he/she no longer needs the security device, it must be returned directly to the FHLBNY Security Administrator. User’s replacement, if any, must apply for a new security device.
Applying For a 1LinkSK Safeword Card:
Users entitled to access Transactions Manager on 1LinkSK must be assigned a Safeword Card. This feature provides another level of security and should only be granted to those Users who will initiate and/or verify trade and pledge transactions. Safeword Card holders will have the final approval status on all trade and pledge transactions.
The FHLBNY’s 1Link Security Administrator will issue and administer a Safeword Card. Only the FHLBNY 1Link Security Administrator has the authority to process requests for Safeword Cards.
Authorized Users registered with Safekeeping transaction privileges on a GAF will apply for, and receive a Safeword Card. In addition, Users will be sent a pin number independent of the Safeword Card. Once this information is received by the User, CPS will provide User ID via a welcoming email.
Users must safeguard the Safeword Card and any protection mechanism (such as PIN) to prevent unauthorized use by another person. Users are personally responsible for any activity transacted with the FHLBNY authorized with the device. To protect their institution, Users should follow these rules concerning the Safeword Card at all times: » Immediately notify the FHLBNY 1Link Security Administrator (800 546-5101, option #2-3) if User thinks someone has learned his/her PIN, password, or if the Safeword Card is missing. » Users should not attach PIN numbers or passwords to the Safeword Card. » If User forgets his/her PIN, it can be reissued. However if the User has changed his/her PIN number, a new PIN number and Safeword Card must be issued. » User’s replacement, if any, must apply for a new Safeword Card.
Note: Upon issuance of a Safeword Card, the User has 30 days to access the system or the PIN becomes inactive. If this occurs, please contact 1Link Security Administrator (800 546-5101, option #2-3).
April 2018 18 Correspondent Services Manual
Information Reporting
Through the Information Reporting module, Members will receive extensive pre-formatted reports about account balances, transaction detail, and transactions initiated at the FHLBNY. Detailed instructions for reviewing reports and transaction activity are provided in the 1Link Help function. Some of the Information Reporting features are:
» Prior Day Reports – Provides balances and transactions that were booked on the previous business day. » Transaction Search – Allows searches of prior day transactions based on specific search criteria, such as posting date, account number, or amount. » Current Day Reports – Provides processed current day transactions and balances. » Customized Reports – Provides prior and current day reports that each Member/User can customize based on specific search criteria. » Special Reports – Provides Members with pre-formatted reports. » Automated Member Notification – Allows User to set up automatic e-mail reports or notifications based on predefined intervals or triggered by isolated occurrences, such as incoming wires or outgoing wires over a threshold. Refer to Alerts and Reminders and Report Delivery under the 1Link Preferences tab.
Note: All Safekeeping Reports are available on 1LinkSK. Please refer to Custody and Pledging Services Reports.
Book Wires
To utilize the Book Wire functionality, Members must have two or more Users with this Book Wire transaction entitlement, one of which must have signing/approve entitlement status.
Book Wires are the transfer of funds between, or among, multiple Member accounts at the FHLBNY. These transfers may be repetitive or freeform with the following characteristics:
» Single Book Wires – One to One – Moves funds from any account under your Company ID to any other account at the FHLBNY.
1Link Hours of Operation
Same Day Transfer Hours 8:30 am to 4:00 pm Business Days Prevailing Eastern Time (“ET”)
Note: Same day transfers must be signed and show a status of “Received by Bank” by 4:00 pm. Book Wires with a future date can be created, and signed at any time.
Members should refer to the Training Tutorials for additional instructions concerning Book Wires.
Wire Transfers
In order to utilize the 1Link Wire Transfer module, Members must be registered on 1Link. In addition, Members must have submitted GAFs for those Users entitled to process Book and/or Wire Transfers telephonically, and to use the 1Link Wire Transfer module. Authorized users must have a Security Device in order to process Book or
April 2018 19 Correspondent Services Manual
Wire Transfers. Members can grant certain User entitlement by completing the GAF. For detailed information concerning this process, please refer to the User Registration and Applying for Security Device sections.
Users will be granted “Dollar Limit” and “Initiate” entitlements for OIA(s), as specified on the Member’s most current GAFs.
Under normal 1Link default settings, all Book and/or Wire Transfers require two Users, one to create the transaction and one who must sign the transaction. Members wishing to allow Users to sign repetitive book and wire transfers that were created by the same User must submit a letter requesting this entitlement, which will give all Users the right to sign repetitive book and wires they create.
This dual control arrangement replaces the telephone confirmation process in place for telephone-initiated non- repetitive wires. Because of this, 1Link-initiated, non-repetitive wires will not be confirmed by telephone.
Any User who can create or sign a wire transaction can also delete a transaction, if that transaction shows a “Pending Add or Modify Approval” status. To delete a wire transaction with any other status, a call must be placed to Electronic Payments. Book and Wire transactions with a “Confirmed” status cannot be deleted as they will have been routed to their destinations via the Federal Reserve.
Section 5 - 1Link pertains only to 1Link Book and Wire Transfer transactions. Please refer to Section 14 – Electronic Payments for a detailed description of the rules and operating procedures covering all aspects of the Wire Transfer service offered by the FHLBNY.
1Link Electronic Payments Hours of Operation Same Day Wire Transfer Hours 8:30 am to 4:00 pm Business Days Prevailing Eastern Time (“ET”)
Note: Same day book and wires must have been fully signed and show a status of “Processing Received by Bank” by 4:00 pm ET. Wires entered after 4:00 pm must show a future settlement date (not greater than 30 business days.) Same day wire requests after 4:00 pm ET must be made by telephone to Electronic Payments and will be processed on a best efforts basis.
Initiating Book and Wire Transactions
All book and/or wire transactions require two Users who have a Security Device. This is a two-step process:
1. The first User creates a book and/or wire with his/her Security Device. 2. A second User with his/her Security Device approves the book and/or wire transfer, which is then released to FHLBNY.
Note: The User creating a non-repetitive book or wire transaction (entering the details of the wire) cannot approve the transaction.
Transaction Monitoring The 1Link system allows creating and/or signing Users, and anyone else with Wire Transfer entitlements, to monitor wires throughout the transaction lifecycle.
April 2018 20 Correspondent Services Manual
Immediately upon the acceptance of a wire by 1Link, the transaction is placed on a status list that allows the User to review the progress of the transaction throughout its lifecycle. All wires are tracked through to settlement and, ultimately, removal from the system.
The table below describes the possible statuses a transaction will go through from creation to final removal from the system.
STATUS DESCRIPTION
Pending Add Transaction has been entered and is ready to be viewed and signed by a /Modify Approval second user.
Transaction accepted by the FHLBNY’s Wire System. (Note: If any other Received by Bank status does not change to Processing by Bank within seconds contact wire room phone number 800-824-2426). Transaction accepted by FRB and FRB sends acknowledgement which is Confirmed received by the Member. Transaction was cancelled rejected by FHLBNY or FRB. (Electronic Payments Failed staff will contact member before this status appears to advise reason for Failed Status).
Members should refer to the 1Link Help function for more detailed instructions concerning 1Link Wire activity. As with telephone-initiated wire transactions, Electronic Payments Representatives are always available to assist Members with wire exceptions that do not necessarily follow the normal routine.
All wire information can be viewed on 1Link; therefore, incoming wire notification will not be made via fax or telephone. Notification for outgoing wires initiated by telephone (to Electronic Payments can also be viewed on 1Link.
Advances In order to utilize the 1Link Advances module, Members must have previously established Advance accounts with the FHLBNY and be registered on 1Link. In addition, the FHLBNY must have on file 1Link GAFs for those Users entitled to access the Advances module. For detailed information concerning this process, please refer to the User Registration and Applying for Security Device sections.
Users will be granted 1Link Advance entitlements only if the authority to conduct advance transactions is specified on the GAF currently on file with the FHLBNY. Members may restrict Users to certain Advance types and amounts by indicating such on the 1Link GAF.
Please note that Section 5 - 1Link pertains only to 1Link Advance transactions. Please refer to the Member Product Guide and the Advances, Collateral Pledge and Security Agreement for the terms covering the Advance programs offered by the FHLBNY.
