Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	13,142	n/a	n/a
Engrossed in House	17,268	151	47%
Referred in Senate	17,180	5 Show Changes Hide Changes	1%

Display Version Introduced in House Engrossed in House Referred in Senate

HR 384 EHRFSCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 384CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To reform the Troubled Assets Relief Program of the Secretary of the Treasury and ensure accountability under such Program.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘TARP Reform and Accountability Act of 2009’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--MODIFICATIONS TO TARP AND TARP OVERSIGHT

Sec. 101. New conditionality for TARP-assisted institutions.CommentsClose CommentsPermalink





Sec. 102. Executive compensation and corporate governance.CommentsClose CommentsPermalink





Sec. 103. New lending by insured depository institutions that is attributable to TARP investments and assistance.CommentsClose CommentsPermalink





Sec. 104. Other protections for the taxpayer.CommentsClose CommentsPermalink





Sec. 105. Availability of TARP funds to smaller community institutions.CommentsClose CommentsPermalink





Sec. 106. Increase in size and authority of Financial Stability Oversight Board.CommentsClose CommentsPermalink





Sec. 107. Inclusion of women and minorities.CommentsClose CommentsPermalink





Sec. 108. Analysis of use of assistance.CommentsClose CommentsPermalink





Sec. 109. Database of use of TARP funds.CommentsClose CommentsPermalink





Sec. 110. Clarification.CommentsClose CommentsPermalink





Sec. 111. Investment of TARP funds in credit unions taken into account in determination of net worth.CommentsClose CommentsPermalink





Sec. 112. Treasury facilitated auction.CommentsClose CommentsPermalink





Sec. 113. Broadened Inspector General Authority.CommentsClose CommentsPermalink

TITLE II--FORECLOSURE RELIEF

Sec. 201. TARP foreclosure mitigation plan and implementation.CommentsClose CommentsPermalink





Sec. 202. Elements of plan.CommentsClose CommentsPermalink





Sec. 203. Program alternatives.CommentsClose CommentsPermalink





Sec. 204. Systematic foreclosure prevention and mortgage modification plan established.CommentsClose CommentsPermalink





Sec. 205. Modification of plan.CommentsClose CommentsPermalink





Sec. 206. Servicer safe harbor.CommentsClose CommentsPermalink





Sec. 207. Foreclosure moratorium recommendation.CommentsClose CommentsPermalink





Sec. 208. Foreclosure prevention for affordable housing.CommentsClose CommentsPermalink





Sec. 209. Report by Congressional Oversight Panel.CommentsClose CommentsPermalink





Sec. 210. Mortgage modification data collecting and reporting.CommentsClose CommentsPermalink

TITLE III--AUTO INDUSTRY FINANCING AND RESTRUCTURING

Sec. 301. Short title.CommentsClose CommentsPermalink





Sec. 302. Direct loan provisions.CommentsClose CommentsPermalink

TITLE IV--CLARIFICATION OF AUTHORITY

Sec. 401. Consumer loans.CommentsClose CommentsPermalink





Sec. 402. Municipal securities.CommentsClose CommentsPermalink





Sec. 403. Commercial real estate loans.CommentsClose CommentsPermalink





Sec. 404. Small business loans.CommentsClose CommentsPermalink





Sec. 405. Commercial loans.CommentsClose CommentsPermalink





Sec. 406. Automobile fleet purchase loans.CommentsClose CommentsPermalink





Sec. 407. Certification.CommentsClose CommentsPermalink

TITLE V--HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTS

Sec. 501. Changes to HOPE for Homeowners Program.CommentsClose CommentsPermalink

TITLE VI--HOME BUYER STIMULUS

Sec. 601. Home buyer stimulus program.CommentsClose CommentsPermalink

TITLE VII--FDIC PROVISIONS

Sec. 701. Permanent increase in deposit insurance.CommentsClose CommentsPermalink





Sec. 702. Extension of restoration plan period.CommentsClose CommentsPermalink





Sec. 703. Borrowing authority.CommentsClose CommentsPermalink





Sec. 704. Systemic risk special assessments.CommentsClose CommentsPermalink

TITLE VIII--REPORTS ON THE GUARANTEE OF CERTAIN CITIGROUP ASSETS

Sec. 801. Reports required.CommentsClose CommentsPermalink

TITLE IX--GAO STUDY OF FINANCIAL CRISIS

Sec. 901. Study required.CommentsClose CommentsPermalink





Sec. 902. Treasury strategy and timeline.CommentsClose CommentsPermalink

TITLE X--AGENCY MBS PURCHASE PROGRAM DISCLOSURE

Sec. 1001. Disclosure required.CommentsClose CommentsPermalink

TITLE I--MODIFICATIONS TO TARP AND TARP OVERSIGHTCommentsClose CommentsPermalink

SEC. 101. NEW CONDITIONALITY FOR TARP-ASSISTED INSTITUTIONS.

(a) In General- Section 113 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5223) is amended by adding at the end the following new subsections:CommentsClose CommentsPermalink





‘(e) Reporting, Monitoring and Accountability-CommentsClose CommentsPermalink





‘(1) PERIODIC PUBLIC REPORTING ON USE OF ASSISTANCE- The Secretary shall require any assisted institution that became an assisted institution on or after October 3, 2008, to publicly report, not less than quarterly, on such institution’s use of the assistance. Such reporting may be required directly for nondepository institutions or through the appropriate Federal banking agency, as provided in section 103.CommentsClose CommentsPermalink





‘(2) ADDITIONAL REQUIREMENTS AND COMPLIANCE- The Secretary--CommentsClose CommentsPermalink





‘(A) may establish additional reporting and information requirements for any direct or indirect recipient of any assistance or benefit at any time on or after October 3, 2008, that involves the obligation or expenditure, loan, or investment of funds available to the Secretary under this title; andCommentsClose CommentsPermalink





‘(B) shall establish appropriate mechanisms to ensure appropriate use and compliance with all terms of any use of funds made available under this title.CommentsClose CommentsPermalink





‘(3) CONSULTATION- The Secretary shall consult with the appropriate Federal banking agencies in establishing the reporting requirements under this subsection that are applicable to insured depository institutions.CommentsClose CommentsPermalink





‘(4) ONLINE PUBLICATION OF PERIODIC REPORTS- The Secretary shall make publicly available on the Internet each report made in accordance with paragraph (1).CommentsClose CommentsPermalink





‘(5) USE OF 2008 ASSISTANCE-CommentsClose CommentsPermalink





‘(A) COLLECTION OF INFORMATION- Effective upon enactment of this paragraph, The Secretary shall require any assisted institution which received assistance under this title before January 1, 2009, to provide sufficient information with regard to such assistance as to inform the Secretary of the precise use of such assistance by the institution and the purpose for the use.CommentsClose CommentsPermalink





‘(B) ANALYSIS- The Secretary shall conduct an analysis of the use of the assistance for which information was received under subparagraph (A).CommentsClose CommentsPermalink





‘(C) REPORT TO THE CONGRESS- Within 30 days after the enactment of this paragraph, the Secretary shall promptly submit a report containing the findings and conclusion of the Secretary on the use of the assistance referred to in subparagraph (A), together with such recommendations for legislative or administrative action as the Secretary may determine to be appropriate, to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committees on Appropriations of the House of Representatives and the Senate.CommentsClose CommentsPermalink





‘(f) Use and Accountability for Use of Funds-CommentsClose CommentsPermalink





‘(1) INSURED DEPOSITORY INSTITUTION-CommentsClose CommentsPermalink





‘(A) INVESTMENT IN OR OTHER INJECTION OF FUNDS INTO A DEPOSITORY INSTITUTION- Except as provided in section 105, as a condition for the provision of any investment in the capital or assets of, or any other provision of assistance to or for the benefit of, any insured depository institution made after the date of the enactment of the TARP Reform and Accountability Act of 2009, the Secretary shall incorporate into the agreement for such investment or assistance an agreement between the depository institution and the appropriate Federal banking agency with respect to such institution on the manner in which the funds are to be used and benchmarks that the institution is required to meet in using the assistance so as to advance the purposes of this Act to strengthen the soundness of the financial system and the availability of credit to the economy.CommentsClose CommentsPermalink





‘(B) EXAMINATIONS- In the case of any assisted insured depository institution that became an assisted institution on or after October 3, 2008, the appropriate Federal banking agency shall specifically review at least once annually the use, by the institution, of assistance made available under this Act and compliance by the institution with the requirements established by or pursuant to this title or by agreement of the institution with the Secretary or the appropriate Federal banking agency, including executive compensation and any other specific agreement terms. Such review may be conducted in connection with the regular full-site examination, or any other examination.CommentsClose CommentsPermalink





‘(C) COMPLIANCE PROCEDURES REQUIRED- Each appropriate Federal banking agency shall prescribe regulations requiring assisted insured depository institutions to establish and maintain procedures designed to assure and monitor the compliance of such depository institutions with the requirements established by or pursuant to this title or by agreement of the institution with the Secretary or such agency.CommentsClose CommentsPermalink





‘(2) USE OF TARP FUNDS FOR MERGERS OR ACQUISITIONS- Effective as of the date of the enactment of the TARP Reform and Accountability Act of 2009, no assisted institution that became an assisted institution at any time on or after October 3, 2008, may merge or consolidate with any insured depository institution or, either directly or indirectly, acquire the assets of, or assume liability to pay any deposits made in, any insured depository institution, and no Federal banking agency may approve any such action under section 18(c) of the Federal Deposit Insurance Act, while any of such assistance is outstanding unless, prior to the approval of such agency, the Secretary has determined in consultation with any relevant Federal banking agencies that--CommentsClose CommentsPermalink





‘(A) such action will reduce risk to the taxpayer; orCommentsClose CommentsPermalink





‘(B) the transaction could have been consummated without assistance provided under this title.CommentsClose CommentsPermalink





‘(3) NONDEPOSITORY INSTITUTIONS- In the case of any assisted institution that became an assisted institution on or after October 3, 2008, and is not described in and subject to paragraph (1), the Secretary shall establish such reporting requirements and require any other conditions or agreements no less stringent than those applicable to assisted insured depository institutions, including requirements to conduct examinations of the books, affairs, and procedures of any such financial institution by the Secretary or by delegation to the Board.CommentsClose CommentsPermalink





‘(4) RENTER PROTECTION- In the case of any foreclosure on any dwelling or residential real property securing an extension of credit made under a contract entered into after the date of the enactment of this Act, any successor in interest in such property pursuant to the foreclosure shall assume such interest subject to--CommentsClose CommentsPermalink





‘(A) the provision, by the successor in interest, of a notice to vacate to any bona fide tenant at least 90 days before the effective date of the notice to vacate; andCommentsClose CommentsPermalink





‘(B) the rights of any bona fide tenant, as of the date of such notice of foreclosure--CommentsClose CommentsPermalink





‘(i) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease or the end of the 6-month period beginning on the date of the notice of foreclosure, whichever occurs first, subject to the receipt by the tenant of the 90-day notice under subparagraph (A); orCommentsClose CommentsPermalink





‘(ii) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90-day notice under subparagraph (A).CommentsClose CommentsPermalink





‘(5) BONA FIDE LEASE OR TENANCY- For purposes of this paragraph (1), a lease or tenancy shall be considered bona fide only if--CommentsClose CommentsPermalink





‘(A) the mortgagor under the contract is not the tenant;CommentsClose CommentsPermalink





‘(B) the lease or tenancy was the result of an arms-length transaction; orCommentsClose CommentsPermalink





‘(C) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property.CommentsClose CommentsPermalink





‘(6) PROHIBITION ON USE OF TARP FUNDS FOR FOREIGN CUSTOMER SERVICE POSITIONS- Effective as of the date of the enactment of the TARP Reform and Accountability Act of 2009, no assisted institution that became an assisted institution on or after October 3, 2008, may enter into a new agreement, or expand a current agreement, with any foreign company for provision of customer service functions, including call-center services, while any of such assistance is outstanding.CommentsClose CommentsPermalink





‘(g) No Impediment to Withdrawal- Subject to consultation with the appropriate Federal banking agencies, the Secretary shall permit an assisted insured depository institution to repay any assistance previously provided under this title to such depository institution without regard to whether the depository institution has replaced such funds from any other source, and when such assistance is repaid, the Secretary shall liquidate warrants associated with such assistance at the current market price.’.CommentsClose CommentsPermalink





