SUMMARY: On May 1, 2009 the Federal Reserve Board (Federal Reserve) announced updated terms and conditions for the Term Asset-Backed Securities Loan Facility, or TALF, a joint program with the U.S. Treasury Department (Treasury) to provide low-cost funding to purchasers of asset-backed securities, or ABS. The updated terms include the following:

• Commercial Mortgage-Backed Securities (CMBS) issued after January 1, 2009 will be eligible for a new series of monthly auctions beginning in late June;

• 5-year TALF loans will be available from the Federal Reserve Bank of New York (New York Fed) for CMBS and for ABS backed by student loans and loans guaranteed by the Small Business Administration ? an extension of the program’s currently available 3-year loans; and

• ABS backed by insurance premium finance loans will be eligible for TALF beginning in the June auction.

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