Financial Institution Letter
FIL-139-2008
December 8, 2008Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Debt Guarantee Program – Debt Instrument Reporting
Summary: On November 21, 2008, the FDIC Board of Directors adopted the final rule implementing the
Temporary Liquidity Guarantee Program (TLG Program) (see FIL-132-2008), which was announced on
October 14, 2008. The TLG Program includes a guarantee of newly issued senior unsecured debt of banks,
thrifts, and certain holding companies (the Debt Guarantee Program). Entities that participate in the Debt
Guarantee Program are required to notify the FDIC of any guaranteed debt issuance(s) and to pay the
associated assessment premiums.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
Attachments:
. Guidance on Debt Instrument Reporting Requirements
. Guaranteed Debt Reporting Instructions
Contact:
. Reporting and invoicing questions: Assessments,
Division of Finance, at assessments@fdic.gov or (800)
759-6596
. FDICconnect technical issues: FDICconnect Helpdesk
at fdicconnect@fdic.gov or (877) 275-3342 and select
Option 5 on the Banker’s menu
Highlights:
• Any participating entity that has issued any FDIC-
guaranteed debt during the period from October 14,
2008, through December 5, 2008, which is still
outstanding on December 5, 2008, must register that
issuance via the FDIC’s e-business Web site −
FDICconnect − on or before December 19, 2008.
• Any participating entity that issues any FDIC-
guaranteed debt after December 5, 2008, must register
that issuance via FDICconnect within five calendar
days of the date of issuance.
• On Wednesday, December 17, 2008, the FDIC will
automatically generate the first TLG Program
assessment invoices for any registered debt and will
make those invoices available weekly to those entities
via FDICconnect.
• The first collection of TLG Program assessments will
settle on Friday, December 19, 2008. Therefore,
entities must ensure that funds in an amount at least
equal to the amount of the assessment are available in
the designated deposit account on that date for ACH
direct debit by the FDIC (the same account used for
collection of the quarterly deposit insurance premiums).
• Failure to take all necessary action or to provide
funding to allow the FDIC to debit assessments shall be
deemed to constitute nonpayment of the assessment
and such failure will be subject to civil money penalties.
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site at
www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-
275-3342 or 703-562-2200).
Participating entities that have elected to issue long-term
nonguaranteed debt must pay the FDIC a nonrefundable
fee. That fee will be collected in six equal monthly
installments with the first collection on Friday, December
19, 2008. These entities will receive the first TLG Program
assessment invoice via FDICconnect on Wednesday,
December 17, 2008.
FIL-139-2008
December 8, 2008Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Debt Guarantee Program – Debt Instrument Reporting
Summary: On November 21, 2008, the FDIC Board of Directors adopted the final rule implementing the
Temporary Liquidity Guarantee Program (TLG Program) (see FIL-132-2008), which was announced on
October 14, 2008. The TLG Program includes a guarantee of newly issued senior unsecured debt of banks,
thrifts, and certain holding companies (the Debt Guarantee Program). Entities that participate in the Debt
Guarantee Program are required to notify the FDIC of any guaranteed debt issuance(s) and to pay the
associated assessment premiums.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
Attachments:
. Guidance on Debt Instrument Reporting Requirements
. Guaranteed Debt Reporting Instructions
Contact:
. Reporting and invoicing questions: Assessments,
Division of Finance, at assessments@fdic.gov or (800)
759-6596
. FDICconnect technical issues: FDICconnect Helpdesk
at fdicconnect@fdic.gov or (877) 275-3342 and select
Option 5 on the Banker’s menu
Highlights:
• Any participating entity that has issued any FDIC-
guaranteed debt during the period from October 14,
2008, through December 5, 2008, which is still
outstanding on December 5, 2008, must register that
issuance via the FDIC’s e-business Web site −
FDICconnect − on or before December 19, 2008.
• Any participating entity that issues any FDIC-
guaranteed debt after December 5, 2008, must register
that issuance via FDICconnect within five calendar
days of the date of issuance.
• On Wednesday, December 17, 2008, the FDIC will
automatically generate the first TLG Program
assessment invoices for any registered debt and will
make those invoices available weekly to those entities
via FDICconnect.
• The first collection of TLG Program assessments will
settle on Friday, December 19, 2008. Therefore,
entities must ensure that funds in an amount at least
equal to the amount of the assessment are available in
the designated deposit account on that date for ACH
direct debit by the FDIC (the same account used for
collection of the quarterly deposit insurance premiums).
• Failure to take all necessary action or to provide
funding to allow the FDIC to debit assessments shall be
deemed to constitute nonpayment of the assessment
and such failure will be subject to civil money penalties.
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site at
www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-
275-3342 or 703-562-2200).
Participating entities that have elected to issue long-term
nonguaranteed debt must pay the FDIC a nonrefundable
fee. That fee will be collected in six equal monthly
installments with the first collection on Friday, December
19, 2008. These entities will receive the first TLG Program
assessment invoice via FDICconnect on Wednesday,
December 17, 2008.
