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Municipal Liquidity Facility
Effective June 3, 2020 1
Facility: The Municipal Liquidity Facility (“Facility”), which has been authorized under Section 13(3) of the
Federal Reserve Act, will support lending to each:
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U.S. state and the District of Columbia (together, “States”),
U.S. city that (i) has a population exceeding 250,000 residents 2 or (ii) is a Designated City (together,
“Cities”),
U.S. county that (i) has a population exceeding 500,000 residents 3 or (ii) is a Designated County
(together, “Counties”),
Multi-State Entity, and
Revenue Bond Issuers that are designated as described below (“Designated RBIs”).

Under the Facility, the Federal Reserve Bank of New York (“Reserve Bank”) will commit to lend to a special
purpose vehicle (“SPV”) on a recourse basis. The SPV will purchase Eligible Notes directly from Eligible Issuers
at the time of issuance. The Reserve Bank will be secured by all the assets of the SPV. The Department of the
Treasury, using funds appropriated to the Exchange Stabilization Fund under section 4027 of the Coronavirus
Aid, Relief, and Economic Security Act, will make an initial equity investment of $35 billion in the SPV in
connection with the Facility. The SPV will have the ability to purchase up to $500 billion of Eligible Notes.
Eligible Notes: Eligible Notes are tax anticipation notes (TANs), tax and revenue anticipation notes (TRANs),
bond anticipation notes (BANs), revenue anticipation notes (RANs), and other similar short-term notes issued
by Eligible Issuers, provided that such notes mature no later than 36 months from the date of issuance. In
each case, a note’s eligibility is subject to review by the Federal Reserve. Relevant legal opinions and
disclosures will be required as determined by the Federal Reserve prior to purchase.
Eligible Issuer: An Eligible Issuer is a State, City, or County (or, subject to Federal Reserve review and
approval, an entity that issues securities on behalf of the State, City, or County for the purpose of managing
its cash flows), or a Multi-State Entity or Designated RBI.
An Eligible Issuer that is not a Multi-State Entity or Designated RBI must have been rated at least BBB-/Baa3
as of April 8, 2020, by two or more major nationally recognized statistical rating organizations (“NRSROs”).
An Eligible Issuer that is not a Multi-State Entity or Designated RBI and that was rated at least BBB-/Baa3 as
of April 8, 2020, but is subsequently downgraded, must be rated at least BB-/Ba3 by two or more major
NRSROs at the time the Facility makes a purchase. An Eligible Issuer that is a Multi-State Entity or Designated
RBI must have been rated at least A-/A3 as of April 8, 2020, by two or more major NRSROs. A Multi-State
Entity or Designated RBI that was rated at least A-/A3 as of April 8, 2020, but is subsequently downgraded,
must be rated at least BBB-/Baa3 by two or more major NRSROs at the time the Facility makes a purchase.
Notwithstanding the foregoing, if a State, City, County, Multi-State Entity, or Designated RBI was rated by
The Board of Governors of the Federal Reserve System (“Board”) and Secretary of the Treasury may make
adjustments to the terms and conditions described in this term sheet. Any changes will be announced on the
Board’s website.
2
Source: U.S. Census Bureau, Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2018, as of
April 6, 2020 (https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html).
3
Source: U.S. Census Bureau, “Population, Population Change, and Estimated Components of Population Change:
April 1, 2010 to July 1, 2019 (CO-EST2019-alldata)” dataset as of April 6, 2020
(https://www.census.gov/data/datasets/time-series/demo/popest/2010s-countiestotal.html#par_textimage_739801612.)
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only one major NRSRO as of April 8, 2020, it may be an Eligible Issuer under the Facility if (i) the rating was at
least BBB-/Baa3 (for a State, City, or County) or A-/A3 (for a Multi-State Entity or Designated RBI); (ii) the
State, City, County, Multi-State Entity, or Designated RBI is rated by at least two major NRSROs at the time
the Facility makes a purchase; and (iii) such ratings are at least BB-/Ba3 (for a State, City, or County) or BBB/Baa3 (for a Multi-State Entity or Designated RBI).
Only one issuer per State, City, County, Multi-State Entity, or Designated RBI is eligible; provided that the
Federal Reserve may approve one or more additional issuers per State, City, or County to facilitate the
provision of assistance to political subdivisions and other governmental entities of the relevant State, City, or
County.
Governor-Designated Participants: The Governors of U.S. states may designate cities, counties, and Revenue
Bond Issuers located in their states for participation in the Facility, and the Mayor of the District of Columbia
may designate a Revenue Bond Issuer located in the District of Columbia for participation in the Facility, in
each case subject to the limits described below. Any such designated cities will be “Designated Cities,”
designated counties will be “Designated Counties,” and designated Revenue Bond Issuers will be “Designated
RBIs.”
Designated Cities and Counties: For each Governor of a U.S. state, the maximum total number (on a
combined basis) of Designated Cities and Designated Counties that he or she may designate is set forth in
Appendix A. The numbers set forth in Appendix A were selected to ensure that each U.S. state has at least
two total cities and counties (on a combined basis) that may participate in the Facility. 4
A Governor that has the ability to designate one Designated City or Designated County may choose either
(i) the most populous city in his or her state that has less than 250,000 residents or (ii) the most populous
county in his or her state that has less than 500,000 residents.
A Governor that has the ability to designate two Designated Cities and Designated Counties (on a combined
basis) may choose any of the following combinations:
• The most populous city and most populous county;
• The most populous city and second-most populous city; or
• The most populous county and second-most populous county.
Revenue Bond Issuer: A Revenue Bond Issuer is a State or political subdivision thereof, or a public authority,
agency, or instrumentality of a State or political subdivision thereof, that issues bonds that are secured by
revenue from a specified source that is owned by a governmental entity.
Designated RBIs: Each Governor of a U.S. state may designate up to two Designated RBIs. The Mayor of the
District of Columbia may designate one Designated RBI.
Multi-State Entity: A Multi-State Entity is an entity that was created by a compact between two or more
States, which compact has been approved by the United States Congress, acting pursuant to its power under
the Compact Clause of the United States Constitution.
Security for Eligible Notes: Note security will be subject to review and approval by the Federal Reserve. The
source of repayment and security for Eligible Notes will depend on the applicable constitutional and statutory
In determining the number of cities and counties in each U.S. state that may participate in the Facility, cities and
counties were not counted if they have an issuance limit of zero dollars because they have no general revenue
from own sources and utility revenue for fiscal year 2017.

