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







111th CONGRESS
  1st Session
                                H. R. 384

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2009

  Mr. Frank of Massachusetts introduced the following bill; which was 
referred to the Committee on Financial Services, and in addition to the 
  Committees on Ways and Means and the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 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. Clarification.
                      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. 204. Modification of plan.
Sec. 205. Servicer safe harbor.
Sec. 206. Report by Congressional Oversight Panel.
          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.
           TITLE V--HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTS

Sec. 501. Changes to HOPE for Homeowners Program.
Sec. 502. Funding of increased HOPE for Homeowners Program credit 
                            subsidy costs.
                     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 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 .
            ``(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.
    ``(f) Use and Accountability for Use of Funds.--
            ``(1) Insured depository institution.--
                    ``(A) Investment in or other injection of funds 
                into a depository institution.--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, 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 
                funding 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 funds 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 funds 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.
    ``(g) No Impediment to Withdrawal.--Subject to consultation with 
the appropriate Federal banking agencies, the Secretary may permit an 
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.''.
    (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' means 
        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.--Effective as of the date of the 
        enactment of the TARP Reform and Accountability Act of 2009 and 
        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 assisted institution 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 an assisted 
                institution which received assistance under this title 
                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) Divestiture.--During the period in which any 
        assistance under this title to any assisted institution is 
        outstanding, the institution may not own or lease any private 
        passenger aircraft, or have any interest in such aircraft, 
        except that such institution 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 
        institution immediately before receiving such assistance, as 
        long as the recipient demonstrates to the satisfaction of the 
        Secretary that all reasonable steps are being taken to sell or 
        divest such aircraft or interest.
            ``(4) 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 on or after 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 on or after 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.''.

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 striking paragraph (1) and inserting the following new 
paragraph:
            ``(1) Warrants.--
                    ``(A) In general.--The Secretary may not provide 
                any assistance under this title to any institution, 
                unless the Secretary, receives from the institution--
                            ``(i) in the case of an institution the 
                        securities of which are traded on a national 
                        securities exchange, a warrant giving the right 
                        to the Secretary to receive nonvoting common 
                        stock or preferred stock in such institution, 
                        or voting stock, with respect to which the 
                        Secretary agrees not to exercise voting power, 
                        whichever the Secretary determines appropriate; 
                        or
                            ``(ii) in the case of an institution other 
                        than one described in clause (i), a warrant for 
                        common or preferred stock, or an instrument 
                        that is the economic equivalent (as determined 
                        by the Secretary) of such a warrant in the 
                        financial institution (in the case of a mutual 
                        association), holding company of the financial 
                        institution, or any company that controls a 
                        majority stake in the financial institution, 
                        whichever the Secretary determines appropriate.
                    ``(B) Amount.--
                            ``(i) In general.--The warrants or 
                        instruments described in subparagraph (A) with 
                        respect to an assisted institution shall have a 
                        value equal to 15 percent of the aggregate 
                        amount of all assistance provided to the 
                        institution under this title. Such warrants or 
                        instruments shall entitle the Government to 
                        purchase--
                                    ``(I) nonvoting common stock, up to 
                                a maximum amount of 15 percent of the 
                                issued and outstanding common stock of 
                                --
                                            ``(aa) the assisted 
                                        institution; or
                                            ``(bb) in the case of an 
                                        assisted institution, 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 15 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').
                            ``(ii) 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 1 day prior to the date on which 
                                any commitment to provide assistance 
                                under this title was entered into, of 
                                the market price of the common stock of 
                                the assisted institution; or
                                    ``(II) in the case of an assisted 
                                institution, which is a mutual 
                                association or 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 Secretary.
                            ``(iii) 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.''.
    (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).
    (c) Technical and Conforming Amendments.--Section 113(d)(2) of the 
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 2553(d)) is 
amended by striking subparagraph (E).

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

    (a) Prompt Action.--The Secretary shall promptly take all necessary 
actions to make available funds under title I of the Emergency Economic 
Stabilization Act of 2008 to smaller community financial institutions.
    (b) Comparable Terms.--If any institution becomes an assisted 
institution after the date of the enactment of this Act, such funding 
for depository institutions that--
            (1) have submitted applications 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) are 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),
shall receive such funding on terms comparable to the terms applicable 
to institutions that received funding prior to the date of the 
enactment of this 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 \2/3\ 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) 2 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. 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 
subsection:
    ``(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.''.

                      TITLE II--FORECLOSURE RELIEF

SEC. 201. TARP FORECLOSURE MITIGATION PLAN AND IMPLEMENTATION.

    (a) 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 of the Treasury (in this title 
referred to as 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 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.
    (b) Commitment of Resources.--The comprehensive plan established 
pursuant to subsection (a) shall require the commitment of funds made 
available to the Secretary under title I of the Emergency Economic 
Stabilization Act of 2008 in an amount up to $100,000,000,000, but in 
no case less than $40,000,000,000.
    (c) Implementation Required.--The Secretary shall begin committing 
funds available to the Secretary under title I of the Emergency 
Economic Stabilization Act of 2008 to implement the comprehensive plan 
established pursuant to subsection (a) by not later than April 1, 2009.
    (d) Certification.--If by May 1, 2009, the Secretary does not 
commit more than the minimum of $40,000,000,000 as required under 
subsection (b), the Secretary shall certify to the Congress, no later 
than May 15, 2009, the specific reasons that such additional funds have 
not been committed.