1Link Advance Hours of Operation Fixed Advance (including Repo) Hours: 8:45am to 3:10pm (ET) During Normal Business Days
Overnight Advance Hours: 8:45am to 4:00pm (ET) During Normal Business Days
Variable Advance Hours: 9:30am to 3:10pm (ET) During Normal Business Days
April 2018 21 Correspondent Services Manual
Initiating Advance Transactions Only one User creates and signs the transaction.
Transaction Monitoring The 1Link system allows the initiating/signing User(s), and anyone else with Advance entitlements, to monitor transactions throughout the Advance lifecycle. Immediately upon the acceptance of an Advance by 1Link, each transaction is placed on a status list that allows the User to view that day’s activity. All transactions can be tracked through to confirmation and, ultimately, removal from the system.
The table below describes the possible statuses a transaction will go through from creation to final removal from the system.
STATUS DESCRIPTION
A status assigned to a transaction that is communicated (sent) to the Processing by Bank FHLBNY. Confirmed Transaction was successfully validated and processed by the FHLBNY. Rejected Transaction was rejected by the FHLBNY.
Members should refer to the 1Link Help function for more detailed instructions concerning 1Link Advance activity. As with telephone-initiated Advances, the Member Service Desk Representatives are available to assist Members if they have questions concerning 1Link Advances or any other Advance related issue.
Members may also establish Automated Customer Notifications (ACNs) that will generate e-mail messages to desired Member personnel; these messages will outline the details of each Advance transaction undertaken through 1Link.
Custody and Pledging Services
In order to utilize the 1LinkSK module, Members must have previously established custody accounts with the FHLBNY and be registered on 1LinkSK. In addition, Members must have submitted GAFs for those Users entitled to access the 1LinkSK module, and those Users with authorizations to perform transactions must have a Safeword card.
Users will be granted 1LinkSK entitlements specified on the GAF currently on file with the FHLBNY. If such authorization form indicates that a specific User requires a counter-signature, a second authorized User (that is, any other User with access to the 1LinkSK CPS module who has signing authority) must verify the transaction. If any User is granted 1LinkSK permissions with a counter-signature requirement, all 1LinkSK Users for the Member will have a counter-signature requirement.
Any User who can create and verify a CPS transaction can also repair, delete or cancel a transaction.
Please note that Section 5 - 1LinkSK pertains only to 1LinkSK transactions. Please refer to Section 15 - Custody and Pledging Services for a detailed description of the rules and operating procedures covering all aspects of the custody and pledging service offered by the FHLBNY.
April 2018 22 Correspondent Services Manual
1LinkSK Custody and Pledging Services (“CPS”) Hours of Operation Trading Hours: The system is available 24 hours 7 days a week (7/24) unless the system is undergoing maintenance. Settlement Time: Book Entry FRB Same day settlement: 6:00 am to Noon DTC and Physical Delivery: Prior Day Cedel/Euroclear: Two Day Notice
Note: Same day transactions must be fully authorized by a representative of the FHLBNY CPS staff and show a status of “Pending Settlement” by noon, ET. Transactions entered after noon same day will be treated on a best effort basis. Future settlement dated transactions can be entered up to 45 calendar days in advance.
Initiating Custody and Pledging Service Transactions As a general rule, normal transactions (buys and sells as well as pledges) created by the Member can be accomplished by one User who will create the transaction online or send a signed fax trade ticket to CPS. Members with GAFs requiring a countersignature must have two Users to perform all transactions, a creator and verifier.
“Free Deliveries” - If the Member sends a free delivery to CPS by fax, a call back verification to a second User by CPS is required. If the customer’s GAF requires a countersignature and the trade was faxed to CPS, the trade ticket must have two authorized User signatures. A CPS Representative will place a call back to the Member and have a third User verify the trade, a three-step process, as described below. All free deliveries created online by the Member require two Users to execute the transaction regardless of countersignature requirements.
Note: The two-signer requirement for Free Deliveries processed online was designed to establish the same dual control provided by call back verification currently in place for fax initiated transactions. Because of this, the FHLBNY will not confirm member entered 1LinkSK transactions by telephone.
Create/Verify/Authorize steps online: 1. Create/Repair – User will enter the details of an executed transaction or repair an existing unsigned transaction. 2. Verify – A second User will sign the transaction by verifying the trade online. If the transaction is not a Free Delivery and the Member has no countersignature requirements, this step will be completed by a CPS staff representative. 3. Authorize – CPS staff representative authorizes the transaction.
The table below indicates the number of steps required online based on the number of signers:
COUNTERSIGNATURE NUMBER OF FHLBNY DEFAULTS REQUIREMENTS STEPS/USERS 1LinkSK defaults to one (1) authorized User for all CPS 3 steps / 1 or 2 transactions with the exception of Free Deliveries which will No Users always require two (2) Users. Final steps completed by CPS staff.
1LinkSK defaults to two (2) authorized Users* for all 3 steps / 2 Yes transactions, including pledges and Free Deliveries. Final steps Users completed by CPS staff.
April 2018 23 Correspondent Services Manual
*Note: The User creating the transaction (entering the details of the trade) cannot verify a transaction they created.
Transaction Monitoring The 1LinkSK system allows the initiating/verifying Users, and anyone else with 1LinkSK entitlements, to monitor transactions throughout the lifecycle. Immediately upon the entry of a transaction online, each transaction is assigned a status and listed in the Member’s 1LinkSK custody account. This allows the User to review their transactions and diagnose any problems. All transactions can be tracked through to settlement and, ultimately, removal from the system.
The table below describes the possible statuses a transaction will go through from creation to final removal from the system.
STATUS DESCRIPTION Pending Verify Transaction is created, but requires an additional verifier. Pending Authorize A status assigned to a transaction that is communicated (sent) to the FHLBNY or Pending Release and waiting to be authorized and released (steps performed at the same time by the same CPS User).
Pending Settlement The transaction has been authorized and released and is awaiting final settlement. Settled Transaction was successfully settled. Cancelled Transaction was cancelled by the FHLBNY or Member. Deleted Transaction was deleted by the FHLBNY or Member. Failed The transaction was authorized on a prior day and is still awaiting final settlement. Don’t Know (“DK’s”) Delivery or Sale transaction was DK’d (“don’t know”) back from the receiving counterparty and is awaiting action from FHLBNY or Member.
Members should refer to the 1LinkSK tutorials for more detailed instructions concerning 1LinkSK Transactions and Custody Reporting. As with fax-initiated transactions, CPS Representatives are available to assist Members with exceptional transactions that do not necessarily follow the normal routine.
6. DAILY ADVICE OF ACCOUNT ACTIVITY
The Daily Advice of Account Activity provides Members with a report each business day describing the prior day's financial activity, including information about advances, other credit transactions, and CPS transactions. Members should compare the Daily Advice with their own records and report discrepancies promptly to the FHLBNY. Transaction activity is posted in sequence by originating system, e.g., Advances, Wires, etc., with all credit transactions preceding debits. The Daily Advice is available through the FHLBNY’s 1Link internet banking application through the Information Reporting module or via 1Link Report Delivery Alert e-mail to the User. Refer to our website at www.FHLBNY.com .
Contents Covered In Daily Advice
The Daily Advice provides financial information concerning the following types of activity: » Overnight Investment Account Balances - Book and Collected
April 2018 24 Correspondent Services Manual
» Next day Opening balance reflecting the aging of float. » Interest Earned on OIA Balances (OIA Interest) » Interest Earned on Term Deposits » Dollar Amount of all Fed Settlement Transactions » Wire Transfers (Wires-in and Wires-out) » Advance Borrowings/Advance Payments (Interest and Principal) » Capital Stock Purchases/Repurchases » Capital Stock Dividends » Custody and Pledging Service Transactions » Cash Item Debits and Credits » Coupon Deposits » Mortgage Partnership Finance (“MPF”) Transactions » Adjustments » Information Messages
7. BILLING
The FHLBNY charges fees for the majority of its correspondent services. A copy of the latest Correspondent Services Fee schedule is mailed to each Member annually. The fee schedule is also available on the FHLBNY’s private website within 1Link. FHLBNY's Correspondent Services fees are competitive in relation to comparable services available in the marketplace. While the FHLBNY reviews its service fees annually, and also publishes a Correspondent Services Fee Schedule on an annual basis, the FHLBNY reserves the right to adjust its service fees with 30 calendar day’s prior notice.
