Temporary Liquidity Guarantee Program Extension of Deadlines and Election Instructions
FIL-125-2008 November 3, 2008
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.
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.