Temporary Liquidity Guarantee Program Sample Clauses
The Temporary Liquidity Guarantee Program clause establishes a framework for providing short-term financial support to institutions facing liquidity shortages. Typically, this clause outlines the conditions under which guarantees are extended, such as eligibility criteria for participating entities and the types of obligations covered, like certain deposits or debt instruments. Its core practical function is to bolster confidence in the financial system by ensuring that institutions can meet their immediate payment obligations, thereby reducing the risk of bank runs or systemic instability during periods of market stress.
Temporary Liquidity Guarantee Program. On October 14, 2008, the FDIC created the Temporary Liquidity Guarantee Program (the “program”), and the FDIC adopted final rules related to the program effective November 21, 2008. Under the program, the FDIC will guarantee the newly-issued senior unsecured debt of participating eligible entities, including insured depository institutions and eligible holding companies of insured depository institutions. We are an eligible entity under the program, and a participant under the program. As a participant, our senior unsecured debt may be guaranteed by the FDIC if it satisfies the program’s criteria. From time to time, we may issue debt securities that are not eligible for the FDIC guarantee and that will not be guaranteed. We will provide purchasers of our debt instruments with a written statement indicating if the debt instruments we are offering are FDIC-guaranteed under the program. As a participant in the program, we are eligible to issue FDIC-guaranteed debt up to an issuance limit, provided we comply with the terms and conditions of the program, including payment of fees, delivery of notice to the FDIC of issuance of guaranteed debt, providing certain disclosures, and certification to the FDIC that such issuance is within our issuance limit. As required by the program, we have entered into a master agreement with the FDIC that governs certain aspects of the program. If we are not in compliance with the program, we would be unable to issue additional FDIC-guaranteed debt; however, the outstanding FDIC-guaranteed notes would not lose the benefit of the FDIC guarantee. The program guarantees eligible debt issued through June 30, 2009 that matures on or prior to June 30, 2012.
Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. The details of the FDIC guarantee are provided in the FDIC’s regulations, 12 CFR Part 370, and at the FDIC’s website, ▇▇▇.▇▇▇▇.
Temporary Liquidity Guarantee Program. Depository represents and warrants to Collateral Agent, for the benefit of the Holders, and to the Borrower, that Depository is, on the date hereof, and shall continue to be through December 31, 2009, a participant in the Temporary Liquidity Guarantee Program (the “Program”), which guarantees the full amount of all of all funds currently held in, and that may in the future be deposited in, the Deposit Account. In the event that the Program expires on December 31, 2009 and is not renewed, or in the event that the Program is terminated prior to the repayment or conversion of all Convertible Notes, the Borrower shall cooperate with the Collateral Agent to ensure that all funds in the Deposit Account are transferred to one or more insured accounts at one or more other FDIC-insured financial institutions, at the sole cost and expense of the Borrower, and on terms similar to this Agreement and otherwise satisfactory to Collateral Agent, subject to the requirements of the institutions in which such accounts are established. Pending such transfer, all funds in the Deposit Account shall be delivered to Collateral Agent to secure the obligations of the Borrower in accordance with this Agreement.