66160 Federal Register / Vol. 73, No. 217 / Friday, November 7, 2008 / Rules and Regulations
1 73 FR 64179 (Oct. 29, 2008).
2 12 CFR 370.5(h)(2) and (h)(3).
3 12 CFR 370.2(a) defines ‘‘eligible entity’’ as any
of the following: (1) An insured depository
institution; (2) a U.S. bank holding company,
provided that it has at least one chartered and
operating insured depository institution within its
holding company structure; (3) a U.S. savings and
loan holding company, provided that it has at least
one chartered and operating insured depository
institution within its holding company structure; or
(4) other affiliates of insured depository institutions
that the FDIC after consultation with the
appropriate Federal banking agency, designate as
eligible entities which affiliates, by seeking and
obtaining such designation, will have opted in to
the debt guarantee program.
4 12 CFR 370.5(c).
5 12 CFR 370.5(a).
Secs. 300.101 through 300.104 also issued
under 5 U.S.C. 7201, 7204, 7701; E.O. 11478,
3 CFR, 1966–1970 Comp., page 803.
Sec. 300.301 also issued under 5 U.S.C.
1104 and 3341.
Secs. 300.401 through 300.408 also issued
under 5 U.S.C. 1302(c), 2301, and 2302.
Secs. 300.501 through 300.507 also issued
under 5 U.S.C. 1103(a)(5).
Subpart F—[Removed and Reserved]
■ 2. Remove and reserve subpart F,
consisting of § 300.601 through
§ 300.606.
[FR Doc. E8–26559 Filed 11–6–08; 8:45 am]
BILLING CODE 6325–39–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 370
RIN 3064–AD37
Temporary Liquidity Guarantee
Program
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Amendment to the Interim Rule
with request for comments.
SUMMARY: The FDIC is amending its
Interim Rule with Request for Comment
(Interim Rule) relating to
implementation of its Temporary
Liquidity Guarantee Program (TLG
Program) by extending the opt out date
for eligible entities until December 5,
2008; extending the deadline for
complying with certain disclosure
requirements related to the TLG
Program until December 19, 2008; and
establishing assessment procedures to
accommodate the extended opt out
period.
DATES: The Amended Interim Rule
becomes effective on November 4, 2008.
The effective date of § 370.5 paragraphs
(h)(2) and (h)(3), added at 73 FR 64186,
October 29, 2008, is delayed from
December 1, 2008 until December 19,
2008. The FDIC seeks general and
specific comments relating to questions
raised in both the Amended Interim
Rule and the Interim Rule. Comments
regarding both the Amended Interim
Rule and the Interim Rule must be
received by November 13, 2008.
ADDRESSES: You may submit comments
on the Amended Interim Rule by any of
the following methods:
• Agency Web Site: http://
www.FDIC.gov/regulations/laws/
federal/notices.html. Follow
instructions for submitting comments
on the Agency Web Site.
• E-mail: Comments@FDIC.gov.
Include RIN # 3064–AD37 on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Instructions: All comments received
will be posted generally without change
to http://www.fdic.gov/regulations/laws/
federal/propose.html, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT:
William V. Farrell, Manager,
Assessment Operations Section,
Division of Finance, (703) 562–6168 or
wfarrell@fdic.gov; Donna Saulnier,
Manager, Assessment Policy Section,
Division of Finance, (703) 562–6167 or
dsaulnier@fdic.gov; Richard Bogue,
Counsel, Legal Division, (202) 898–3726
or rbogue@fdic.gov; Robert Fick,
Counsel, Legal Division, (202) 898–8962
or rfick@fdic.gov; A. Ann Johnson,
Counsel, Legal Division, (202) 898–3573
or aajohnson@fdic.gov; Gail Patelunas,
Deputy Director, Division of Resolutions
and Receiverships, (202) 898–6779 or
gpatelunas@fdic.gov; John Corston,
Associate Director (Large Bank
Supervision), Division of Supervision
and Consumer Protection, (202) 898–
6548 or jcorston@fdic.gov; Serena L.
Owens, Associate Director, Supervision
and Applications Branch, Division of
Supervision and Consumer Protection,
(202) 898–8996 or sowens@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The TLG Program was first
announced by the FDIC on October 14,
2008, as an initiative to counter the
current system-wide crisis in the
nation’s financial sector. It provided two
limited guarantee programs: One, that
guaranteed newly-issued senior
unsecured debt of insured depository
institutions and most U.S. holding
companies of such insured depository
institutions (the debt guarantee
program), and another, that guaranteed
certain noninterest-bearing transaction
accounts at insured depository
institutions (the transaction account
guarantee program).
