Term Asset-Backed Securities Loan Facility: non-CMBS

The Federal Reserve created the Term Asset-Backed Securities Loan Facility (TALF), to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by auto loans, student loans, credit card loans, equipment loans, floorplan loans, insurance premium finance loans, loans guaranteed by the Small Business Administration, residential mortgage servicing advances, or commercial mortgage loans. Eligible borrowers must use a TALF Agent, 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.

The following operations announcement pertains to non-mortgage-backed ABS:

Operation Announcement
Subscription Date: November 3, 2009
Closing Date: November 10, 2009
3-Year Maturity Date: November 13, 2012
5-Year Maturity Date: November 10, 2014
Facility Open: November 3, 2009 8:00 a.m. ET
Facility Close: November 3, 2009 3:00 p.m. ET
Administrative Fee: 10.00 basis points
Eligible Collateral: ABS1
Loan Term: 3 or 5 years
Rates for November 3, 2009 Facility:

Sector

Subsector

Fixed 3yr loan
(Avg Life, in years)

Fixed 5 year loan

Floating

<1

1-<2

>=2

Auto

1.595

2.2735

2.874

N/A

1.24125

Credit Card

1.595

2.2735

2.874

N/A

1.24125

Equipment

1.595

2.2735

2.874

N/A

1.24125

Floorplan

1.595

2.2735

2.874

N/A

1.24125

Premium Finance

Property and casualty

1.595

2.2735

2.874

N/A

1.24125

Servicing Advances

Residential mortgages

1.595

2.2735

2.874

N/A

1.24125

Small Business

SBA 7(a) loans

N/A
N/A
N/A

N/A

1.000

Small Business

SBA 504 loans

2.374

3.1945

N/A

Student Loan

Private with coupon tied to Prime

N/A
N/A
N/A
N/A

Higher of (Prime rate – 175 bps) and 1%

Student Loan

Other Private

N/A
N/A
N/A
N/A

1.24125

Student Loan

Gov’t guaranteed

N/A
N/A
N/A
N/A

0.74125

Amount of TALF loans requested at November 3, 2009 Facility:

Sector

Amount

Auto

-

Credit Card

$126,029,825

Equipment

$57,067,601

Floorplan

$445,440,000

Premium Finance

-

Servicing Advances

-

Small Business

$431,770,111

Student Loan

$85,000,000

Total

$1,145,307,537

Amount of TALF loans settled for November 3, 2009 Facility:

Sector

Amount

Auto

-

Credit Card

$63,118,627

Equipment

$57,067,601

Floorplan

$445,440,000

Premium Finance

-

Servicing Advances

-

Small Business

$408,713,465

Student Loan

$85,000,000

Total

$1,059,339,693

1As defined in the terms & conditions
Recent Operations ››
H 4.1 Factors Affecting Reserve Balances
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