New York—The Federal Reserve Bank of New York today announced that it will extend the window
for the first subscriptions for funding from the Term Asset-Backed Securities
Loan Facility (TALF) by two days. The extension was requested by market participants
in order to allow more time for borrowers to complete the documentation associated
with the initiation of the program. The New York Fed will begin accepting loan
requests starting at 10 a.m. ET on March 17, 2009, as originally published. The
window for receipt of TALF loans has been extended through 5 p.m. ET on March
19, 2009. Lending rates on TALF loans will be set on March 19, 2009 at 8 a.m.
ET. The settlement date will remain March 25, 2009 and the dates for the April
subscription and settlement remain unchanged.
The TALF is designed to help market participants meet the credit needs of households
and small businesses by supporting the issuance of asset-backed securities collateralized
by student loans, auto loans, credit card loans, and loans guaranteed by the
Small Business Administration. Eligible borrowers must use a primary dealer,
which will act as agent for the borrower, to access the TALF and must deliver
eligible collateral to the New York Fed's custodian bank.