DelVal has entered, and will enter, into master interest rate swap agreements (collectively, the "DelVal Swap Agreement") related to DelVal's outstanding bond issues. DelVal executes interest rate swap transactions in order to hedge its exposure to future changes in long-term interest rates and to create a Loan Program that can originate both fixed rate and variable rate loans at competitive levels. The DelVal Swap Agreement reduces the costs of issuance and the loan rates of borrowers in the Loan Program and enhances the ability of borrowers to manage their interest rate risk and avoid the churning of constant refunding.
DelVal entered into interest rate swap agreements with Merrill Lynch Capital Services in 1997 and 1998 that were novated to Bank of America, N.A. in 2009. DelVal also entered into master interest rate swap agreements with Citibank, N.A. in 2007, Barclays Bank PLC in 2012, PNC Bank, National Association in 2015, The Toronto-Dominion Bank in 2016, and the Royal Bank of Canada in 2019.
Please see "Management's Discussion and Analysis" and "Note 6. Derivative Financial Instruments" in DelVal's Financial Statements posted on the "DelVal Financial Information" page for more information. The DelVal Board annually adopts an interest rate swap management policy that is posted on the "Access to Public Records" page. Current swap market values can be found in the quarterly activity reports posted on the "DelVal Financial Information" page.
The master interest rate swap agreements are posted in the document library below (You will be redirected to a Box Folder.):