[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 384 Engrossed in House (EH)]

111th CONGRESS
  1st Session
                                H. R. 384

_______________________________________________________________________

                                 AN ACT


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``TARP Reform and 
Accountability Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
           TITLE I--MODIFICATIONS TO TARP AND TARP OVERSIGHT

Sec. 101. New conditionality for TARP-assisted institutions.
Sec. 102. Executive compensation and corporate governance.
Sec. 103. New lending by insured depository institutions that is 
                            attributable to TARP investments and 
                            assistance.
Sec. 104. Other protections for the taxpayer.
Sec. 105. Availability of TARP funds to smaller community institutions.
Sec. 106. Increase in size and authority of Financial Stability 
                            Oversight Board.
Sec. 107. Inclusion of women and minorities.
Sec. 108. Analysis of use of assistance.
Sec. 109. Database of use of TARP funds.
Sec. 110. Clarification.
Sec. 111. Investment of TARP funds in credit unions taken into account 
                            in determination of net worth.
Sec. 112. Treasury facilitated auction.
Sec. 113. Broadened Inspector General Authority.
                      TITLE II--FORECLOSURE RELIEF

Sec. 201. TARP foreclosure mitigation plan and implementation.
Sec. 202. Elements of plan.
Sec. 203. Program alternatives.
Sec. 204. Systematic foreclosure prevention and mortgage modification 
                            plan established.
Sec. 205. Modification of plan.
Sec. 206. Servicer safe harbor.
Sec. 207. Foreclosure moratorium recommendation.
Sec. 208. Foreclosure prevention for affordable housing.
Sec. 209. Report by Congressional Oversight Panel.
Sec. 210. Mortgage modification data collecting and reporting.
          TITLE III--AUTO INDUSTRY FINANCING AND RESTRUCTURING

Sec. 301. Short title.
Sec. 302. Direct loan provisions.
                  TITLE IV--CLARIFICATION OF AUTHORITY

Sec. 401. Consumer loans.
Sec. 402. Municipal securities.
Sec. 403. Commercial real estate loans.
Sec. 404. Small business loans.
Sec. 405. Commercial loans.
Sec. 406. Automobile fleet purchase loans.
Sec. 407. Certification.
           TITLE V--HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTS

Sec. 501. Changes to HOPE for Homeowners Program.
                     TITLE VI--HOME BUYER STIMULUS

Sec. 601. Home buyer stimulus program.
                       TITLE VII--FDIC PROVISIONS

Sec. 701. Permanent increase in deposit insurance.
Sec. 702. Extension of restoration plan period.
Sec. 703. Borrowing authority.
Sec. 704. Systemic risk special assessments.
    TITLE VIII--REPORTS ON THE GUARANTEE OF CERTAIN CITIGROUP ASSETS

Sec. 801. Reports required.
                TITLE IX--GAO STUDY OF FINANCIAL CRISIS

Sec. 901. Study required.
Sec. 902. Treasury strategy and timeline.
            TITLE X--AGENCY MBS PURCHASE PROGRAM DISCLOSURE

Sec. 1001. Disclosure required.

           TITLE I--MODIFICATIONS TO TARP AND TARP OVERSIGHT

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:
    ``(e) Reporting, Monitoring and Accountability.--
            ``(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.
            ``(2) Additional requirements and compliance.--The 
        Secretary--
                    ``(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; and
                    ``(B) shall establish appropriate mechanisms to 
                ensure appropriate use and compliance with all terms of 
                any use of funds made available under this title.
            ``(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.
            ``(4) Online publication of periodic reports.--The 
        Secretary shall make publicly available on the Internet each 
        report made in accordance with paragraph (1).
            ``(5) Use of 2008 assistance.--
                    ``(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.
                    ``(B) Analysis.--The Secretary shall conduct an 
                analysis of the use of the assistance for which 
                information was received under subparagraph (A).
                    ``(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.
    ``(f) Use and Accountability for Use of Funds.--
            ``(1) Insured depository institution.--
                    ``(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.
                    ``(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.
                    ``(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.
            ``(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--
                    ``(A) such action will reduce risk to the taxpayer; 
                or
                    ``(B) the transaction could have been consummated 
                without assistance provided under this title.
            ``(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.
            ``(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--
                    ``(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; and
                    ``(B) the rights of any bona fide tenant, as of the 
                date of such notice of foreclosure--
                            ``(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); or
                            ``(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).
            ``(5) Bona fide lease or tenancy.--For purposes of this 
        paragraph (1), a lease or tenancy shall be considered bona fide 
        only if--
                    ``(A) the mortgagor under the contract is not the 
                tenant;
                    ``(B) the lease or tenancy was the result of an 
                arms-length transaction; or
                    ``(C) the lease or tenancy requires the receipt of 
                rent that is not substantially less than fair market 
                rent for the property.
            ``(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.
    ``(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.''.
    (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:
            ``(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.
            ``(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.''.