The FDIC’s action in establishing the
TLG Program was preceded by a
determination of systemic risk by the
Secretary of the Treasury (after
consultation with the President),
following receipt of the written
recommendation of the Board on
October 13, 2008, along with a similar
written recommendation of the Board of
Governors of the Federal Reserve
System.
The recommendations and eventual
determination of systemic risk were
made in accordance with section
13(c)(4)(G) to the Federal Deposit
Insurance Act (FDI Act), 12 U.S.C.
1823(c)(4)(G). The determination of
systemic risk allowed the FDIC to take
certain actions to avoid or mitigate
serious adverse effects on economic
conditions and financial stability. The
FDIC believes that the TLG Program
promotes financial stability by
preserving confidence in the banking
system and encouraging liquidity in
order to ease lending to creditworthy
businesses and consumers. As a result,
on October 23, 2008, the FDIC’s Board
of Directors authorized publication in
the Federal Register and requested
comment regarding an Interim Rule
designed to implement the TLG
Program. The Interim Rule was
published on October 29, 2008.1 It
became effective on October 23, 2008,
with the exception of certain disclosure
requirements for which a delayed
effective date of December 1, 2008 was
established.2 The FDIC requested
comments regarding the Interim Rule by
November 13, 2008.
II. Opt Out Deadline in the Interim Rule
The Interim Rule provides that no
later than 11:59 p.m. Eastern Standard
Time (EST), on November 12, 2008,
each eligible entity 3 must inform the
FDIC if it desires to opt out of the debt
guarantee component or the transaction
account guarantee component (or both
components) of the TLG Program.4 If an
eligible entity opts out of the TLG
Program, coverage under the program
ends on the earlier of the date of the opt
out or on November 12, 2008.5
According to the Interim Rule, failure to
opt out by November 12, 2008
constitutes a decision on behalf of an
eligible entity to remain in the
VerDate Aug<31>2005 16:21 Nov 06, 2008 Jkt 217001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1
pwalker on PROD1PC71 with RULES
1 73 FR 64179 (Oct. 29, 2008).
2 12 CFR 370.5(h)(2) and (h)(3).
3 12 CFR 370.2(a) defines ‘‘eligible entity’’ as any
of the following: (1) An insured depository
institution; (2) a U.S. bank holding company,
provided that it has at least one chartered and
operating insured depository institution within its
holding company structure; (3) a U.S. savings and
loan holding company, provided that it has at least
one chartered and operating insured depository
institution within its holding company structure; or
(4) other affiliates of insured depository institutions
that the FDIC after consultation with the
appropriate Federal banking agency, designate as
eligible entities which affiliates, by seeking and
obtaining such designation, will have opted in to
the debt guarantee program.
4 12 CFR 370.5(c).
5 12 CFR 370.5(a).
Secs. 300.101 through 300.104 also issued
under 5 U.S.C. 7201, 7204, 7701; E.O. 11478,
3 CFR, 1966–1970 Comp., page 803.
Sec. 300.301 also issued under 5 U.S.C.
1104 and 3341.
Secs. 300.401 through 300.408 also issued
under 5 U.S.C. 1302(c), 2301, and 2302.
Secs. 300.501 through 300.507 also issued
under 5 U.S.C. 1103(a)(5).
Subpart F—[Removed and Reserved]
■ 2. Remove and reserve subpart F,
consisting of § 300.601 through
§ 300.606.
[FR Doc. E8–26559 Filed 11–6–08; 8:45 am]
BILLING CODE 6325–39–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 370
RIN 3064–AD37
Temporary Liquidity Guarantee
Program
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Amendment to the Interim Rule
with request for comments.
SUMMARY: The FDIC is amending its
Interim Rule with Request for Comment
(Interim Rule) relating to
implementation of its Temporary
Liquidity Guarantee Program (TLG
Program) by extending the opt out date
for eligible entities until December 5,
2008; extending the deadline for
complying with certain disclosure
requirements related to the TLG
Program until December 19, 2008; and
establishing assessment procedures to
accommodate the extended opt out
period.
DATES: The Amended Interim Rule
becomes effective on November 4, 2008.
