Item
1.01 Entry into a Material Definitive Agreement
The
information contained in Item 8.01 of this report is incorporated by reference
into this Item 1.01.
Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The
information contained in Item 8.01 of this report is incorporated by reference
into this Item 2.03.
Item
8.01 Other Events
On
November 12, 2008, the Federal Deposit Insurance Corporation (the “FDIC”)
approved the application of General Electric Capital Corporation (“GE Capital”)
for designation as an eligible entity under the FDIC’s Temporary Liquidity
Guarantee Program (“debt guarantee program”). Under the FDIC’s interim rules for
the debt guarantee program, issued on October 23, 2008, eligible entities
include affiliates of FDIC-insured depository institutions subject to
application to the FDIC. GE Money Bank (a Federal Savings Bank) and
GE Capital Financial, Inc. (a Utah Industrial Bank) are subsidiary-insured
depository institutions of GE Capital.
Under the
terms of the debt guarantee program, the FDIC guarantees GE Capital’s senior
unsecured debt, including commercial paper and term debt, issued from the date
GE Capital becomes eligible under the program through and including June 30,
2009. We expect the program to be effective for GE Capital on or
before Friday, November 14, 2008. There is a cap on the maximum
amount of debt that GE Capital is permitted to have issued and outstanding at
any time under the debt guarantee program, which is 125% of the par value of its
senior unsecured debt outstanding as of September 30, 2008 that was scheduled to
mature on or before June 30, 2009. The FDIC guarantees such debt
until the earlier of the maturity date of the debt or June 30,
2012.
The
approval is subject to an Eligible Entity Designation Agreement (the
“Agreement”) among the FDIC, GE Capital and General Electric Company, our
ultimate parent (the “Company”). The Agreement, which is a condition of
eligibility for affiliates of depository institutions, is subject to various
terms and conditions, including a reimbursement agreement by GE Capital and the
Company in the event the FDIC is required to make payments under the debt
guarantee program. A copy of the form of Agreement is included as an
exhibit to this report and is incorporated by reference into this Item as
Exhibit 10(a).
Item
9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibit is being filed as
part of this report:
10(a)
Form of Eligible Entity Designation Agreement among Federal Deposit
Insurance Corporation, General Electric Capital Corporation and General Electric
Company.