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:
    ``(e) Across-the-Board Executive Compensation and Corporate 
Governance Requirements.--
            ``(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.
            ``(2) Specific requirements.--The standards established 
        under paragraph (1) shall include--
                    ``(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;
                    ``(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;
                    ``(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;
                    ``(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; and
                    ``(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.
            ``(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.
    ``(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.''.
    (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),''.

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:
            ``(12) Lending increases attributable to investment or 
        other assistance under the troubled assets relief program.--
                    ``(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.
                    ``(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.
                    ``(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).''.

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:
            ``(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.''.
    (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).

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.
    (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--
            (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; or
            (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).
    (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.

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--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(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.''.
    (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--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) the Chairperson of the Board of Directors of the 
        Federal Deposit Insurance Corporation; and
            ``(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.''.

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.
    (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.
    (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.
    (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.

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.
    (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.
    (c) Source of Information.--The data collected and analyzed under 
subsections (a) and (b)--
            (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; and
            (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.
    (d) Adjustments and Recommendations.-- If the Secretary of the 
Treasury determines that--
            (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; and
            (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.

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.

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:
    ``(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.
    ``(g) Qualified Property.--
            ``(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.
            ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(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.
                    ``(B) Guarantor.--The term `guarantor' includes any 
                guarantor, surety, and payment undertaker.''.

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:
                    ``(A) with respect to any insured credit union, 
                means--
                            ``(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; and
                            ``(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''.
    (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.

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:
    ``(b) Use of Market Mechanisms.--
            ``(1) In general.--In making purchases under this Act, the 
        Secretary shall--
                    ``(A) make such purchases at the lowest price that 
                the Secretary determines to be consistent with the 
                purposes of this Act; and
                    ``(B) maximize the efficiency of the use of 
                taxpayer resources by using market mechanisms, 
                including auctions or reverse auctions, where 
                appropriate.
            ``(2) Auction facilitation.--
                    ``(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.
                    ``(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--
                            ``(i) why such auction has not taken place; 
                        and
                            ``(ii) by what mechanism the Secretary 
                        feels that troubled assets could most 
                        expeditiously be valued and liquidated.''.

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''.

                      TITLE II--FORECLOSURE RELIEF

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.
    (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.
    (c) Implementation Required.--The Secretary shall begin to 
implement the comprehensive plan established pursuant to subsection (b) 
by not later than April 1, 2009.
    (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.
    (e) Clarification.--For purposes of this title, the term 
``residential properties'' shall include 1- to 4-family residential 
properties.

SEC. 202. ELEMENTS OF PLAN.

    (a) Required Elements.--The comprehensive plan established pursuant 
to section 201(b) shall comply with the following requirements:
            (1) Owner-occupied residences only.--The programs 
        implemented under the plan shall prevent and mitigate 
        foreclosures specifically on owner-occupied residential 
        properties.
            (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.
            (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.
            (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.
    (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.

SEC. 203. PROGRAM ALTERNATIVES.

    The program alternatives set forth in this section are as follows:
            (1) Reduction of hope for homeowners program costs.--A 
        program under which the Secretary--
                    (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; or
                    (B) ensures the affordability of interest rates of 
                mortgages insured under such Program.
            (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.
            (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.
            (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.
            (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.

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--
            (1) provides lenders and loan servicers with certain 
        compensation to cover administrative costs for each loan 
        modified according to the required standards; and
            (2) provides loss sharing or guarantees for certain losses 
        incurred if a modified loan should subsequently re-default.
    (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.
    (c) Program Components.--The program established under subsection 
(a) may include the following components:
            (1) Eligible borrowers.--The program shall be limited to 
        loans secured by owner-occupied properties.
            (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.
            (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.
            (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.
            (5) Modifications.--Modifications may include any of the 
        following:
                    (A) Reduction in interest rates and fees.
                    (B) Term or amortization extensions.
                    (C) Forbearance or forgiveness of principal.
                    (D) Other similar modifications.
            (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.
            (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.
            (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.
    (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.
    (e) Regulations.--The Secretary shall prescribe such regulations as 
may be necessary to implement this section and prevent evasions 
thereof.
    (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.
    (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.

