Document:

Exhibit 4.02

 

DESCRIPTION OF THE REGISTRANT’S
SECURITIES

REGISTERED PURSUANT TO SECTION 12
OF THE

SECURITIES EXCHANGE ACT OF 1934

 

As of December 31, 2019, the Federal Home Loan Bank of
New York (“FHLBNY”) has one class of securities registered under Section 12 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”): our Class B Stock, putable, par value $100 per share (the “Class B
Stock”), which is registered under Section 12(g) of the Exchange Act.

 

Description of Class B Stock

 

The following description of our Class B Stock is a summary
and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Restated Organization Certificate
(the “Organization Certificate”), our Amended and Restated Bylaws (the “Bylaws”) and our
Amended and Restated Capital Plan (the “Capital Plan”), each of which are incorporated by reference as an exhibit
to the Annual Report on Form 10-K of which this Exhibit 4.02 is a part. We encourage you to read our Organization Certificate,
our Bylaws, our Capital Plan and the applicable provisions of the Federal Home Loan Bank Act, as amended (the “FHLBank
Act”), the Federal Home Loan Bank System Modernization Act, which was enacted as Title VI of the Gramm-Leach-Bliley Act
(the “GLB Act”) and related regulations of the Federal Housing Finance Agency (the “Finance Agency”)
for additional information.

 

General

 

The Federal Home Loan Banks (“FHLBanks”),
including FHLBNY, have a unique cooperative structure. To access FHLBNY’s products and services, a financial institution
must be approved for membership and purchase capital stock in FHLBNY. The members’ stock requirement is based on the amount
of mortgage- related assets on the member’s balance sheet and its use of FHLBNY advances (and certain other FHLBNY products),
as prescribed by the FHLBank Act; this reflects the value of having ready access to FHLBNY as a reliable source of low-cost funds.

 

Under our Capital Plan, our Class B Stock consists of two
sub-classes: membership stock and activity-based stock. The shares of Class B Stock offered to members are only issued at
par value and do not trade in any market. Redemptions and repurchases of such stock by the FHLBNY, and any transfers of such stock,
are also only made at par value.

 

Each FHLBNY member is required to maintain a certain minimum
investment in Class B Stock of the FHLBNY. The minimum investment is determined by a membership requirement (the “Membership
Stock Purchase Requirement”) and an activity-based requirement (the “Activity Stock Purchase Requirement”) (together
with the Membership Stock Purchase Requirement, the “Minimum Stock Investment Requirement”). Each member is required
to maintain a certain minimum investment in membership stock for as long as the institution remains a member of the FHLBNY. In
addition, each member is required to purchase activity-based stock in proportion to the volume of certain transactions between
the member and the FHLBNY. The FHLBNY may adjust these investment requirements from time to time within the limits established
in the Capital Plan.

 

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Voting Rights

 

Voting rights in regard to the election of directors are established
by regulation. Specifically, holders of Class B Stock that are members of the FHLBNY as of the record date (i.e., December 31
of the year immediately preceding an election) are entitled to participate in the election process. Eligible shareholders may nominate
representatives from members in their states to serve four-year terms on the Board of Directors of the FHLBNY. After the slate
of nominees is finalized, each member is eligible to vote for each open Member Director seat in the state in which its principal
place of business is located, as well as for each open districtwide Independent Director seat. Each member is entitled to cast
one vote for each share of Class B Stock that the member was required to hold as of the record date; however, the number of
votes that each member may cast for each open directorship cannot exceed the average number of shares of Class B Stock that
were required to be held by all members located in that state on the record date.

 

Redemption Rights

 

From time to time, the FHLBNY may issue or repurchase Class B
Stock to new members, current members, or former members or their successors in accordance with the Capital Plan, and as necessary
to allow the FHLBNY to satisfy the minimum capital requirements established by the GLB Act. The Class B Stock issued or repurchased
may be membership stock, activity-based stock, or both.

 

Under the GLB Act and related Finance Agency regulations, Class B
Stock is in general subject to redemption upon the expiration of a five-year redemption period (the “Stock Redemption
Period”). Only Class B Stock in excess of the Minimum Stock Investment Requirement of a member or former member
(including successors) may be redeemed at the end of the Stock Redemption Period. (Further, the FHLBNY shall automatically repurchase
excess activity-based stock from time to time but not less than on a monthly basis and may repurchase excess membership stock in
the FHLBNY’s sole discretion.) However, there is no guarantee that a member will be able to redeem its investment even at
the end of a Stock Redemption Period. If the redemption of Class B Stock, or the repurchase of such stock by the FHLBNY, would
cause the FHLBNY to fail to meet its minimum regulatory capital requirements, then such redemption or repurchase would be prohibited.
Likewise, the FHLBNY would not honor a redemption request if such redemption would cause the member to fail to maintain its required
Minimum Stock Investment Requirement.

 

The FHLBNY may also decide to suspend the redemption of Class B
Stock if it reasonably believes that such redemptions would cause the FHLBNY to fail to meet its minimum regulatory capital requirements,
would prevent the FHLBNY from maintaining adequate capital against a potential risk or would otherwise prevent the FHLBNY from
operating in a safe and sound manner. In addition, approval from the Finance Agency for redemptions or repurchases would be required
if the Finance Agency or the Board of Directors of the FHLBNY were to determine that the FHLBNY has incurred, or is likely to incur,
losses that result in, or are likely to result in, charges against the capital of the FHLBNY. Under such circumstances, there can
be no assurance that the Finance Agency would grant such approval or, if it did, upon what terms it might do so.