(b) Definitions- Section 3 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5202) is amended by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





‘(10) DEFINITIONS RELATING TO INSURED DEPOSITORY INSTITUTIONS- The terms ‘depository institution’, ‘insured depository institution’, ‘Federal banking agency’ and ‘appropriate Federal banking agency’ have the same meanings as in section 3 of the Federal Deposit Insurance Act.CommentsClose CommentsPermalink





‘(11) ASSISTED INSTITUTION- The terms ‘assisted institution’ or ‘assisted insured depository institution’ mean any such institution that receives, directly or indirectly, any assistance or benefit that involves the obligation or expenditure, loan, or investment of funds available to the Secretary under title I.’.CommentsClose CommentsPermalink

SEC. 102. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

(a) In General- Section 111 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5221) is amended by adding at the end the following new subsections:CommentsClose CommentsPermalink





‘(e) Across-the-Board Executive Compensation and Corporate Governance Requirements-CommentsClose CommentsPermalink





‘(1) STANDARDS REQUIRED- Notwithstanding any provision of, and in addition to any requirement of subsection (a), (b), or (c) (other than the definitions in subsection (b)(3)), the Secretary shall require any institution that became an assisted institution after the date of the enactment of the TARP Reform and Accountability Act of 2009 to meet standards for executive compensation and corporate governance while any assistance under this title is outstanding.CommentsClose CommentsPermalink





‘(2) SPECIFIC REQUIREMENTS- The standards established under paragraph (1) shall include--CommentsClose CommentsPermalink





‘(A) limits on compensation that exclude incentives for senior executive officers of such institution to take unnecessary and excessive risks that threaten the value of such institution during the period that any assistance under this title is outstanding;CommentsClose CommentsPermalink





‘(B) a provision for the recovery by such institution of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains, or other criteria that are later found to be materially inaccurate;CommentsClose CommentsPermalink





‘(C) a prohibition on such institution making any golden parachute payment to a senior executive officer during the period that the assistance under this title is outstanding;CommentsClose CommentsPermalink





‘(D) a prohibition on such institution paying or accruing any bonus or incentive compensation, during the period that the assistance under this title is outstanding, to the 25 most highly-compensated employees; andCommentsClose CommentsPermalink





‘(E) a prohibition on any compensation plan that would encourage manipulation of such institution’s reported earnings to enhance the compensation of any of its employees.CommentsClose CommentsPermalink





‘(3) APPLICABILITY TO PRIOR ASSISTANCE- Notwithstanding any limitations included in subsection (a), (b), or (c) with regard to applicability, the Secretary may apply the requirements of and the standards established under this subsection to any assisted institution that received any assistance under this title before the date of the enactment of the TARP Reform and Accountability Act of 2009.CommentsClose CommentsPermalink





‘(f) Board Observer- The Secretary may require the attendance of an observer delegated by the Secretary, on behalf of the Secretary, to attend the meetings of the board of directors of any assisted institution that became an assisted institution before October 3, 2008, and any committees of such board of directors, while any assistance under this title is outstanding.’.CommentsClose CommentsPermalink





(b) Repeal of De Minimis Exception- Section 111(c) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5221(c)) is amended by striking ‘and only where such purchases per financial institution in the aggregate exceed $300,000,000 (including direct purchases),’.CommentsClose CommentsPermalink

SEC. 103. NEW LENDING BY INSURED DEPOSITORY INSTITUTIONS THAT IS ATTRIBUTABLE TO TARP INVESTMENTS AND ASSISTANCE.

Section 7(a) of the Federal Deposit Insurance Act (U.S.C. 1817(a)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(12) LENDING INCREASES ATTRIBUTABLE TO INVESTMENT OR OTHER ASSISTANCE UNDER THE TROUBLED ASSETS RELIEF PROGRAM-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Each report of condition filed pursuant to this subsection by an insured depository institution which received an investment or other assistance under the Troubled Assets Relief Program established by the Emergency Economic Stabilization Act of 2008 or section 136(d) of the Energy Independence and Security Act of 2007 shall report the amount of any increase in new lending in the period covered by such report (or the amount of any reduction in any decrease in new lending) that is attributable to such investment or assistance, to the extent possible.CommentsClose CommentsPermalink





‘(B) ALTERNATIVE MEASURE- If an insured depository institution that is subject to subparagraph (A) cannot accurately quantify the effect that an investment or other assistance under such Troubled Assets Relief Program has had on new lending by the institution, the insured depository institution shall report the total amount of the increase in new lending, if any, in the period covered by such report.CommentsClose CommentsPermalink





‘(C) DESIGNATION OF REPORTING REQUIREMENT- The Federal banking agencies and the Secretary of the Treasury shall specify the form, content, and manner of reports required under this paragraph, and shall require such reports to be provided to the appropriate State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act).’.CommentsClose CommentsPermalink

SEC. 104. OTHER PROTECTIONS FOR THE TAXPAYER.

(a) Warrant Requirements- Subsection (d) of section 113 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5223(d)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) AMOUNT- For assistance provided after the date of the enactment of the TARP Reform and Accountability Act of 2009, and except as provided in title III of such Act, the warrants or instruments described in this section shall have a value at least equal to 15 percent of the aggregate amount of such assistance.’.CommentsClose CommentsPermalink





(b) Repeal of Certain Exception- Section 113(d)(3) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5223(d)(3)) is amended by striking subparagraph (A).CommentsClose CommentsPermalink

SEC. 105. AVAILABILITY OF TARP FUNDS TO SMALLER COMMUNITY INSTITUTIONS.

(a) Prompt Action- The Secretary shall promptly take all necessary actions to provide assistance under title I of the Emergency Economic Stabilization Act of 2008 to smaller community financial institutions, including such institutions that are privately held.CommentsClose CommentsPermalink





(b) Comparable Terms- An institution that receives assistance after the date of the enactment of the TARP Reform and Accountability Act of 2009, shall do so on terms comparable to the terms applicable to institutions that received assistance prior to the date of the enactment of such Act of 2009: Provided, That the institution--CommentsClose CommentsPermalink





(1) has submitted an application on which no action has been taken, such as institutions that are C corporations (including privately held institutions) and community development financial institutions; orCommentsClose CommentsPermalink





(2) is of a type for which the Secretary has not yet established an application deadline or for which any such deadline has not yet occurred as of the date of the enactment of this Act, such as institutions that are non-stock corporations, S-corporations, mutually-owned insured depository institutions (as defined in section 3 of the Federal Deposit Insurance Act).CommentsClose CommentsPermalink





(c) Definitions- For purposes of this section, the terms ‘S Corporation’ and ‘C Corporation’ shall have the same meaning given to those terms in section 1361(a) of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink

SEC. 106. INCREASE IN SIZE AND AUTHORITY OF FINANCIAL STABILITY OVERSIGHT BOARD.

(a) Authority- Section 104 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 2514) is amended--CommentsClose CommentsPermalink





(1) by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; andCommentsClose CommentsPermalink





(2) by inserting after subsection (f) the following new subsection:CommentsClose CommentsPermalink





‘(g) Review and Decisionmaking- After conducting any review under this section of a policy determination made by the Secretary, the Financial Stability Oversight Board may overturn any such policy determination by a two-thirds vote of all members of such board.’.CommentsClose CommentsPermalink





(b) Appointment of 3 Additional Members- Section 104(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 2514(b)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of paragraph (4);CommentsClose CommentsPermalink





(2) by striking the period at the end of paragraph (5) and inserting a semicolon; andCommentsClose CommentsPermalink





(3) by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





‘(6) the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation; andCommentsClose CommentsPermalink





‘(7) two members appointed by the President, by and with the consent of the Senate, from among individuals who are not officers or employees of the United States Government.’.CommentsClose CommentsPermalink

SEC. 107. INCLUSION OF WOMEN AND MINORITIES.

(a) Office of Minority and Women Inclusion- The Secretary of the Treasury shall establish an Office of Minority and Women Inclusion, or designate an office of the entity, that shall be responsible for carrying out this section and ensuring compliance by the Secretary and each assisted institution (as such term is defined in section 3 of the Emergency Economic Stabilization Act of 2008) with the requirements of this section. The Office shall be responsible for all matters of the entity relating to diversity in management, employment, and business activities in accordance with such standards and requirements as the Secretary shall establish regarding the use of assistance provided under title I of such Act.CommentsClose CommentsPermalink





(b) Inclusion in All Levels of Business Activities- The Secretary and each assisted institution shall develop and implement standards and procedures to ensure, to the maximum extent possible, the inclusion and utilization of minorities (as such term is defined in section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and women, and minority- and women-owned businesses (as such terms are defined in section 21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including financial institutions, investment banking firms, mortgage banking firms, asset management firms, broker-dealers, financial services firms, underwriters, accountants, brokers, investment consultants, and providers of legal services) in all business and activities of the Secretary and each assisted institution at all levels, including in procurement, insurance, and all types of contracts (including contracts for the issuance or guarantee of any debt, equity, or mortgage-related securities, the management of its mortgage and securities portfolios, the making of its equity investments, the purchase, sale and servicing of single- and multi-family mortgage loans, and the implementation of its affordable housing program and initiatives). The processes established by the Secretary and each assisted institution for review and evaluation for contract proposals and to hire service providers shall include a component that gives consideration to the diversity of the applicant.CommentsClose CommentsPermalink





(c) Applicability- This section shall apply to all contracts of the Secretary of the Treasury and assisted institutions for services of any kind, including services that require the services of investment banking, asset management entities, broker-dealers, financial services entities, underwriters, accountants, investment consultants, and providers of legal services.CommentsClose CommentsPermalink





(d) Reports to Congress- Not later than 180 days after the date of the enactment of this Act, the Secretary shall report to the Congress detailed information describing the actions taken by the Office and assisted institutions pursuant to this section, which shall include a statement of the total amounts provided by the Secretary and assisted institutions under title I of the Emergency Economic Stabilization Act of 2008 to third party contractors since the last such report and the percentage of such amounts paid to businesses described in subsection (b) of this section.CommentsClose CommentsPermalink

SEC. 108. ANALYSIS OF USE OF ASSISTANCE.

(a) Requirement- The Secretary of the Treasury shall regularly analyze timely and detailed information concerning the use of assistance provided under title I of the Emergency Economic Stabilization Act of 2008 by assisted institutions to ensure that the program established under title I of such Act is meeting the goals of the program.CommentsClose CommentsPermalink





(b) Agency Collection- The Secretary of the Treasury shall require the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act) and any other Federal agency the Secretary chooses to report detailed information to the Secretary on the use of assistance provided by the Secretary under the Emergency Economic Stabilization Act of 2008 in a standard electronic form on no less than a quarterly basis.CommentsClose CommentsPermalink





(c) Source of Information- The data collected and analyzed under subsections (a) and (b)--CommentsClose CommentsPermalink





(1) shall come from existing reports filed by all assisted institutions where possible, including depository institutions and nondepository institutions, with the principal Federal regulator of each such institution, if any; andCommentsClose CommentsPermalink





(2) and should be sufficiently detailed and timely to enable the Secretary to determine the effectiveness of the program established under title I of the Emergency Economic Stabilization Act of 2008 in stimulating prudent lending and strengthening bank capital.CommentsClose CommentsPermalink





(d) Adjustments and Recommendations- If the Secretary of the Treasury determines that--CommentsClose CommentsPermalink





(1) the goals of the program established under title I of the Emergency Economic Stabilization Act of 2008 are not being met, the Secretary shall work with the Federal agencies supplying the information under subsection (b) to encourage such agencies to provide the recipients of assistance under such title with recommendations for better meeting the goals of the program; andCommentsClose CommentsPermalink





(2) the goals of the program are not being met following the recommendations and adjustments made in accordance with paragraph (1), the Secretary shall adjust the future uses of assistance provided under such title.CommentsClose CommentsPermalink

SEC. 109. DATABASE OF USE OF TARP FUNDS.

The Secretary of the Treasury shall create and maintain a fully searchable database, accessible on the Internet at no cost to the public, that contains the name of each entity receiving funds made available under section 115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)) and the purpose for which such entity is receiving such funds.CommentsClose CommentsPermalink

SEC. 110. CLARIFICATION.

