The Federal Housing Finance Board has approved a final rule giving Community Financial Institutions the ability to use new classes of collateral when applying for advances from the Federal Home Loan Bank System.

Under the rule, which was a provision of the Gramm-Leach-Bliley Act, the FHLBanks will accept small business loans, agriculture loans and securities backed by these types of loans as collateral from CFIs - Federal Deposit Insurance Corp.-insured institutions with less than $500 million in assets.

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