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.

SEC. 206. SERVICER SAFE HARBOR.

    (a) Safe Harbor.--
            (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--
                    (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;
                    (B) any person who is obligated to make payments 
                determined in reference to any loan or any interest 
                referred to in subparagraph (A); or
                    (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.
            (2) Ability to modify mortgages.--
                    (A) Ability.--Notwithstanding any other provision 
                of law, and notwithstanding any investment contract 
                between a servicer and a securitization vehicle or 
                investor, a servicer--
                            (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; and
                            (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,
                if any mortgage so modified meets all of the criteria 
                set forth in subparagraph (B).
                    (B) Criteria.--The criteria under this subparagraph 
                with respect to a mortgage are as follows:
                            (i) Default on the payment of such mortgage 
                        has occurred or is reasonably foreseeable.
                            (ii) The property securing such mortgage is 
                        occupied by the mortgagor of such mortgage.
                            (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.
            (3) Applicability.--This subsection shall apply only with 
        respect to modifications, workouts, and other loss mitigation 
        plans initiated before January 1, 2012.
    (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.
    (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--
            (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; 
        and
            (2) holds such mortgages.

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

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:

``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.
    ``(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.
    ``(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.''.

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--
            (1) the actions taken by the Secretary pursuant to this 
        title;
            (2) the impact and effectiveness of such actions on 
        foreclosures on residential properties; and
            (3) the effectiveness of such actions from the standpoint 
        of minimizing costs to the taxpayers.

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:
            (1) The total number of mortgage modifications resulting in 
        each of the following:
                    (A) Additions of delinquent payments and fees to 
                loan balances.
                    (B) Interest rate reductions and freezes.
                    (C) Term extensions.
                    (D) Reductions of principal.
                    (E) Deferrals of principal.
                    (F) Combinations of modifications described in 
                subparagraph (A), (B), (C), (D), or (E).
            (2) The total number of mortgage modifications in which the 
        total monthly principal and interest payment resulted in the 
        following:
                    (A) An increase.
                    (B) Remained the same.
                    (C) Decreased less than 10 percent.
                    (D) Decreased 10 percent or more.
    (b) Data Collection.--
            (1) Required.--
                    (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.
                    (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).
            (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).

          TITLE III--AUTO INDUSTRY FINANCING AND RESTRUCTURING

SEC. 301. SHORT TITLE.

    This title may be cited as the ``TARP Reform and Accountability Act 
of 2009''.

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:

         ``TITLE IV--AUTO INDUSTRY FINANCING AND RESTRUCTURING

``SEC. 401. PURPOSES.

    ``The purposes of this title are--
            ``(1) to clarify and confirm the authority and facilities 
        to restore liquidity and stability to domestic vehicle 
        manufacturers in the United States; and
            ``(2) to ensure that such authority and such facilities are 
        used in a manner that--
                    ``(A) results in a viable and competitive domestic 
                automobile industry that minimizes adverse effects on 
                the environment;
                    ``(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;
                    ``(C) preserves and promotes the jobs of American 
                workers employed directly by the domestic automobile 
                industry and in related industries;
                    ``(D) safeguards the ability of the domestic 
                automobile industry to provide retirement and health 
                care benefits for the industry's retirees and their 
                dependents; and
                    ``(E) stimulates manufacturing and sales of 
                automobiles produced by automobile manufacturers in the 
                United States.

``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.
    ``(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.
    ``(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.

``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.
    ``(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.

``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).
    ``(b) Evaluation of Progress on Basis of Restructuring Progress 
Assessment Measures.--
            ``(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.
            ``(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.

``SEC. 405. SUBMISSION OF PLANS.

    ``(a) Negotiated Plans.--
            ``(1) Facilitation.--
                    ``(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.
                    ``(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--
                            ``(i) employees and retirees of the 
                        eligible automobile manufacturer;
                            ``(ii) trade unions;
                            ``(iii) creditors;
                            ``(iv) suppliers;
                            ``(v) automobile dealers; and
                            ``(vi) shareholders.
            ``(2) Actions of the president's designee.--
                    ``(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.
                    ``(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.
    ``(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--
            ``(1) the repayment of all Government-provided financing, 
        consistent with the terms specified in section 408, or 
        otherwise agreed to;
            ``(2) the ability--
                    ``(A) to comply with applicable fuel efficiency and 
                emissions requirements;
                    ``(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); and
                    ``(C) to produce new and existing products and 
                capacity;
            ``(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;
            ``(4) the ability to rationalize costs, capitalization, and 
        capacity with respect to the manufacturing workforce, 
        suppliers, and dealerships of the eligible automobile 
        manufacturer;
            ``(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; and
            ``(6) a product mix and cost structure that is competitive 
        in the marketplace.
    ``(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).