Section 101 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 2514(b)) is amended by adding at the end the following new subsections:CommentsClose CommentsPermalink





‘(f) Clarification- Any provision of capital to, purchase of equity in, or assistance provided to any institution under this title shall be considered to be a purchase of troubled assets for purposes of this title.CommentsClose CommentsPermalink





‘(g) Qualified Property-CommentsClose CommentsPermalink





‘(1) GUARANTEE- Upon the request of a lessee of qualified property in leases where the lessee economically defeased its rent and purchase option payments, the Secretary may serve as a guarantor with respect to all payment obligations of such lessee with respect to any defeased lease transaction that is in technical default because of a downgrade of a financial guarantor. Such guarantee shall be on such terms and conditions as are determined by the Secretary.CommentsClose CommentsPermalink





‘(2) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:CommentsClose CommentsPermalink





‘(A) QUALIFIED PROPERTY- The term ‘qualified property’ means domestic property subject to a lease entered into prior to November 1, 2007, in which a State or local government authority (as defined in section 5302(a) of title 49, United States Code) is the lessee.CommentsClose CommentsPermalink





‘(B) GUARANTOR- The term ‘guarantor’ includes any guarantor, surety, and payment undertaker.’.CommentsClose CommentsPermalink

SEC. 111. INVESTMENT OF TARP FUNDS IN CREDIT UNIONS TAKEN INTO ACCOUNT IN DETERMINATION OF NET WORTH.

(a) In General- Section 216(o)(2) of the Federal Credit Union Act (12 U.S.C. 1790d(o)(2)) is amended by striking subparagraph (A) and inserting the following new subparagraph:CommentsClose CommentsPermalink





‘(A) with respect to any insured credit union, means--CommentsClose CommentsPermalink





‘(i) the retained earnings balance of the credit union, as determined under generally accepted accounting principles, together with any amounts that were previously the retained earnings of any other credit union with which the credit union has combined; andCommentsClose CommentsPermalink





‘(ii) any donated equity, permanent, and perpetual capital deposits, or other primary capital made available under Title I of the Emergency Economic Stabilization Act of 2008, as determined by regulation or order of the Board with due regard for the accepted capital standards for United States depository institutions generally; and’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall take effect at the end of the 30-day period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 112. TREASURY FACILITATED AUCTION.

Section 113(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5223(b)) is amended to read as follows:CommentsClose CommentsPermalink





‘(b) Use of Market Mechanisms-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In making purchases under this Act, the Secretary shall--CommentsClose CommentsPermalink





‘(A) make such purchases at the lowest price that the Secretary determines to be consistent with the purposes of this Act; andCommentsClose CommentsPermalink





‘(B) maximize the efficiency of the use of taxpayer resources by using market mechanisms, including auctions or reverse auctions, where appropriate.CommentsClose CommentsPermalink





‘(2) AUCTION FACILITATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall, in coordination with institutions that volunteer to participate, and not using any funds under this title for purchases, facilitate an auction of troubled assets owned by such institutions to third party purchasers.CommentsClose CommentsPermalink





‘(B) REPORT- If the auction described in subparagraph (A) does not take place within the 3 month period following the date of the enactment of the TARP Reform and Accountability Act of 2009, the Secretary shall issue a report to the Congress stating--CommentsClose CommentsPermalink





‘(i) why such auction has not taken place; andCommentsClose CommentsPermalink





‘(ii) by what mechanism the Secretary feels that troubled assets could most expeditiously be valued and liquidated.’.CommentsClose CommentsPermalink

SEC. 113. BROADENED INSPECTOR GENERAL AUTHORITY.

Section 121(c) of the Emergency Economic Stabilization Act (12 U.S.C. 5231(c)) is amended by striking ‘the purchase, management, and sale of assets’ and all that follows through ‘under section 102’ and inserting ‘any action taken by the Secretary of the Treasury under this title (except sections 115, 116, 117, and 125), as the Special Inspector General determines appropriate’.CommentsClose CommentsPermalink

TITLE II--FORECLOSURE RELIEFCommentsClose CommentsPermalink

SEC. 201. TARP FORECLOSURE MITIGATION PLAN AND IMPLEMENTATION.

(a) Commitment of Resources- Notwithstanding any provision of title I of the Emergency Economic Stabilization Act of 2008, not later than seven days after the date of the enactment of the TARP Reform and Accountability Act of 2009, the Secretary of the Treasury (in this title referred to as the ‘Secretary’) shall commit funds made available to the Secretary under title I of the Emergency Economic Stabilization Act of 2008 in an amount of at least $100,000,000,000, unless the Secretary certifies otherwise under subsection (d), but in no case less than $40,000,000,000, for the purposes of foreclosure mitigation. Not less than $20,000,000,000 of this amount shall be dedicated to the program described under section 204 of this Act. The Secretary shall consult with the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation regarding the administration of the program.CommentsClose CommentsPermalink





(b) Plan Required- Notwithstanding any provision of title I of the Emergency Economic Stabilization Act of 2008, none of the funds otherwise available to the Secretary pursuant to section 115(a)(3) of such Act shall be available to the Secretary after March 15, 2009, unless a comprehensive plan to use the funds committed under subparagraph (a) to prevent and mitigate foreclosures on residential properties, in accordance with the requirements of this title, has been developed by the Secretary and approved by the Financial Stability Oversight Board by such date.CommentsClose CommentsPermalink





(c) Implementation Required- The Secretary shall begin to implement the comprehensive plan established pursuant to subsection (b) by not later than April 1, 2009.CommentsClose CommentsPermalink





(d) Certification- If the Secretary does not commit at least $100,000,000,000 in the plan established under subsection (b), the Secretary shall certify to the Congress in the plan the specific reasons that such amounts have not been committed.CommentsClose CommentsPermalink





(e) Clarification- For purposes of this title, the term ‘residential properties’ shall include 1- to 4-family residential properties.CommentsClose CommentsPermalink

SEC. 202. ELEMENTS OF PLAN.

(a) Required Elements- The comprehensive plan established pursuant to section 201(b) shall comply with the following requirements:CommentsClose CommentsPermalink





(1) OWNER-OCCUPIED RESIDENCES ONLY- The programs implemented under the plan shall prevent and mitigate foreclosures specifically on owner-occupied residential properties.CommentsClose CommentsPermalink





(2) LEVERAGING OF PRIVATE CAPITAL- The plan shall leverage private capital to the maximum extent possible consistent with the purpose of preventing and mitigating foreclosures on such properties.CommentsClose CommentsPermalink





(3) USE OF PROGRAM ALTERNATIVES- The actions to be taken under the plan shall consist of the systematic foreclosure prevention and mortgage modification program under section 204 and a combination of the program alternatives set forth in section 203.CommentsClose CommentsPermalink





(4) WORKFORCE AND OUTREACH- The plan shall set forth how the Secretary intends to develop, second, or contract for appropriate staffing to carry out the plan and the component programs and to ensure that private mortgage servicers utilizing the programs established by the Secretary will provide sufficient staffing and resources to engage in the outreach, loss mitigation activities, and homeowner education necessary for successful foreclosure mitigation.CommentsClose CommentsPermalink





(b) Concentrations of Foreclosures- The comprehensive plan established pursuant to section 201(b) may include provisions designed to prevent and mitigate foreclosures on residential properties located in areas that are most seriously affected by such foreclosures.CommentsClose CommentsPermalink

SEC. 203. PROGRAM ALTERNATIVES.

The program alternatives set forth in this section are as follows:CommentsClose CommentsPermalink





(1) REDUCTION OF HOPE FOR HOMEOWNERS PROGRAM COSTS- A program under which the Secretary--CommentsClose CommentsPermalink





(A) provides coverage for fees under the HOPE for Homeowners Program under section 257 of the National Housing Act (12 U.S.C. 1715z-23), as amended by title V of this Act; orCommentsClose CommentsPermalink





(B) ensures the affordability of interest rates of mortgages insured under such Program.CommentsClose CommentsPermalink





(2) BUY-DOWN OF SECOND LIEN MORTGAGES- A program under which the Secretary makes available to owners of owner-occupied residential properties a direct mortgage loan the proceeds of which shall be used only to reduce the outstanding debt of such owner under an existing second lien mortgage on such residential property, for the purpose of facilitating loan modification, subject to such reductions in the principal of such existing second lien mortgages as the Secretary may require.CommentsClose CommentsPermalink





(3) SERVICER INCENTIVES AND ASSISTANCE- A program under which the Secretary may make payments to servicers, including servicers that are not affiliated with a depository institution, who implement modifications to mortgages that result in mortgages that meet such requirements as the Secretary shall establish.CommentsClose CommentsPermalink





(4) LOAN PURCHASES- A program under which the Secretary, or one or more entities that the Secretary, in consultation with the Secretary of Housing and Urban Development, enters into a contract with to carry out the program under this paragraph, which may include the Federal Deposit Insurance Corporation, regional public-private partnerships, and entities selected as contractors under section 107 of the Emergency Economic Stabilization Act of 2008, purchases whole loans for the purpose of modifying or refinancing the loans.CommentsClose CommentsPermalink





(5) SUBSTITUTION OF TRUST- A program under which modifications are allowed to the securitization trust agreements with respect to securities secured by pools of mortgages to allow a new qualified buyer to be substituted on a foreclosed property or a delinquent mortgage without seeking new financing.CommentsClose CommentsPermalink

SEC. 204. SYSTEMATIC FORECLOSURE PREVENTION AND MORTGAGE MODIFICATION PLAN ESTABLISHED.

(a) In General- The systematic foreclosure prevention and mortgage modification program under this section shall be a program established by the Secretary, in consultation with the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation and the Secretary of Housing and Urban Development, that--CommentsClose CommentsPermalink





(1) provides lenders and loan servicers with certain compensation to cover administrative costs for each loan modified according to the required standards; andCommentsClose CommentsPermalink





(2) provides loss sharing or guarantees for certain losses incurred if a modified loan should subsequently re-default.CommentsClose CommentsPermalink





(b) Program Administration- The Secretary, in consultation with the Chairperson of the Federal Deposit Insurance Corporation and the Secretary of Housing and Urban Development, may contract with one or more entities, including the Federal Deposit Insurance Corporation and entities selected as contractors under section 107 of the Emergency Economic Stabilization Act of 2008, to conduct the program activities required under the program under this section.CommentsClose CommentsPermalink





(c) Program Components- The program established under subsection (a) may include the following components:CommentsClose CommentsPermalink





(1) ELIGIBLE BORROWERS- The program shall be limited to loans secured by owner-occupied properties.CommentsClose CommentsPermalink





(2) EXCLUSION FOR EARLY PAYMENT DEFAULT- To promote sustainable mortgages, loss sharing or guarantees shall be available only after the borrower has made a specified minimum number of payments on the modified mortgage.CommentsClose CommentsPermalink





(3) STANDARD NET PRESENT VALUE TEST- In order to promote consistency and simplicity in implementation and audit, the Secretary shall prescribe a standardized net present value analysis for participating lenders and servicers comparing the expected net present value of modifying past due loans compared to the net present value of foreclosing on them will be applied. Under this test, standard assumptions shall be used to ensure that a consistent standard for affordability is provided based on a ratio of the borrower’s mortgage-related expenses for the first priority mortgage-to-gross income specified by the Secretary.CommentsClose CommentsPermalink





(4) SYSTEMATIC LOAN REVIEW BY PARTICIPATING LENDERS AND SERVICERS- Participating lenders and servicers shall be required to undertake a systematic review of all of the loans under their management, to subject each loan to a standard net present value test to determine whether it is a suitable candidate for modification, and to offer modifications for all loans that pass this test. The penalty for failing to undertake such a systematic review and to carry out modifications where they are justified would be disqualification from further participation in the program until such a systematic program was introduced.CommentsClose CommentsPermalink





(5) MODIFICATIONS- Modifications may include any of the following:CommentsClose CommentsPermalink





