1.Short title; table of
contents
(a)This Act may be cited
as the TARP Reform and Accountability
Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Modifications to TARP and TARP Oversight
Sec. 101. New conditionality for TARP-assisted
institutions.
Sec. 102. Executive compensation and corporate
governance.
Sec. 103. New lending by insured depository institutions that
is attributable to TARP investments and assistance.
Sec. 104. Other protections for the taxpayer.
Sec. 105. Availability of TARP funds to smaller community
institutions.
Sec. 106. Increase in size and authority of Financial Stability
Oversight Board.
Sec. 107. Inclusion of women and minorities.
Sec. 108. Analysis of use of assistance.
Sec. 109. Database of use of TARP funds.
Sec. 110. Clarification.
Sec. 111. Investment of TARP funds in credit unions taken into
account in determination of net worth.
Sec. 112. Treasury facilitated auction.
Sec. 113. Broadened Inspector General Authority.
Title II—Foreclosure relief
Sec. 201. TARP foreclosure mitigation plan and
implementation.
Sec. 202. Elements of plan.
Sec. 203. Program alternatives.
Sec. 204. Systematic foreclosure prevention and mortgage
modification plan established.
Sec. 205. Modification of plan.
Sec. 206. Servicer safe harbor.
Sec. 207. Foreclosure moratorium recommendation.
Sec. 208. Foreclosure prevention for affordable
housing.
Sec. 209. Report by Congressional Oversight Panel.
Sec. 210. Mortgage modification data collecting and
reporting.
Title III—Auto industry financing and restructuring
Sec. 301. Short title.
Sec. 302. Direct loan provisions.
Title IV—Clarification of authority
Sec. 401. Consumer loans.
Sec. 402. Municipal securities.
Sec. 403. Commercial real estate loans.
Sec. 404. Small business loans.
Sec. 405. Commercial loans.
Sec. 406. Automobile fleet purchase loans.
Sec. 407. Certification.
Title V—HOPE for Homeowners Program improvements
Sec. 501. Changes to HOPE for Homeowners Program.
Title VI—Home buyer Stimulus
Sec. 601. Home buyer stimulus program.
Title VII—FDIC provisions
Sec. 701. Permanent increase in deposit insurance.
Sec. 702. Extension of restoration plan period.
Sec. 703. Borrowing authority.
Sec. 704. Systemic risk special assessments.
Title VIII—Reports on the guarantee of certain Citigroup
assets
Sec. 801. Reports required.
Title IX—GAO study of financial crisis
Sec. 901. Study required.
Sec. 902. Treasury strategy and timeline.
Title X—Agency MBS Purchase Program disclosure
Sec. 1001. Disclosure required.
<enum>I</enum><header>Modifications to
TARP and TARP Oversight</header>
<section id="H579F9D4AB3214369B2BBC9D23523BA84"><enum>101.</enum><header>New
conditionality for TARP-assisted institutions</header>
<subsection id="HA24B36E864804DF187F9BDDBDA6CCF41"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HF3CC2A4F44074BC7A483D9983B404541" style="OLC">
<subsection id="H116D32EADE3B45A3878C2D2CA5C5481B"><enum>(e)</enum><header>Reporting,
monitoring and accountability</header>
<paragraph id="H5CD54B98D65744E49937794EB57E05D4"><enum>(1)</enum><header>Periodic public
reporting on use of assistance</header><text display-inline="yes-display-inline">The Secretary shall require any assisted
institution that became an assisted institution on or after October 3, 2008, to
publicly report, not less than quarterly, on such institution’s use of the
assistance. Such reporting may be required directly for nondepository
institutions or through the appropriate Federal banking agency, as provided in
section 103.</text>
</paragraph><paragraph id="HA250B13962214FF7A1CB006EAE4EE4C6"><enum>(2)</enum><header>Additional
requirements and compliance</header><text>The Secretary—</text>
<subparagraph id="H363B57B0108B40D5A87DF85512C4027B"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="H0F780228E7334A88B7C896549737D4AE"><enum>(B)</enum><text display-inline="yes-display-inline">shall establish appropriate mechanisms to
ensure appropriate use and compliance with all terms of any use of funds made
available under this title.</text>
</subparagraph></paragraph><paragraph id="H6027B79D44AD4FDFA0515CFF11663CA6"><enum>(3)</enum><header>Consultation</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HBC453F738E7C4A73897CC7B5C6CE5DC6"><enum>(4)</enum><header>Online
publication of periodic reports</header><text display-inline="yes-display-inline">The Secretary shall make publicly available
on the Internet each report made in accordance with paragraph (1).</text>
</paragraph><paragraph id="H65B117E3CFC94647AF8506DBFCAA7327"><enum>(5)</enum><header>Use of 2008