``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.

``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.

``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.
    ``(b) No Prepayment Penalty.--A loan made under this title shall be 
prepayable without penalty at any time.
    ``(c) Information Access.--As a condition for the receipt of any 
financial assistance made under this title, an eligible automobile 
manufacturer shall agree--
            ``(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; 
        and
            ``(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.
    ``(d) Oversight of Transactions and Financial Condition.--
            ``(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--
                    ``(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; and
                    ``(B) any other material change in the financial 
                condition of such eligible automobile manufacturer.
            ``(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--
                    ``(A) review any asset sale, investment, contract, 
                commitment, or other transaction described in paragraph 
                (1); and
                    ``(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.
            ``(3) Procedures.--The President's designee may establish 
        procedures for conducting any review under this subsection.
    ``(e) Consequences for Failure To Comply.--The terms of any 
financial assistance made under this title shall provide that if--
            ``(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;
            ``(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; or
            ``(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,
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.

``SEC. 409. TAXPAYER PROTECTION.

    ``(a) Warrants.--
            ``(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--
                    ``(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; or
                    ``(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.
            ``(2) Amount.--
                    ``(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--
                            ``(i) nonvoting common stock, up to a 
                        maximum amount of 20 percent of the issued and 
                        outstanding common stock of--
                                    ``(I) the eligible automobile 
                                manufacturer; or
                                    ``(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'); 
                                and
                            ``(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').
                    ``(B) Common stock warrant price.--The exercise 
                price on a warrant or instrument described in paragraph 
                (1) shall be--
                            ``(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; or
                            ``(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.
                    ``(C) Terms of preferred stock warrant.--
                            ``(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.
                            ``(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.
                            ``(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.
            ``(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.
    ``(b) Executive Compensation and Corporate Governance.--
            ``(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--
                    ``(A) the standards established by the President's 
                designee under paragraph (2); and
                    ``(B) the provisions of section 162(m)(5) of the 
                Internal Revenue Code of 1986, as applicable.
            ``(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.
            ``(3) Specific requirements.--The standards established 
        under paragraph (2) shall include--
                    ``(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;
                    ``(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;
                    ``(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;
                    ``(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; and
                    ``(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.
            ``(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.
            ``(5) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(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.
                    ``(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.
    ``(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.
    ``(d) Other Interests Subordinated.--
            ``(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.
            ``(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--
                    ``(A) be treated as a loan to any holding company 
                of, or company that controls a majority stake in, the 
                eligible automobile manufacturer; and
                    ``(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.
    ``(e) Additional Taxpayer Protections.--
            ``(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.
            ``(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.
            ``(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.

``SEC. 410. OVERSIGHT AND AUDITS.

    ``(a) Comptroller General Oversight.--
            ``(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.
            ``(2) Conduct and administration of oversight.--
                    ``(A) GAO presence.--The President's designee shall 
                provide to the Comptroller General appropriate space 
                and facilities for purposes of this subsection.
                    ``(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.
            ``(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.
    ``(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.
    ``(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.

``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.
    ``(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.
    ``(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).
    ``(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.
    ``(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.

``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.
    ``(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.

``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.

``SEC. 414. COORDINATION WITH OTHER LAWS.

    ``(a) In General.--No provision of this title may be construed as 
altering, affecting, or superseding--
            ``(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;
            ``(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.
    ``(b) Antitrust Provisions.--
            ``(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).
            ``(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.
            ``(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).
            ``(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.
            ``(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.
            ``(6) Definition.--For purposes of this subsection, the 
        term `antitrust laws'--
                    ``(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; and
                    ``(B) includes any provision of State law that is 
                similar to the laws referred to in subparagraph (A).

``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.

``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.''.

                  TITLE IV--CLARIFICATION OF AUTHORITY

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:

``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.''.

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:
    ``(h) Clarification of Authority Regarding Municipal Securities.--
            ``(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.
            ``(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.''.

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:

``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.''.

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:

``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.''.