(A) Reduction in interest rates and fees.CommentsClose CommentsPermalink





(B) Term or amortization extensions.CommentsClose CommentsPermalink





(C) Forbearance or forgiveness of principal.CommentsClose CommentsPermalink





(D) Other similar modifications.CommentsClose CommentsPermalink





(6) SIMPLIFIED LOSS SHARE CALCULATION- In order to ensure the administrative efficiency and effective operation of the program, the Secretary shall define appropriate measures for loss sharing or guarantees designed to reduce the risk and loss upon redefault of modified mortgages in order to provide adequate incentives to lenders, servicers, and investors to modify eligible mortgages and avoid unnecessary foreclosures. Interim modifications shall be allowed.CommentsClose CommentsPermalink





(7) DE MINIMIS TEST- To lower administrative costs, a de minimis test shall be used to exclude from loss sharing any modification that does not lower the monthly payment at least 10 percent.CommentsClose CommentsPermalink





(8) 8 YEAR LIMIT ON LOSS SHARING PAYMENT- The loss sharing guarantee shall terminate at the end of the 8-year period beginning on the date the modification was consummated.CommentsClose CommentsPermalink





(d) Alternative Components- The Secretary may, with the approval of the Board, implement foreclosure prevention and mitigation actions other than those included pursuant to subsection (c) in the comprehensive plan initially approved by the Board pursuant to section 201(b) that the Secretary believes would provide equivalent or greater impact on foreclosure mitigation.CommentsClose CommentsPermalink





(e) Regulations- The Secretary shall prescribe such regulations as may be necessary to implement this section and prevent evasions thereof.CommentsClose CommentsPermalink





(f) Troubled Assets- The costs incurred by the Federal Government in carrying out the loan modification program established under this section shall be covered out of the funds made available to the Secretary of the Treasury under title I of the Emergency Economic Stabilization Act of 2008 or such other funds as may be available to the Secretary.CommentsClose CommentsPermalink





(g) Report- Before the end of the 6-month period beginning on the date of the enactment of this Act, the Secretary shall submit a progress report to the Congress containing such findings and such recommendations for legislative or administrative action as the Secretary may determine to be appropriate.CommentsClose CommentsPermalink

SEC. 205. MODIFICATION OF PLAN.

(a) In General- If the Secretary, in consultation with the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation and the Secretary of Housing and Urban Development, determines at any time that modification of the comprehensive plan initially approved by the Board pursuant to section 201(b) (as such plan may subsequently have been modified pursuant to this section), or that modification of any component program element, is necessary to maximize the prevention of foreclosures on residential properties or minimize costs to taxpayers of such foreclosure mitigation, the Secretary may modify the plan or program element, but only to the extent such modifications are approved by the Board.CommentsClose CommentsPermalink

SEC. 206. SERVICER SAFE HARBOR.

(a) Safe Harbor-CommentsClose CommentsPermalink





(1) LOAN MODIFICATIONS AND WORKOUT PLANS- Notwithstanding any other provision of law, and notwithstanding any investment contract between a servicer and a securitization vehicle or investor, a servicer that acts consistent with the duty set forth in section 129A(a) of Truth in Lending Act (15 U.S.C. 1639a) shall not be liable for entering into a loan modification or workout plan with respect to any such mortgage that meets all of the criteria set forth in paragraph (2)(B) to--CommentsClose CommentsPermalink





(A) any person, based on that person’s ownership of a residential mortgage loan or any interest in a pool of residential mortgage loans or in securities that distribute payments out of the principal, interest and other payments in loans on the pool;CommentsClose CommentsPermalink





(B) any person who is obligated to make payments determined in reference to any loan or any interest referred to in subparagraph (A); orCommentsClose CommentsPermalink





(C) any person that insures any loan or any interest referred to in subparagraph (A) under any law or regulation of the United States or any law or regulation of any State or political subdivision of any State.CommentsClose CommentsPermalink





(2) ABILITY TO MODIFY MORTGAGES-CommentsClose CommentsPermalink





(A) ABILITY- Notwithstanding any other provision of law, and notwithstanding any investment contract between a servicer and a securitization vehicle or investor, a servicer--CommentsClose CommentsPermalink





(i) shall not be limited in the ability to modify mortgages, the number of mortgages that can be modified, the frequency of loan modifications, or the range of permissible modifications; andCommentsClose CommentsPermalink





(ii) shall not be obligated to repurchase loans from or otherwise make payments to the securitization vehicle on account of a modification, workout, or other loss mitigation plan for a residential mortgage or a class of residential mortgages that constitute a part or all of the mortgages in the securitization vehicle,CommentsClose CommentsPermalink





if any mortgage so modified meets all of the criteria set forth in subparagraph (B).CommentsClose CommentsPermalink





(B) CRITERIA- The criteria under this subparagraph with respect to a mortgage are as follows:CommentsClose CommentsPermalink





(i) Default on the payment of such mortgage has occurred or is reasonably foreseeable.CommentsClose CommentsPermalink





(ii) The property securing such mortgage is occupied by the mortgagor of such mortgage.CommentsClose CommentsPermalink





(iii) The servicer reasonably and in good faith believes that the anticipated recovery on the principal outstanding obligation of the mortgage under the particular modification or workout plan or other loss mitigation action will exceed, on a net present value basis, the anticipated recovery on the principal outstanding obligation of the mortgage to be realized through foreclosure.CommentsClose CommentsPermalink





(3) APPLICABILITY- This subsection shall apply only with respect to modifications, workouts, and other loss mitigation plans initiated before January 1, 2012.CommentsClose CommentsPermalink





(b) Reporting- Each servicer that engages in loan modifications or workout plans subject to the safe harbor in subsection (a) shall report to the Secretary on a regular basis regarding the extent, scope and results of the servicer’s modification activities. The Secretary shall prescribe regulations specifying the form, content, and timing of such reports.CommentsClose CommentsPermalink





(c) Definition of Securitization Vehicles- For purposes of this section, the term ‘securitization vehicle’ means a trust, corporation, partnership, limited liability entity, special purpose entity, or other structure that--CommentsClose CommentsPermalink





(1) is the issuer, or is created by the issuer, of mortgage pass-through certificates, participation certificates, mortgage-backed securities, or other similar securities backed by a pool of assets that includes residential mortgage loans; andCommentsClose CommentsPermalink





(2) holds such mortgages.CommentsClose CommentsPermalink

SEC. 207. FORECLOSURE MORATORIUM RECOMMENDATION.

(a) Foreclosure Deferment- It is the sense of the Congress that any institution which becomes an assisted institution on or after the date of the enactment of this Act should not initiate, or allow to continue, a foreclosure proceeding or a foreclosure sale on any with respect to any principal homeowner mortgage, until the earliest of the following:CommentsClose CommentsPermalink





(1) The date by which the comprehensive plan to prevent and mitigate foreclosures has been developed by the Secretary and the Federal Deposit Insurance Corporation and approved by the Financial Stability Oversight Board under section 201 and become fully operational.CommentsClose CommentsPermalink





(2) The date by which the systematic foreclosure prevention and mortgage modification plan has been established by the Secretary in accordance with section 204 and become fully operational.CommentsClose CommentsPermalink





(3) The end of the 9-month period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) FHA-Regulated Loan Modification Agreements- If an assisted institution to which subsection (a) applies reaches a loan modification agreement with a homeowner under the auspices of the Federal Housing Administration before any plan referred to in paragraph (1) or (2) of such subsection takes effect, subsection (a) shall cease to apply to such institution as of the effective date of the loan modification agreement.CommentsClose CommentsPermalink





(c) Duty of Consumer to Maintain Property- Any homeowner for whose benefit any foreclosure proceeding or sale is barred under subsection (a) from being instituted, continued , or consummated with respect to any homeowner mortgage may not, with respect to any property securing such mortgage, destroy, damage, or impair such property, allow the property to deteriorate, or commit waste on the property.CommentsClose CommentsPermalink





(d) Duty of Consumer to Respond to Reasonable Inquiries- Any homeowner for whose benefit any foreclosure proceeding or sale is barred under subsection (a) from being instituted, continued , or consummated with respect to any homeowner mortgage shall respond to reasonable inquiries from a creditor or servicer during the period during which such foreclosure proceeding or sale is barred.CommentsClose CommentsPermalink

SEC. 208. FORECLOSURE PREVENTION FOR AFFORDABLE HOUSING.

Section 109 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5219) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 109. FORECLOSURE MITIGATION EFFORTS.

‘(a) Residential Mortgage Servicing Standards- To the extent that the Secretary acquires mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing, the Secretary shall implement a plan that seeks to maximize assistance for homeowners and renters and use the authority of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures. In addition, the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures on single-family and multifamily housing.CommentsClose CommentsPermalink





‘(b) Coordination- The Secretary shall coordinate with the Corporation, the Board (with respect to any mortgage or mortgage-backed securities or pool of securities held, owned, or controlled by or on behalf of a Federal reserve bank, as provided in section 110(a)(1)(C)), the Federal Housing Finance Agency, the Secretary of Housing and Urban Development, and other Federal Government entities that hold troubled assets to attempt to identify opportunities for the acquisition of classes of troubled assets that will improve the ability of the Secretary to improve the loan modification and restructuring process and, where permissible, to permit bona fide tenants who are current on their rent to remain in their homes under the terms of the lease. In the case of a mortgage on a residential rental property, including a qualified low-income building under section 42 of the Internal Revenue Code of 1986, the plan required under this section shall include protecting Federal, State, and local rental subsidies and protections, and ensuring any modification takes into account the need for operating funds to maintain decent and safe conditions at the property.CommentsClose CommentsPermalink





‘(c) Consent to Reasonable Loan Modification Requests- Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate and considering net present value to the taxpayer, to reasonable requests by homeowners and owners of multifamily housing, including qualified low-income buildings under section 42 of the Internal Revenue Code of 1986, for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.’.CommentsClose CommentsPermalink

SEC. 209. REPORT BY CONGRESSIONAL OVERSIGHT PANEL.

The Congressional Oversight Panel established by section 125 of the Emergency Economic Stabilization Act of 2008 shall submit a report to the Congress, not later than July 1, 2009, regarding--CommentsClose CommentsPermalink





(1) the actions taken by the Secretary pursuant to this title;CommentsClose CommentsPermalink





(2) the impact and effectiveness of such actions on foreclosures on residential properties; andCommentsClose CommentsPermalink





(3) the effectiveness of such actions from the standpoint of minimizing costs to the taxpayers.CommentsClose CommentsPermalink

SEC. 210. MORTGAGE MODIFICATION DATA COLLECTING AND REPORTING.

(a) Reporting Requirements- Not later than 120 days after the date of the enactment of this Act, and quarterly thereafter, the Comptroller of the Currency, in coordination with the Director of the Office of Thrift Supervision, shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Joint Economic Committee on the volume of mortgage modifications reported to the Office of the Comptroller of the Currency and the Office of Thrift Supervision, under the mortgage metrics program of each such Office, during the previous quarter, including the following:CommentsClose CommentsPermalink





(1) The total number of mortgage modifications resulting in each of the following:CommentsClose CommentsPermalink





(A) Additions of delinquent payments and fees to loan balances.CommentsClose CommentsPermalink





(B) Interest rate reductions and freezes.CommentsClose CommentsPermalink





(C) Term extensions.CommentsClose CommentsPermalink





(D) Reductions of principal.CommentsClose CommentsPermalink





(E) Deferrals of principal.CommentsClose CommentsPermalink





(F) Combinations of modifications described in subparagraph (A), (B), (C), (D), or (E).CommentsClose CommentsPermalink





(2) The total number of mortgage modifications in which the total monthly principal and interest payment resulted in the following:CommentsClose CommentsPermalink





(A) An increase.CommentsClose CommentsPermalink





(B) Remained the same.CommentsClose CommentsPermalink





(C) Decreased less than 10 percent.CommentsClose CommentsPermalink





(D) Decreased 10 percent or more.CommentsClose CommentsPermalink





(b) Data Collection-CommentsClose CommentsPermalink





(1) REQUIRED-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than 60 days after the date of the enactment of this Act, the Comptroller of the Currency and the Director of the Office of Thrift Supervision, shall issue mortgage modification data collection and reporting requirements to institutions covered under the reporting requirement of the mortgage metrics program of the Comptroller or the Director.CommentsClose CommentsPermalink





(B) INCLUSIVENESS OF COLLECTIONS- The requirements under subparagraph (A) shall provide for the collection of all mortgage modification data needed by the Comptroller of the Currency and the Director of the Office of Thrift Supervision to fulfill the reporting requirements under subsection (a).CommentsClose CommentsPermalink





(2) REPORT- The Comptroller of the Currency shall report all requirements established under paragraph (1) to each committee receiving the report required under subsection (a).CommentsClose CommentsPermalink

TITLE III--AUTO INDUSTRY FINANCING AND RESTRUCTURINGCommentsClose CommentsPermalink

SEC. 301. SHORT TITLE.

