The Federal Reserve Bank of New York has completed financing arrangements to facilitate J.P. Morgan Chase & Co.’s acquisition of Bear Stearns Companies Inc.

The New York Fed has extended a $28.82 billion loan, and J.P. Morgan Chase has extended a $1.15 billion loan, to a Delaware limited liability company. The LLC, which will be consolidated on the books of the New York Fed, will use the proceeds of the loans to finance the purchase of a portfolio of assets formerly owned by Bear Stearns. The portfolio of assets is pledged to the New York Fed as security against the extensions of credit.

Total credit extended by the New York Fed is lower than originally anticipated as a result of an extensive review of the portfolio, it reported.

BlackRock Financial Management, Inc. will manage the portfolio under guidelines established by the Federal Reserve Bank of New York. The estimated fair value of the portfolio will be released on July 3. The estimated fair value will be updated quarterly, generally within two weeks following the quarter end. The Federal Reserve’s balance sheet, presented weekly, will include consolidated LLC activity such as purchases, sales and accruals.