puttable advance

puttable advance
A loan granted to a member financial institution by a Federal Home Loan Bank. The put feature in a puttable advance enables the borrower to prepay the advance, in whole or in part, in the event that prevailing rates decline. Borrowers benefit when using this type of borrowing to fund loans or investments that prepay when prevailing interest rates fall. American Banker Glossary

Financial and business terms. 2012.

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