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:

``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.''.

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:

``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.''.

SEC. 407. CERTIFICATION.

    Subsection (a) of section 105 of the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5215(a)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(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.''.

           TITLE V--HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTS

SEC. 501. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

    Section 257 of the National Housing Act (12 U.S.C. 1715z-23) is 
amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (1);
                    (B) in paragraph (2)(B), by striking ``90 percent'' 
                and inserting ``93 percent'';
                    (C) by striking paragraph (7);
                    (D) in paragraph (9), by striking ``by procuring'' 
                and all that follows through ``by any other method''; 
                and
                    (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;
            (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'';
            (3) by striking subsection (i) and inserting the following 
        new subsection:
    ``(i) Annual Premiums.--
            ``(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.
            ``(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).'';
            (4) in subsection (k)--
                    (A) by striking the subsection heading and 
                inserting ``Exit Fee'';
                    (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''; and
                    (C) by striking paragraph (2);
            (5) in subsection (s)(3)(A)(ii), by striking ``subsection 
        (e)(1)(B) and such other'' and inserting ``such'';
            (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.'';
            (7) in subsection (w)(1)(C), by striking ``(e)(4)(A)'' and 
        inserting ``(e)(3)(A)''; and
            (8) by adding at the end the following new subsection:
    ``(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.''.

                     TITLE VI--HOME BUYER STIMULUS

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.
    (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.
    (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.
    (d) Targeting for Housing Disaster Areas.--
            (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.
            (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--
                    (A) evaluate the impact of existing Federal 
                foreclosure prevention activities on housing disaster 
                areas;
                    (B) make a determination of whether the foreclosure 
                rates and anticipated default rates in such areas have 
                been adequately reduced; and
                    (C) submit a report to the Congress that describes 
                the impact of such activities and the determination of 
                the Secretary under subparagraph (B).
            (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--
                    (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; and
                    (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.
            (4) Housing disaster areas.--For purposes of this section, 
        the term ``housing disaster area'' means a geographic area 
        having both--
                    (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; and
                    (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.

                       TITLE VII--FDIC PROVISIONS

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--
            (1) in paragraph (1)(E), by striking ``$100,000'' and 
        inserting ``$250,000'';
            (2) in paragraph (1)(F)(i), by striking ``2010'' and 
        inserting ``2015'';
            (3) in subclause (I) of paragraph (1)(F)(i), by striking 
        ``$100,000'' and inserting ``$250,000'';
            (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''; and
            (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''.
    (b) Repeal of EESA Provision.--Section 136 of the Emergency 
Economic Stabilization Act (Public Law 110-343; 122 Stat. 3765) is 
hereby repealed.
    (c) Amendment to Federal Credit Union Act.--Section 207(k) of the 
Federal Credit Union Act (12 U.S.C. 1787(k) is amended--
            (1) in paragraph (3)--
                    (A) by striking the opening quotation mark before 
                ``$250,000'';
                    (B) by striking ``, except that $250,000 shall be 
                substituted for $100,000 wherever such term appears in 
                such section''; and
                    (C) by striking the closing quotation mark after 
                the closing parenthesis; and
            (2) in paragraph (5), by striking ``$100,000'' and 
        inserting ``$250,000'';

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''.

SEC. 703. BORROWING AUTHORITY.

    Section 14(a) of the Federal Deposit Insurance Act (12 U.S.C. 
1824(a)) is amended--
            (1) by striking ``$30,000,000,000'' and inserting 
        ``$100,000,000,000''; and
            (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.''.

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:
                            ``(ii) Repayment of loss.--
                                    ``(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.
                                    ``(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.
                                    ``(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.''.

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

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:
            (1) The authority under which the Citigroup guarantee and 
        purchases were made.
            (2) A complete accounting of the specific loans, 
        securities, and any other financial instruments in the asset 
        pool covered by the Citigroup guarantee.
    (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.
    (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.

                TITLE IX--GAO STUDY OF FINANCIAL CRISIS

SEC. 901. STUDY REQUIRED.

    The Comptroller General of the United States shall--
            (1) conduct an in-depth study of the root causes of the 
        financial crisis; and
            (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.

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.

            TITLE X--AGENCY MBS PURCHASE PROGRAM DISCLOSURE

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

            Passed the House of Representatives January 21, 2009.

            Attest:

                                                                 Clerk.
111th CONGRESS

  1st Session

                               H. R. 384

_______________________________________________________________________

                                 AN ACT

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