This title may be cited as the ‘TARP Reform and Accountability Act of 2009’.CommentsClose CommentsPermalink

SEC. 302. DIRECT LOAN PROVISIONS.

(a) In General- The Emergency Economic Stabilization Act of 2008 (division A of Public Law 110-343) is amended by adding at the end the following:CommentsClose CommentsPermalink

‘TITLE IV--AUTO INDUSTRY FINANCING AND RESTRUCTURINGCommentsClose CommentsPermalink

‘SEC. 401. PURPOSES.

‘The purposes of this title are--CommentsClose CommentsPermalink





‘(1) to clarify and confirm the authority and facilities to restore liquidity and stability to domestic vehicle manufacturers in the United States; andCommentsClose CommentsPermalink





‘(2) to ensure that such authority and such facilities are used in a manner that--CommentsClose CommentsPermalink





‘(A) results in a viable and competitive domestic automobile industry that minimizes adverse effects on the environment;CommentsClose CommentsPermalink





‘(B) enhances the ability and the capacity of the domestic automobile industry to pursue the timely and aggressive production of energy-efficient advanced technology vehicles;CommentsClose CommentsPermalink





‘(C) preserves and promotes the jobs of American workers employed directly by the domestic automobile industry and in related industries;CommentsClose CommentsPermalink





‘(D) safeguards the ability of the domestic automobile industry to provide retirement and health care benefits for the industry’s retirees and their dependents; andCommentsClose CommentsPermalink





‘(E) stimulates manufacturing and sales of automobiles produced by automobile manufacturers in the United States.CommentsClose CommentsPermalink

‘SEC. 402. PRESIDENTIAL DESIGNATION.

‘(a) Designation- The President shall designate one or more officers from the Executive Branch having appropriate expertise in such areas as economic stabilization, financial aid to commerce and industry, financial restructuring, energy efficiency, and environmental protection (who shall hereinafter in this title be collectively referred to as the ‘President’s designee’) to carry out the purposes of this title, including the facilitation of restructuring necessary to achieve the long-term financial viability of domestic automobile manufacturers, who shall serve at the pleasure of the President.CommentsClose CommentsPermalink





‘(b) Additional Persons- The President or the President’s designee may also employ, appoint, or contract with additional persons having such expertise as the President or the President’s designee believes will assist the Government in carrying out the purposes of this title.CommentsClose CommentsPermalink





‘(c) Participation by Other Agency Personnel- Other Federal agencies may provide, at the request of the President’s designee, staff on detail from such agencies for purposes of carrying out this title.CommentsClose CommentsPermalink

‘SEC. 403. BRIDGE FINANCING.

‘(a) In General- The President’s designee shall authorize and direct the disbursement of bridge loans or enter into commitments for lines of credit to each automobile manufacturer that submitted a plan to the Congress on December 2, 2008 (hereafter in this title referred to as an ‘eligible automobile manufacturer’), and has submitted a request for such loan or commitment. Nothing in this section shall preclude the President’s designee from authorizing and directing the disbursement of bridge loans or entering into commitments for lines of credit to other entities.CommentsClose CommentsPermalink





‘(b) Amount of Assistance- The President’s designee shall authorize bridge loans or commitments for lines of credit to each eligible automobile manufacturer in an amount that is intended to facilitate the continued operations of the eligible automobile manufacturer and to prevent the failure of the eligible automobile manufacturer, consistent with the plan submitted on December 2, 2008, and subject to available funds.CommentsClose CommentsPermalink

‘SEC. 404. RESTRUCTURING PROGRESS ASSESSMENT.

‘(a) Establishment of Measures for Assessing Progress- Not later than February 1, 2009, the President’s designee shall determine appropriate measures for assessing the progress of each eligible automobile manufacturer toward transforming the plan submitted by such manufacturer to the Congress on December 2, 2008, into the restructuring plan to be submitted under section 405(b).CommentsClose CommentsPermalink





‘(b) Evaluation of Progress on Basis of Restructuring Progress Assessment Measures-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The President’s designee shall evaluate the progress of each eligible automobile manufacturer toward the development of a restructuring plan, on the basis of the restructuring progress assessment measures established under this section for such manufacturer.CommentsClose CommentsPermalink





‘(2) TIMING- Each evaluation required under paragraph (1) for any eligible automobile manufacturer shall be conducted at the end of the 15-day period beginning on the date on which the restructuring progress assessment measures were established by the President’s designee for such eligible automobile manufacturer.CommentsClose CommentsPermalink

‘SEC. 405. SUBMISSION OF PLANS.

‘(a) Negotiated Plans-CommentsClose CommentsPermalink





‘(1) FACILITATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Beginning on the date of any disbursement under the facility, the President’s designee shall seek to facilitate agreement on any restructuring plan to achieve and sustain the long-term viability, international competitiveness, and energy efficiency of an eligible automobile manufacturer, negotiated and agreed to by representatives of interested parties (in this title referred to as a ‘negotiated plan’) with respect to any eligible automobile manufacturer.CommentsClose CommentsPermalink





‘(B) INTERESTED PARTIES- For purposes of this section, the term ‘interested party’ shall be construed broadly so as to include all persons who have a direct financial interest in a particular automobile manufacturer, including--CommentsClose CommentsPermalink





‘(i) employees and retirees of the eligible automobile manufacturer;CommentsClose CommentsPermalink





‘(ii) trade unions;CommentsClose CommentsPermalink





‘(iii) creditors;CommentsClose CommentsPermalink





‘(iv) suppliers;CommentsClose CommentsPermalink





‘(v) automobile dealers; andCommentsClose CommentsPermalink





‘(vi) shareholders.CommentsClose CommentsPermalink





‘(2) ACTIONS OF THE PRESIDENT’S DESIGNEE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For the purpose of achieving a negotiated plan, the President’s designee may convene, chair, and conduct formal and informal meetings, discussions, and consultations, as appropriate, with interested parties of an eligible automobile manufacturer.CommentsClose CommentsPermalink





‘(B) CLARIFICATION- The Federal Advisory Committee Act shall not apply with respect to any of the activities conducted or taken by the President’s designee pursuant to this title.CommentsClose CommentsPermalink





‘(b) Restructuring Plan- Not later than March 31, 2009, each eligible automobile manufacturer shall submit to the President’s designee a restructuring plan to achieve and sustain the long-term viability, international competitiveness, and energy efficiency of the eligible automobile manufacturer (in this title referred to as the ‘restructuring plan’) in accordance with this section. The President’s designee shall approve the restructuring plan if the President’s designee determines that the plan will result in--CommentsClose CommentsPermalink





‘(1) the repayment of all Government-provided financing, consistent with the terms specified in section 408, or otherwise agreed to;CommentsClose CommentsPermalink





‘(2) the ability--CommentsClose CommentsPermalink





‘(A) to comply with applicable fuel efficiency and emissions requirements;CommentsClose CommentsPermalink





‘(B) to commence domestic manufacturing of advanced technology vehicles, as described in section 136 of the Energy Independence and Security Act of 2007 (Public Law 110-140; 42 U.S.C. 17013); andCommentsClose CommentsPermalink





‘(C) to produce new and existing products and capacity;CommentsClose CommentsPermalink





‘(3) the achievement of a positive net present value, using reasonable assumptions and taking into account all existing and projected future costs, including repayment of any financial assistance provided pursuant to this title;CommentsClose CommentsPermalink





‘(4) the ability to rationalize costs, capitalization, and capacity with respect to the manufacturing workforce, suppliers, and dealerships of the eligible automobile manufacturer;CommentsClose CommentsPermalink





‘(5) proposals to restructure existing debt, including, where appropriate, the conversion of debt to equity, to improve the ability of the eligible automobile manufacturer to raise private capital; andCommentsClose CommentsPermalink





‘(6) a product mix and cost structure that is competitive in the marketplace.CommentsClose CommentsPermalink





‘(c) Extension of Negotiations and Plan Deadline- Notwithstanding the time limitations in subsection (b), the President’s designee, upon making a determination that the interested parties are negotiating in good faith, are making significant progress, and that an additional period of time would likely facilitate agreement on a negotiated plan, and upon notification of the Congress, may extend for not longer than 30 additional days the negotiation period under subsection (b).CommentsClose CommentsPermalink

‘SEC. 406. FINANCING FOR RESTRUCTURING.

‘Upon approval by the President’s designee of a restructuring plan, the President’s designee may provide financial assistance to an eligible automobile manufacturer to implement the restructuring plan.CommentsClose CommentsPermalink

‘SEC. 407. DISAPPROVAL AND CALL OF LOAN.

‘If the President’s designee has not approved the restructuring plan at the expiration of the period provided in section 405 for submission and approval of the restructuring plan, the President’s designee shall call the loan or cancel the commitment within 30 days, unless a restructuring plan is approved within that period.CommentsClose CommentsPermalink

‘SEC. 408. TERMS AND CONDITIONS.

‘(a) Duration- The duration of any loan made under this title shall be 7 years, or such period as the President’s designee may determine with respect to such loan.CommentsClose CommentsPermalink





‘(b) No Prepayment Penalty- A loan made under this title shall be prepayable without penalty at any time.CommentsClose CommentsPermalink





‘(c) Information Access- As a condition for the receipt of any financial assistance made under this title, an eligible automobile manufacturer shall agree--CommentsClose CommentsPermalink





‘(1) to allow the President’s designee to examine any books, papers, records, or other data of the eligible automobile manufacturer, and those of any subsidiary, affiliate, or entity holding an ownership interest of 50 percent or more of such automobile manufacturer, that may be relevant to the financial assistance, including compliance with the terms of a loan or any conditions imposed under this title; andCommentsClose CommentsPermalink





‘(2) to provide in a timely manner any information requested by the President’s designee, including requiring any officer or employee of the eligible automobile manufacturer, any subsidiary, affiliate, or entity referred to in paragraph (1) with respect to such manufacturer, or any person having possession, custody, or care of the reports and records required under paragraph (1), to appear before the President’s designee at a time and place requested and to provide such books, papers, records, or other data, as requested, as may be relevant or material.CommentsClose CommentsPermalink





‘(d) Oversight of Transactions and Financial Condition-CommentsClose CommentsPermalink





‘(1) DUTY TO INFORM- During the period in which any loan extended under this title remains outstanding, the eligible automobile manufacturer which received such loan shall promptly inform the President’s designee of--CommentsClose CommentsPermalink





‘(A) any asset sale, investment, contract, commitment, or other transaction proposed to be entered into by such eligible automobile manufacturer that has a value in excess of $100,000,000; andCommentsClose CommentsPermalink





‘(B) any other material change in the financial condition of such eligible automobile manufacturer.CommentsClose CommentsPermalink





‘(2) AUTHORITY OF THE PRESIDENT’S DESIGNEE- During the period in which any loan extended under this title remains outstanding, the President’s designee may--CommentsClose CommentsPermalink





‘(A) review any asset sale, investment, contract, commitment, or other transaction described in paragraph (1); andCommentsClose CommentsPermalink





‘(B) prohibit the eligible automobile manufacturer which received the loan from consummating any such proposed sale, investment, contract, commitment, or other transaction, if the President’s designee determines that consummation of such transaction would be inconsistent with or detrimental to the long-term viability of the eligible automobile manufacturer.CommentsClose CommentsPermalink





‘(3) PROCEDURES- The President’s designee may establish procedures for conducting any review under this subsection.CommentsClose CommentsPermalink





‘(e) Consequences for Failure To Comply- The terms of any financial assistance made under this title shall provide that if--CommentsClose CommentsPermalink





‘(1) an evaluation by the President’s designee under section 404(b) demonstrates that the eligible automobile manufacturer which received the financial assistance has failed to make adequate progress towards meeting the restructuring progress assessment measures established by the President’s designee under section 404(a) with respect to such recipient;CommentsClose CommentsPermalink





‘(2) after March 31, 2009, the eligible automobile manufacturer which received the financial assistance fails to submit an acceptable restructuring plan under section 405(b), or fails to comply with any conditions or requirement applicable under this title or applicable fuel efficiency and emissions requirements; orCommentsClose CommentsPermalink





‘(3) after a restructuring plan of an eligible automobile manufacturer has been approved by the President’s designee, the auto manufacturer fails to make adequate progress in the implementation of the plan, as determined by the President’s designee,CommentsClose CommentsPermalink





the repayment of any loan may be accelerated to such earlier date or dates as the President’s designee may determine and any other financial assistance may be cancelled by the President’s designee.CommentsClose CommentsPermalink

‘SEC. 409. TAXPAYER PROTECTION.

