New and Powerful Language Characterizes TALF's Updated Funding Requirements

The Federal Reserve of New York yesterday released a revised set of frequently-asked-questions related to the Term ABS Loan Facility (TALF).

These revisions offer additional clarity on the Federal Reserve's funding commitment under the program. The New York Fed said that an eligible borrower posting eligible collateral should receive financing, except in exceptional cases. The exceptional cases include a revelation of materially adverse information about the borrower prior to settlement.