assistance</header>
<subparagraph id="H42A37DD65967466FA19383CA07E9B9AF"><enum>(A)</enum><header>Collection of
information</header><text>Effective upon enactment of this paragraph, The
Secretary shall require any assisted institution which received assistance
under this title before January 1, 2009, to provide sufficient information with
regard to such assistance as to inform the Secretary of the precise use of such
assistance by the institution and the purpose for the use.</text>
</subparagraph><subparagraph id="HCDC180F7F7284B30A2F7A5E30E17584A"><enum>(B)</enum><header>Analysis</header><text>The
Secretary shall conduct an analysis of the use of the assistance for which
information was received under subparagraph (A).</text>
</subparagraph><subparagraph id="H0F5AE700C1674D25A96BB845D0DBD0CB"><enum>(C)</enum><header>Report to the
Congress</header><text>Within 30 days after the enactment of this paragraph,
the Secretary shall promptly submit a report containing the findings and
conclusion of the Secretary on the use of the assistance referred to in
subparagraph (A), together with such recommendations for legislative or
administrative action as the Secretary may determine to be appropriate, to the
Committee on Financial Services of the House of Representatives, the Committee
on Banking, Housing, and Urban Affairs of the Senate, and the Committees on
Appropriations of the House of Representatives and the Senate.</text>
</subparagraph></paragraph></subsection><subsection id="H71FC12AC0D944D63935DD3DE26B4F835"><enum>(f)</enum><header>Use and
accountability for use of funds</header>
<paragraph id="H8870B11747FD4D6793A59CBD9C428000"><enum>(1)</enum><header>Insured
depository institution</header>
<subparagraph id="HD7768A379E9A46B1A153231EBAC6CACB"><enum>(A)</enum><header>Investment in or
other injection of funds into a depository institution</header><text display-inline="yes-display-inline">Except as provided in section 105, as a
condition for the provision of any investment in the capital or assets of, or
any other provision of assistance to or for the benefit of, any insured
depository institution made after the date of the enactment of the
<short-title>TARP Reform and Accountability Act of
2009</short-title>, the Secretary shall incorporate into the agreement for such
investment or assistance an agreement between the depository institution and
the appropriate Federal banking agency with respect to such institution on the
manner in which the funds are to be used and benchmarks that the institution is
required to meet in using the assistance so as to advance the purposes of this
Act to strengthen the soundness of the financial system and the availability of
credit to the economy.</text>
</subparagraph><subparagraph id="H2D36643570C9486BA30591681216CDEF"><enum>(B)</enum><header>Examinations</header><text display-inline="yes-display-inline">In the case of any assisted insured
depository institution that became an assisted institution on or after October
3, 2008, the appropriate Federal banking agency shall specifically review at
least once annually the use, by the institution, of assistance made available
under this Act and compliance by the institution with the requirements
established by or pursuant to this title or by agreement of the institution
with the Secretary or the appropriate Federal banking agency, including
executive compensation and any other specific agreement terms. Such review may
be conducted in connection with the regular full-site examination, or any other
examination.</text>
</subparagraph><subparagraph commented="no" id="H280622D4F0EC4AF98CC611DA59044C41"><enum>(C)</enum><header>Compliance
procedures required</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="HE06EFDE09E8B4F1683FF3E115F006B82"><enum>(2)</enum><header>Use of tarp
funds for mergers or acquisitions</header><text display-inline="yes-display-inline">Effective as of the date of the enactment
of the <short-title>TARP Reform and Accountability Act of
2009</short-title>, 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—</text>
<subparagraph id="H021293C53BF84B87947902FB04B3ECB8"><enum>(A)</enum><text display-inline="yes-display-inline">such action will reduce risk to the
taxpayer; or</text>
</subparagraph><subparagraph id="H0D4CDC20C52E4C31AE88C03B9C004CEB"><enum>(B)</enum><text display-inline="yes-display-inline">the transaction could have been consummated
without assistance provided under this title.</text>
</subparagraph></paragraph><paragraph id="H0AE189FFF33B40F59D526C5E10B908A3"><enum>(3)</enum><header>Nondepository