The effective date of § 370.5 paragraphs
(h)(2) and (h)(3), added at 73 FR 64186,
October 29, 2008, is delayed from
December 1, 2008 until December 19,
2008. The FDIC seeks general and
specific comments relating to questions
raised in both the Amended Interim
Rule and the Interim Rule. Comments
regarding both the Amended Interim
Rule and the Interim Rule must be
received by November 13, 2008.
ADDRESSES: You may submit comments
on the Amended Interim Rule by any of
the following methods:
• Agency Web Site: http://
www.FDIC.gov/regulations/laws/
federal/notices.html. Follow
instructions for submitting comments
on the Agency Web Site.
• E-mail: Comments@FDIC.gov.
Include RIN # 3064–AD37 on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Instructions: All comments received
will be posted generally without change
to http://www.fdic.gov/regulations/laws/
federal/propose.html, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT:
William V. Farrell, Manager,
Assessment Operations Section,
Division of Finance, (703) 562–6168 or
wfarrell@fdic.gov; Donna Saulnier,
Manager, Assessment Policy Section,
Division of Finance, (703) 562–6167 or
dsaulnier@fdic.gov; Richard Bogue,
Counsel, Legal Division, (202) 898–3726
or rbogue@fdic.gov; Robert Fick,
Counsel, Legal Division, (202) 898–8962
or rfick@fdic.gov; A. Ann Johnson,
Counsel, Legal Division, (202) 898–3573
or aajohnson@fdic.gov; Gail Patelunas,
Deputy Director, Division of Resolutions
and Receiverships, (202) 898–6779 or
gpatelunas@fdic.gov; John Corston,
Associate Director (Large Bank
Supervision), Division of Supervision
and Consumer Protection, (202) 898–
6548 or jcorston@fdic.gov; Serena L.
Owens, Associate Director, Supervision
and Applications Branch, Division of
Supervision and Consumer Protection,
(202) 898–8996 or sowens@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The TLG Program was first
announced by the FDIC on October 14,
2008, as an initiative to counter the
current system-wide crisis in the
nation’s financial sector. It provided two
limited guarantee programs: One, that
guaranteed newly-issued senior
unsecured debt of insured depository
institutions and most U.S. holding
companies of such insured depository
institutions (the debt guarantee
program), and another, that guaranteed
certain noninterest-bearing transaction
accounts at insured depository
institutions (the transaction account
guarantee program).
The FDIC’s action in establishing the
TLG Program was preceded by a
determination of systemic risk by the
Secretary of the Treasury (after
consultation with the President),
following receipt of the written
recommendation of the Board on
October 13, 2008, along with a similar
written recommendation of the Board of
Governors of the Federal Reserve
System.
The recommendations and eventual
determination of systemic risk were
made in accordance with section
13(c)(4)(G) to the Federal Deposit
Insurance Act (FDI Act), 12 U.S.C.
1823(c)(4)(G). The determination of
systemic risk allowed the FDIC to take
certain actions to avoid or mitigate
serious adverse effects on economic
conditions and financial stability. The
FDIC believes that the TLG Program
promotes financial stability by
preserving confidence in the banking
system and encouraging liquidity in
order to ease lending to creditworthy
businesses and consumers. As a result,
on October 23, 2008, the FDIC’s Board
of Directors authorized publication in
the Federal Register and requested
comment regarding an Interim Rule
designed to implement the TLG
Program. The Interim Rule was
published on October 29, 2008.1 It
became effective on October 23, 2008,
with the exception of certain disclosure
requirements for which a delayed
effective date of December 1, 2008 was
established.2 The FDIC requested
comments regarding the Interim Rule by
November 13, 2008.
II. Opt Out Deadline in the Interim Rule
The Interim Rule provides that no
later than 11:59 p.m. Eastern Standard
Time (EST), on November 12, 2008,
each eligible entity 3 must inform the
FDIC if it desires to opt out of the debt
guarantee component or the transaction
account guarantee component (or both
components) of the TLG Program.4 If an
eligible entity opts out of the TLG
Program, coverage under the program
ends on the earlier of the date of the opt
out or on November 12, 2008.5
According to the Interim Rule, failure to
opt out by November 12, 2008
constitutes a decision on behalf of an
eligible entity to remain in the
VerDate Aug<31>2005 16:21 Nov 06, 2008 Jkt 217001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1
pwalker on PROD1PC71 with RULES
66161Federal Register / Vol. 73, No. 217 / Friday, November 7, 2008 / Rules and Regulations
6 12 CFR 370.5(c).
7 Id.
8 12 CFR 370.5(d).
9 12 CFR 370.5(j)(2).
