Federal Reserve Board establishes new program to support flow of credit
On March 20, the Federal Reserve Board expanded its financial support programs of support through creating of the Money Market Mutual Fund Liquidity Facility (MMLF). Under this program, the Federal Reserve Bank of Boston will be able to make loans to eligible financial institutions, to be secured by certain assets purchased from single state and other tax-exempt municipal money market mutual funds. The Federal Reserve Board also provided a term sheet that includes additional detail on the MMLF, and an FAQ page to answer questions relating on the Money Market Mutual Fund Liquidity Facility (MMLF). The FAQs answer questions relating to the purpose and design of the program, borrower information (e.g., borrower eligibility, required borrowing documents), collateral requirements, loan terms (e.g., loan rates, maturity date), and accounting and regulatory implications, among others.