Treasury Issues Additional Information on Capital Purchase Program

by wlansden October 31 2008 14:47

By Beth Vessel

The Treasury Department issued additional documents for publicly traded financial institutions applying for the capital purchase program this afternoon. The documents, with links provided, include:

Securities Purchase Agreement
This document describes the terms of the financial institution's agreement to issue shares and fulfill other requirements in exchange for Treasury's investment.

Form of Letter Agreement
This contractual agreement describes the firm-specific information necessary to implement the securities purchase agreement and represents the financial institution's commitment to the terms of the Securities Purchase Agreement.

Certificate of Designations
This document creates the preferred shares.

Form of Warrant – Stockholder Approval Not Required
This document describes the terms of the warrants Treasury receives when stockholder approval is not required. 
 

Form of Warrant – Stockholder Approval Required
This document describes the terms of the warrants Treasury receives when stockholder approval is required.

After a financial institution is granted preliminary approval, the institution must complete and submit the securities purchase agreement, letter agreement, certificate of designations and warrant. Financial institutions that are granted preliminary approval will receive a letter from the Treasury Department with instructions regarding filing the documents and completing the process.

Once the investment agreements are complete and the investment is authorized, within two business days Treasury will publicly disclose the name and capital purchase amount for the financial institution. The information will be posted at Treasury's web site updated daily at 4:30 p.m. (EDT) as needed.

Treasury also confirmed that it will post an application form and term sheet for privately held eligible institutions at a later date and establish a reasonable deadline for private institutions to apply.

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