The Board of Governors of the Federal Reserve System (Board) is amending its Regulation A, effective December 12, 2007, to allow the Board to authorize a temporary Term Auction Facility (TAF) under section 10B of the Federal Reserve Act. A TAF is a credit facility that allows a depository institution to obtain an advance from its local Federal Reserve Bank at an interest rate that is determined as the result of an auction. A TAF is expected to permit depository institutions to obtain credit on a secured basis from the Federal Reserve at rates that meet the market demand for credit of relatively short terms. The Board is also announcing the immediate authorization of a TAF, subject to the terms and conditions specified herein.
Agency Contact: Scott G. Alvarez, General Counsel (202/452-3583); Heatherun Sophia Allison, Senior Counsel (202/452- 3565); for users of Telecommunication Devices for the Deaf (TDD) only, contact 202/263-4869.
This rule is final. Its effective date is December 12, 2007.