BANKING & FINANCE - Feb. 26, 1994

Quake Relief Financing Program Announced: Discounted financing for earthquake relief lending will be available as a result of a special transaction involving the Federal Home Loan Bank of San Francisco and the state treasurer’s office, it was announced. The state of California has agreed to purchase a $145-million bond of the Federal Home Loan Bank System. In turn, the Federal Home Loan Bank of San Francisco will lend the proceeds of the bond sale to local financial institutions to promote mortgage and commercial lending that benefits low- and moderate-income households and neighborhoods affected by the Jan. 17 Northridge earthquake. The $145 million in funds earmarked for home loans and economic development projects will be made available through five lenders: American Savings Bank in Stockton, Coast Federal Bank in Los Angeles, First Republic Thrift & Loan in San Francisco, Glendale Federal Bank and Home Savings of America in Irwindale.