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Periodic Report Pursuant to Section 129(b) of the
Emergency Economic Stabilization Act of 2008:
Update on Outstanding Lending Facilities Authorized by the Board
Under Section 13(3) of the Federal Reserve Act
December 21, 2012
The Board of Governors of the Federal Reserve System ("the Board") is providing the
following update concerning the lending facilities established by the Board under section 13(3)
of the Federal Reserve Act (12 U.S.C. § 343). This report is filed by the Board pursuant to
section 129(b) of the Emergency Economic Stabilization Act of 2008 ("EESA") and provides an
update concerning all of the loans and lending facilities authorized by the Board under
section 13(3) since March 1, 2008, that are outstanding. The lone remaining such facility with
outstanding Federal Reserve loans is the Term Asset-Backed Securities Loan Facility ("TALF").

Term Asset-Backed Securities Loan Facility
On November 25, 2008, the Board and Treasury announced the establishment of the
TALF. The TALF was intended to assist financial markets in accommodating the credit needs of
consumers and businesses of all sizes by facilitating the issuance of asset-backed securities
("ABS") collateralized by a variety of consumer and business loans; it was also intended to
improve market conditions for ABS more generally. These markets have historically been a
critical component of lending in the U.S. financial system, but they were virtually shuttered after
the worsening of the financial crisis in October 2008. By reopening these markets, the TALF
was intended to assist lenders in meeting the borrowing needs of consumers and businesses,
helping to stimulate the broader economy.
Under the TALF, the Federal Reserve Bank of New York ("FRBNY") was authorized to
provide up to $200 billion in non-recourse funding to eligible borrowers owning ABS that was
eligible to be pledged as collateral under the facility. TALF loans are non-recourse to the
borrower, except for breaches of representations, warranties and covenants, as specified in the
Master Loan and Security Agreement for the TALF. The non-recourse nature of the loans
generally allows borrowers the option of surrendering the collateral to the FRBNY in full
satisfaction of the TALF loan. The FRBNY's loan is secured by the ABS collateral, with the

FRBNY lending an amount equal to the market value of the ABS, less a haircut. The haircut is a
buffer which protects the FRBNY against a decline in the collateral's value. The Federal Reserve
set initial haircuts for each type of eligible collateral to reflect an assessment of the riskiness and
maturity of the various types of eligible ABS. If the borrower does not repay the loan, the New
York Reserve Bank will enforce its rights in the collateral and sell the collateral to a special
purpose vehicle, TALF LLC, established specifically for the purpose of managing such assets
(footnote 1As of December 12, 2012, TALF LLC had purchased no assets from the FRBNY end footnote)

Using funds authorized under the Trouble Asset Relief Program ("TARP"), in March
2009, the Treasury committed to provide $20 billion in credit protection to the FRBNY in
connection with the TALF to support the $200 billion of authorized lending value under the
program. Residual returns from TALF LLC will be shared between the New York Reserve Bank
and Treasury.
The Federal Reserve has developed and made publicly available extensive information
describing the asset classes eligible for funding under the TALF, the structure of the TALF, the
manner in which it operates, borrower and collateral eligibility requirements, and the protections
that have been put in place to protect against credit losses and fraud. This information including the detailed terms and conditions governing the facility and Frequently Asked
Questions about the facility - is available at In
addition, data on the specific loan transactions, including the loan amount, interest rate, maturity,
borrower name, and collateral, are available on the Board's public website, at
Asset classes authorized as eligible collateral under the TALF include •

newly or recently originated commercial mortgage-backed securities ("CMBS"), auto
loans, student loans, credit card loans, loans guaranteed by the Small Business
Administration, loans or leases relating to business equipment, leases of vehicle fleets,
residential mortgage servicing advance receivables, insurance premium finance loans,
and floorplan loans; and


certain high-quality CMBS issued before January 1, 2009 ("legacy CMBS").

On June 30, 2010, the Federal Reserve closed the TALF for new loan extensions against
newly issued CMBS and, on March 31, 2010, for new loans against all other types of collateral.
In July 2010, the Treasury credit protection commitment was reduced to $4.3 billion to reflect
the fact that only $43 billion of TALF loans were outstanding when the program was closed to
new lending. The commitment was further reduced to $1.4 billion in June 2012 to reflect the
ongoing decline in the outstanding loan balance.
All TALF loans were extended by the FRBNY and will mature over the next several
years, with all loans maturing no later than March 30, 2015.
As of December 12, 2012:

The amount of loans outstanding under the TALF was $0.8 billion; and


The value of the collateral pledged under the TALF was $1.0 billion.

As of December 12, 2012, all TALF loans were current.
To date, the TALF program has experienced no losses and all outstanding loans are well
collateralized. The Board continues to see it as highly unlikely that the Federal Reserve or the
taxpayer will incur any net loss on the loans provided by the Federal Reserve under the TALF
program or that recourse to the TARP funds will be necessary.