Treasury Updates Guidance On Legacy Securities Portion Of PPIP

easury Department has released additional guidance for potential investors in the securities portion of the Public Private Investment Program (PPIP). The new guidance extends the deadline for application to the program and clarifies that participation criteria will be viewed holistically – failure to meet any one criterion will not necessarily disqualify a proposal. Additionally, the guidance highlights the Treasury's interest in program participation by small, minority and women-owned businesses; the potential for further expansion of participants and asset classes; and the interaction of the Federal Reserve's Term Asset-Backed Securities Lending Facility with this program. The update exclusively addresses the Legacy Securities program and includes additional Frequently Asked Questions and a revised version of the Legacy Securities Summary of Terms and Application for Private Asset Managers, which can both be found at [u][link=][/link][/u]. The deadline for e-mail submission of applications has been extended to 5 p.m. ET on Friday, April 24. The Treasury now expects to inform applicants regarding preliminary qualification on or prior to Friday, May 15. The Treasury also clarifies that smaller firms will be allowed to partner with fund managers prior to or after the application deadline, including after the selection of the initial group of pre-qualified fund managers. After the initial pre-qualification of fund managers, the Treasury will consider opening the program to fund managers that are not selected in the initial pre-qualification process, in an effort to maximize the inflow of private capital. And while the Legacy Securities PPIP is limited to eligible assets that include non-agency commercial-backed and residential mortgage-backed securities issued prior to 2009, the Treasury will solicit comments from fund managers regarding potential expansion of the Legacy Securities PPIP at a later date to include other asset classes. SOURCE: T


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