On November 17, 2008, the Treasury released a term sheet and Frequently Asked Questions (FAQ) describing the terms upon which private financial institutions may participate in the Capital Purchase Program (CPP). As described in our November 18, 2008 legal alert, the link to which appears below, the program is open to Qualifying Financial Institutions (QFIs) that are not publicly traded and that submitted an application to their primary federal banking agency by December 8, 2008. On December 11, 2008, the Treasury released the closing documents that must be executed before receiving TARP funds. Please click here to access those documents.

Our firm has been counseling our financial institution clients on CPP matters. On November 3 and 21, we conducted teleconferences pertaining to the CPP. On Friday, December 19, from noon until 1 p.m., ET, we will conduct another teleconference pertaining to the CPP as it is being applied to private financial institutions. We will focus on the closing documents. We will soon be sending you an invitation to participate in the teleconference.

If you have any questions about the CPP, please contact the following members of the firm's Capital Purchase Program Task Force:

            Alan Kaplinsky at 215.864.8555 or kaplinsky@ballardspahr.com
            Justin Klein at 215.864.8606 or kleinj@ballardspahr.com
            Brian Pinheiro at 215.864.8511 or pinheiro@ballardspahr.com

For further information on the Emergency Economic Stabilization Act, please contact:

Dominic De Simone, Practice Leader, Commercial Real Estate Recovery
Joseph A. Fanone, Public Finance Department
Thomas Hauser, Business and Finance Department
Alan Kaplinsky, Banking and Consumer Financial Services
Justin P. Klein, Business and Finance Department
Vincent Marriott III, Bankruptcy, Reorganization and Capital Recovery Group
Mary J. Mullany, Business and Finance Department 
Brian Pinheiro, Employee Benefits and Executive Compensation Group

Prior Alerts

December 1, 2008
SEC Staff Issues Sample Guidance to CPP Participants Filing Proxy Statements

November 26, 2008
Federal Reserve and Treasury Announce Two New Programs To Boost Credit Availability

November 18, 2008
Treasury Department Issues Term Sheet and Announces December 8, 2008 Deadline for Private Financial Institutions To Participate in the Capital Purchase Program

November 14, 2008
Kashkari Details Future TARP Deployment Strategy

November 12, 2008
Treasury Secretary Details TARP Strategy 

November 7, 2008
Treasury Department Announces Solicitation Regarding Asset Management Services in Connection with EESA Capital Purchase Program 

November 6, 2008

Beware: Is There a "Trojan Horse" in the Capital Purchase Program Securities Purchase Agreement?

October 23, 2008
Kashkari Testifies Before Senate Banking Committee 

October 14, 2008
Treasury, Federal Reserve, and FDIC Joint Statement Capital Purchase Program

October 13, 2008
Remarks on TARP to Institute of International Bankers

October 7, 2008
Emergency Economic Stabilization Act of 2008/TARP

October 6, 2008
Employee Benefits and Executive Compensation Issues Connected to Emergency Economic Stabilization Act of 2008 

October 6, 2008
Emergency Economic Stabilization Act of 2008 


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This newsletter is a periodic publication of Ballard Spahr LLP and is intended to alert the recipients to new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer concerning your situation and specific legal questions you have.