SEC. 202. ELEMENTS OF PLAN.

    (a) Required Elements.--The comprehensive plan established pursuant 
to section 201(a) 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 one, or a combination of more 
        than one, of the program alternatives set forth in section 203.
    (b) Concentrations of Foreclosures.--The comprehensive plan 
established pursuant to section 201(a) 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) Systematic loan modification program.--The systematic 
        foreclosure prevention and mortgage modification program under 
        section 204.
            (2) 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.
            (3) 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.
            (4) Servicer incentives and assistance.--A program under 
        which the Secretary may make payments to servicers who 
        implement modifications to mortgages that result in mortgages 
        that meet such requirements as the Secretary shall establish.
            (5) 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 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.

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 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(a) 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 section 118 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. 204. 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(a) (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. 205. 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) Legal Costs.--If an unsuccessful action is brought against a 
servicer by any person described in subparagraph (A), (B), or (C) of 
subsection (a)(1), such person shall bear any actual legal costs of the 
servicer, including reasonable attorney fees and expert witness fees, 
incurred in good faith in such action, as determined by the court.
    (c) 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.
    (d) 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. 206. 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.

          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 obligation, liability, or 
        debt of the eligible automobile manufacturer in effect as of 
        December 2, 2008, 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.''.

SEC. 402. MUNICIPAL SECURITIES.

    Section 103 of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5211) is amended by inserting after subsection (f) (as added by 
section 401 of this title) the following new subsection:
    ``(g) 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.''.

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 
through purchase of asset-backed securities, directly or through the 
Board of Governors of the Federal Reserve System or any Federal reserve 
bank.''.

           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.''.

SEC. 502. FUNDING OF INCREASED HOPE FOR HOMEOWNERS PROGRAM CREDIT 
              SUBSIDY COSTS.

    Section 257 of the National Housing Act (12 U.S.C. 1715z-23) is 
amended by adding after subsection (x) (as added by section 501 of this 
title) the following new subsection:
    ``(y) Funding of Credit Subsidy Costs of 2009 Amendments.--
Notwithstanding section 1338(b) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 4568(b)) and subsection (w) of this 
section--
            ``(1) to the extent amounts are available to the Secretary 
        of the Treasury pursuant to section 118 of the Emergency 
        Economic Stabilization Act of 2008, the Secretary shall use 
        such amounts to cover any increase in the net costs to the 
        Federal Government of the HOPE for Homeowners program under 
        this section resulting from the amendments made by title V of 
        the TARP Reform and Accountability Act of 2009, and actions 
        authorized by title I of the Emergency Economic Stabilization 
        Act of 2008 shall include such use; and
            ``(2) any remaining net costs to the Federal Government of 
        the HOPE for Homeowners program under this section not 
        resulting from the amendments made under this title shall be 
        paid, and the Secretary of the Treasury shall be reimbursed for 
        such costs, in accordance with the provisions of such section 
        1338 and subsection (w) of this section.''.

                     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 carry out a program using the 
authority made available by section 1117 of the Housing and Economic 
Recovery Act of 2008 to stimulate demand for home purchases and reduce 
unsold inventories of residential properties, which shall include 
ensuring the availability of affordable interest rates on mortgages 
made for the purchase, by qualified home buyers, of 1- to 4-family 
residential properties.
    (b) Purchase Obligations and Securities Using HERA Authority.--The 
Secretary shall execute the program under this section through the 
purchase of obligations and other securities issued by--
            (1) the Federal National Mortgage Association, pursuant to 
        the authority under section 304(g) of the Federal National 
        Mortgage Association Charter Act (12 U.S.C. 1719(g)),
            (2) the Federal Home Loan Mortgage Corporation, pursuant to 
        the authority under section 304(l) of the Federal Home Loan 
        Mortgage Corporation Act (12 U.S.C. 1455(l)), and
            (3) any Federal Home Loan Bank, pursuant to the authority 
        under section 11(l) of the Federal Home Loan Bank Act (12 
        U.S.C. 1431(l)),
as added by section 1117 of the Housing and Economic Recovery Act of 
2008 (Public Law 110-289).
    (c) Use of Loan Originators and Portfolio Lenders.--The program 
under this section shall provide mechanisms to ensure availability of 
such mortgages for home purchase having affordable interest rates 
through financial institutions that act as loan originators or as 
portfolio lenders.
    (d) 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 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.
    (e) Targeting.--In carrying out the program under this section, the 
Secretary may take into consideration the impact of activities under 
the program on geographical areas having the greatest number of 
properties with foreclosed-upon mortgages.

                       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. 
1814(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.''.
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