Today, Treasury announced that it would inject $1.5 billion of TARP funds into Chrysler’s financing arm, Chrysler Financial, with Chrysler Holding LLC guaranteeing certain covenants relating to restrictions on dividends and distributions. The loan was made under Treasury's Automotive Industry Financing Program to “finance the extension of new consumer auto loans as part of a broader program to assist the domestic automotive industry in becoming financially viable.” The term sheet outlines the conditions of the loan. Specifically, the five year loan requires that Chrysler Financial pay an interest rate for the first year of one month London interbank offered rate (“LIBOR”) + 100 basis points and one month LIBOR + 150 basis points for the remainder of the loan. Chrysler Financial will issue warrants to Treasury in the form of additional notes equal to 5 percent of the total loan. As a condition of the loan, Chrysler Financial must also comply with the executive compensation limits of Section 111 of the Emergency Economic Stabilization Act of 2008.