How will an investor know that a debt instrument is guaranteed under the Debt Guarantee Program?
The FDIC will maintain and will post on its website a list of those eligible entities that have opted out of the debt guarantee component of the Program. Beginning December 19, 2008, if an eligible entity does not opt out of the Debt Guarantee Program, it must clearly identify, in writing and in a commercially reasonable manner, to any interested lender or creditor whether the newly issued debt it is offering is guaranteed or not. Until December 19, 2008, the institution should provide in a commercially reasonable manner adequate disclosures of the substance of these required disclosures.
Related Questions
- Is there a limit to how much guaranteed debt a participating entity may issue under the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee?
- Can the proceeds of debt guaranteed under the debt guarantee component of the Temporary Liquidity Guarantee Program be used to prepay debt that is not guaranteed?
- How will an investor know that a counterparty is participating in the Debt Guarantee Program?