 

Accordingly, notwithstanding the expiration of the Stock Redemption
Period, there are a variety of circumstances that would preclude the FHLBNY from redeeming or repurchasing the Class B Stock
of a member. Since there is no public market for the Class B Stock and transfers of Class B Stock between members are
generally prohibited under the Capital Plan, there can be no assurance that a member’s purchase of Class B Stock would
not effectively become an illiquid investment in the FHLBNY.

 

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Minimum Stock Investment Requirement for Members

 

Each member is required to maintain a certain minimum investment
in the Class B Stock of the FHLBNY. This Minimum Stock Investment Requirement is comprised of a Membership Stock Purchase
Requirement and an Activity-Based Stock Purchase Requirement. Stock held by a member in excess of its required investment is known
as Excess Stock. A member may obtain Excess Stock by a variety of means, including reducing its Mortgage-related Assets, or by
reducing its level of transactions with the FHLBNY.

 

Although the FHLBNY does not currently expect to do so, the
FHLBNY may rely from time to time upon the Excess Stock of members — in addition to the amounts of stock members are required
to own — in order to satisfy its Minimum Regulatory Capital Requirements. In such case, a member that owns Excess Stock in
the FHLBNY would not be unable to redeem such stock for cash — nor could the FHLBNY repurchase such stock — as long
as the FHLBNY needs such Excess Stock to satisfy its Minimum Capital Regulatory Requirements. Under such circumstances, which may
occur particularly in periods of growth in the FHLBNY’s assets that do not directly require matching stock investments by
members, a member’s investment in Excess Stock effectively would become permanent capital in the FHLBNY and would remain
so unless and until the FHLBNY were able to find another source of capital (which could occur, for example, through an increase
in either the Membership Stock Purchase Requirement or the Activity-Based Stock Purchase Requirement applicable to members).

 

Moreover, if a member holds Excess Stock and if the FHLBNY is
relying upon such Excess Stock in order to satisfy its Minimum Regulatory Capital Requirements, the member may be unable to utilize
its Excess Stock to support new transactions with the FHLBNY but may be required by the FHLBNY to purchase additional Class B
Stock to ensure that the FHLBNY remains adequately capitalized. Thus, under this scenario, a member’s Excess Stock position
in the FHLBNY would increase with each new transaction it enters into with the FHLBNY.

 

Increases in the Minimum Amount of Class B Stock Required
to be Purchased

 

Under the Capital Plan, the Board of Directors of the FHLBNY
may increase the Minimum Stock Investment Requirement of members within certain ranges specified in the Capital Plan. The Minimum
Stock Investment Requirement may also be increased pursuant to an amendment to the Capital Plan, which must be approved by the
Finance Agency. The FHLBNY shall provide members with notice prior to the effective date of any increase in their Minimum Stock
Investment Requirement. Under the Capital Plan, members are required to purchase additional stock in the FHLBNY as necessary to
comply with such new requirements or, alternatively, may reduce the volume of their activity with the FHLBNY on or prior to the
effective date of any increase in the Activity-Based Stock Requirement. To facilitate the purchase of additional stock to satisfy
an increase in a Member’s Minimum Stock Investment Requirement, the FHLBNY may, pursuant to the terms of its Correspondent
Services Agreement with the member, issue stock in the name of the member and correspondingly debit the member’s DDA Account
at the FHLBNY.

 

Limitations on Payment of Dividends

 

Under the Bank Act and Finance Agency regulations, the FHLBanks
may pay dividends on their stock only out of previously retained earnings or current net earnings. However, an FHLBank that is
not in compliance with its Minimum Regulatory Capital Requirements may not pay dividends to members nor may an FHLBank pay dividends
if, after doing so, it would fail to meet any of such minimum

 

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requirements. Moreover, an FHLBank may not pay dividends to members
if any principal and interest due on consolidated obligations issued through the Office of Finance has not been paid in full or,
under certain circumstances, if the FHLBank becomes a noncomplying FHLBank under Finance Agency regulations as a result of its
inability to comply with regulatory liquidity requirements or to satisfy its current obligations.

 

Capital Plan Amendments Subject to Finance Agency Approval

 

The Finance Agency must approve all amendments to the Capital
Plan before they may become effective. However, such amendments to the Capital Plan are not subject to member consent or approval.
While amendments must be consistent with the FHLB Act and Finance Agency regulations, it is possible that they would result in
changes to the Capital Plan that could adversely affect the rights and obligations of members.

 

Vote on Voluntary Merger

 

In the event of a voluntary merger between FHLBNY and another
FHLBank, applicable regulatory rules require that the merger agreement be ratified a majority of votes cast in favor of ratification
by the members of the FHLBNY.

 

Each member of FHLBNY that is entitled to participate in the
voting will be able to vote the shares representing the member’s Minimum Stock Investment Requirement held by the member
on the record date, subject to the limitation that no member may cast a number of votes that exceeds the average number of shares
representing the Minimum Stock Investment Requirement of all members of the FHLBNY entitled to vote, calculated on a district-wide
basis, as of the record date.

 

    	 	4Exhibit 10.05

 

 

 

2020 DIRECTOR COMPENSATION POLICY

Effective as of January 1, 2020

 

		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.	2020 DIRECTOR FEES

 

		A.	Board Chairman

 

The maximum fee opportunity
for 2020 for the Chair of the Board shall be $145,000.

 

		B.	Board Vice Chairman

 

The maximum fee opportunity
for 2020 for the Vice Chair of the Board shall be $125,000.

 

		C.	Committee Chairs

 

The maximum fee opportunity
for 2020 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 2020 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 2020. This formulation is based on nine scheduled Board meetings in 2020. 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.	2020 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	2 
	 	 

     

    

 

		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	3 
	 	 

     

    

 

		IV.	METHODOLOGY

 

In determining the appropriate
and reasonable fee opportunities available to FHLBNY Directors for 2020 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	4

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