WASHINGTON - A total of 103 finanical institutions became members of the Federal Home Loan Bank System in September, tying the one-month record set last June.

The system now has 4,230 members, including 2,216 thrifts, 14 insurance companies, and about 1,900 banks and 50 credit unions.

An exact count will be available later this month from the Federal Housing Finance Board.

"It's the best deal in the world," said C.R. Cloutier, president of Midsouth National Bank in Layfayette, La. - one of the banks that signed up.

Mr. Cloutier said Midsouth can borrow funds from the Federal Home Loan Bank of Dallas for up to 30 years at 30 basis points over the Dallas bank's cost of funds. Midsouth doesn't pay deposit insurance premiums on the funds, he added.

The $90 million-asset bank expects to borrow $3 million to $4 million from the Dallas bank to meet a surge in loan demand. It bought $250,000 worth of the system's stock to join.

The bank system has been averaging 75 new members a month.

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