Federal Reserve Act

Federal Reserve Board Announces Expansion in the Number and Type of Entities Eligible to Directly Use Its Municipal Liquidity Facility

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On June 3, the Federal Reserve Board announced an expansion in the number and type of entities eligible to directly use its Municipal Liquidity Facility (MLF). Under the new terms, all U.S. states will be able to have at least two cities or counties eligible to directly issue notes to the MLF, regardless of population. Governors of each state will also be able to designate two issuers in their jurisdictions whose revenues are generally derived from operating government activities to be eligible to directly use the facility. Release.

Federal Reserve Board Approves Final Rule Specifying Procedures for Emergency Lending

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On November 30, the Federal Reserve Board approved a final rule specifying its procedures for emergency lending under Section 13(3) of the Federal Reserve Act.  The final rule provides greater clarity regarding, among other things, the Board’s authority to engage in emergency lending to programs and facilities with “broad-based eligibility.”  The final rule will take effect January 1, 2016. Press Release. Final Rule.