EXHIBIT 10.19
ADVANCE AGREEMENT BETWEEN FEDERAL HOME LOAN BANK OF DES MOINES AND FARM BUREAU
LIFE INSURANCE COMPANY DATED AUGUST 17, 1999
Date: August 17, 1999
APPLICATION FOR ADVANCE
The undersigned member hereby applies for an advance pursuant to and
subject to the terms of the previously executed Agreement for Advances, Pledge
and Security Agreement and the Credit Policy of the Federal Home Loan Bank of
Des Moines ("Bank") in effect at the time of disbursement. This writing
incorporates the terms of all negotiations and is the sole evidence of those
negotiations. It is agreed that if, pursuant to Section 10(c) of the Federal
Home Loan Bank Act, the applicant is required to purchase additional capital
stock because the Bank makes an advance, the Bank may deduct the amount of the
required purchase from the proceeds of the advance and apply it to the purchase
of said stock. The type of advance applied for is as follows:
ADVANCE INTEREST ADVANCE MATURITY ADVANCE
DESCRIPTION RATE TERM DATE AMOUNT
----------- ---- ---- ---- ------
1-Month LIBOR - .0475% 1 MO LIBOR - .0475% 49 months September 17, 2003 $40,000,000.00
See attached schedule for terms discounted initial rate
and prepayment provision
The undersigned officers hereby certify that they are authorized to apply
to the Federal Home Loan Bank of Des Moines for this advance pursuant to a
resolution adopted by the Board of Directors of the undersigned member. The
member agrees that the Bank can accept and rely upon applications executed and
sent via facsimile or electronic transmission. The member shall be legally bound
by the terms of such applications.
NAME OF INSTITUTION: Farm Bureau Life Insurance Co. (#1156)
LOCATION: West Des Moines, IA
BY:____________________________________ BY:____________________________________
____________________________________ ____________________________________
Typed Name of Signer Typed Name of Signer
TITLE:_________________________________ TITLE:_________________________________
NOTE: This transaction is not effective until approved and notice is given
to you by the Bank. If the member institution subsequently becomes
ineligible for Bank advances, the member must provide the Bank with
immediate written notification of its ineligibility.
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FOR FHLB USE
Date Approved: 8/17/99 FEDERAL HOME LOAN BANK OF DES MOINES
Notified Via: telephone By:_______________________________________
Advance No. 99081701 By:_______________________________________
FEDERAL HOME LOAN BANK OF DES MOINES
LIBOR ADVANCE TERMS AGREEMENT
ADVANCE TERMS: $40,000,000 floating rate LIBOR advance. Farm Bureau Life
Insurance Co. shall have the right to prepay in whole or in
part in increments of $1,000,000 the advance referenced
herein without penalty beginning September 17, 1999, and
every month on the repricing date thereafter with 3 days
prior notice to the Federal Home Loan Bank of Des Moines.
COUNTERPARTIES: Farm Bureau Life Insurance Co. (#1156) and Federal Home Loan
Bank of Des Moines.
SETTLEMENT DATE: August 17, 1999
MATURITY DATE: September 17, 2003
PAYMENTS: Farm Bureau Life Insurance Co. pays 1 month LIBOR - .0475%
rounded to the nearest thousandth of one percent on the 17th
day of each calendar month commencing September 17, 1999,
and ending on the Maturity Date, subject to adjustment with
the Following Business Day convention, with adjustment of
Period End Dates.
FLOATING RATE
OPTION: The LIBOR rate is the 1 month LIBOR rate as posted on the
Telerate page 3750 as of 11:00a.m., London time, on the day
that is two London and New York Banking Days preceding that
reset date. If such rate does not appear on the Telerate
Page 3750, the rate for that Reset Date will be determined
as if the parties had specified Reference Banks as the
applicable Floating Rate Option. Reference Banks means that
the rate for a Reset Date will be determined on the basis of
the rates at which deposits in U.S. Dollars are offered by
the Reference Banks at approximately 11:00a.m., London time,
on the day that is two London and New York Banking Days
preceding that Reset Date to prime banks in the London
interbank market for a period of the Designated Maturity
commencing on the Reset Date and in a Representative Amount.
The Calculation Agent will request the principal London
office of each of the Reference Banks to provide a quotation
of its rate. If at least two such quotations are provided,
the rate for that Reset Date will be the arithmetic mean of
the quotations. If fewer than two quotations are provided as
requested, the rate for that Reset Date will be the
arithmetic mean of the rates quoted by major banks in New
York City, selected by the Calculation Agent, at
approximately 11:00a.m., New York City time, on the Reset
Date for loans in U.S. Dollars to leading European banks for
a period of the Designated Maturity commencing on that Reset
Date and in a Representative Amount.
Date_______\________
Initial_____\_______
FEDERAL HOME LOAN BANK OF DES MOINES
LIBOR ADVANCE TERMS AGREEMENT
BUSINESS DAY
FOR PAYMENTS: New York
DAY COUNT FRACTION: Actual/360
DOCUMENTATION: FHLB AAPSA agreement
CALCULATION AGENT
ON ADVANCE: FHLB
As a result of this transaction, Farm Bureau Life Insurance Co. will receive an
all-in funding level of 1 month LIBOR - .0475%
NON-SCHEDULED
PREPAYMENTS: Farm Bureau Life Insurance Co. shall have the right at
any time to prepay all or part in increments of
$1,000,000 the advance referenced herein. If at any time
after Advance Number 99081701 is made by the Bank to
Farm Bureau Life Insurance Co. at a rate of interest
based upon LIBOR, Farm Bureau Life Insurance Co. chooses
for any reason to repay the Advance in a manner other
than provided for in the Advance terms, Farm Bureau Life
Insurance Co. shall reimburse the Bank for any actual
open market transaction costs the Bank sustains because
of the prepayment. In the event Farm Bureau Life
Insurance Co. elects to make a non-scheduled prepayment,
the Bank shall, promptly upon request by Farm Bureau
Life Insurance Co., advise Farm Bureau Life Insurance
Co. what its actual open market costs will be in
connection with a proposed non-scheduled prepayment. For
purposes of this Agreement, actual open market
transaction costs shall include any costs the Bank
incurs because of any agreement(s) the Bank enters into
to facilitate the LIBOR Advance which may include but is
not limited to interest rate swaps.
FEDERAL HOME LOAN BANK FARM BUREAU LIFE INSURANCE CO.
OF DES MOINES
on___________________________________ on____________________________________
By:__________________________________ By:___________________________________
Title:_______________________________ Title:________________________________
