DEFINITION of 'Term Asset-Backed Securities Loan Facility - TALF'
A program created by the U.S. Federal Reserve in November, 2008 to boost consumer spending to help jumpstart the economy. This is accomplished through the issuance of asset-backed securities. The collateral for these securities is made up of student, personal auto and credit card loans. Backing for these loans comes from the (up to) $1 trillion provided by the New York Federal Reserve Bank.
BREAKING DOWN 'Term Asset-Backed Securities Loan Facility - TALF'
This program is in place until December, 2009. Issuance of asset-backed securities continues only until that point. If, on that date, the government decides that the economic state has not improved up to an appropriate level, benefits of the plan are to be reassessed.