Emergency Credit
Last Updated: 06.07.2024
In unusual and exigent circumstances, the Board of Governors may authorize a Reserve Bank to provide emergency credit to a participant in a program or facility with broad-based eligibility. Such programs and facilities must be approved by the Secretary of the Treasury, and lending Reserve Banks must obtain evidence that participants in the program or facility are unable to secure adequate credit accommodations from other banking institutions. When not secured by U.S. government or agency securities, loans of this type would require the affirmative vote of at least five members of the Board of Governors of the Federal Reserve System. (If fewer than five but at least two Board members are available, the available members may approve an extension of emergency credit by unanimous vote, subject to the conditions set forth in section 11(r)(1) of the Federal Reserve Act).