Can a participating entity choose to issue debt that will not be guaranteed?
Once the entity has reached its 125 percent limit, it can issue debt that is not guaranteed by the Temporary Liquidity Guarantee Program, but the entity must specifically disclose that such debt is not guaranteed. In addition, if a participating entity wants to have the option of issuing certain non-guaranteed senior unsecured debt before issuing the maximum amount of guaranteed debt, it must elect to do so on or before December 5, 2008. Election of this option will require a participating entity to pay a nonrefundable fee in exchange for which it will be able to issue, at any time and without regard to the debt guarantee limit, non-guaranteed senior unsecured debt with a maturity date after June 30, 2012. The fee for electing this option is 37.5 basis points times the amount of the entitys senior unsecured debt that had a maturity date on or before June 30, 2009, and was outstanding as of September 30, 2008, unless the entity had no such debt outstanding as of September 30, 2008, in w
