877.933.7803 | Fax: 785.234.1790 or 785.234.1794 | FinancialServices@fhlbtopeka.com
Why safekeep Fed book entry securities with FHLBank?
If you settle your Fed book entry securities with us, you don’t have to worry about a daylight overdraft at the Fed. FHLBank Demand Deposit account debits and credits are settled at the end of the day, and unlike the Fed, we allow you to use your Fed book entry securities as collateral for FHLBank borrowings. Additionally, the Fed will not allow pledges to another depository financial institution, thus requiring you to safekeep with an approved third-party custodian. Safekeeping with FHLBank Topeka provides added ease and convenience of pledging your public unit deposits.
Does FHLBank offer third-party pledging?
FHLBank is approved by the states of Colorado, Kansas, Nebraska and Oklahoma to hold securities pledged to public unit deposits. We offer Joint Custody pledging, repo pledging and pledging for special needs.
Can our securities be segregated from our customers’ securities?
A separate custodial account can be opened to accommodate this request. All payments and fees will still be debited and credited through your Demand Deposit Account.