Financial Institution Letter
FIL-125-2008
November 3, 2008
TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Extension of Deadlines and Election Instructions
Summary: On October 14, 2008, the FDIC announced the Temporary Liquidity Guarantee Program to
strengthen confidence and encourage liquidity in the banking system. All eligible entities are covered under the
program unless they opt out of one or both of the components by December 5, 2008 (extended from November
12, 2008); otherwise, fees will apply for future participation.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
Attachments:
- Guidance for Election Options and Reporting
Requirements
- Sample Election Form
- Election Form Instructions
Contact:
FDIC Call Center (toll-free) at 877-ASKFDIC (877-275-
3342); TDD: 800-925-4618
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).
Highlights:
• All eligible entities are covered for the first 30 days of the
program at no cost.
• Eligible entities may opt out of one or both parts of the
program – either the debt guarantee component and/or
the transaction account guarantee component. Failure to
opt out by the deadline constitutes a decision to continue
in the program after that date.
• In order to opt out of one or both parts, an eligible entity
must inform the FDIC by completing the Election Form
via FDICconnect. The deadline for opting out has been
extended from November 12, 2008, to December 5,
2008.
• The Election Form will be available via FDICconnect
beginning on Wednesday, November 12, 2008.
• For all entities that have exercised the option to opt out
by December 5, 2008, the decision is irrevocable.
Likewise, a decision to continue participation in the
program after December 5, 2008, is irrevocable.
• All eligible entities within the same holding company
structure must make the same decision regarding
continued participation in either or both parts of the
program.
• Eligible entities that do not opt out of the Debt Guarantee
Program must report the amount of outstanding senior,
unsecured debt as of September 30, 2008, that is
scheduled to mature on or before June 30, 2009.
• The deadline for compliance with certain disclosure
requirements has also been extended from December 1,
2008, until December 19, 2008.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FIL-125-2008
November 3, 2008
TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Extension of Deadlines and Election Instructions
Summary: On October 14, 2008, the FDIC announced the Temporary Liquidity Guarantee Program to
strengthen confidence and encourage liquidity in the banking system. All eligible entities are covered under the
program unless they opt out of one or both of the components by December 5, 2008 (extended from November
12, 2008); otherwise, fees will apply for future participation.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
Attachments:
- Guidance for Election Options and Reporting
Requirements
- Sample Election Form
- Election Form Instructions
Contact:
FDIC Call Center (toll-free) at 877-ASKFDIC (877-275-
3342); TDD: 800-925-4618
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).
Highlights:
• All eligible entities are covered for the first 30 days of the
program at no cost.
• Eligible entities may opt out of one or both parts of the
program – either the debt guarantee component and/or
the transaction account guarantee component. Failure to
opt out by the deadline constitutes a decision to continue
in the program after that date.
• In order to opt out of one or both parts, an eligible entity
must inform the FDIC by completing the Election Form
via FDICconnect. The deadline for opting out has been
extended from November 12, 2008, to December 5,
2008.
• The Election Form will be available via FDICconnect
beginning on Wednesday, November 12, 2008.
• For all entities that have exercised the option to opt out
by December 5, 2008, the decision is irrevocable.
Likewise, a decision to continue participation in the
program after December 5, 2008, is irrevocable.
• All eligible entities within the same holding company
structure must make the same decision regarding
continued participation in either or both parts of the
program.
• Eligible entities that do not opt out of the Debt Guarantee
Program must report the amount of outstanding senior,
unsecured debt as of September 30, 2008, that is
scheduled to mature on or before June 30, 2009.
• The deadline for compliance with certain disclosure
requirements has also been extended from December 1,
2008, until December 19, 2008.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FDIC Temporary Liquidity Guarantee Program
Guidance for Election Options and Reporting Requirements
Overview
On October 14, 2008, the FDIC announced 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.