10 12 CFR 370.2(f) defines ‘‘newly issued senior
unsecured debt’’ as senior unsecured debt issued by
a participating entity on or after October 14, 2008,
and on or before: (1) The earlier of November 12,
2008 or the date an eligible entity opts out, for an
eligible entity that opts out of the debt guarantee
program; or (2) June 30, 2009, for an eligible entity
that does not opt out of the debt guarantee program.
11 12 CFR 370.5(f). The limitations of this
provision are subject to 12 CFR 370.3(f), describing
the long term non-guaranteed debt option.
12 12 CFR 370.6(a) and 370.7(a).
13 12 CFR 370.6(b)(1) and (2). 14 12 CFR 370.6(c).
program.6 Prior to November 12, 2008,
an eligible entity may also notify the
FDIC that it will not opt out of (that is,
that it will opt in to) either or both
programs.7 The choice to opt out or in,
once made, is irrevocable.8
The opt out deadline of November 12,
2008 is referenced in several sections of
the Interim Rule in describing the scope
of the guarantees provided by the TLG
Program. For example, the Interim Rule
provides that funds held in noninterest-
bearing transaction accounts at eligible
entities will be guaranteed from October
14, 2008, through November 12, 2008,9
and that eligible entities that do not opt
out on or before November 12, 2008 will
not be able to select which newly issued
senior unsecured debt 10 is guaranteed
debt under the Debt Guarantee
Program.11
Significantly, in the Interim Rule
calculations involving assessments
charged to an eligible entity for its
participation in the TLG Program are
related to the November 12, 2008 opt
out date. For example, the Interim Rule
permits eligible entities to participate in
both components of the TLG Program
from October 14, 2008, through
November 12, 2008, at no cost to the
entities.12
With respect to the Debt Guarantee
Program, the Interim Rule requires an
eligible entity that does not opt out of
the program by the opt out date of
November 12, 2008, and that issues
guaranteed debt during the period from
October 14, 2008, through November 12,
2008 that was still outstanding on
November 12, 2008, to notify the FDIC
and certify that the issuances that it
made did not exceed the guaranteed
limit.13 (An eligible entity that has not
opted out of the Debt Guarantee
Program and that issues debt after
November 12, 2008, is subject to similar
notification and certification
requirements.) Beginning on November
13, 2008, if an eligible entity has not
opted out, the Interim Rule provides for
eligible entities to be charged
assessments for their participation in
the Debt Guarantee Program.14
With respect to the Transaction
Account Guarantee Program, the Interim
Rule provides that, beginning on
November 13, 2008 and continuing
through December 31, 2009, any eligible
entity that has not opted out of this
component of the TLG Program will be
subject to an assessment for its
participation in the Transaction
Account Guarantee Program.
III. Opt Out and Disclosure Deadlines
Extended in the Amended Interim Rule
The comment period for the Interim
Rule will expire on November 13, 2008.
Thus, the FDIC will not issue a final
rule concerning its TLG Program before
eligible entities are required to opt out
on November 12, 2008, as prescribed in
the Interim Rule. The FDIC anticipates
issuing a final rule after the expiration
of the comment period and after its
consideration of comments related to
the Interim Rule. In order to provide
eligible entities an opportunity to
review the final rule before they are
required to decide whether or not to opt
out, this Amended Interim Rule extends
the opt out deadline for the TLG
Program until December 5, 2008. For
similar reasons, this Amended Interim
Rule extends the deadline for
compliance with certain disclosure
requirements described in section
370.5(h) until December 19, 2008.
By establishing December 5, 2008 as
the new opt out deadline, conforming
modifications are required to provisions
of part 370 that refer to or are based
upon the previous opt out deadline of
November 12, 2008. The changes that
result from the extended opt out period
are technical in nature, and are not
discussed in further detail. Those
changes that relate to assessments under
the Debt Guarantee Program and the
Transaction Guarantee Program are
described further below.
Assessments under the Debt
Guarantee Program are discussed in
section 370.6. Under section 370.6(a),
eligible entities are not required to pay
any assessment associated with the Debt
Guarantee Program for the period from
October 14, 2008, through November 12,
2008. The amendments made to the
Interim Rule retain this provision. In
addition, section 370.6(a) of the
Amended Interim Rule includes a
provision to the effect that an eligible
entity that opts out of the Debt
Guarantee Program by the extended
deadline of December 5, 2008 will not
pay any assessment under the program.