The FHLBNY has a consolidated billing system that provides Members with a comprehensive and explicit statement of all of charges for correspondent services activity. On the last business day of each month, the FHLBNY produces a Correspondent Service Activity Statement that sets out the fees charged for all correspondent services provided to the Member during the prior month. Members should be certain to review their Correspondent Service Activity Statement upon receipt. The statement is available via 1Link.
On the next business day (the first business day of the following month), the FHLBNY debits the Member’s primary OIA for the amount of the Member’s charges for correspondent services used during the prior month.
The FHLBNY's billing system provides Members with a number of benefits: comprehensive, explicit information concerning correspondent service activity, a uniform and single billing cycle, timely and accurate charges, information for simple and effective account monitoring, and a convenient and automated payment method.
8. CHECK DEPOSITS
Members may arrange for their electronic imaging of check deposits to be processed by the Federal Reserve Bank of New York or a third party processor as a respondent on the Bank’s Federal Reserve Account for credit to the Member’s account at the FHLBNY. Deposit deadlines, availability schedules, fees, processing standards and other terms and conditions of service are established in separate agreements between the Members, the Federal Reserve
April 2018 25 Correspondent Services Manual
Bank of New York and/or a third party processor. Adjustment research investigation and resolution as well as handling incoming and outgoing return items are handled by the Member or their processor. The FHLBNY is not responsible for the accuracy or timeliness of this information. Credits for deposited items are posted provisionally, subject to final collection of the items comprising the deposit. Disputes, if any, are to be settled between the Member and the Federal Reserve Bank of New York.
In addition, the FHLBNY will accept Wire Transfers of funds ("Wires-In") for deposit to Member accounts.
9. FEDERAL RECURRING PAYMENTS
Under the FHLBNY's Federal Recurring Payments Program, Members’ retail customers may arrange for the federal government to electronically deposit Federal Payments such as social security, pension or benefit payments to their accounts at the Member. The United States Treasury will transfer funds to the Federal Reserve for direct deposit to the Member's retail customer's accounts. The Federal Reserve will credit the FHLBNY's account and the FHLBNY, in turn, will credit the Member's account in collected funds. Members receive this credit on the same business day that the Federal Reserve credits the FHLBNY's account. The Daily Advice reflects federal recurring payment credits to Member accounts.
The Federal Reserve provides Members or their designated service bureau with detailed information to permit Members to credit appropriate customer accounts on the business day following the day that the Member received credit.
Submission of Forms to the FHLBNY Members may obtain copies of the Federal Reserve Form “FedACH Services Participation Agreement” from the Federal Reserve. This form and its instructions can also be retrieved at www.frbservices.org .
Federal Reserve Notification When the Federal Reserve notifies the FHLBNY that the Member may participate in the Federal Recurring Payments Program, the FHLBNY will notify the Member by telephone.
10. CUSTODIAL MORTGAGE ACCOUNTS
The FHLBNY's Custodial Mortgage Account ("CMA") Program enables Members to maximize earnings on balances Members collect and hold on behalf of mortgage purchasers. The FHLBNY is an approved Depository for Fannie Mae and Freddie Mac.
The appropriate GSE’s Letter of Authorization for P&I Custodial Account and T&I Custodial Account forms must be executed prior to the opening of the CMA accounts.
The FHLBNY pays interest on all collected funds in eligible CMAs under the FHLBNY's OIA Program. A detailed description of the OIA program can be found in Section 3.0 of this Manual.
Funds in CMAs can be accessed or transferred through ACH transactions and Wire Transfers.
Because of the custodial nature of CMAs, each CMA must be maintained with a positive collected balance at all times. The FHLBNY, in its sole discretion, reserves the right to transfer funds from the Member's primary OIA to
April 2018 26 Correspondent Services Manual
cover transactions that result in a Custodial Mortgage Account overdraft or to dishonor any transaction that could result in an overdraft.
11. MORTGAGE PARTNERSHIP FINANCE ® PROGRAM (MPF®) CUSTODIAL ESCROW ACCOUNTS
One of the conditions necessary for Members to realize higher prices on the sale of mortgage loans to the FHLBNY under the MPF program is that Members must use the Actual/Actual form of remittance. The MPF Principal and Interest (“P&I”) Custodial Accounts have been established solely for this purpose.
The P&I Custodial accounts are non-interest bearing. Effectively, the FHLBNY earns income on the “float” balance of these accounts while Members realize a very competitive upfront price on the sale of mortgage loans into the MPF.
The Actual/Actual form of remittance requires Members to transfer into MPF P&I Custodial Escrow Accounts any amounts in their custodial principal and interest accounts at their institutions when the balance of those accounts equals or exceeds $2,500, and the balances existing in the accounts at each month end.
The MPF pricing for the Actual/Actual form of remittance is currently the highest pricing paid for conventional loans sold into the MPF.
Funds can be transferred into MPF P&I Custodial Escrow Accounts through an ACH transaction, a Wire Transfer or a transfer from Members’ primary OIAs using 1Link.
Due to the custodial nature of MPF P&I Custodial Escrow Accounts, each account must be maintained with a positive collected balance at all times. The FHLBNY, in its sole discretion, reserves the right to transfer funds from Members’ primary OIAs to cover transactions that result in MPF P&I Custodial Escrow Account overdrafts or to dishonor transactions that could result in overdrafts. In addition, since the amounts in the MPF P&I Custodial Escrow Accounts are collections on mortgages owned by the FHLBNY, the custodial account must be specifically designated as “(Member Name), as Trustee of the Principal and Interest Custodial Account for the Federal Home Loan Bank of New York”.
12. ACCOMMODATION ACCOUNTS
The FHLBNY’s Accommodation Account program enables Members to provide a direct pledge of collateral for a wholly-owned subsidiary, affiliate or parent holding company by opening a separate OIA, which is titled, “Member Name (Sub Name)”. The FHLBNY considers the Member to be the sole owner of the account and the sole Member of the FHLBNY. To qualify for this type of account, the Member must verify the subsidiary or holding company maintains a deposit account with the Member.
In addition, the Member and its subsidiary are required to execute the Subsidiary/Affiliate Collateral Pledge, SACA (if Safekeeping Pledge Account is required) and Security Agreement which requires FHLBNY approval prior to transferring assets into the Accommodation Account and before borrowing can be approved. A separate CPS account will be established to house the securities.
April 2018 27 Correspondent Services Manual
Refer to the Member Products Guide section regarding pledging of collateral for wholly-owned subsidiaries or affiliate companies.
Accommodation Accounts receive all the benefits of the standard OIA account in the Member’s name in which interest is paid daily, equal to slightly less than the Federal Funds rate based on all collected balances.
13. WIRE TRANSFERS
Wires-Out
Through the FHLBNY's Wire Transfer system, Members may wire funds from their OIA to almost any domestic financial institution including all United States territories. The Bank offers two convenient ways for our Members to initiate a Wire Transfer: through 1Link or telephone call to the FHLBNY’s Electronic Payments Department. Non-Member institutions may initiate telephonically. Once the wire order is received and the FHLBNY validates that funds in the Customer’s account are sufficient, the FHLBNY will wire-out funds on that same day and charge the Member's OIA accordingly.
1Link Procedure Please refer to Section 5 – Wire Transfers for information on the FHLBNY’s 1Link Wire Services.
Telephone Procedure The FHLBNY developed procedures to verify the identity of a Member and the individual requesting a wire-out as required Article 4-A of the Uniform Commercial Code. Consequently, a Personal Identification Number ("PIN") and a Test Code is required when initiating a wire. The PIN is not to be used by anyone other than the authorized individual it was issued to as stated in the current Wire Transfer Agreement.
