UPDATE: Federal Reserve Expands Municipal Liquidity Facility
As part of the $2.3 trillion loan program announced on April 9, 2020, the Federal Reserve established the Municipal Liquidity Facility (“MLF”) pursuant to the Federal Reserve’s emergency lending authority under section 13(3) of the Federal Reserve Act. On April 27, 2020, the Federal Reserve issued an updated term sheet expanding the scope and duration of the originally announced MLF program; the Federal Reserve also released guidance in response to frequently asked questions. This updated memorandum supersedes the Firm’s April 13th memorandum on this topic and covers the latest available information on the MLF.