TALF. One of many credit facilities created under Section 13(3) of the Federal Reserve Act to help with the lines of credit needed by businesses by handling the issuance of asset-backed securities. Under this facility, the Federal Reserve of New York has the ability to make up to $200 billion of loans available. The creation of the facility was necessary after the new issuance of asset-back securities declined dramatically in September 2008. The Federal Reserve had to increase liquidity to these securities so that consumers would be able to borrow money and further stimulate the declining economy. According to terms issued by the Federal Reserve, the facility will stop making loans on December 31, 2009 unless the Board feels that the facility needs to continue to do so.

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