Extensions of Credit by Federal Reserve Banks

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.