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On December 31, 2020, the TALF’s authorization to lend expired. On March 4, 2024, the special purpose vehicle established to issue loans was terminated. The materials and information on the webpages associated with this facility will remain available.
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To establish the facility, the Federal Reserve Bank of New York financed a special purpose vehicle called TALF II LLC, which provided non-recourse loans secured by eligible collateral to eligible borrowers. The U.S. Department of the Treasury, using funds appropriated to the Exchange Stabilization Fund under section 4027 of the Coronavirus Aid, Relief, and Economic Security Act, made an initial equity investment in TALF II LLC of $10 billion. The TALF was established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Secretary of the Treasury.
On December 31, 2020, the TALF’s authorization to lend expired. Loans issued to borrowers by TALF II LLC were repaid in full on or before December 8, 2023.
TALF II LLC returned the Treasury’s entire equity contribution (together with earning on investment of those funds) in installments beginning on January 5, 2021 and culminating on December 22, 2023.
On January 19 and February 23, 2024, TALF II LLC made its final distributions of assets to the Treasury and the New York Fed. In accordance with the TALF II LLC limited liability company agreement, 90% of the distributions were sent to the Treasury and 10% to the New York Fed.
On March 4, 2024, TALF II LLC was terminated.
- Program Terms and Conditions
- Frequently Asked Questions
- TALF Agents
- Documents and Forms
- Competitive Procurement Process for Certain Vendor Roles Supporting Emergency Lending Facilities and Programs
In May 2020, the New York Fed selected Pacific Investment Management Company LLC (PIMCO) as a third-party vendor to serve as collateral monitor for this facility. PIMCO was selected for this role after considering its knowledge and experience in the ABS market, as well as its prior experience in TALF during the Global Financial Crisis. This allowed for a quick time to market.
In May 2020, the New York Fed selected The Bank of New York Mellon (BNYM) as a third-party vendor to serve as custodian and administrator for this facility. BNYM was selected for this role after considering its operational and technological capabilities as well as its prior experience in TALF, which allowed for a quick time to market.
Affiliates of the collateral monitor or the custodian were permitted to become TALF borrowers or act as investment managers for TALF borrowers organized as investment funds. As a result, the collateral monitor and custodian agreements contained significant conflict of interest requirements. Additionally, the New York Fed did not use the collateral monitor or custodian to assess the valuation of any collateral pledged or proposed by a borrower affiliated with or managed by the collateral monitor or custodian or their affiliates.
Quarterly reports on the costs associated with the vendors supporting this facility are available in Vendor Information.
- Collateral Custody and Administration Agreement
(Updated March 8, 2024) - Collateral Monitor Agreement
(Updated August 11, 2021) - Control Agreement
(Updated March 8, 2024) - Credit Agreement
(Updated December 22, 2023) - Investment Memorandum of Understanding
(Updated March 8, 2024) - Legal Services Engagement Letter
- Limited Liability Company Agreement
(Updated February 27, 2024) - Preferred Equity Account Agreement
(Updated March 8, 2024) - Preferred Equity Investments Agreement
- Security Agreement
(Updated December 22, 2023)
