Is there a limit to how much guaranteed debt a participating entity may issue under the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee?
The FDIC will temporarily guarantee newly issued senior unsecured debt in a total amount up to 125 percent of the par or face value of senior unsecured debt outstanding, excluding debt extended to affiliates, as of September 30, 2008, that is scheduled to mature on or before June 30, 2009. For purposes of determining this limit, senior unsecured debt outstanding as of September 30, 2008, includes short-term (30 day or less maturity) senior unsecured debt. If an insured depository institution had no senior unsecured debt as that term is defined in 370.2(e)(1)(A), or only had Federal funds purchased, outstanding on September 30, 2008, its debt guarantee limit is two percent of its consolidated total liabilities as of September 30, 2008. In addition, a participating insured depository institution may issue debt under its debt guarantee limit as well as its holding company’s debt guarantee limit. With proper written notice both to the FDIC and to its parent holding company, a participating
Related Questions
- Is there a limit to how much guaranteed debt a participating entity may issue under the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee?
- Can the proceeds of debt guaranteed under the debt guarantee component of the Temporary Liquidity Guarantee Program be used to prepay debt that is not guaranteed?
- What types of debt instruments does the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee?
