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Financial Institution Letter

Temporary Liquidity Guarantee Program Extension of Deadlines and Election Instructions

November 3, 2008
Notes
 
Summary: 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.

Highlights:
  • 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 FDIC connect . The deadline for opting out has been extended from November 12, 2008, to December 5, 2008.
  • The Election Form will be available via FDIC connect 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.

Distribution:
All FDIC-Insured Institutions

Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2008/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

FIL-125-2008
Attachment(s)

Last Updated: November 3, 2008