Morgan Lewis
April 2, 2009

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Orrick
November 25, 2008
This Alert reviews continuing U.S. government steps to “address continuing market problems that stem from a run on money market funds that occurred during the week of September 15, 2008 as a result of the fall-out relating to the Lehman Brothers insolvency.”

On November 24, 2008, the Treasury Department announced an extension (until April 30, 2009) of its Temporary Guarantee Program for Money Market Funds which follows in the footsteps of its November 20 announcement that it would provide support in connection with the liquidation of The Reserve Fund’s U.S. Government Fund.

Ropes & Gray
Alerts & Legal Updates
October 1, 2008
This Alert looks at the "Temporary Money Market Fund Guarantee Program" set up by the U.S. Department of the Treasury ("Treasury") to act as a guarantee of a shareholder’s investment in a participating money market fund as of September 19, 2008. The Program will terminate on December 18, 2008 unless extended by the Secretary of the Treasury (no extension to go later than September 18, 2009).

To be eligible for participation, a money market fund, including a tax-exempt money market fund, must: 

    (i)    be registered under the Investment Company Act of 1940 ("1940 Act"); 
    (ii)   offer securities registered under the Securities Act of 1933; 
    (iii)  have a policy of maintaining a stable net asset value or share price of $1.00 per share; 
    (iv)  be operated in compliance with Rule 2a-7 under the 1940 Act; and 
    (v)   have a market-based net asset value per share on September 19, 2008 of $0.995 or greater.

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