institutions</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H5890B5FF110D46AE9D48093C9FFB9413"><enum>(4)</enum><header>Renter
protection</header><text display-inline="yes-display-inline">In the case of any
foreclosure on any dwelling or residential real property securing an extension
of credit made under a contract entered into after the date of the enactment of
this Act, any successor in interest in such property pursuant to the
foreclosure shall assume such interest subject to—</text>
<subparagraph id="H061D056AF6CB4767BF744C9A88F0089B"><enum>(A)</enum><text>the provision, by
the successor in interest, of a notice to vacate to any bona fide tenant at
least 90 days before the effective date of the notice to vacate; and</text>
</subparagraph><subparagraph id="H79C6A282BBCA4AC79B518DCAD72ED9E4"><enum>(B)</enum><text>the rights of any
bona fide tenant, as of the date of such notice of foreclosure—</text>
<clause id="H602C163CAAE14EC7B97A93C5B3DEBC22"><enum>(i)</enum><text>under any bona
fide lease entered into before the notice of foreclosure to occupy the premises
until the end of the remaining term of the lease or the end of the 6-month
period beginning on the date of the notice of foreclosure, whichever occurs
first, subject to the receipt by the tenant of the 90-day notice under
subparagraph (A); or</text>
</clause><clause id="HB4D982FDF7DC4D11B3D84B6AC4F8B097"><enum>(ii)</enum><text>without a lease
or with a lease terminable at will under State law, subject to the receipt by
the tenant of the 90-day notice under subparagraph (A).</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HEF50F389543E47CAA0844F818D993856"><enum>(5)</enum><header>Bona fide lease
or tenancy</header><text>For purposes of this paragraph (1), a lease or tenancy
shall be considered bona fide only if—</text>
<subparagraph id="HDEC260E77C2546DF90A1DB93D5782F5D"><enum>(A)</enum><text>the mortgagor
under the contract is not the tenant;</text>
</subparagraph><subparagraph id="H4A016D0BD0354B2E97C4558AA8DE9408"><enum>(B)</enum><text>the lease or
tenancy was the result of an arms-length transaction; or</text>
</subparagraph><subparagraph id="HDF39B1F78574408CBC1A59C5FA5E1228"><enum>(C)</enum><text>the lease or
tenancy requires the receipt of rent that is not substantially less than fair
market rent for the property.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H282FFD552D8945AAA5A84612CA03435F"><enum>(6)</enum><header>Prohibition on
use of TARP funds for foreign customer service positions</header><text display-inline="yes-display-inline">Effective as of the date of the enactment
of the TARP Reform and Accountability Act of 2009, no assisted institution that
became an assisted institution on or after October 3, 2008, may enter into a
new agreement, or expand a current agreement, with any foreign company for
provision of customer service functions, including call-center services, while
any of such assistance is outstanding.</text>
</paragraph></subsection><subsection id="H29A756129A964BEA88A4B9C470E63BF8"><enum>(g)</enum><header>No impediment to
withdrawal</header><text display-inline="yes-display-inline">Subject to
consultation with the appropriate Federal banking agencies, the Secretary shall
permit an assisted insured depository institution to repay any assistance
previously provided under this title to such depository institution without
regard to whether the depository institution has replaced such funds from any
other source, and when such assistance is repaid, the Secretary shall liquidate
warrants associated with such assistance at the current market
price.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE7E68BE600324D3C8815FF27CED98855"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H8C3F4814F9574BDFBBB84E1816881DE4" style="OLC">
<paragraph id="H64B5B47003C44C73B9B7C5F98180C91F"><enum>(10)</enum><header>Definitions
relating to insured depository institutions</header><text display-inline="yes-display-inline">The terms <term>depository
institution</term>, <term>insured depository institution</term>, <term>Federal
banking agency</term> and <term>appropriate Federal banking agency</term> have
the same meanings as in section 3 of the Federal Deposit Insurance Act.</text>
</paragraph><paragraph id="H36814157BDC344C08F8D09AE5B9E56BE"><enum>(11)</enum><header>Assisted
institution</header><text display-inline="yes-display-inline">The terms
<term>assisted institution</term> or <term>assisted insured depository
institution</term> mean any such institution that receives, directly or
