to purchase securities. The securities eligible for purchase by PPIFs ("eligible assets") are non-agency residential mortgage-backed securities ("non-agency RMBS") and commercial mortgage-backed securities ("CMBS") that meet the following criteria: issued before January 1, 2009 (legacy) rated when issued AAA or equivalent by two or more credit rating agencies designated as nationally recognized statistical rating organizations ("NRSROs") secured directly by actual mortgages, leases, or other assets, not other securities (other than certain swap positions, as determined by Treasury) located primarily in the United States (the loans and other assets that secure the non-agency RMBS and CMBS) purchased from financial institutions that are eligible for TARP participation Two assets types The Public–Private Investment Program has two parts, addressing both the legacy loans and legacy securities clogging the balance sheets of financial firms. The funds will come in many instances in equal parts from the U.S. Treasury's Troubled Asset Relief Program monies, private investors, and from loans from the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF). Legacy loans The overhang of troubled legacy loans stuck on bank balance sheets has made it difficult for banks to access private markets for new capital and limited their ability to lend. To cleanse bank balance sheets of troubled legacy loans and reduce the overhang of uncertainty associated with these assets, they will attract private capital to purchase eligible legacy loans from participating banks through the provision of FDIC debt guarantees and Treasury equity co-investment. The Treasury Department currently anticipates that approximately half of the TARP resources for legacy assets will be devoted to the Legacy Loans Program, but the program will allow for flexibility to allocate resources for the greatest impact. A broad array of investors are expected to participate in the Legacy Loans Program. The participation of individual investors, pension plans, insurance companies and other long-term investors is particularly encouraged. The Legacy Loans Program will facilitate the creation of individual Public–Private Investment Funds which will purchase asset pools on a discrete basis. The program will boost private demand for distressed assets that are currently held by banks and facilitate market-priced sales of troubled assets. The FDIC will provide oversight for the formation, funding, and operation of these new funds that will purchase assets from banks. Treasury and private capital will provide equity financing and the FDIC will provide a guarantee for debt financing issued by the Public–Private Investment Funds to fund asset purchases. The