‘(a) Warrants-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The President’s designee may not provide any loan under this title, unless the President’s designee, or such department or agency as is designated for such purpose by the President, receives from the eligible automobile manufacturer--CommentsClose CommentsPermalink





‘(A) in the case of an eligible automobile manufacturer, the securities of which are traded on a national securities exchange, a warrant giving the right to the President’s designee to receive nonvoting common stock or preferred stock in such eligible automobile manufacturer, or voting stock, with respect to which the President’s designee agrees not to exercise voting power, whichever the President’s designee determines appropriate; orCommentsClose CommentsPermalink





‘(B) in the case of an eligible automobile manufacturer other than one described in subparagraph (A), a warrant for common or preferred stock, or an instrument that is the economic equivalent (as determined by the President’s designee) of such a warrant in the holding company of the eligible automobile manufacturer, or any company that controls a majority stake in the eligible automobile manufacturer, whichever the President’s designee determines appropriate.CommentsClose CommentsPermalink





‘(2) AMOUNT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The warrants or instruments described in paragraph (1) shall have a value equal to 20 percent of the aggregate amount of all loans provided to the eligible automobile manufacturer under this title. Such warrants or instruments shall entitle the Government to purchase--CommentsClose CommentsPermalink





‘(i) nonvoting common stock, up to a maximum amount of 20 percent of the issued and outstanding common stock of--CommentsClose CommentsPermalink





‘(I) the eligible automobile manufacturer; orCommentsClose CommentsPermalink





‘(II) in the case of an eligible automobile manufacturer, the securities of which are not traded on a national securities exchange, a holding company or company that controls a majority of the stock thereof (in this section referred to as the ‘warrant common’); andCommentsClose CommentsPermalink





‘(ii) preferred stock having an aggregate liquidation preference equal to 20 percent of such aggregate loan amount, less the value of common stock available for purchase under the warrant common (in this section referred to as the ‘warrant preferred’).CommentsClose CommentsPermalink





‘(B) COMMON STOCK WARRANT PRICE- The exercise price on a warrant or instrument described in paragraph (1) shall be--CommentsClose CommentsPermalink





‘(i) the 15-day trailing average, as of the day before the date on which any commitment to provide a loan was entered into, of the market price of the common stock of the eligible automobile manufacturer which received any loan under this title; orCommentsClose CommentsPermalink





‘(ii) in the case of an eligible automobile manufacturer, the securities of which are not traded on a national securities exchange, the economic equivalent of the market price described in clause (i), as determined by the President’s designee.CommentsClose CommentsPermalink





‘(C) TERMS OF PREFERRED STOCK WARRANT-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The initial exercise price for the preferred stock warrant shall be $0.01 per share or such greater amount as the corporate charter may require as the par value per share of the warrant preferred. The Government shall have the right to immediately exercise the warrants.CommentsClose CommentsPermalink





‘(ii) REDEMPTION- The warrant preferred may be redeemed at any time after exercise of the preferred stock warrant at 100 percent of its issue price, plus any accrued and unpaid dividends.CommentsClose CommentsPermalink





‘(iii) OTHER TERMS AND CONDITIONS- Other terms and conditions of the warrant preferred shall be determined by the President’s designee to protect the interests of taxpayers.CommentsClose CommentsPermalink





‘(3) APPLICATION OF OTHER PROVISIONS OF LAW- Except as otherwise provided in this section, the requirements for the purchase of warrants under section 113(d)(2) of the Emergency Economic Stabilization Act of 2008 (division A of Public Law 110-343) shall apply to any warrant or instrument described in paragraph (1), including the antidilution protection provisions therein.CommentsClose CommentsPermalink





‘(b) Executive Compensation and Corporate Governance-CommentsClose CommentsPermalink





‘(1) IN GENERAL- During the period in which any financial assistance under this title remains outstanding, the eligible automobile manufacturer which received such assistance shall be subject to--CommentsClose CommentsPermalink





‘(A) the standards established by the President’s designee under paragraph (2); andCommentsClose CommentsPermalink





‘(B) the provisions of section 162(m)(5) of the Internal Revenue Code of 1986, as applicable.CommentsClose CommentsPermalink





‘(2) STANDARDS REQUIRED- The President’s designee shall require any eligible automobile manufacturer which received any financial assistance under this title to meet appropriate standards for executive compensation and corporate governance.CommentsClose CommentsPermalink





‘(3) SPECIFIC REQUIREMENTS- The standards established under paragraph (2) shall include--CommentsClose CommentsPermalink





‘(A) limits on compensation that exclude incentives for senior executive officers of an eligible automobile manufacturer which received assistance under this title to take unnecessary and excessive risks that threaten the value of such manufacturer during the period that the loan is outstanding;CommentsClose CommentsPermalink





‘(B) a provision for the recovery by such automobile manufacturer of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains, or other criteria that are later found to be materially inaccurate;CommentsClose CommentsPermalink





‘(C) a prohibition on such automobile manufacturer making any golden parachute payment to a senior executive officer during the period that the loan is outstanding;CommentsClose CommentsPermalink





‘(D) a prohibition on such automobile manufacturer paying or accruing any bonus or incentive compensation during the period that the loan is outstanding to the 25 most highly-compensated employees; andCommentsClose CommentsPermalink





‘(E) a prohibition on any compensation plan that would encourage manipulation of such automobile manufacturer’s reported earnings to enhance the compensation of any of its employees.CommentsClose CommentsPermalink





‘(4) DIVESTITURE- During the period in which any financial assistance provided under this title to any eligible automobile manufacturer is outstanding, the eligible automobile manufacturer may not own or lease any private passenger aircraft, or have any interest in such aircraft, except that such eligible automobile manufacturer shall not be treated as being in violation of this provision with respect to any aircraft or interest in any aircraft that was owned or held by the manufacturer immediately before receiving such assistance, as long as the recipient demonstrates to the satisfaction of the President’s designee that all reasonable steps are being taken to sell or divest such aircraft or interest.CommentsClose CommentsPermalink





‘(5) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:CommentsClose CommentsPermalink





‘(A) SENIOR EXECUTIVE OFFICER- The term ‘senior executive officer’ means an individual who is one of the top five most highly paid executives of a public company, whose compensation is required to be disclosed pursuant to the Securities Exchange Act of 1934, and any regulations issued thereunder, and non-public company counterparts.CommentsClose CommentsPermalink





‘(B) GOLDEN PARACHUTE PAYMENT- The term ‘golden parachute payment’ means any payment to a senior executive officer for departure from a company for any reason, except for payments for services performed or benefits accrued.CommentsClose CommentsPermalink





‘(c) Prohibition on Payment of Dividends- Except with respect to obligations owed pursuant to law to any nonaffiliated party or any existing contract with any nonaffiliated party in effect as of December 2, 2008, no dividends or distributions of any kind, or the economic equivalent thereof (as determined by the President’s designee), may be paid by any eligible automobile manufacturer which receives financial assistance under this title, or any holding company or company that controls a majority stake in the eligible automobile manufacturer, while such financial assistance is outstanding.CommentsClose CommentsPermalink





‘(d) Other Interests Subordinated-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of an eligible automobile manufacturer which received a loan under this title, to the extent permitted by the terms of any existing vested legal rights and the Constitution, any other obligation of such eligible automobile manufacturer shall be subordinate to such loan, and such loan shall be senior and prior to all obligations, liabilities, and debts of the eligible automobile manufacturer, and such eligible automobile manufacturer shall provide to the Government, all available security and collateral against which the loans under this title shall be secured.CommentsClose CommentsPermalink





‘(2) APPLICABILITY IN CERTAIN CASES- In the case of an eligible automobile manufacturer referred to in paragraph (1), the securities of which are not traded on a national securities exchange, a loan under this title to the eligible automobile manufacturer shall--CommentsClose CommentsPermalink





‘(A) be treated as a loan to any holding company of, or company that controls a majority stake in, the eligible automobile manufacturer; andCommentsClose CommentsPermalink





‘(B) be senior and prior to all obligations, liabilities, and debts of any such holding company or company that controls a majority stake in the eligible automobile manufacturer.CommentsClose CommentsPermalink





‘(e) Additional Taxpayer Protections-CommentsClose CommentsPermalink





‘(1) DISCHARGE- A discharge under title 11, United States Code, shall not discharge an eligible automobile manufacturer, or any successor in interest thereto, from any debt for financial assistance received pursuant to this title.CommentsClose CommentsPermalink





‘(2) EXEMPTION- Any financial assistance provided to an eligible automobile manufacturer under this title shall be exempt from the automatic stay established by section 362 of title 11, United States Code.CommentsClose CommentsPermalink





‘(3) INTERESTED PARTIES- Notwithstanding any provision of title 11, United States Code, any interest in property or equity rights of the United States arising from financial assistance provided to an eligible automobile manufacturer under this title shall remain unaffected by any plan of reorganization, except as the United States may agree to in writing.CommentsClose CommentsPermalink

‘SEC. 410. OVERSIGHT AND AUDITS.

‘(a) Comptroller General Oversight-CommentsClose CommentsPermalink





‘(1) SCOPE OF OVERSIGHT- The Comptroller General of the United States shall conduct ongoing oversight of the activities and performance of the President’s designee.CommentsClose CommentsPermalink





‘(2) CONDUCT AND ADMINISTRATION OF OVERSIGHT-CommentsClose CommentsPermalink





‘(A) GAO PRESENCE- The President’s designee shall provide to the Comptroller General appropriate space and facilities for purposes of this subsection.CommentsClose CommentsPermalink





‘(B) ACCESS TO RECORDS- To the extent otherwise consistent with law, the Comptroller General shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things, or property belonging to or in use by the President’s designee, at such reasonable time as the Comptroller General may request. The Comptroller General shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General deems appropriate.CommentsClose CommentsPermalink





‘(3) REPORTING- The Comptroller General shall submit reports of findings under this section to Congress, regularly and not less frequently than once every 60 days. The Comptroller General may also submit special reports under this subsection, as warranted by the findings of its oversight activities.CommentsClose CommentsPermalink





‘(b) Special Inspector General- It shall be the duty of the Special Inspector General established under section 121 of Public Law 110-343 to conduct, supervise, and coordinate audits and investigations of the President’s designee in addition to the duties of the Special Inspector General under such section and for such purposes. The Special Inspector General shall also have the duties, responsibilities, and authorities of inspectors general under the Inspector General Act of 1978, including section 6 of such Act. In the event that the Office of the Special Inspector General is terminated, the Inspector General of the Department of the Treasury shall assume the responsibilities of the Special Inspector General under this subsection.CommentsClose CommentsPermalink





‘(c) Access to Records of Borrowers by GAO- Notwithstanding any other provision of law, during the period in which any financial assistance provided under this title is outstanding, the Comptroller General of the United States shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things, or property belonging to or in use by the eligible automobile manufacturer, and any subsidiary, affiliate, or entity holding an ownership interest of 50 percent or more of such eligible automobile manufacturer (collectively referred to in this section as ‘related entities’), and to any officer, director, or other agent or representative of the eligible automobile manufacturer and its related entities, at such reasonable times as the Comptroller General may request. The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General deems appropriate.CommentsClose CommentsPermalink

‘SEC. 411. REPORTING AND MONITORING.

