Temporary Liquidity Guarantee Program Debt Guarantee Program - Debt Instrument Reporting
FIL-139-2008 December 8, 2008
On November 21, 2008, the FDIC Board of Directors adopted the final rule implementing the Temporary Liquidity Guarantee Program (TLG Program) (see FIL-132-2008), which was announced on October 14, 2008. The TLG Program includes a guarantee of newly issued senior unsecured debt of banks, thrifts, and certain holding companies (the Debt Guarantee Program). Entities that participate in the Debt Guarantee Program are required to notify the FDIC of any guaranteed debt issuance(s) and to pay the associated assessment premiums.
Any participating entity that has issued any FDIC- guaranteed debt during the period from October 14, 2008, through December 5, 2008, which is still outstanding on December 5, 2008, must register that issuance via the FDIC's e-business Web site - FDICconnect - on or before December 19, 2008.
Any participating entity that issues any FDIC- guaranteed debt after December 5, 2008, must register that issuance via FDICconnect within five calendar days of the date of issuance.
On Wednesday, December 17, 2008, the FDIC will automatically generate the first TLG Program assessment invoices for any registered debt and will make those invoices available weekly to those entities via FDICconnect.
The first collection of TLG Program assessments will settle on Friday, December 19, 2008. Therefore, entities must ensure that funds in an amount at least equal to the amount of the assessment are available in the designated deposit account on that date for ACH direct debit by the FDIC (the same account used for collection of the quarterly deposit insurance premiums).
Failure to take all necessary action or to provide funding to allow the FDIC to debit assessments shall be deemed to constitute nonpayment of the assessment and such failure will be subject to civil money penalties.
Participating entities that have elected to issue long- term nonguaranteed debt must pay the FDIC a nonrefundable fee. That fee will be collected in six equal monthly installments with the first collection on Friday, December 19, 2008. These entities will receive the first TLG Program assessment invoice via FDICconnect on Wednesday, December 17, 2008.