The FHLBNY will provide Members with Test Key Algorithms, Value Tables, and a Fixed Number unique to each Member institution for use in calculating a Test Code for each wire request. The FHLBNY will also assign a PIN to each authorized individual.
Customers should use the following procedures when requesting a wire-out:
Wire-Out Orders Customers should telephone the FHLBNY at 800-824-2426 prior to 4:00 p.m., Eastern Standard Time, to place a wire-out request. Requests for a wire-out received after 4:00 p.m. Eastern Standard Time may not be processed by the Bank. In situations where a wire is not processed due to a late request, the Customer must reinitiate the request by instructing the FHLBNY to process it on the next business day.
Wire-Out Orders/Non-Repetitive In order to place a non-repetitive wire-out order, an authorized individual should advise the FHLBNY of his/her PIN, the amount of the wire, the Test Code, the name and ABA number of the receiving bank, the name, address, city and state of the beneficiary account, and the beneficiary’s account number to be credited. The Originators information should be included for third party Domestic wires.
April 2018 28 Correspondent Services Manual
* Important Notes pertinent for All Wire Orders *
Authorized individuals must be listed on the Bank’s GAF in order to initiate or confirm outgoing wires.
The FHLBNY may, at their sole discretion, call a second authorized individual to verify the authenticity and accuracy of the Member's Wire Transfer request.
All calls to and from the FHLBNY’s Electronic Payments Department at the Bank are recorded .
Wire-Out Orders/Repetitive – call Electronic Payments at 800-824-2426 to receive a copy of the Repetitive form via e-mail or fax.
Set up procedure: a) A repetitive wire form must be filled out with the wire instructions as stated in the Wire-Out Orders/Non- Repetitive section above and signed by an authorized individual who can initiate wires and another authorized individual who can approve wires. b) The FHLBNY will assign a repetitive number and the Member will be advised of this number telephonically. c) All repetitive wire set ups will be confirmed with another/different authorized individual when the Member is given the repetitive number. (This is the only time a confirmation will occur on this particular repetitive wire instruction.)
In order to place a Repetitive Wire-Out order, the Member’s authorized individual should advise the FHLBNY of his/her PIN, the assigned repetitive number, the amount of the wire, and the Test Code. No other information is required.
Please note that repetitive wire information, other than the amount, can NOT be changed at initiation.
Daily Advice Wire-Out activity is noted on the Daily Advice.
Daily Statement of Wire Activity Wire Transfer Statements give detailed information of all wires sent out by the FHLBNY on the member’s behalf.
Note: The Daily Advice and the Daily Wire Statement are available daily in 1Link under the Info Reporting module.
Wire Transfer Agreement
The FHLBNY requires all Members to have an active, fully executed Wire Transfer Agreement on file, and complete a GAF for each authorized User in order to process wires. The Wire Transfer Agreement outlines the procedures used by the Bank and the Member when executing Wire Transfers. The Wire Transfer Agreement can be found on the Bank’s Website or by clicking here .
April 2018 29 Correspondent Services Manual
Wires-In The most efficient and perhaps the most reliable way for Members to fund their accounts is by Wire Transfer of funds to the FHLBNY (“Wires-In”). The FHLBNY receives Wire Transfers through an on-line system with the Federal Reserve.
Upon receiving a wire-in, the FHLBNY will credit the Member’s appropriate OIA. Members may view incoming wire detail on 1Link, the Bank’s internet application, under Info Reporting and the Current Day tab. Members should notify the FHLBNY’s Electronic Payments Department by telephone of that day’s expected wire-in activity of $5 million dollars and over by 4:00 p.m. EST in order to assist the FHLBNY in giving Members same day credit for incoming Wire Transfers.
Procedures The following procedure should be followed for wires-in:
Instructions to Senders for FHLBNY Member Wires Members should instruct senders of a wire-in to direct funds to the FHLBNY with the following information:
Required Description Wire Field Fed Equivalent ID Format (if applicable)
Receiver's ABA Number : 3400 026009739
Federal Home Receiving Bank : 3400 Loan Bank of New York
Beneficiary Information : Your ABA number is not your account number (i.e. Your Bank Information)
» Name and Address ABC Bank, Inc. Your account number should always
» FHLBNY 8 digit DDA 123 Main Street begin with a “2” followed by your four account number New York, NY digit FHLBNY member number 10178 represented by Xs in the Required Format column to the left and a three digit sub account number represented by 4200 Ys i.e. 010, 011, 012 etc.
In the event you have a three digit FHLBNY member number, begin the account number with “20”, i.e. 2XXXXYYY or 20XXXYYY. 20XXXYYY
April 2018 30 Correspondent Services Manual
In order to ensure timely credit, it is important that the Member's exact name and specific account number is included in the wire-in instructions. Please review form HLB-203 Bank to Bank Wire Instructions on the Bank’s website to see a listing of required wire fields and input format examples.
Instructions to Senders for Third Party Wires Members should instruct senders of a wire-in funds to the FHLBNY with the following information:
Required Description Wire Field Fed Equivalent ID Format (if applicable)
Receiver's ABA Number : 3400 026009739
Federal Home Receiving Bank : 3400 Loan Bank of New York
Beneficiary Bank ABC Bank, Inc. Your ABA number is not your Information : 123 Main Street account number
(i.e. Your Bank Information) New York, NY Your account number should always » Name and Address 10178 begin with a “2” followed by a four » FHLBNY 8 digit DDA digit member number represented by account number 4100 Xs to the left and a three digit sub account number represented by Ys 2XXXXYYY or i.e. 010, 011, 012 etc. 20XXXYYY
In the event you have a three digit member number, begin the account number with “20”, i.e. 20XXXYYY. The account number length will vary, Beneficiary Information : but should not include your (i.e. Your Customer's FHLBNY 8 digit DDA account Information) 4200 XXXXXXX number » Account Number » Name & Address Your customer's account number for which the funds should be applied
In order to ensure timely credit, it is important that the Member's exact name and specific account number is included in the wire-in instructions. Please review form HLB-204 Third Party Wire Instructions on the Bank’s website to see a listing of required wire fields and input format examples.
Notification and Credit Members should notify the FHLBNY’s Electronic Payments Department telephonically at 800-824-2426 of that day’s expected wire-in deposits of $5,000,000 and over. All calls are recorded. If the FHLBNY receives telephone notice of a wire-in of $5,000,000 and over and the wire-in is received after 4 p.m. EST, the amount of the wire will
April 2018 31 Correspondent Services Manual
generally be credited in collected funds to the Member’s account on that same business day. If the FHLBNY receives a wire-in after 4 p.m. EST time and the FHLBNY has not received prior notice, the amount of the wire may be credited to the Member’s account as uncollected funds.
Credit for Wires-In On the same day that the FHLBNY receives a wire-in, the FHLBNY will credit the appropriate Member OIA and give the Member same day availability of funds (except as noted in the above paragraph).
Daily Advice Wire-In activity is noted on the Daily Advice.
Daily Statement of Wire Activity Wire Transfer Statements give detailed information of all wires received by the FHLBNY on the Member’s behalf.
Note: The Daily Advice and the Daily Statement of Wire Activity Reports are available in 1Link under the Info Reporting module.
14. SETTLEMENT SERVICE
Under the FHLBNY’s Settlement Service option, the FHLBNY and the Member make arrangements with the Federal Reserve for check deposits and in-clearings drawn on the Member’s ABA number to be settled as a respondent to the FHLBNY’s Federal Reserve account. Other transaction activity, e.g. returns, coin & currency, foreign checks, etc. can also be settled through the FHLBNY’s account at the Federal Reserve. Upon presentment of settlement items at periodic times during the business day to the Federal Reserve, the Federal Reserve will post these transactions to the FHLBNY’s account. The FHLBNY will memo post these transactions to the Member’s OIA by the Federal Reserve at scheduled frequencies throughout the day. These intraday postings will appear in 1Link current day balance and transactions as well in the daily Net Settlement Reports. This settlement activity will also appear on the Member’s Daily Advice.
In addition, the Bank has a Settlement Service option for money orders and checks offered through a highly efficient and modern disbursement service provided by Money Gram, contact your Calling Officer for more information.