‘(a) Reporting on Consummation of Loans- The President’s designee shall submit a report to the Congress on each bridge loan made under this title not later than 5 days after the date of the consummation of such loan.CommentsClose CommentsPermalink





‘(b) Reporting on Restructuring Progress Assessment Measures- The President’s designee shall submit a report to the Congress on the restructuring progress assessment measures established for each manufacturer under section 404(a) not later than 10 days after establishing the restructuring progress assessment measures.CommentsClose CommentsPermalink





‘(c) Reporting on Evaluations- The President’s designee shall submit a report to the Congress containing the detailed findings and conclusions of the President’s designee in connection with the evaluation of an eligible automobile manufacturer under section 404(b).CommentsClose CommentsPermalink





‘(d) Reporting on Consequences for Failure to Comply- The President’s designee shall submit a report to the Congress on the exercise of a right under section 408(e) to accelerate indebtedness of an eligible automobile manufacturer under this title or to cancel any other financial assistance provided to such eligible automobile manufacturer, and the facts and circumstances on which such exercise was based, before the end of the 10-day period beginning on the date of the exercise of the right.CommentsClose CommentsPermalink





‘(e) Monitoring- The President’s designee shall monitor the use of loan funds received by eligible automobile manufacturers under this title, and shall report to Congress once every 90 days (beginning 30 days after the date of enactment of this title) on the progress of the ability of the recipient of the loan to continue operations and proceed with restructuring processes that restore the financial viability of the recipient and promote environmental sustainability.CommentsClose CommentsPermalink

‘SEC. 412. REPORT TO CONGRESS ON LACK OF PROGRESS TOWARD ACHIEVING AN ACCEPTABLE NEGOTIATED PLAN.

‘(a) Authority To Facilitate a Negotiated Plan- At any such time as the President’s designee determines that action is necessary to avoid disruption to the economy or to achieve a negotiated plan, the President’s designee shall submit to Congress a report outlining any additional powers and authorities necessary to facilitate the completion of a negotiated plan required under section 405.CommentsClose CommentsPermalink





‘(b) Impediments to Achieving Negotiated Plans- If the President’s designee determines, on the basis of an evaluation by the President’s designee of the progress being made by an eligible automobile manufacturer toward meeting the restructuring progress assessment measures established under section 404, that adequate progress is not being made toward achieving a negotiated plan by March 31, 2009, the President’s designee shall submit to Congress a report detailing the impediments to achievement of a negotiated plan by the eligible automobile manufacturer.CommentsClose CommentsPermalink

‘SEC. 413. SUBMISSION OF PLAN TO CONGRESS BY THE PRESIDENT’S DESIGNEE.

‘Upon submission of a report pursuant to section 412(b), the President’s designee shall provide to Congress a plan that represents the judgement of the President’s designee as to the steps necessary to achieve the long-term viability, international competitiveness, and energy efficiency of the eligible automobile manufacturer, consistent with the factors set forth in section 405(b), including through a negotiated plan, a plan to be implemented by legislation, or a reorganization pursuant to chapter 11 of title 11, United States Code.CommentsClose CommentsPermalink

‘SEC. 414. COORDINATION WITH OTHER LAWS.

‘(a) In General- No provision of this title may be construed as altering, affecting, or superseding--CommentsClose CommentsPermalink





‘(1) the provisions of section 129 of division A of the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, relating to funding for the manufacture of advanced technology vehicles;CommentsClose CommentsPermalink





‘(2) any existing authority to provide financial assistance or liquidity for purposes of the day-to-day operations in the ordinary course of business or research and development.CommentsClose CommentsPermalink





‘(b) Antitrust Provisions-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Subject to paragraphs (2) and (4), the antitrust laws shall not apply to meetings, discussions, or consultations among an eligible automobile manufacturer and its interested parties for the purpose of achieving a negotiated plan pursuant to section 405(a)(2).CommentsClose CommentsPermalink





‘(2) EXCLUSIONS- Paragraph (1) shall not apply with respect to price-fixing, allocating a market between competitors, monopolizing (or attempting to monopolize) a market, or boycotting.CommentsClose CommentsPermalink





‘(3) ANTITRUST AGENCY PARTICIPATION- The Attorney General of the United States and the Federal Trade Commission shall, to the extent practicable, receive reasonable advance notice of, and be permitted to participate in, each meeting, discussion, or consultation described in paragraph (1).CommentsClose CommentsPermalink





‘(4) PRESERVATION OF ENFORCEMENT AUTHORITY- Paragraph (1) shall not be construed to preclude the Attorney General of the United States or the Federal Trade Commission from bringing an enforcement action under the antitrust laws for injunctive relief.CommentsClose CommentsPermalink





‘(5) SUNSET- Paragraph (1) shall apply only with respect to meetings, discussions, or consultations that occur within the 3-year period beginning on the date of the enactment of this title.CommentsClose CommentsPermalink





‘(6) DEFINITION- For purposes of this subsection, the term ‘antitrust laws’--CommentsClose CommentsPermalink





‘(A) has the same meaning as in subsection (a) of the first section of the Clayton Act (15 U.S.C. 12(a)), except that such term includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45), to the extent that such section 5 applies to unfair methods of competition; andCommentsClose CommentsPermalink





‘(B) includes any provision of State law that is similar to the laws referred to in subparagraph (A).CommentsClose CommentsPermalink

‘SEC. 415. TREATMENT OF RESTRUCTURING FOR PURPOSES OF APPLYING LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES.

‘Section 382 of the Internal Revenue Code of 1986 shall not apply in the case of an ownership change resulting from this title or pursuant to a restructuring plan approved under this title.CommentsClose CommentsPermalink

‘SEC. 416. CLARIFICATION OF AVAILABILITY OF FINANCIAL SUPPORT FOR FINANCING ARMS.

‘The authority of the President’s designee to provide assistance to any eligible automobile manufacturer includes the authority to provide support to finance company affiliates of the manufacturer to ensure that such affiliates have the necessary resources to continue to provide needed credit, including through dealer and other financing of consumer and business auto and other vehicle loans and dealer floor plan loans.’.CommentsClose CommentsPermalink

TITLE IV--CLARIFICATION OF AUTHORITYCommentsClose CommentsPermalink

SEC. 401. CONSUMER LOANS.

Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 137. CLARIFICATION OF AUTHORITY REGARDING CONSUMER LOANS.

‘The authority of the Secretary to take any action under this title includes the authority to establish or support facilities to support the availability of consumer loans, including loans for autos and other vehicles and student loans, including through purchase of asset-backed securities, directly or through the Board or any Federal reserve bank. In determining which classes of consumer loans to support, the Secretary may consider the applicable regulatory structure and level of consumer protection afforded to such loans.’.CommentsClose CommentsPermalink

SEC. 402. MUNICIPAL SECURITIES.

Section 101 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211) is amended by inserting after subsection (g) (as added by section 110 of this Act) the following new subsection:CommentsClose CommentsPermalink





‘(h) Clarification of Authority Regarding Municipal Securities-CommentsClose CommentsPermalink





‘(1) CLARIFICATION- The authority of the Secretary to take any action under this title includes the authority to provide support to State and local governments, and other issuers of municipal securities, which are having difficulty accessing appropriate financing in the capital markets. Such support includes the direct purchase of municipal securities and providing credit enhancement in connection with municipal securities whose purchase is financed under any facility provided by the Board or any Federal reserve bank.CommentsClose CommentsPermalink





‘(2) DEFINITION- For purposes of this subsection, the term ‘municipal security’ has the meaning given the term ‘State or local bond’ in section 103(c) of the Internal Revenue Code of 1986 (26 U.S.C. 103(c)) and the regulations issued thereunder or any other entity eligible to issue bonds the interest on which is excludable from gross income for Federal income tax purposes.’.CommentsClose CommentsPermalink

SEC. 403. COMMERCIAL REAL ESTATE LOANS.

Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by adding after section 137 (as added by section 401 of this title) the following new section:CommentsClose CommentsPermalink

‘SEC. 138. CLARIFICATION OF AUTHORITY REGARDING COMMERCIAL REAL ESTATE LOANS.

‘The authority of the Secretary to take any action under this title includes the authority to establish or support facilities to support the availability of commercial real estate loans, including loans for multifamily housing, including through purchase of asset-backed securities, directly or through the Board of Governors of the Federal Reserve System or any Federal reserve bank.’.CommentsClose CommentsPermalink

SEC. 404. SMALL BUSINESS LOANS.

Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by adding after section 138 (as added by section 403 of this title) the following new section:CommentsClose CommentsPermalink

‘SEC. 139. CLARIFICATION OF AUTHORITY REGARDING SMALL BUSINESS LOANS.

‘The authority of the Secretary to take any action under this title includes the authority to establish or support facilities to support the availability of small business loans, including farm loans, loans to minority and disadvantaged businesses, debtor-in-possession financing, dealer floor plan financing, and any other small business loans, including through purchase of asset-backed securities, directly or through the Board or any Federal reserve bank.’.CommentsClose CommentsPermalink

SEC. 405. COMMERCIAL LOANS.

Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by adding after section 139 (as added by section 404 of this title) the following new section:CommentsClose CommentsPermalink

‘SEC. 140. CLARIFICATION OF AUTHORITY REGARDING COMMERCIAL LOANS.

‘The authority of the Secretary to take any action under this title includes the authority to establish or support facilities to support the availability of commercial loans, including through purchase of asset-backed securities, directly or through the Board or any Federal reserve bank.’.CommentsClose CommentsPermalink

SEC. 406. AUTOMOBILE FLEET PURCHASE LOANS.

Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by adding after section 140 (as added by section 405 of this title) the following new section:CommentsClose CommentsPermalink

‘SEC. 141. CLARIFICATION OF AUTHORITY REGARDING AUTOMOBILE FLEET PURCHASE LOANS.

‘The authority of the Secretary to take any action under this title includes the authority to establish or support facilities to support the availability of automobile fleet purchase loans, including loans for the automobile rental industry and other fleet purchasers, including through purchase of asset-backed securities, directly or through the Board or any Federal reserve bank.’.CommentsClose CommentsPermalink

SEC. 407. CERTIFICATION.

Subsection (a) of section 105 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5215(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in paragraph (3), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) the use of the authority for the purposes specified in the amendments made by title IV of the TARP Reform and Accountability Act of 2009.’.CommentsClose CommentsPermalink

TITLE V--HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTSCommentsClose CommentsPermalink

SEC. 501. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

Section 257 of the National Housing Act (12 U.S.C. 1715z-23) is amended--CommentsClose CommentsPermalink





(1) in subsection (e)--CommentsClose CommentsPermalink





(A) by striking paragraph (1);CommentsClose CommentsPermalink





(B) in paragraph (2)(B), by striking ‘90 percent’ and inserting ‘93 percent’;CommentsClose CommentsPermalink





(C) by striking paragraph (7);CommentsClose CommentsPermalink





(D) in paragraph (9), by striking ‘by procuring’ and all that follows through ‘by any other method’; andCommentsClose CommentsPermalink





(E) by redesignating paragraphs (2), (3), (4), (5), (6), (8), (9), (10), and (11) as paragraphs (1), (2), (3), (4), (5), (6), (7), (8), and (9), respectively;CommentsClose CommentsPermalink





(2) in subsection (h)(2), by striking ‘, or in any case in which a mortgagor fails to make the first payment on a refinanced eligible mortgage’;CommentsClose CommentsPermalink





(3) by striking subsection (i) and inserting the following new subsection:CommentsClose CommentsPermalink





‘(i) Annual Premiums-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For each refinanced eligible mortgage insured under this section, the Secretary shall establish and collect an annual premium in an amount equal to not less than 0.55 percent of the amount of the remaining insured principal balance of the mortgage and not more than 0.75 percent of such remaining insured principal balance, as determined according to a schedule established by the Board that assigns such annual premiums based upon the credit risk of the mortgage.CommentsClose CommentsPermalink





‘(2) REDUCTION OR TERMINATION DURING MORTGAGE TERM- Notwithstanding paragraph (1), the Secretary may provide that the annual premiums charged for refinanced eligible mortgages insured under this section are reduced over the term of the mortgage or that the collection of such premiums is discontinued at some time during the term of the mortgage, in a manner that is consistent with policies for such reduction or discontinuation of annual premiums charged for mortgages in accordance with section 203(c).’;CommentsClose CommentsPermalink





(4) in subsection (k)--CommentsClose CommentsPermalink





(A) by striking the subsection heading and inserting ‘Exit Fee’;CommentsClose CommentsPermalink





(B) in paragraph (1), in the matter preceding subparagraph (A), by striking ‘such sale or refinancing’ and inserting ‘the mortgage being insured under this section’; andCommentsClose CommentsPermalink





(C) by striking paragraph (2);CommentsClose CommentsPermalink





(5) in subsection (s)(3)(A)(ii), by striking ‘subsection (e)(1)(B) and such other’ and inserting ‘such’;CommentsClose CommentsPermalink





(6) in subsection (v), by inserting after the period at the end the following: ‘The Board shall conform documents, forms, and procedures for mortgages insured under this section to those in place for mortgages insured under section 203(b) to the maximum extent possible consistent with the requirements of this section.’;CommentsClose CommentsPermalink





(7) in subsection (w)(1)(C), by striking ‘(e)(4)(A)’ and inserting ‘(e)(3)(A)’; andCommentsClose CommentsPermalink





(8) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(x) Payment to Existing Loan Servicer- The Board may establish a payment to the servicer of the existing senior mortgage for every loan insured under the HOPE for Homeowners Program.’.CommentsClose CommentsPermalink

TITLE VI--HOME BUYER STIMULUSCommentsClose CommentsPermalink

SEC. 601. HOME BUYER STIMULUS PROGRAM.

