Cash and due from banks

The fee for the Chairman of the Board is $3,904 per Board meeting attended (subject to Section I.D. below).

The fee for the Vice Chairman of the Board is $3,124 per Board meeting attended (subject to Section I.D. below).

The fee for a Director, other than the Chairman or the Vice Chairman, is $2,343 per Board meeting attended (subject to Section I.D. below).

In no event shall fees paid to any Director in a calendar year exceed any limitations imposed by Section 7 of the Bank Act and/or the regulations of the FHFB located at 12 C.F.R. 918.3. The annual compensation limits established by the FHFB for each of the boards of directors of the Federal Home Loan Banks in 2008 are as follows: for the Chairman, $31,232; for the Vice Chairman, $24,986; and for each of the other members of the Board, $18,739.

Directors may be paid for reasonable travel, subsistence and other related expenses incurred in connection with the performance of their official duties as are payable to senior officers of the FHLBNY as specified in the FHLBNY’s current Travel Policy. However, under no circumstances shall Directors be paid for gift or entertainment expenses.

Reimbursable expenses may be paid to both appointed and elected Directors for attendance at Board and Committee meetings as established herein.

Reimbursement of reasonable expenses incurred by appointed and elected Directors attending the FHLBNY’s regional stockholders’ meetings is permitted.

Reimbursement of appointed Directors’ expenses incurred while attending industry meetings or annual conventions of trade associations on a national level is permitted provided that a specific objective has been identified and that attendance has been specifically pre-approved by the Board of Directors. Appointed directors attending industry events on behalf of the FHLBNY should register and identify themselves as directors of the FHLBNY.

Reimbursement of elected Directors’ expenses incurred while in attendance at industry meetings or annual conventions of trade associations on a national level is not permissible, unless such attendance is incidental to a FHLBNY Board or Committee meeting.

Reimbursement of reasonable expenses may be paid to all Directors participating in meetings called by the Federal Housing Finance Board.

Reimbursement of reasonable expenses may be paid to all Directors who are invited to attend meetings of Federal Home Loan Bank System committees (e.g., the Chair/Vice Chair Conference); Federal Home Loan Bank System director orientation meetings; and meetings of the Council of Federal Home Loan Banks and Council committees.

Reimbursement of reasonable expenses incurred by a Director’s spouse while accompanying the Director to a meeting for which the Director’s own reasonable expenses can be reimbursed (as specified in Sections II B, C, D, E or F above) is permitted.

Directors’ expense reports should be submitted to the Office of the Corporate Secretary no less than quarterly.

Payment for and reimbursement of allowable business expenses of the Directors will require the approval of the Corporate Secretary or Assistant Corporate Secretary.

Meetings of the Board and Committees thereof should usually be held within the district served by the FHLBNY. Under no circumstances shall such meetings be held in any location that is not within the district without prior approval of the Board. FHFB Regulation 12 C.F.R. 918.8 prohibits any meetings of the Board of Directors (including committee, planning, or other business meetings) to be held outside the United States or its possessions and territories.