NY Fed Updates TALF Eligibility FAQ

The Federal Reserve Bank of New York ("New York Fed") updated its FAQ on borrower and collateral eligibility for the Term Asset-Backed Securities Loan Facility ("TALF").

As indicated in a comparison posted by the New York Fed against the version of the FAQs published on May 26, 2020, the updates cover, among other things, (i) the definition of "Material Investor," (ii) the treatment of sovereign wealth funds, (iii) details regarding a TALF borrower certification that it is "unable to secure adequate credit accommodations," (iv) the pledging of asset-backed securities ("ABS") with an option to redeem prior to maturity, (v) the timing of pricing for newly issued ABS to be considered for a subscription date and (vi) when an issuer of newly issued ABS must submit relevant documents for the ABS to be eligible as TALF collateral.

Additionally, the New York Fed provided a series of updated documents related to TALF. These include: (i) "Form of Issuer and Sponsor Certification as to TALF Eligibility for ABS; Form of Sponsor Indemnity Undertaking," (ii) "Form of Auditor Attestation; Form of Management Report on Compliance" and (iii) "Guidance for Accounting Firms in Determining TALF Collateral Eligibility for ABS."