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provisions governing the Eligible Issuer and should be generally consistent with the source of repayment and
strongest security typically pledged to repay publicly offered obligations of the Eligible Issuer. Eligible Notes
issued by Eligible Issuers that are not Multi-State Entities or Designated RBIs will generally be expected to
represent general obligations of the Eligible Issuer, or be backed by tax or other specified governmental
revenues of the applicable State, City, or County. If the Eligible Issuer is an authority, agency, or other entity
of a State, City, or County, such Eligible Issuer must either commit the credit of, or pledge revenues of, the
State, City, or County, or the State, City, or County must guarantee the Eligible Notes issued by such issuer. If
the Eligible Issuer is a Multi-State Entity or Designated RBI, the Eligible Notes will be expected to be parity
obligations of existing debt secured by a senior lien on the gross or net revenues of the Multi-State Entity or
Designated RBI.
Limit per State, City, County, Multi-State Entity, and Designated RBI: The SPV may purchase Eligible Notes
issued by or on behalf of a State, City, or County in one or more issuances of up to an aggregate amount of
20% of the general revenue from own sources and utility revenue of the applicable State, City, or County
government for fiscal year 2017. 5 The SPV may purchase Eligible Notes issued by a Multi-State Entity or
Designated RBI in one or more issuances of up to an aggregate amount of 20% of the gross revenue of the
Multi-State Entity or Designated RBI, as reported in its audited financial statements for fiscal year 2019.
States may request that the SPV purchase Eligible Notes in excess of the applicable limit in order to assist
political subdivisions and other governmental entities that are not eligible for the Facility.
Pricing: The methodology for pricing is set forth in the attached Appendix B.
Origination Fee: Each Eligible Issuer that participates in the Facility must pay an origination fee equal to
10 basis points of the principal amount of the Eligible Issuer’s notes purchased by the SPV. The origination
fee may be paid from the proceeds of the issuance.
Prepayment Right: With the approval of the SPV, Eligible Notes purchased by the SPV may be prepaid by the
Eligible Issuer at any time, in whole or in part, at par (or, in the case of Eligible Notes purchased at a
premium, par plus unamortized premium) plus accrued interest, prior to maturity.
Eligible Use of Proceeds: An Eligible Issuer may use the proceeds of Eligible Notes purchased by the SPV to
help manage the cash flow impact of income tax deferrals resulting from an extension of an income tax filing
deadline; deferrals or reductions of tax and other revenues or increases in expenses related to or resulting
from the COVID-19 pandemic; and requirements for the payment of principal and interest on obligations of
the Eligible Issuer or its political subdivisions or other governmental entities. An Eligible Issuer (other than a
Multi-State Entity or Designated RBI) may use the proceeds of the notes purchased by the SPV to purchase
similar notes issued by, or otherwise to assist, political subdivisions and other governmental entities of the
relevant State, City, or County for the purposes enumerated in the prior sentence.
Termination Date: The SPV will cease purchasing Eligible Notes on December 31, 2020, unless the Board and
the Treasury Department extend the Facility. The Reserve Bank will continue to fund the SPV after such date
until the SPV’s underlying assets mature or are sold.

Source: U.S. Census Bureau, 2017 State & Local Government Historical Datasets and Tables, as of April 6, 2020
(https://www.census.gov/data/datasets/2017/econ/local/public-use-datasets.html).
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Municipal Liquidity Facility – Appendix A
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri

Designated Cities and
Counties
1
1
0
2
0
0
2
1
0
0
1
2
0
0
2
0
0
1
2
0
0
0
0
2
0

State
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

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Designated Cities and
Counties
2
0
0
2
0
0
0
0
2
0
0
0
0
2
1
2
0
0
0
2
0
0
2
0
2

Municipal Liquidity Facility - Appendix B
Tax-Exempt Eligible Notes: If interest on the Eligible Notes is excluded from gross income for federal income
tax purposes, pricing will be at a fixed interest rate based on a comparable maturity overnight index swap
(“OIS”) rate plus the applicable spread based on the long-term rating of the security for the Eligible Notes as
follows:
Rating*
AAA/Aaa
AA+/Aa1
AA/Aa2
AA-/Aa3
A+/A1
A/A2
A-/A3
BBB+/Baa1
BBB/Baa2
BBB-/Baa3
Below Investment Grade

Spread (bps)
150
170
175
190
240
250
265
325
340
380
590

* To account for split ratings across different credit rating agencies, an average rating generally will be
calculated.
Taxable Eligible Notes: If interest on the Eligible Notes is not excluded from gross income for federal income
tax purposes, pricing will be at a fixed interest rate that is calculated by (i) first, adding the comparable
maturity OIS rate to the spread in the above table that would apply to such Eligible Notes if the Eligible Notes
were tax-exempt Eligible Notes, and (ii) second, dividing the sum calculated under clause (i) by 0.65.

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