On June 23, the Federal Reserve Bank of New York posted revised terms and conditions and documents related to its Term Asset-Backed Securities Loan Facility (TALF). Although many of the changes were clean-up clarifications, some were substantive. For instance, one change to the terms and conditions states that a commercial mortgage-backed security (CMBS) will not be eligible collateral for a particular TALF borrower if that borrower, or its affiliate, is a borrower under a mortgage loan backing the CMBS unless that loan, and each other mortgage loan in the CMBS mortgage pool made to an affiliate of the TALF borrower, together constitute no more than 5% of the aggregate principal balance of the mortgage loans in the pool as of the subscription date. This change would bar owners of commercial real estate properties who refinance their properties with loans backing TALF-eligible CMBS from also becoming TALF borrowers with respect to that CMBS, unless their properties constituted a small portion of the overall CMBS mortgage pool.

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