Members must have collected funds available in their accounts to cover the total amount of each day’s items settled by the FHLBNY. These account balances will be covered by the FHLBNY’s OIA program so that collected funds remaining each evening will earn interest at the rate set that day. The FHLBNY’s overdraft policies also apply to these accounts.
Members subscribing to the Settlement Service should use the following procedures:
Interception and Posting of Items Members must make their own arrangements with the Federal Reserve to obtain the items at their designated office location or third party processor. Members using a third party processor to capture items may arrange for the third party processor to provide debit and credit information to the FHLBNY with regards to presentments, return items and adjustments. The FHLBNY will post debits and credits based on an automated file received from the Federal Reserve, which is downloaded nightly. The FHLBNY will notify the Member via the Member’s Daily Advice. If the Member later determines that the amount posted to the Member’s account is different than the amount settled by the
April 2018 32 Correspondent Services Manual
FHLBNY on behalf of the Member, the Member should notify the third party processor of the difference. Questions related to adjustment entries or discrepancies should be referred to the third party processor. The FHLBNY shall have no responsibility or liability for erroneous postings to Member accounts based on the information provided to the FHLBNY by a third party processor.
Return Items Items that Members determine not to pay (stop payments; items drawn against insufficient or uncollected funds; defective items; etc.) should be returned, by the Member, directly to the Federal Reserve in a return item cash letter. The Return Item credit will be passed on to the Member as received by the FHLBNY from the Federal Reserve. The FHLBNY will notify the Member of the credit via the Member’s Daily Advice. The Member should address any discrepancies or other problems with return items to the Federal Reserve in a timely manner.
Adjustments Any errors in the amount that the Federal Reserve debited or credited to the FHLBNY’s account should be submitted by the Member to the Federal Reserve according to the instructions in the Federal Reserve’s pertinent operating letter. Any adjusting entry passed by the Federal Reserve to the FHLBNY will be passed to the Member. The FHLBNY will notify the Member of the adjustment via the Daily Advice. A four-digit Identification Number and the date of the transaction will appear in the description. Unless the amount that the FHLBNY posted to the Member’s account was different than the amount that the Federal Reserve posted to the FHLBNY’s account, the FHLBNY will have no other responsibility or liability to the Member with regard to adjustments.
15. CUSTODY AND PLEDGING SERVICES
Under the CSA for FHLBNY stockholders, the FHLBNY offers a complete and convenient Securities Custody and Pledging Service (“CPS”). Members subscribing to the CPS may request that the FHLBNY make arrangements to: (1) maintain custody of Members' physical securities, whether on a pledged basis or otherwise; (2) record Members' securities, whether pledged or otherwise, in appropriate "book entry" systems; and (3) receive or deliver securities which Members have traded. In addition, for securities that are registered in the name of the FHLBNY or a nominee, or that are in bearer form, the FHLBNY will (with exceptions for foreign and certain other types of securities): (1) arrange for the timely collection of interest, dividend, principal and other payments of securities; (2) notify Members in the event that securities are called or offered for redemption or exchange; and (3) notify Members of other information received by the FHLBNY relating to the Members' securities.
All securities CPS activity is settled through the Member's primary OIA. The FHLBNY will automatically credit Members' OIA for the net proceeds received by the FHLBNY on the sale and maturity of the Members' securities. Conversely, the FHLBNY will debit Members' OIA for the amount of purchases of securities. In addition, upon the FHLBNY's receipt of interest or dividends due on Members' securities, the FHLBNY will automatically credit their accounts.
The FHLBNY will keep Members informed of CPS instructions through the Daily Advice. A separate section of this report is devoted exclusively to CPS activity. The Daily Advice also serves as the Member's confirmation of CPS instructions provided by the Member to the FHLBNY. Members should note that the Daily Advice serves only as a confirmation of the instructions and not as notification of receipt or delivery of securities. The Daily Advice should be examined carefully, and the FHLBNY promptly notified in case of any discrepancies between it and the Member’s records.
Additionally, the FHLBNY provides Members with daily and monthly reports describing CPS activity. These reports include the Daily Forecasted Income Report, and the All Holdings List. In addition, customizable reports
April 2018 33 Correspondent Services Manual
are available on 1LinkSK’s Custody Reporting module. For a description of these reports, see Custody and Pledging Services Reports below.
Members with inquiries about the status of securities transactions or other matters relating to Members’ securities held by the FHLBNY should telephone the FHLBNY’s CPS Department (800-546-5101, option 2, 2). In order to respond to inquiries promptly, along with the CUSIP number the FHLBNY assigns a reference number to each holding. These numbers are printed on both the Daily Advice and Monthly Activity Report. Members may refer to either of these numbers when making inquiries.
Delivery Instructions and Deadlines for Securities: When notifying a CPS representative of trade activity, it is important to write or type information clearly on the Buy/Sell forms. All information must thoroughly be completed on these forms.
When securities are to be delivered into your account at the FHLBNY, the Member must instruct its broker to deliver them according to the instructions below:
1) Fed Book Entry FHLB Notes/Bonds Citibank NYC/Cust FNMAs FHLMCs GNMAs ABA # 021-000-089 US Treasury Notes/Bills FHLB NY US Treasury Bonds Citibank A/C #______SUB A/C #______US Government Agency Bonds
2) Depository Trust Co. Corporate Notes/Bonds DTC #908 Corporate Stock Issues Institutional ID 67967 Agent ID 27603 Corporate Mortgage Backed Issues FHLB NY Government Stock Issues Citibank A/C #______, SUB A/C #______Municipals
3) Physical Deliveries Citibank NA (908) 333 West 34 th Street 3rd Floor Securities Vault New York, NY 10001 FHLB NY A/C #______, SUB A/C #______
4) Cedel/Euroclear Cedel #26600 Citibank Global A/C #______SUB A/C #______CBNY-FHLB NY
Note: » Any physical securities being delivered into Citibank, N.A. will be registered into Citibank, N.A. nominee name Gerlach & Co., unless Member specifies differently. Securities must be accompanied by a corporate resolution and a bond power. » CPS Delivery Instructions and Trade Forms can be accessed from the Bank’s website, www.FHLBNY.com.
April 2018 34 Correspondent Services Manual
Receipt and Delivery Services
Upon a Member’s instruction, the FHLBNY will arrange for the receipt or delivery of securities that the Member has traded. Unless otherwise instructed by the Member, all securities received by the FHLBNY will be re-registered. Members should specify the registration desired at the time instructions are provided to the FHLBNY. Unless the Member specifies otherwise in writing, the FHLBNY will endorse or arrange for the endorsement in blank of the Member securities to be transferred or delivered and the FHLBNY will guarantee or arrange for the guarantee of the absence of endorsement of these securities. Members must provide the FHLBNY with the information below:
Information Required for Arrangements Receipts Deliveries Member OIA Number at the FHLBNY X X 1LinkSK six digit Custody Account Number X X Member Name X X Settle Date X X Trade Date X X Trade Type (Street Repo, etc.) X X CUSIP Number X X Security Description X X Pool Number or Group Number (if applicable) X X Name of Broker/Dealer X X Registration X X Settlement Quantity X X Amount (total cash proceeds) X X Delivery Instructions X Signature of Authorized Individual(s) X X
In order to insure the proper execution of a security transaction, the CPS department must be notified no later than the deadlines listed below.
1) Fed Book Entry Settlement Day 12:00 noon 2) Depository Trust Co Prior Day 3) Physical Delivery Prior Day 4) Cedel/Euroclear Two Days Prior Notice
If the FHLBNY receives notice of a purchase or sale transaction from a Member after these deadlines have passed, the FHLBNY will make its best effort to have the transaction completed as quickly as possible. These deadlines are subject to change from time to time.
Interest/Dividends Payment Services
The FHLBNY will automatically credit a Member’s primary OIA for the amount of interest or dividend payments received by the FHLBNY on the Member’s behalf for Member securities. In general, the FHLBNY will receive such interest for book entry securities and for physical securities registered in the name of the FHLBNY or specific nominees and for bearer securities. The FHLBNY also advises the Member of any calls or corporate action offers for payment or exchange of securities.
