1. Federal Reserve Bank Term Funding Program The Federal Reserve Act ( 12 U.S.C. 221 et seq. ) is amended by inserting after section 10B the following: 10C. Bank Term Funding Program (a) In general There is established a Bank Term Funding Program, under which a Federal reserve bank may, subject to rules established by the Board of Governors of the Federal Reserve System, make advances to eligible borrowers, subject to eligible collateral pledged by an eligible borrower. (b) Program requirements In making advances under the Bank Term Funding Program— (1) advances may only be made in an amount up to the amount of the eligible collateral pledged, but advances shall be made with recourse beyond the pledged collateral; (2) advances shall be made at a fixed rate equal to the one-year overnight index swap rate plus 10 basis points, as of the day the advance is made; (3) collateral shall be valued at par value and margin shall be 100 percent of par value; (4) borrowers shall be allowed to prepay without penalty; (5) advances shall be made available with a term of up to 1 year; and (6) a Federal reserve bank may not charge the borrower a fee. (c) Definitions In this section: (1) Eligible borrower The term eligible borrower means any U.S. federally-insured bank, savings association, or credit union or a U.S. branch or agency of a foreign bank that is eligible for primary credit (as defined under section 201.4(a) of title 12, Code of Federal Regulations). (2) Eligible collateral The term eligible collateral includes any collateral eligible for purchase by the Federal reserve banks in open market operations (as described under section 201.108(b) of title 12, Code of Federal Regulations). .