Circular
Board Releases Additional Terms and Conditions of Term Asset-Backed Securities Loan Facility
February 6, 2009
Circular No. 12065

The Federal Reserve Board has released additional terms and conditions—including loan rates and collateral haircuts—of the Term Asset-Backed Securities Loan Facility (TALF). The additions were determined after further analysis and consultation with issuers, investors and dealers in asset-backed securities (ABS).

The new terms and conditions also include a revised definition of eligible borrowers and additional specifications regarding eligible ABS collateral. In addition to a new term sheet, the Board released a revised frequently-asked-questions document detailing the changes.

Under the TALF, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated ABS backed by newly and recently originated auto loans, credit card loans, student loans and SBA-guaranteed small business loans. The date that the TALF will commence operations will be announced later this month.

See the press release for full details.

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