April 2018 35 Correspondent Services Manual
Upon the FHLBNY's receipt of the interest or dividend, the FHLBNY will credit the Member's primary OIA and reflect the credit on the Daily Advice. Members should reconcile these interest and dividend entries against their own records.
Maturing Securities Services
The FHLBNY will automatically credit a Member’s primary OIA for the net proceeds received by the FHLBNY upon the maturity of securities held by the FHLBNY. The FHLBNY will customarily receive such proceeds for book entry securities and for physical securities registered in the name of the FHLBNY or specific nominees and for bearer securities. In general, when physical securities held in bearer form in the FHLBNY's or a specific nominee’s name mature, the FHLBNY will arrange for the presentation of the certificate to the issuer or the agent bank and the FHLBNY will arrange for the receipt of payment.
Non-Discretionary Transactions
The FHLBNY may also perform a variety of non-discretionary transactions in connection with Member securities. Such transactions include the following:
» Receiving and holding securities received as a result of a stock readjustment or distribution of rights or a similar transaction. » Exchanging of interim receipts or temporary certificates for definitive certificates when available and exchanging old certificates for new or over stamped certificates evidencing a change of interest or registration.
Custody and Pledging Services Reports
All Holdings The purpose of this report is to provide Members a monthly written record of the securities the FHLBNY is holding in each Member's CPS Account. It is important that Members review the details of this report upon receipt and notify the FHLBNY promptly of any discrepancies.
This report contains the following information for securities in the Member's account:
» Market value and Market price of certain securities held in the Member’s Account Note: Market values and Market prices are provided for Members' general use and information and Members should independently verify and update these values before taking any action in reliance on these values.
» Reference Number » CUSIP Number » Rate/Coupon » Security Description (Name) » Par Amount (Number of Shares) » Current Face » Registration Code » Book-Entry Code
April 2018 36 Correspondent Services Manual
» Beneficiary Pledge » Maturity Date
This report is sorted by Account and Beneficiary Pledge followed by a list of unencumbered securities.
Daily Forecasted Income Report The purpose of this report is to give Members an indication of income payable on any given day. The reports shows principal, interest, maturities and call information. The amount of income and/or principal projected is subject to change. Members are urged to call the CPS Department immediately if any discrepancies come to their attention.
Custody and Pledging Services Holdings with Factors The purpose of this report is to provide Members a daily record of the securities the FHLBNY is holding in each Member’s CPS account. The report displays the location of each position along with the relevant factor for MBS securities, and is an excellent source for Members when they trade securities.
Custody and Pledging Services MBS P&I Payments This report details principal and interest payments posted to the Member’s OIA the prior day.
Note: In addition to the reports mentioned above, Members can access Position Statements, Settled Transactions, Cash Transactions, Cash Projections, Pending and Failed Transactions, and Audit reports, which are available on 1LinkSK, and can be automatically scheduled to run either daily, weekly or monthly.
These reports are available for download in a many types of formats including .csv, .xls, .pdf, .txt through 1LinkSK.
16. FEDERAL RESERVE PASS -THROUGH ACCOUNTS
Those Members that must satisfy Federal Reserve Bank requirements on transaction and non-personal time accounts may do so by designating the FHLBNY as their pass-through correspondent and maintain sufficient funds in a non-interest bearing account at the FHLBNY. Members wishing to use the FHLBNY as their pass-through correspondent must execute a three-party agreement with the appropriate Federal Reserve and the FHLBNY. Among other things, this agreement provides that a Member's reserves be maintained at the FHLBNY.
Procedure
Determination of Reserve Obligations Members are required to determine the amount of their reserve levels in accordance with Federal Reserve regulations. Members must recalculate their reserve levels every two weeks. Members are also required to prepare and file “Report of Transaction Accounts, Other Deposits and Vault Cash”, Federal Reserve Form 2900, with the Federal Reserve each week. Form 2900 can be obtained from the Federal Reserve Bank. See www.frbservices.org for more information.
Adjustment of Accounts Members can call the Electronic Payments Department daily prior to 3:00 p.m. EST at (800) 824-2426 to adjust the balance on their reserve account. The FHLBNY will credit or debit the Member's primary OIA in order to adjust the balance in the Member's reserve account.
April 2018 37 Correspondent Services Manual
Penalties In the event that the balance in the Member's reserve account is later determined by the FHLBNY to be insufficient, the FHLBNY will assess a penalty against the Member. The FHLBNY will notify the Member of the deficiency and will debit the Member's primary OIA for the amount of the penalty.
Interest on Required Reserve Balances and Excess Balances The Federal Reserve Banks pay interest on required reserve balances (balances held at Reserve Banks to satisfy reserve requirements) and on excess balances (balances held in excess of required reserve balances and contractual clearing balances). The Board of Governors has prescribed rules governing the payment of interest by Federal Reserve Banks in Regulation D (Reserve Requirements of Depository Institutions, 12 CFR Part 204). The FHLBNY passes this interest onto its Members who meet the interest criteria as noted by the Federal Reserve above.
17. AUTOMATED CLEARING HOUSE PAYMENTS
The FHLBNY is a member of the Electronic Payment Network (“EPN”) and, through EPN, provides a settlement service for RDFI and ODFI Members. ODFI Members must be members of EPN. EPN will debit or credit the FHLBNY's account at the New York Federal Reserve for each participating Member's daily ACH activity. The FHLBNY will pass on those debits or credits to the Members’ accounts at the FHLBNY. The ACH activity will be posted on the effective date and appear with a transaction description. The ACH transactions as posted during the day can be viewed through 1Link on the day posted and is reflected on the Daily Advice.
EPN will directly send to the Member, or the Member's data center, detailed information each day indicating the Member's retail customers to whom credits or debits are applicable.
Members located in the New York Federal Reserve District who would like the FHLBNY to provide a settlement service for their originated electronic debits and credits must contact ACH Operations regarding “membership”, at [email protected]. Those Members who are already members of EPN and who would like the FHLBNY to provide a settlement service should contact ACH Operations regarding “settlement” at [email protected]. Members located in the Philadelphia Federal Reserve District who would like the FHLBNY to provide a settlement service for their electronic debits and credits can get more information in this regard by calling the ACH Supervisor at the Atlanta Federal Reserve, at (866) 234-5681.
See www.frbservices.org for more information.
18. FEDERAL TAX ACCOUNTS
As insured financial institutions, Members are eligible to become federal tax depositories for Federal Tax Accounts. In order to do so, Members must file the appropriate forms with the Federal Reserve in their district and must receive Federal Reserve approval. The Federal Reserve compensates Members for maintaining tax accounts.
The FHLBNY provides pass-through correspondent services to Members eligible to offer their retail Members Federal Tax Accounts. Federal Tax Accounts are deposits received by eligible financial institutions from their Members for payment of Member’s Federal taxes. On the same day that Members receive a Federal Tax Account deposit from a Member, Members should send an appropriately completed IRS deposit ticket to the Federal Reserve and to the IRS.
April 2018 38 Correspondent Services Manual
Members can make arrangements with the IRS for the transfer of tax account funds to the IRS. Specifically, Members can arrange to be debited for the amount of the tax deposit (through the FHLBNY, as explained below) on the business day after the Member's receipt of the tax deposit. The IRS will charge the Member interest for the period beyond one business day that the Member holds the tax deposit. For more information about these arrangements and the procedures for completing and sending deposit tickets to the IRS, Members should contact the IRS directly.
Once a Member has become a federal tax depository, the Federal Reserve will debit the FHLBNY's account at the Federal Reserve for the amount of tax payments chargeable to the Members’ retail accounts. The Federal Reserve will also credit the FHLBNY's account at the Federal Reserve for the amount of the Federal Reserve's payments to Members for providing tax account services. In turn, the FHLBNY will debit and credit the appropriate Member accounts on the same business day, when possible. More information on becoming a Federal Tax Depository can be found at frbservices.org.
