No, but the Fed money is fungible.
Repayment of the loans will begin on the second anniversary of the loan, unless the Reserve Bank determines to begin payments earlier. Payments from the liquidation of the assets in the LLC will be made in the following order (each category must be fully paid before proceeding to the next lower category):
* to pay the necessary operating expenses of the LLC incurred in managing and liquidating the assets as of the repayment date; [I wonder what the "operating expenses" incurred for managing this LLC will be?]
* to repay the entire $29 billion principal due to the New York Fed;
* to pay all interest due to the New York Fed on its loan;
* to repay the entire $1 billion subordinated note due to JPMorgan Chase;
* to pay all interest due to JPMorgan Chase on its subordinated note;
* to pay any other non-operating expenses of the LLC, if any.Any remaining funds resulting from the liquidation of the assets will be paid to the New York Fed.