FDIC Temporary Liquidity Guarantee Program
Guaranteed Debt Instrument Reporting Requirements
Overview
On November 21, 2008, the FDIC adopted the Final Rule implementing the
Temporary Liquidity Guarantee Program (TLG Program) to strengthen confidence
and encourage liquidity in the banking system. The TLG Program consists of two
components: a temporary guarantee of newly issued senior unsecured debt (the
Debt Guarantee Program) and a temporary unlimited guarantee of funds in
noninterest-bearing transaction accounts at FDIC-insured institutions (the
Transaction Account Guarantee Program). Additional information about the program
is available at www.fdic.gov/tlgp. All eligible entities had until December 5, 2008, to
opt out of either or both of the TLG Program components.
For those entities that have chosen to continue in the Debt Guarantee Program,
each guaranteed debt issuance must be reported to the FDIC via the FDIC’s e-
business Web site FDICconnect. On a weekly basis, the FDIC will automatically
generate TLG Program assessment invoices which will be made available via
FDICconnect and the associated assessment premiums will be collected via ACH
direct debit from the participating entity’s designated deposit account (the same
account used for collection of the regular quarterly deposit insurance premiums from
insured depository institutions).
No entity will be charged for the first 30 days of the TLG Program. Any eligible entity
that did not opt out on or before December 5, 2008, is required to pay assessments.
For the Debt Guarantee Program, participating entities are required to pay for
coverage on all senior unsecured debt issued as follows:
• Beginning on November 13, 2008, on all senior unsecured debt, as defined in
§ 370.2(e)(1)(i) (other than overnight debt instruments), issued by the entity
on or after October 14, 2008, and on or before December 5, 2008, that is still
outstanding on December 5, 2008; and
• Beginning on December 6, 2008, on all senior unsecured debt, as defined in
§ 370.2(e)(1)(ii), issued by the entity on or after December 6, 2008.
The assessments associated with the TLG Program, as outlined in the Final Rule,
are as follows:
• All newly issued senior unsecured debt will be charged an annualized
assessment of generally 50, 75, or 100 basis points (depending on debt
term) multiplied by the amount of debt issued, and calculated through
the maturity date of that debt or June 30, 2012, whichever is earlier.
Please note that all participating entities will also be required to separately provide
the FDIC monthly reports of aggregated outstanding debt issuances in accordance
with Article IV of the Master Agreement. Further information on these ongoing
reporting requirements will be issued shortly.
Guaranteed Debt Instrument Reporting Requirements
Overview
On November 21, 2008, the FDIC adopted the Final Rule implementing the
Temporary Liquidity Guarantee Program (TLG Program) to strengthen confidence
and encourage liquidity in the banking system. The TLG Program consists of two
components: a temporary guarantee of newly issued senior unsecured debt (the
Debt Guarantee Program) and a temporary unlimited guarantee of funds in
noninterest-bearing transaction accounts at FDIC-insured institutions (the
Transaction Account Guarantee Program). Additional information about the program
is available at www.fdic.gov/tlgp. All eligible entities had until December 5, 2008, to
opt out of either or both of the TLG Program components.
For those entities that have chosen to continue in the Debt Guarantee Program,
each guaranteed debt issuance must be reported to the FDIC via the FDIC’s e-
business Web site FDICconnect. On a weekly basis, the FDIC will automatically
generate TLG Program assessment invoices which will be made available via
FDICconnect and the associated assessment premiums will be collected via ACH
direct debit from the participating entity’s designated deposit account (the same
account used for collection of the regular quarterly deposit insurance premiums from
insured depository institutions).
No entity will be charged for the first 30 days of the TLG Program. Any eligible entity
that did not opt out on or before December 5, 2008, is required to pay assessments.
For the Debt Guarantee Program, participating entities are required to pay for
coverage on all senior unsecured debt issued as follows:
• Beginning on November 13, 2008, on all senior unsecured debt, as defined in
§ 370.2(e)(1)(i) (other than overnight debt instruments), issued by the entity
on or after October 14, 2008, and on or before December 5, 2008, that is still
outstanding on December 5, 2008; and
• Beginning on December 6, 2008, on all senior unsecured debt, as defined in
§ 370.2(e)(1)(ii), issued by the entity on or after December 6, 2008.
The assessments associated with the TLG Program, as outlined in the Final Rule,
are as follows:
• All newly issued senior unsecured debt will be charged an annualized
assessment of generally 50, 75, or 100 basis points (depending on debt
term) multiplied by the amount of debt issued, and calculated through
the maturity date of that debt or June 30, 2012, whichever is earlier.
Please note that all participating entities will also be required to separately provide
the FDIC monthly reports of aggregated outstanding debt issuances in accordance
with Article IV of the Master Agreement. Further information on these ongoing
reporting requirements will be issued shortly.