Must an eligible borrower own newly issued ABS it plans to pledge as collateral for a TALF loan at the time it subscribes for the loan?
An eligible borrower need not own the ABS on the subscription date. However, in order for the TALF Agent and custodian to perform their due diligence, the borrower must inform the TALF Agent by the subscription date of the CUSIP of the ABS it intends to deliver as collateral on the loan settlement date. If the borrower is allocated less than expected of the new ABS issue, the borrower must inform New York Fed and its custodian, through its TALF Agent, no less than four days prior to the loan settlement date so that an adjustment may be made to the margin and administrative fee prior to the loan settlement date.
Related Questions
- Must an eligible borrower own newly issued ABS it plans to pledge as collateral for a TALF loan at the time it subscribes for the loan?
- Must an eligible borrower own the ABS it plans to pledge as collateral for a TALF loan at the time it subscribes for the loan?
- How will the process work if a newly issued ABS closes on the same day as the TALF loan settlement date?