19. CORRESPONDENT SERVICE FEES
The FHLBNY's fees for correspondent services are structured so that Members obtain the FHLBNY's correspondent services on the most economic and competitive basis. The FHLBNY's correspondent services are explicitly priced and compensating balances are never required. Consequently, Members always know the exact cost of the services that they use at the FHLBNY.
The latest published service fee schedule is in Appendix D.
April 2018 39 Correspondent Services Manual
APPENDICES
A. GLOSSARY
1Link The FHLBNY’s Internet banking application by which Members may access their accounts at the FHLBNY, initiate Wire Transfers, Book wires, OLOCs, and Short Term Advances at reduced fees.
ACH Automated Clearing House – see Automated Clearings.
Adjustments Corrections made by the FHLBNY in debiting or crediting an account.
Agent/Signer Certification Code (“UPIN”) Eight characters, of which one must be alphabetic and one must be numeric, chosen and known only by the Signer.
Approving Officer An officer of the Member who is listed on any one of the Advances, Safekeeping, or Wire Authorization forms.
Authenticate To sign; or to execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.
Automated Clearings The process by which the FHLBNY settles electronic, paperless transfer orders to disburse funds, or to receive funds.
Book Balance Refers to the Current balance including float and restraints.
Broadcast Message Messages from the FHLBNY to Members available through 1Link.
Business Days Days that the Federal Reserve Bank of New York is open for business.
Cash Item An instrument for the payment of money that must either be paid or dishonored within the Midnight Deadline (midnight of the business day following the day of presentment.) Cash items include money orders, checks, and demand items.
Cash Letter A document prepared by a Member that accompanies a deposit of items and specifies the total dollar amount of the deposit.
Collected Balance The account balance available for immediate withdrawal. The FHLBNY pays interest on the closing collected balance in OIAs.
April 2018 40 Correspondent Services Manual
Contract ID (1Link Member ID) A five-digit number (assigned by the FHLBNY) preceded by “HLB”, where the first two digits of the number are 00 followed by the Member’s three digit customer number or one 0 followed by the Member’s four digit customer number.
Correspondent Services A variety of settlement and processing services offered by the FHLBNY to Members, i.e. , various settlement services, securities safekeeping, wire transfer, and other miscellaneous services.
Custody and Pledging Service A service where the FHLBNY receives custody of Member securities and provides various services in connection with those securities.
Daily Advice of Account Activity (Daily Advice) A daily report detailing each Member's financial activity and opening balance information.
Data Center A data processing facility used by a Member to process its items and/or perform its regular accounting functions (crediting Member accounts, preparing statements, etc.). These facilities may be operated by the Member or by an outside service company.
Overnight Investment Accounts (“OIA”) One or more OIAs owned by a Member and maintained at the FHLBNY and against which Members may issue oral orders or other forms of orders, as approved by the FHLBNY, directing the transfer of funds to payees.
Depository Bank Generally refers to the bank of first deposit where an item is deposited for collection and any subsequent correspondent banks prior to presentment to the drawee bank. The bank of first deposit usually MICR encodes the dollar amount of the item.
Electronic Payments Network (“EPN”) The electronic payment network, formerly known as the New York Automated Clearing House (“NYACH”), through which financial institutions as members of the EPN can originate ACH or receive ACH entries and have the net settlement of these transactions settled by the FHLBNY under its ABA number 0260-0973-9.
Federal Recurring Payments Payments made by the United States Government, such as Social Security payments or pension payments, in order that a Member’s retail customers may electronically and directly deposit such payments to their accounts at the Member.
Federal Reserve The Federal Reserve Bank of New York or the Federal Reserve Bank of Philadelphia, as applicable.
Federal Tax Accounts Accounts used for deposits received by eligible financial institutions from their customers for payment of customers' Federal taxes. The FHLBNY provides a pass-through correspondent service to Members wishing to offer their customers Federal tax accounts.
April 2018 41 Correspondent Services Manual
Foreign Check A check drawn on a bank in a foreign country typically purchased by a Member's retail customer for transmittal to a payee located in another country. A foreign check can be made payable in a foreign currency, e.g. British pounds or drawn on a Canadian bank and payable in U.S. Dollars.
Global Authorization Form (“GAF”) Authorization form executed by the Member for each User that specifies the User’s entitlements related to Information Reporting and Transaction Authority by 1Link, phone and fax for Advances, Letters of Credit, Safekeeping, Wire Transfer, and 1Link entitlements.
FHLBNY Federal Home Loan Bank of New York.
FHLBNY Administrator A Federal Home Loan Bank of New York employee who sets up Members and Member Users on the 1Link system and who works with Members to customize 1Link to meet Member needs.
Interest/Dividend Payment Service A service by which the FHLBNY automatically credits a Member's account for the amount of interest or dividend payments received by the FHLBNY on the Member's behalf for Member securities.
Maturing Securities Service A service where the FHLBNY will automatically credit a Member's account for the net proceeds received by the FHLBNY upon the maturity of a Member's security being held by the FHLBNY pursuant to the FHLBNY's Custody and Pledging Service. The credit will be reflected on the Daily Advice.
Member A financial institution (Commercial Bank, Thrift, Credit Union, Insurance Company and/or CDFI) or housing associate that is a member of the FHLBNY. It is also used to refer to those institutions that are considered non-members as a result of a merger.
Member User (“User”) A Member employee or a third party agent on behalf of the Member registered to use the 1Link system for access to the Member’s accounts at the FHLBNY as the Member’s agent.
MICR Magnetic Ink Character Recognition - the machine-readable line of numbers found at the bottom of a check. These numbers include an identification of the paying bank and the retail Member's account number.
Monthly Activity Report A report that gives Members a monthly record of CPS transactions.
Non-Cash Items An item that is not subject to the Midnight Deadline. These items are often not drawn on a domestic bank or they have other characteristics that make prompt payment impractical. Non-Cash Items include municipal and corporate coupons, United States Government bonds, municipal and corporate bonds, and foreign items.
April 2018 42 Correspondent Services Manual
Outstanding Holdings Report A report that gives Members a monthly record of the securities the FHLBNY is holding for them.
Paying Bank, Payor Bank, Drawee Bank The institution on which an item is drawn or through which an item is payable.
Personal ID Word A word selected by Users that only they should know in conjunction with 1Link. This word will be used to identify the User to FHLBNY employees when necessary. The word should be something the User would easily remember, but co-workers would not know.
Pledged Securities Service Services where the FHLBNY will, under some circumstances, hold securities pledged by a Member to a particular institution or agency. Pledged securities are noted on the Daily Advice and on the Outstanding Holdings Report.
Presentment A demand for acceptance or payment made upon the maker, acceptor, drawee, or other payor by or on behalf of the holder.
Primary Overnight Investment Account The OIA owned by the Member and maintained at the FHLBNY, which is a general purpose OIA and which is denominated by the FHLBNY as the account to which OIA interest is credited and correspondent service fees and other FHLBNY charges are debited. If the collected balance in the primary account is insufficient to cover the FHLBNY's charges, the FHLBNY will charge the OIA loan fee to the account.
Receipt - Delivery A service by which the FHLBNY will receive or deliver Member securities that the Member has traded.
Reserve Pass-Through A service by which Members maintain appropriate reserves at the FHLBNY to satisfy Federal Reserve Bank reserve requirements on transaction and non-personal time accounts.
Return Item An item that has been provisionally paid by the first collecting bank but is then returned through the clearing system to that bank.
Routing and Transit Number A nine-digit number assigned to every financial institution that uniquely identifies that institution. The first four digits are assigned by the Federal Reserve and provide check-clearing information. The second four digits (five through eight) represent a sequential number assigned by the Rand McNally Corporation. The last digit is a check digit used to identify an accidental misreading of the entire number.
Service Charge Detail Report A report prepared on the last business day of each month summarizing all fees charged to the Member for all correspondent services provided to the Member.
Settlement
April 2018 43 Correspondent Services Manual
A payment in cash by clearinghouse settlement, by a charge or credit, by remittance, or otherwise as instructed. A settlement may be either provisional or final.
Sign To authenticate; or to execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.
Signer A Member User having SecurID and entitlements in 1Link, as established by the Member, which allows the User to approve sign and authenticate transactions, as agent of the Member.