Sections 370.6(b)(1) and (2) contain
notice and certification requirements for
eligible entities that issue guaranteed
debt under the Debt Guarantee Program
for the period from October 14, 2008
through November 12, 2008 and for the
period after November 12, 2008,
respectively. Although the notification
and certification requirements have not
changed, the references in those
sections to the former opt out deadline
of November 12, 2008, have been
changed to reflect the new opt out
deadline of December 5, 2008.
Section 370.6(c) governs the initiation
of assessments for the Debt Guarantee
Program. It originally provided that
beginning on November 13, 2008, any
eligible entity that has chosen not to opt
out of this aspect of the TLG Program
would be charged assessments as
provided elsewhere in part 370. The
section did not distinguish between
overnight debt instruments and other
types of newly issued senior secured
debt. Although the manner of
calculating assessments has not
changed, the revisions to section
370.6(c) reflect two changes. The first
change reflects the newly extended opt
out deadline, and the second change
differentiates between overnight debt
instruments and other newly issued
senior unsecured debt and explains how
assessments are initiated for overnight
debt instruments as compared with
other newly issued senior unsecured
debt.
Section 370.6(c), as amended,
provides that assessments will accrue,
with respect to each eligible entity that
does not opt out of the debt guarantee
program on or before December 5, 2008
(1) beginning on November 13, 2008, on
all senior unsecured debt, other than
overnight debt instruments, issued by it
on or after October 14, 2008 that is still
outstanding on November 13, 2008; (2)
beginning on November 13, 2008, on all
senior unsecured debt, other than
overnight debt instruments, issued by it
on or after November 13, 2008 and
before December 6, 2008; and (3)
beginning on December 6, 2008, on all
senior unsecured debt issued by it on or
after December 6, 2008. Calculations
related to both overnight debt
instruments and other newly issued
unsecured debt will continue to be
made in accordance with section
370.6(d). Section 370.6(d) remains
unchanged.
Assessments under the Transaction
Account Guarantee Program are
discussed in section 370.7. Under
section 370.7(a), eligible entities are not
required to pay an assessment
associated with the Transaction
Account Guarantee Program from the
VerDate Aug<31>2005 16:21 Nov 06, 2008 Jkt 217001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\07NOR1.SGM 07NOR1
pwalker on PROD1PC71 with RULES
6 12 CFR 370.5(c).
7 Id.
8 12 CFR 370.5(d).
9 12 CFR 370.5(j)(2).
10 12 CFR 370.2(f) defines ‘‘newly issued senior
unsecured debt’’ as senior unsecured debt issued by
a participating entity on or after October 14, 2008,
and on or before: (1) The earlier of November 12,
2008 or the date an eligible entity opts out, for an
eligible entity that opts out of the debt guarantee
program; or (2) June 30, 2009, for an eligible entity
that does not opt out of the debt guarantee program.
11 12 CFR 370.5(f). The limitations of this
provision are subject to 12 CFR 370.3(f), describing
the long term non-guaranteed debt option.
12 12 CFR 370.6(a) and 370.7(a).
13 12 CFR 370.6(b)(1) and (2). 14 12 CFR 370.6(c).
program.6 Prior to November 12, 2008,
an eligible entity may also notify the
FDIC that it will not opt out of (that is,
that it will opt in to) either or both
programs.7 The choice to opt out or in,
once made, is irrevocable.8
The opt out deadline of November 12,
2008 is referenced in several sections of
the Interim Rule in describing the scope
of the guarantees provided by the TLG
Program. For example, the Interim Rule
provides that funds held in noninterest-
bearing transaction accounts at eligible
entities will be guaranteed from October
14, 2008, through November 12, 2008,9
and that eligible entities that do not opt
out on or before November 12, 2008 will
not be able to select which newly issued
senior unsecured debt 10 is guaranteed
debt under the Debt Guarantee
Program.11
Significantly, in the Interim Rule
calculations involving assessments
charged to an eligible entity for its
participation in the TLG Program are
related to the November 12, 2008 opt
out date. For example, the Interim Rule
permits eligible entities to participate in
both components of the TLG Program
from October 14, 2008, through
November 12, 2008, at no cost to the
entities.12
With respect to the Debt Guarantee
Program, the Interim Rule requires an
eligible entity that does not opt out of
the program by the opt out date of
November 12, 2008, and that issues
guaranteed debt during the period from
October 14, 2008, through November 12,
2008 that was still outstanding on
November 12, 2008, to notify the FDIC
and certify that the issuances that it
made did not exceed the guaranteed
limit.13 (An eligible entity that has not
opted out of the Debt Guarantee
Program and that issues debt after
November 12, 2008, is subject to similar
notification and certification
requirements.) Beginning on November
13, 2008, if an eligible entity has not
opted out, the Interim Rule provides for
eligible entities to be charged
assessments for their participation in
the Debt Guarantee Program.14
With respect to the Transaction
Account Guarantee Program, the Interim
Rule provides that, beginning on
November 13, 2008 and continuing
through December 31, 2009, any eligible
entity that has not opted out of this
component of the TLG Program will be
subject to an assessment for its
participation in the Transaction
Account Guarantee Program.
