Exhibit 10.05


 


 


 


2021 DIRECTOR COMPENSATION POLICY


Effective as of January 1, 2021


 


		PURPOSE:	The Director Compensation Policy (“Policy”)
establishes meeting fees that the Federal Home Loan Bank of New York (“FHLBNY”)
will pay to the Board of Directors (collectively, the “Board”;
each member individually or severally, the “Directors”)
of the FHLBNY and also sets forth the types of Director expenses that may be reimbursed. The activities referred to in this Policy
are those as to which the Board believes Director attendance is necessary and appropriate and which may be compensated. The Policy
has been prepared in accordance with Section 7 of the Federal Home Loan Bank Act (“Bank
Act”) and the regulations of the Federal Housing Finance Agency (“FHFA”)
regarding Director compensation and expenses.



 


		I.	2021 DIRECTOR FEES



 


		A.	Board Chairman



 


The maximum fee opportunity for 2021 for the Chair of
the Board shall be $145,000.


 


		B.	Board Vice Chairman



 


The maximum fee opportunity for 2021 for the Vice Chair
of the Board shall be $125,000.


 


		C.	Committee Chairs



 


The maximum fee opportunity for 2021 for a Director
serving as a Committee Chair shall be $122,000; however, such Director shall not receive any additional fee opportunity if he or
she serves as Chair of more than one Committee. The Board Chair and Board Vice Chair shall not receive any additional fee opportunity
for serving as a Chair of one or more Board Committees.


 


		D.	Other Directors



 


The maximum fee opportunity for 2021 for Directors other
than the Chair, the Vice Chair, and the Committee Chairs shall be $112,500.


 


		E.	Payments and Attendance



 


Each Director shall
be paid an amount equal to approximately one-eighth of such Director’s maximum fee
opportunity as described above for each Board meeting that is attended by said Director in 2021. This formulation is based on nine
scheduled Board meetings in 2021. In addition, although attendance is expected at all Board meetings as per the FHLBNY’s
Corporate Governance Guidelines, this formulation allows for one absence. Such fees are to be paid on a quarterly basis in arrears.


 






     
	FEDERAL HOME LOAN BANK OF NEW YORK • 101 PARK AVENUE • NEW YORK, NY 10178 • T: 212.681.6000 • WWW.FHLBNY.COM





     


    

 





Attendance at meetings by telephonic means shall be
deemed acceptable for purposes of receiving compensation.


 


Directors may, in their sole discretion, elect to not
receive meeting fees by notifying the Corporate Secretary.


 


		F.	Payments and Performance



 


Payments to Directors
may be reduced in the sole judgment of the Board Chair if the Chair determines such director’s
Board performance to be significantly deficient. The Board’s Corporate Governance
and External Affairs Committee is authorized to, by a majority vote, make similar decisions pertaining to the performance of the
Board Chair.


 


		G.	Fees Pertaining to
Leadership Roles Relating to the Council of Home Loan Banks



 


In addition to the above compensation, a Director who
serves as Chair of the Council of Federal Home Loan Banks or who serves as Chair of the Chair/Vice Chair Committee of the Council
of Federal Home Loan Banks will receive a $10,000 stipend per year of service. The stipend will be paid through quarterly payments
of $2,500.


 


		II.	2021 DIRECTOR EXPENSES



 


		A.	General Reimbursement
Principles



 


		1.	Directors may be reimbursed for reasonable travel, subsistence and other related expenses incurred
in connection with the performance of their official duties only as specified in the FHLBNY’s
current policy covering the reimbursement of travel and other business-related items incurred by Directors. However, under no circumstances
shall Directors be reimbursed for gift or entertainment expenses. (The principles in this Section II pertaining to permitted reimbursements
shall also apply to those expenses paid for directly by the Bank to vendors and allocated to individuals in accordance with FHFA
directives or guidance which may be issued from time to time.)



 


		B.	Board and Board Committee
Meetings



 


		1.	Reimbursement of reasonable expenses may be provided to Directors in connection with attendance at Board and Committee meetings
as established herein.



 


		C.	Stockholders’
Meetings



 


		1.	Reimbursement of reasonable expenses incurred by Directors attending FHLBNY stockholders’
meetings is permitted.



 






    
	FEDERAL HOME LOAN BANK OF NEW YORK 

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		D.	Industry Meetings



 


		1.	Reimbursement of Independent 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.
Independent Directors attending industry events on behalf of the FHLBNY should register and identify themselves as Directors of
the FHLBNY.



 


		2.	Reimbursement of Member 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.



 


		E.	Meetings Called by
the Federal Housing Finance Agency



 


		1.	Reimbursement of reasonable expenses may be provided to all Directors participating in any meetings called by the FHFA.



 


		F.	Other Bank System
Meetings



 


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



 


		G.	Expenses of Spouses/Guests



 


		1.	Expenses incurred by a Director’s spouse/guest
while accompanying the Director to a meeting will not be reimbursed.



 


		III.	PROCEDURES AND ADMINISTRATIVE
MATTERS



 


		A.	Directors’ requests for reimbursement should be
submitted to the Office of the Corporate Secretary within 90 days of incurring the reimbursable item(s).



 


		B.	Payment for and reimbursement of allowable business expenses of the Directors will require
the approval of the Corporate Secretary or such officers designated by the Corporate Secretary.



 


		C.	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. FHFA regulations prohibit 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.






 



    
	FEDERAL HOME LOAN BANK OF NEW YORK 

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		IV.	METHODOLOGY



 


In determining the appropriate and reasonable fee
opportunities available to FHLBNY Directors for 2021 as described herein, the Board has taken into consideration the following
factors:


 


		o	the desire to attract and retain
highly qualified and skilled individuals in order to help guide a complex and highly-regulated financial institution that is subject
to a variety of financial, reputational and other risks;



 


		o	the highly competitive environment
for talent in the New York City metropolitan area -- a center of world finance in which stock exchanges, securities companies and
other sophisticated financial institutions are located;



 


		o	the demands of the Director position,
including the time and effort that Directors must devote to FHLBNY and Board business -- demands that have grown over the past
several years;



 


		o	the overall performance of the
FHLBNY, an institution that is a Federal Home Loan Bank System leader, a strong financial performer, a reliable source of liquidity
for its customers, and a provider of a consistent dividend -- and an institution which wishes to maintain this performance;



 


		o	information pertaining to compensation
opportunities available to directors of other Federal Home Loan Banks; and



 


		o	director compensation surveys
performed over time by outside compensation consulting firm McLagan, most recently in 2019 -- surveys which have provided the Directors
with the ability to compare Director compensation opportunities with compensation opportunities available at other institutions.



 


The Board will review the issue
of appropriate and reasonable Director fee opportunities on an annual basis.


 






    
	FEDERAL HOME LOAN BANK OF NEW YORK 

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