The US Treasury announced that it is extending its temporary Money Market Funds Guarantee Program (the “Program”) through September 18, 2009. As a result of the extension, the Program will provide coverage to shareholders of participating money market funds up to the amounts held in participating money market funds as of the close of business on September 19, 2008. Only money market funds that currently participate in the Program, have a market-based net asset value at least equal to 99.50% of the stable share price on May 1, 2009 (the Program’s extension date), have not had a “Guarantee Event” on or before May 1, 2009, and meet the other extension requirements under their Guarantee Agreements with the US Treasury are eligible to participate in the Program’s extension.
A money market fund that elects to continue participating in the Program during the extension period must submit to the Treasury a Program extension payment, an extension notice and an updated Annex A by 11:59 pm Washington D.C. time on April 13, 2009, and a Bring-Down Notice by 11:59 pm Washington D.C. time on May 11, 2009. For a money market fund that as of September 19, 2008 had a market-based net asset value greater than or equal to 99.75% of its stable share price, the payment will be 0.015% multiplied by the number of shares outstanding on September 19, 2008. For a money market fund that as of September 19, 2008 had a market-based net asset value less than 99.75% of its stable share price, but greater than or equal to 99.50%, the payment is 0.023% multiplied by the number of shares outstanding on September 19, 2008.Prior to the Treasury’s announcement, the Program was scheduled to end on April 30, 2009. The Treasury currently is not authorized by Congress to extend the Program past September 18, 2009.