III. Opt Out and Disclosure Deadlines
Extended in the Amended Interim Rule
The comment period for the Interim
Rule will expire on November 13, 2008.
Thus, the FDIC will not issue a final
rule concerning its TLG Program before
eligible entities are required to opt out
on November 12, 2008, as prescribed in
the Interim Rule. The FDIC anticipates
issuing a final rule after the expiration
of the comment period and after its
consideration of comments related to
the Interim Rule. In order to provide
eligible entities an opportunity to
review the final rule before they are
required to decide whether or not to opt
out, this Amended Interim Rule extends
the opt out deadline for the TLG
Program until December 5, 2008. For
similar reasons, this Amended Interim
Rule extends the deadline for
compliance with certain disclosure
requirements described in section
370.5(h) until December 19, 2008.
By establishing December 5, 2008 as
the new opt out deadline, conforming
modifications are required to provisions
of part 370 that refer to or are based
upon the previous opt out deadline of
November 12, 2008. The changes that
result from the extended opt out period
are technical in nature, and are not
discussed in further detail. Those
changes that relate to assessments under
the Debt Guarantee Program and the
Transaction Guarantee Program are
described further below.
Assessments under the Debt
Guarantee Program are discussed in
section 370.6. Under section 370.6(a),
eligible entities are not required to pay
any assessment associated with the Debt
Guarantee Program for the period from
October 14, 2008, through November 12,
2008. The amendments made to the
Interim Rule retain this provision. In
addition, section 370.6(a) of the
Amended Interim Rule includes a
provision to the effect that an eligible
entity that opts out of the Debt
Guarantee Program by the extended
deadline of December 5, 2008 will not
pay any assessment under the program.
Sections 370.6(b)(1) and (2) contain
notice and certification requirements for
eligible entities that issue guaranteed
debt under the Debt Guarantee Program
for the period from October 14, 2008
through November 12, 2008 and for the
period after November 12, 2008,
respectively. Although the notification
and certification requirements have not
changed, the references in those
sections to the former opt out deadline
of November 12, 2008, have been
changed to reflect the new opt out
deadline of December 5, 2008.
Section 370.6(c) governs the initiation
of assessments for the Debt Guarantee
Program. It originally provided that
beginning on November 13, 2008, any
eligible entity that has chosen not to opt
out of this aspect of the TLG Program
would be charged assessments as
provided elsewhere in part 370. The
section did not distinguish between
overnight debt instruments and other
types of newly issued senior secured
debt. Although the manner of
calculating assessments has not
changed, the revisions to section
370.6(c) reflect two changes. The first
change reflects the newly extended opt
out deadline, and the second change
differentiates between overnight debt
instruments and other newly issued
senior unsecured debt and explains how
assessments are initiated for overnight
debt instruments as compared with
other newly issued senior unsecured
debt.
Section 370.6(c), as amended,
provides that assessments will accrue,
with respect to each eligible entity that
does not opt out of the debt guarantee
program on or before December 5, 2008
(1) beginning on November 13, 2008, on
all senior unsecured debt, other than
overnight debt instruments, issued by it
on or after October 14, 2008 that is still
outstanding on November 13, 2008; (2)
beginning on November 13, 2008, on all
senior unsecured debt, other than
overnight debt instruments, issued by it
on or after November 13, 2008 and
before December 6, 2008; and (3)
beginning on December 6, 2008, on all
senior unsecured debt issued by it on or
after December 6, 2008. Calculations
related to both overnight debt
instruments and other newly issued
unsecured debt will continue to be
made in accordance with section
370.6(d). Section 370.6(d) remains
unchanged.
Assessments under the Transaction
Account Guarantee Program are
discussed in section 370.7. Under
section 370.7(a), eligible entities are not
required to pay an assessment
associated with the Transaction
Account Guarantee Program from the
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