Fannie Mae-No Politics (FNMA)

[jog49]

I think the reference was to line of credit. If there will be no draws, then a line of credit is a sufficient backdrop for a corporation to operate without a capital buffer. However, should any draw occur, those funds would have to be paid back with interest and yes, the lender would want some kind of collateral (warrants or such). If a draw is required and the corporation has a large capital buffer, then it simply takes the money from what it has put into "savings" and uses those funds as needed.
We DO have a large sum at Treasury.....all those stolen funds, as you will recall. Get all that back and the need for a buffer disappears immediately.