(a) In General- The Secretary of the Treasury (in this title referred to as the ‘Secretary’) shall establish and implement, within 60 days of the date of the enactment of the TARP Reform and Accountability Act of 2009, a program to stimulate demand for home purchases and reduce unsold inventories of residential properties, by providing mechanisms to ensure the availability of affordable, below-market interest rates on mortgages made for the purchase, by qualified home buyers, of 1- to 4-family residential properties.CommentsClose CommentsPermalink





(b) Implementation- The Secretary shall execute the program under this section using the authority to purchase obligations and other securities issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Home Loan Banks made available by the Housing and Economic Recovery Act of 2008 and such other authority as the Secretary may have (other than that provided by title I of the Emergency Economic Stabilization Act of 2008) to make affordable, below-market interest rates available directly through portfolio lenders.CommentsClose CommentsPermalink





(c) Availability of Affordable Loans Under HOPE for Homeowners Program- The Secretary, in consultation with the Secretary of Housing and Urban Development, shall ensure that the affordable, below-market interest rates made available through the program under this section are made available in connection with mortgages made for refinancing eligible mortgages, as such term is defined in section 257 of the National Housing Act (12 U.S.C. 1715z-23), to be insured under the HOPE for Homeowners Program under such section.CommentsClose CommentsPermalink





(d) Targeting for Housing Disaster Areas-CommentsClose CommentsPermalink





(1) IN GENERAL- In carrying out the program under this section, the Secretary shall take into consideration impact of activities under the program on housing disaster areas.CommentsClose CommentsPermalink





(2) REPORT- Not later than 60 days after the Secretary first has authority to purchase troubled assets pursuant to section 115(a)(3) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)), the Secretary shall--CommentsClose CommentsPermalink





(A) evaluate the impact of existing Federal foreclosure prevention activities on housing disaster areas;CommentsClose CommentsPermalink





(B) make a determination of whether the foreclosure rates and anticipated default rates in such areas have been adequately reduced; andCommentsClose CommentsPermalink





(C) submit a report to the Congress that describes the impact of such activities and the determination of the Secretary under subparagraph (B).CommentsClose CommentsPermalink





(3) ALTERNATIVE PROPOSALS- If the Secretary determines that the foreclosure rates and anticipated default rates in housing disaster areas have not been adequately reduced, the Secretary shall--CommentsClose CommentsPermalink





(A) consider carrying out alternative proposals, including a proposal under which the Federal Government makes available affordable mortgages, including refinancings, through subsidized financing or mortgage purchases; andCommentsClose CommentsPermalink





(B) establish and carry out alternative programs as the Secretary considers necessary to ensure that foreclosure prevention efforts are most effective in the areas of greatest need, including housing disaster areas.CommentsClose CommentsPermalink





(4) HOUSING DISASTER AREAS- For purposes of this section, the term ‘housing disaster area’ means a geographic area having both--CommentsClose CommentsPermalink





(A) a high foreclosure rate during the 12 months preceding the date of the enactment of this Act, as measured by percentages of homes in or having gone through foreclosure during such period and compared to other areas; andCommentsClose CommentsPermalink





(B) a substantial decline in home prices during the 12 months preceding the date of the enactment of this Act, as measured by the Office of Federal Housing Enterprise and Oversight and compared to other areas.CommentsClose CommentsPermalink

TITLE VII--FDIC PROVISIONSCommentsClose CommentsPermalink

SEC. 701. PERMANENT INCREASE IN DEPOSIT INSURANCE.

(a) Amendments to Federal Deposit Insurance Act- Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)(E), by striking ‘$100,000’ and inserting ‘$250,000’;CommentsClose CommentsPermalink





(2) in paragraph (1)(F)(i), by striking ‘2010’ and inserting ‘2015’;CommentsClose CommentsPermalink





(3) in subclause (I) of paragraph (1)(F)(i), by striking ‘$100,000’ and inserting ‘$250,000’;CommentsClose CommentsPermalink





(4) in subclause (II) of paragraph (1)(F)(i), by striking ‘the calendar year preceding the date this subparagraph takes effect under the Federal Deposit Insurance Reform Act of 2005’ and inserting ‘calendar year 2008’; andCommentsClose CommentsPermalink





(5) in paragraph (3)(A)(iii), by striking ‘, except that $250,000 shall be substituted for $100,000 wherever such term appears in such paragraph’.CommentsClose CommentsPermalink





(b) Repeal of EESA Provision- Section 136 of the Emergency Economic Stabilization Act (Public Law 110-343; 122 Stat. 3765) is hereby repealed.CommentsClose CommentsPermalink





(c) Amendment to Federal Credit Union Act- Section 207(k) of the Federal Credit Union Act (12 U.S.C. 1787(k) is amended--CommentsClose CommentsPermalink





(1) in paragraph (3)--CommentsClose CommentsPermalink





(A) by striking the opening quotation mark before ‘$250,000’;CommentsClose CommentsPermalink





(B) by striking ‘, except that $250,000 shall be substituted for $100,000 wherever such term appears in such section’; andCommentsClose CommentsPermalink





(C) by striking the closing quotation mark after the closing parenthesis; andCommentsClose CommentsPermalink





(2) in paragraph (5), by striking ‘$100,000’ and inserting ‘$250,000’;CommentsClose CommentsPermalink

SEC. 702. EXTENSION OF RESTORATION PLAN PERIOD.

Section 7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by striking ‘5-year period’ and inserting ‘8-year period’.CommentsClose CommentsPermalink

SEC. 703. BORROWING AUTHORITY.

Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘$30,000,000,000’ and inserting ‘$100,000,000,000’; andCommentsClose CommentsPermalink





(2) by inserting prior to the last sentence, the following new sentence: ‘The Corporation may request in writing to borrow, and the Secretary may authorize and approve the borrowing of, additional amounts above $100,000,000,000 to the extent that the Board of Directors and the Secretary determine such borrowing to be necessary.’.CommentsClose CommentsPermalink

SEC. 704. SYSTEMIC RISK SPECIAL ASSESSMENTS.

Section 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended to read as follows:CommentsClose CommentsPermalink





‘(ii) REPAYMENT OF LOSS-CommentsClose CommentsPermalink





‘(I) IN GENERAL- The Corporation shall recover the loss to the Deposit Insurance Fund arising from any action taken or assistance provided with respect to an insured depository institution under clause (i) from 1 or more special assessments on insured depository institutions, depository institution holding companies (with the concurrence of the Secretary of the Treasury with respect to holding companies), or both, as the Corporation determines to be appropriate.CommentsClose CommentsPermalink





‘(II) TREATMENT OF DEPOSITORY INSTITUTION HOLDING COMPANIES- For purposes of this clause, sections 7(c)(2) and 18(h) shall apply to depository institution holding companies as if they were insured depository institutions.CommentsClose CommentsPermalink





‘(III) REGULATIONS- The Corporation shall prescribe such regulations as it deems necessary to implement this clause. In prescribing such regulations, defining terms, and setting the appropriate assessment rate or rates, the Corporation shall consider: the types of entities that benefit from any action taken or assistance provided under this subparagraph; economic conditions; the effects on the industry; and such other factors as the Corporation deems appropriate.’.CommentsClose CommentsPermalink

TITLE VIII--REPORTS ON THE GUARANTEE OF CERTAIN CITIGROUP ASSETSCommentsClose CommentsPermalink

SEC. 801. REPORTS REQUIRED.

(a) Treasury Reports- Not later than 30 days after the date of the enactment of this Act, the Secretary of the Treasury, in coordination with the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation, shall issue a report to the Committee on Financial Services of the House of Representatives, the Committee on Banking of the Senate, and to the Comptroller General of the United States containing the following:CommentsClose CommentsPermalink





(1) The authority under which the Citigroup guarantee and purchases were made.CommentsClose CommentsPermalink





(2) A complete accounting of the specific loans, securities, and any other financial instruments in the asset pool covered by the Citigroup guarantee.CommentsClose CommentsPermalink





(b) GAO Report- Not later than 60 days after the date the Secretary of the Treasury issues the report required by subsection (a), the Comptroller General of the United States shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking of the Senate examining the probable long-term cost to the Federal Government of the Citigroup guarantee.CommentsClose CommentsPermalink





(c) Citigroup Guarantee Defined- For the purpose of this section, the term ‘Citigroup guarantee’ means the agreement announced November 23, 2008, between Citigroup and the Treasury and the Federal Deposit Insurance Corporation to guarantee or purchase, partly through the use of funds authorized under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets on Citigroup’s balance sheet.CommentsClose CommentsPermalink

TITLE IX--GAO STUDY OF FINANCIAL CRISISCommentsClose CommentsPermalink

SEC. 901. STUDY REQUIRED.

The Comptroller General of the United States shall--CommentsClose CommentsPermalink





(1) conduct an in-depth study of the root causes of the financial crisis; andCommentsClose CommentsPermalink





(2) submit a report to the Congress and the President, and transmit a copy to the Secretary of the Treasury, containing the findings and conclusions of the Comptroller General with respect to the study under paragraph (1), together with such recommendations for legislative and administrative action as the Comptroller General may determine to be appropriate before the end of the 6-month period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 902. TREASURY STRATEGY AND TIMELINE.

Using the findings and conclusions of the Comptroller General in the report under section 901(2), within 30 days, the Secretary of the Treasury shall issue an overall strategy and timeline for implementing the recommendations contained in the report with the goal of financial stability and the well-being of taxpayers.CommentsClose CommentsPermalink

TITLE X--AGENCY MBS PURCHASE PROGRAM DISCLOSURECommentsClose CommentsPermalink

SEC. 1001. DISCLOSURE REQUIRED.

Not later than 1 month after the date of the enactment of this Act, the Chairman of the Board of Governors of the Federal Reserve System shall issue to the Congress a report disclosing--CommentsClose CommentsPermalink





(1) the details of the competitive request for proposal process that was used to select the investment managers of the Federal Reserve System’s Agency Mortgage-Backed Security Purchase Program announced by the Federal Reserve System on November 25, 2008;CommentsClose CommentsPermalink





(2) all details of the contracts, including contract price, made between the Federal Reserve System and such investment managers; andCommentsClose CommentsPermalink





(3) steps that each such investment manager has taken to ensure that the investment manager has appropriately segregated the investment management team that implements the Agency Mortgage-Backed Security Purchase Program from other advisory and propriety trading activities undertaken by the investment manager and the members of the investment management team.CommentsClose CommentsPermalink

Passed the House of Representatives January 21, 2009.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.

111th CONGRESS1st SessionH. R. 384AN ACTTo reform the Troubled Assets Relief Program of the Secretary of the Treasury and ensure accountability under such Program LORRAINE C. MILLER, CommentsClose CommentsPermalink

Clerk.CommentsClose CommentsPermalink