Software Application and system programs, modules of programs, utilities, sorting logic, and any other computer related instruction devices developed by the FHLBNY or its Software suppliers.
Term Investments An investment program that permits Members to increase earnings on collected funds held in their OIAs. Term Deposits range in maturities from 14 to 365 days. Term Deposits are non-redeemable prior to their stated maturity.
Transaction Instructions from a Member (or an outside source), i.e. , Member’s agents, to the FHLBNY to perform an accounting entry on the behalf of the Member.
Transaction Agreement An agreement covering a specific transaction type, or service, provided by the FHLBNY, such as the Global Authorization Form.
Transaction Code A two/three digit code used by the FHLBNY to identify the specific nature of a particular posted transaction.
Transfer Orders A paperless order in various forms, including voice communications, Wire Transfers, and telecommunications transfers, directing the transfer of money from a Customer’s OIA or directing the deposit of money to a Customer OIA.
Uniform Commercial Code (UCC) A general and comprehensive set of statutory standards adopted with slight variations in every state that set standards for negotiable instruments and other types of payment instruments. The Uniform Commercial Code as in effect in the State of New York governs herein.
Uncollected Balance The dollar amount in an account comprised of funds from items that have not been paid (float expressed as the effective date of the posted transaction, e.g. post 12/05/07, effective 12/06/07 would not be available until 12/06/07. The FHLBNY does not pay interest on uncollected funds and Customers may not withdraw or otherwise dispose of these funds.
User ID Assigned by the FHLBNY, but typically the name of a User and can be up to 12 characters in length.
User Password Six to nine characters, chosen and known only by a User, of which two must be alphabetic and two must be numeric.
April 2018 44 Correspondent Services Manual
B. Correspondent Services Agreement
The Correspondent Services Agreements including 1LinkSK can be located on the Bank’s Website ( www. FHLBNY.com ) by clicking on “Forms & Agreements” link under the “Members” tab.
C. Office of Foreign Assets Control (“OFAC”) Overview
The Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury administers and oversees a series of laws and regulations that impose economic and trade sanctions against targeted foreign countries and foreign nationals considered hostile to the United States. OFAC also has authority to impose civil sanctions and if a violation is found not to be inadvertent, criminal sanctions may be imposed.
OFAC laws and regulations help promote national and international security by requiring the freezing of assets of terrorist organizations, narcotic traffickers and other specially designated persons. It is your banking regulator that examines your compliance with OFAC. As a provider of banking services, you are prohibited from conducting any type of transaction, e.g. , checks, wires, ACH, letters of credit, etc., involving specific countries, individuals or organizations named on the OFAC list.
The FHLBNY has its own internal processes in place to comply with OFAC requirements and exercises ordinary care as the intermediary bank in connection with your transactions. However, these internal FHLBNY processes and procedures are in addition to those processes and procedures that your institution is required to have in place to comply with OFAC laws and regulations and these do not remove a Member’s responsibility and liability under OFAC laws and regulations .
Wire Transfers
Because the FHLBNY considers Wire Transfer transactions as having the greatest potential risk for violations of OFAC laws and regulations, the FHLBNY also prescreens all incoming and outgoing wires to a current OFAC listing (which includes specially designated nationals, specially designated narcotics traffickers, foreign terrorist organizations and others) for potential prohibited transactions. However, this process does not remove the Member’s responsibility when, in its capacity as the originating or beneficiary bank to confirm that an OFAC list name is not involved.
The FHLBNY expects that in accordance with OFAC laws and regulations, the OFAC review by the Member bank will occur prior to originating an outgoing Wire Transfer from the FHLBNY by phone or via 1Link or releasing funds received on an incoming wire to the named beneficiary.
On all outgoing wires, the originator’s name ( i.e. , the Member’s customer) and the beneficiary’s name must be verified as not being on the OFAC list before a Member’s outgoing wire request is made to the FHLBNY. In addition, the Member must obtain the following information from its customer and provide this information on all outgoing Wire Transfer requests to the FHLBNY:
» Full name of Member’s customer » Address (street, city and state) of Member’s customer » Account number of Member’s customer
April 2018 45 Correspondent Services Manual
On all incoming wires, the beneficiary’s name and the originator’s name must be verified as not being on the OFAC list before the Member releases the funds to the beneficiary ( i.e. , the Member’s customer). If, during the FHLBNY’s OFAC process, the originator’s or beneficiary’s name comes up on the OFAC list, the wire will not be processed until OFAC approves the release.
ACH
The FHLBNY currently provides a settlement service for its Member bank customers for their ACH transactions through the FHLBNY’s account at the New York Federal Reserve.
In its capacity as the Originating Depository Financial Institution or the Receiving Depository Financial Institution, the Member’s data center or core processor receives a complete file of the Member’s ACH transactions, which provides the full names of the Member’s customers. Therefore, the full names of all parties to a transaction should be checked against the current OFAC listing by the Member or the Member’s core processor to assure that the Member is in compliance with OFAC regulations.
Custody and Pledging Services
The FHLBNY currently provides a CPS settlement service for its Members. It is the FHLBNY’s understanding that the Member transacts investment trades for its own proprietary portfolio and not for its customers’ portfolios. Therefore, the FHLBNY does not monitor individual Member trade activity.
However, should you, the Member, process trade activity for your customers, then under the OFAC laws and regulations, you, the Member, are required to validate any beneficiary information against the OFAC list before forwarding said trade instructions to the FHLBNY.
A bank in non-compliance with OFAC laws and regulations may be opening itself to adverse publicity, fines, and even criminal penalties if it is found that a violation is other than inadvertent. Members are encouraged to read the laws and regulations governing OFAC compliance.
April 2018 46 Correspondent Services Manual
D. Correspondent Services Fee Schedule – 2018
Safekeeping Services
Service Provided Fee Fee Basis Maintenance (flat rate) $ 25.00 per month Per Item Charges (physical securities) $ 5.50 per month (book entries) $ 3.00 per month Purchases / Sales 1LinkSK sm Self Service* Book Entry (FED/DTC) $ 5.00 per transaction All Physicals $ 20.00 per transaction Fax / E-mail Book Entry (FED/DTC) $ 30.00 per transaction All Physicals $ 45.00 per transaction Securities Held At The Fed $ 15.00 per transaction Cedel/Euroclear $ 55.00 per transaction Maturities / Redemptions / Calls $ 13.00 per transaction Principal and Interest Payments (including coupons) $ 5.00 per transaction Confirmations For Special Services $ 25.00 per confirmation Collateral Pledge/Pledge Removal $ 5.00 per transaction
* Derived by reducing the Fax/E-mail fees through a credit of $25 per transaction
Funds Transfer
Service Provided Fee Fee Basis Wires In $ 7.00 per wire Wires Out (repetitive) $ 12.00 per wire Wires Out (non-repetitive) $ 20.00 per wire 1Link sm Wires Out (repetitive/non-repetitive) $ 8.00 per wire Wire Notification: Via 1Link no charge Book Wires: Via 1Link no charge Phone $ 5.00 per transfer Daily Statement of Wire Activity: Via 1Link no charge
April 2018 47 Correspondent Services Manual
Miscellaneous Deposit Services
Service Provided Fee Fee Basis Pass-Through Reserves $ 25.00 per month Settlement Services*: $100.00 per month Fed Settlement i.e. Check, National Settlement Services & Coin & Currency etc. ACH - Automated Clearing House Transactions MoneyGram Remittance Daily Advice of Account Activity: Via 1Link no charge Non Member / Other FHLB Mergers: A flat fee assessed for administrative $1,000.00 unwind costs
* A monthly service charge of $100 is applicable for the use of one or more of these Settlement Services.
1Link is the FHLBNY's online delivery channel for wires, book wires, select short term advances and general account management. For detailed information on 1Link access and guidelines, please review the FHLBNY's 1Link User Quick Guide in addition to Correspondent Services Manual both located on 1Link under Manuals and Guides. 1Link can be accessed through the public website www.fhlbny.com .
Fees for special services will be negotiated. Fee increases are subject to change based on 30 days notice
April 2018 48