Bank Directors Seminar, Coeur d'Alene, ID, September 15-17, 2019

FHLB DES MOINES MEMBER CREDIT

• FHLB Des Moines is a reliable source of liquidity and funding for all members

• FHLB Des Moines committed to extending liquidity in stressed environments and to distressed members • FHLB Des Moines actively engages Regulatory community to ensure understanding of liquidity mission and credit administration

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FHLB DES MOINES MEMBER CREDIT

eNotes • FHLBank System working together to develop a future solution for providing collateral value for eNotes • Currently $28 billion of residential mortgages using approved eNote technology • What is an eNote? • A note executed electronically and stored in an eVault • Key considerations • Note must be a transferrable record • Same terms and conditions under UCC • Electronically signed

• Establish identify of control holder • Allows for a single authoritative copy • Establishes control and system of record • Identifies transferee

• Must be stored in an eVault

• What is not an eNote?

• Scanned copy of original wet signature • Electronic copies that do not satisfy eNote requirements

• An electronically signed note without a single authoritative copy • An electronically signed note that is not stored in an eVault • An electronically signed note that is not listed on an eRegistry • An electronically signed note that is not a SMARTDoc

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