---
kind: "section"
citation: "12 C.F.R. § 1266.6"
title: "12"
number: "1266.6"
heading: "Fees."
url: "https://uscodex.org/cfr/12/1266.6"
---

# §1266.6. Fees.

- (a) **Fees in member products policy.** All fees charged by each Bank and any schedules or formulas pertaining to such fees shall be included in the Bank's member products policy required by [§ 917.4](/cfr/12/917.4.md) of this title. Any such fee schedules or formulas shall be applied consistently and without discrimination to all members.
- (b) **Prepayment fees.**
  - (1) Except where an advance product contains a prepayment option, each Bank shall establish and charge a prepayment fee pursuant to a specified formula which makes the Bank financially indifferent to the borrower's decision to repay the advance prior to its maturity date.
  - (2) **Prepayment fees are not required for—**
    - (i) Advances with original terms to maturity or repricing periods of six months or less;
    - (ii) Advances funded by callable debt; or
    - (iii) Advances which are otherwise appropriately hedged so that the Bank is financially indifferent to their prepayment.
  - (3) The board of directors of each Bank, a designated committee thereof, or officers specifically authorized by the board of directors, may waive a prepayment fee only if such prepayment will not result in an economic loss to the Bank. Any such waiver must subsequently be ratified by the board of directors.
  - (4) A Bank, in determining whether or not to waive a prepayment fee, shall apply consistent standards to all of its members.
- (c) **Commitment fees.** Each Bank may charge a fee for its commitment to fund an advance.
- (d) **Other fees.** Each Bank is authorized to charge other fees as it deems necessary and appropriate.

## Notes

### Amendments

[58 FR 29469, May 20, 1993; 65 FR 8263, Feb. 18, 2000. Redesignated and amended at 65 FR 44429, July 18, 2000]

### Authority

Authority: 12 U.S.C. 1426, 1429, 1430, 1430b, 1431, 4511(b), 4513, 4526(a).

### Source

Source: 58 FR 29469, May 20, 1993, unless otherwise noted. Redesignated at 65 FR 8256, Feb. 18, 2000, and 75 FR 76622, Dec. 9, 2010.

### Amendments

[58 FR 29469, May 20, 1993; 65 FR 8263, Feb. 18, 2000. Redesignated and amended at 65 FR 44429, July 18, 2000]