Is there a fee assessed on entities that do not opt out of the debt guarantee component of the Temporary Liquidity Guarantee Program, but choose not to issue new debt?
The fee on unsecured debt is based on the amount and type of debt issued. If a participating bank opts into the program, but never issues senior unsecured debt, no fee will be assessed The only exception to this rule is for an entity that elects the option of issuing certain non-guaranteed senior unsecured debt before issuing the maximum amount of guaranteed debt. Election of this option requires 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 which case the fee is 37.5 basis points times the amount of the entitys debt gua
Related Questions
- Is there a fee assessed on entities that do not opt out of the debt guarantee component of the Temporary Liquidity Guarantee Program, but choose not to issue new debt?
- 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?
- What types of debt instruments does the debt guarantee component of the Temporary Liquidity Guarantee Program guarantee?
