The latest overcollateralization out-of enhances ‘s the FHLBs’ head way to obtain cover against borrowing loss to the enhances FHLBs is actually after that shielded from loss by the their extremely-lien condition, which provides all of them priority on the guarantee more than other creditors-like the FDIC-if a member place goes wrong plus the worth of equity decreases. New Aggressive Equality Banking Operate out-of 1987 written that awesome-lien reputation;... ...