ATLANTA, Sept. 9 /PRNewswire/ -- The Federal Home Loan Bank of Atlanta
("Bank") announced today it has approved a lending agreement with the U.S.
Department of the Treasury ("Treasury") that is designed to serve as a
source of contingent liquidity for the Bank's debt issuance activities.
The agreement stems from provisions of the Housing and Economic
Recovery Act of 2008, which provided the Treasury with the authority to
establish such a facility. The terms of the agreement are described in the
Bank's Current Report on Form 8-K filed today. The agreement expires on
Dec. 31, 2009, or sooner if the Bank determines it will not need the
Treasury support. Any loan under the agreement would be secured by certain
Bank assets, such as advances to members or by mortgage-backed securities
issued by Fannie Mae or Freddie Mac.
"The Bank appreciates the U.S. Treasury's interest in establishing a
clearly-defined operational agreement should the Federal Home Loan Banks
require added liquidity support for our debt," said Richard A. Dorfman,
FHLBank Atlanta President and Chief Executive Officer. "It is essential
that the Bank continue to execute its mission of providing affordable
liquidity to lenders, and this agreement makes it clear the federal
government supports that role."
Each of the 12 Federal Home Loan Banks has entered into such an
agreement. Extensions of credit by the Treasury to the FHLBanks, or to any
FHLBank, will be considered a consolidated obligation and will be the joint
and several obligation of all of the FHLBanks. However, Dorfman noted that
at this time, the Bank does not anticipate that it will need to tap the
lending facility.
About the Federal Home Loan Bank of Atlanta
The Bank is a cooperative financial services organization that provides
funding, community development grants, and other banking services to more
than 1,200 member financial institutions in Alabama, Florida, Georgia,
Maryland, North Carolina, South Carolina, Virginia, and the District of
Columbia. The Bank is one of 12 district banks in the Federal Home Loan
Bank System (the FHLBank System), which since 1990 has contributed more
than $2 billion to affordable housing development in the United States.
Some of the statements made in this announcement, including, without
limitation, the Bank's plans to not access funding under the lending
agreement, are "forward-looking statements," which include statements with
respect to the Bank's beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future performance,
and involve known and unknown risks, uncertainties and other factors, many
of which may be beyond the Bank's control, and which may cause the Bank's
actual results, performance or achievements to be materially different from
the future results, performance or achievements expressed or implied by the
forward-looking statements.
The forward-looking statements may not be realized due to a variety of
factors, including, without limitation: legislative and regulatory actions
or changes; future economic and market conditions; changes in demand for
advances or consolidated obligations of the Bank and/or the FHLBank System;
changes in interest rates; political, national and world events; and
adverse developments or events affecting or involving other Federal Home
Loan Banks, GSEs or the FHLBank System in general. Additional factors that
might cause the Bank's results to differ from these forward-looking
statements are provided in detail in our filings with the Securities and
Exchange Commission, which are available at http://www.sec.gov .
You should not place undue reliance on forward-looking statements,
since the statements speak only as of the date that they are made. The Bank
has no obligation and does not undertake to publicly update, revise or
correct any of the forward-looking statements after the date of this
announcement, whether as a result of new information, future events or
otherwise, except as may be required by law.
SOURCE Federal Home Loan Bank of Atlanta
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Related links:
http://www.fhlbatl.com
http://www.prnewswire.com/comp/149931.html /
CONTACT:
Sharon Cook of Federal Home Loan Bank of
Atlanta, +1-404-888-8173, scook@fhlbatl.com
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