The TLG Program became effective on October 14, 2008. All eligible entities are covered
under the TLG Program for the first 30 days (unless the entity opts out). No later than
December 5, 2008, each eligible entity must inform the FDIC if it desires to opt out of the
Debt Guarantee Program or the Transaction Account Guarantee Program, or both. A
decision to opt out is irrevocable. Failure to opt out of either component by December 5,
2008, constitutes an irrevocable decision to continue participation in that component.
For each component, a U.S. Bank Holding Company and all of its affiliates that are eligible
entities must make the same election regarding participation. Similarly, for each component,
a U.S. Savings and Loan Holding Company and all of its affiliates that are eligible entities
must make the same election regarding participation. For example, if one member of a
holding company group opts out with respect to the Debt Guarantee Program, then all
eligible entities within the same group are also deemed to have opted out. Entities that opt
out are subject to certain disclosure requirements, as specified in the instructions and the
regulation.
No entity will be charged for the first 30 days of the TLG Program. The Program’s opt out
election deadline has been extended from November 12, 2008, to December 5, 2008, to
ensure that eligible entities could fully consider the Final Rule before making a final decision
regarding their participation in the Program. Any eligible entity that opts out of the Program
on or before December 5, 2008, will not pay any assessment under the Program. Any
eligible entity that does not opt out on or before December 5, 2008, will be required to pay
assessments. For the Transaction Account Guarantee Program, participating entities will be
required to pay for coverage beginning on November 13, 2008. For the Debt Guarantee
Program, participating entities will be required to pay for coverage on all senior, unsecured
debt issued as follows:
• Beginning on November 13, 2008, on all senior, unsecured debt, other than overnight
debt instruments, issued by the entity on or after October 14, 2008, that is still
outstanding on November 13, 2008;
• Beginning on November 13, 2008, on all senior, unsecured debt, other than overnight
debt instruments, issued by the entity on or after November 13, 2008, and before
December 6, 2008; and
Guidance for Election Options and Reporting Requirements
Overview
On October 14, 2008, the FDIC announced 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.
The TLG Program became effective on October 14, 2008. All eligible entities are covered
under the TLG Program for the first 30 days (unless the entity opts out). No later than
December 5, 2008, each eligible entity must inform the FDIC if it desires to opt out of the
Debt Guarantee Program or the Transaction Account Guarantee Program, or both. A
decision to opt out is irrevocable. Failure to opt out of either component by December 5,
2008, constitutes an irrevocable decision to continue participation in that component.
For each component, a U.S. Bank Holding Company and all of its affiliates that are eligible
entities must make the same election regarding participation. Similarly, for each component,
a U.S. Savings and Loan Holding Company and all of its affiliates that are eligible entities
must make the same election regarding participation. For example, if one member of a
holding company group opts out with respect to the Debt Guarantee Program, then all
eligible entities within the same group are also deemed to have opted out. Entities that opt
out are subject to certain disclosure requirements, as specified in the instructions and the
regulation.
No entity will be charged for the first 30 days of the TLG Program. The Program’s opt out
election deadline has been extended from November 12, 2008, to December 5, 2008, to
ensure that eligible entities could fully consider the Final Rule before making a final decision
regarding their participation in the Program. Any eligible entity that opts out of the Program
on or before December 5, 2008, will not pay any assessment under the Program. Any
eligible entity that does not opt out on or before December 5, 2008, will be required to pay
assessments. For the Transaction Account Guarantee Program, participating entities will be
required to pay for coverage beginning on November 13, 2008. For the Debt Guarantee
Program, participating entities will be required to pay for coverage on all senior, unsecured
debt issued as follows:
• Beginning on November 13, 2008, on all senior, unsecured debt, other than overnight
debt instruments, issued by the entity on or after October 14, 2008, that is still
outstanding on November 13, 2008;
• Beginning on November 13, 2008, on all senior, unsecured debt, other than overnight
debt instruments, issued by the entity on or after November 13, 2008, and before
December 6, 2008; and