FDIC Announces Interim Rule To Extend Its Temporary Liquidity Guarantee Program

This article was originally published 19 March, 2009

On March 17, 2009, the Federal Deposit Insurance Corporation ("FDIC") issued an interim rule (the "Interim Rule") which extends its Temporary Liquidity Guarantee Program ("TLGP") from June 30, 2009 to October 31, 2009 for all insured depository institutions participating in the debt guarantee program of the TLGP ("IDIs") and other participating entities; however other participating entities that have not issued senior unsecured debt guaranteed by the FDIC under the TLGP ("TLGP debt") before April 1, 2009 are required to submit an application to and obtain approval from the FDIC to participate in the extended TLGP. The Interim Rule imposes a surcharge on all TLGP debt with a maturity of one year or more issued on or after April 1, 2009. The Interim Rule also permits IDIs and other entities participating in the extended TLGP to apply to the FDIC to issue non-FDIC-guaranteed senior unsecured debt ("non-TLGP debt")