FACTBOX: BoE emergency facility for Northern Rock

LONDON (Reuters) - British mortgage bank Northern Rock said on Saturday it had not drawn down any of the money from the emergency facility it had arranged with the Bank of England so far.

The BoE has offered the funding lifeline to the lender following a credit squeeze. It is the first time the Bank of England has acted as a lender of last resort in this way for at least 30 years.

Interbank lending has fallen sharply over the last month as banks worry about losses on each others' books.

The credit squeeze has its origins in the U.S. subprime mortgage sector, where home loans made to borrowers with poor credit histories were repackaged and sold on as asset backed securities to institutional investors around the world.

Following are some key facts on the Bank of England's emergency lending facilities.

- The Lender of Last Resort facility is a tailor-made rescue package that must be agreed by the Bank of England in conjunction with the Treasury and the Financial Services Authority.

- It is not to be confused with the BoE's Standing Lending Facility which allows all participating banks to borrow overnight at a penalty rate of one percentage point above the Bank rate.

- In its Lender of Last Resort role, the Bank of England can offer emergency credit for a longer period of time.

- The financial institution seeking an emergency loan must offer high-quality collateral against it and pay a penalty interest rate to the central bank. Such a loan is generally only offered on a temporary basis to an institution that is otherwise regarded as solvent. The BoE may ask for more collateral of a hight value than the loan.

- It is offered only in exceptional circumstances and to prevent a bank failure having a serious impact on the broader financial system and economy.