Term Asset-Backed Securities Loan Facility - FEDERAL RESERVE BANK of NEW YORK

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Term Asset-Backed Securities Loan Facility

The Term Asset-Backed Securities Loan Facility (TALF) is designed to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration (SBA). 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.

Operation Announcement

Operation Dates:

March 17-19, 2009

Settlement Date:

March 25, 2009

Maturity Date:

March 26, 2012

Facility Open:

March 17, 2009, 10:00 a.m. ET

Facility Closed:

March 19, 2009, 5:00 p.m. ET

Administrative Fee:

5.00 basis points

Eligible Collateral:

ABS¹

Term:

3 years

Rates will be set at 12:00 p.m. on March 19, 2009.

Haircuts:

		ABS Average Life (years)
Sector	Subsector	0-1	>1-2	>2-3	>3-4	>4-5	>5-6	>6-7
Auto	Prime retail lease	10%	11%	12%	13%	14%
Auto	Prime retail loan	6%	7%	8%	9%	10%
Auto	Subprime retail loan	9%	10%	11%	12%	13%
Auto	Floorplan	12%	13%	14%	15%	16%
Auto	RV/motorcycle	7%	8%	9%	10%	11%
Credit Card	Prime	5%	5%	6%	7%	8%
Credit Card	Subprime	6%	7%	8%	9%	10%
Student Loan	Private	8%	9%	10%	11%	12%	13%	14%
Student Loan	Gov’t guaranteed	5%	5%	5%	5%	5%	6%	6%
Small Business	SBA loans	5%	5%	5%	5%	5%	6%	6%

For ABS benefitting from a substantial government guarantee with average lives beyond five years, haircuts will increase by one percentage point for every two additional years of average life beyond five years. For all other ABS with average lives beyond five years, haircuts will increase by one percentage point for each additional year of average life beyond five years.

Rates:

Sector	Subsector	Fixed	Floating
Auto		3-year LIBOR swap rate + 100 bps	1-month LIBOR + 100 bps
Bank/Retail Card		3-year LIBOR swap rate + 100 bps	1-month LIBOR + 100 bps
Student Loan	Private	NA	1-month LIBOR + 100 bps
Student Loan	Gov't guaranteed	NA	1-month LIBOR + 50 bps
Small Business	SBA loans 7(a)	NA	Fed Funds Target + 75 bps
Small Business	SBA loans 504	3-year LIBOR swap rate + 50 bps	NA

¹As defined in the terms & conditions

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