indirectly, any assistance or benefit that involves the obligation or
expenditure, loan, or investment of funds available to the Secretary under
title
I.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HA984AF37BA094C49B69F7BDD861316BD"><enum>102.</enum><header>Executive
compensation and corporate governance</header>
<subsection id="HA15C66BEDC3B4EA0876588FBCF1E957F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HD8B90073177041DFB1B3C4735D2D9605" style="OLC">
<subsection id="H09B6B0395906410A9C8145FB263DE43E"><enum>(e)</enum><header>Across-the-board
executive compensation and corporate governance requirements</header>
<paragraph id="H205A2834763649938BA77467FA2289BE"><enum>(1)</enum><header>Standards
required</header><text display-inline="yes-display-inline">Notwithstanding any
provision of, and in addition to any requirement of subsection (a), (b), or (c)
(other than the definitions in subsection (b)(3)), the Secretary shall require
any institution that became an assisted institution after the date of the
enactment of the <short-title>TARP Reform and
Accountability Act of 2009</short-title> to meet standards for executive
compensation and corporate governance while any assistance under this title is
outstanding.</text>
</paragraph><paragraph id="H86E5A3409D9E4AF1A6D2263CB1390036"><enum>(2)</enum><header>Specific
requirements</header><text>The standards established under paragraph (1) shall
include—</text>
<subparagraph id="HEC2B26B52B834047AE6C00DC6663C14"><enum>(A)</enum><text display-inline="yes-display-inline">limits on compensation that exclude
incentives for senior executive officers of such institution to take
unnecessary and excessive risks that threaten the value of such institution
during the period that any assistance under this title is outstanding;</text>
</subparagraph><subparagraph id="HE3E9E295A32942539D22E8EF35FB42"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="HE4A1AB631C71409DACB99FF9DFD74D00"><enum>(C)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph id="H1A24632BF4B84C318506CA39CCE19C6F"><enum>(D)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="H06C366021ACC4D8D84F998B53003E033"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H7F255FA2ED97439EA8CBFBC84DA667C"><enum>(3)</enum><header>Applicability to
prior assistance</header><text>Notwithstanding any limitations included in
subsection (a), (b), or (c) with regard to applicability, the Secretary may
apply the requirements of and the standards established under this subsection
to any assisted institution that received any assistance under this title
before the date of the enactment of the TARP Reform and Accountability Act of
2009.</text>
</paragraph></subsection><subsection id="H935CBB1C6107447DB100E5F63CA42DF0"><enum>(f)</enum><header>Board
observer</header><text display-inline="yes-display-inline">The Secretary may
require the attendance of an observer delegated by the Secretary, on behalf of
the Secretary, to attend the meetings of the board of directors of any assisted
institution that became an assisted institution before October 3, 2008, and any
committees of such board of directors, while any assistance under this title is
outstanding.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H80631E7DF9CA4D55A625546B1EF6B733"><enum>(b)</enum><header>Repeal of de
minimis exception</header><text>Section 111(c) of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5221(c)) is amended by striking <quote>and
only where such purchases per financial institution in the aggregate exceed
$300,000,000 (including direct purchases),</quote>.</text>
</subsection></section><section id="HB4E1B0E3F9DD445F9E9E666EA7CA0356"><enum>103.</enum><header>New lending by
insured depository institutions that is attributable to TARP investments and
assistance</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HD2077F3DDDC744EA927BD96B92F1C208" style="OLC">
<paragraph id="HB245AB4238284C43A88EC125E3FED822"><enum>(12)</enum><header>Lending
increases attributable to investment or other assistance under the Troubled
Assets Relief Program</header>
<subparagraph id="HBE64FDE0B7B64006A163DF5E678A58F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HE05B108EDA8F4D4793C7A2E0038236D"><enum>(B)</enum><header>Alternative
measure</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H7566FC7FBFE54D9AB4F0A78DB9E916D6"><enum>(C)</enum><header>Designation of
reporting requirement</header><text display-inline="yes-display-inline">The
Federal banking agencies and the Secretary of the Treasury shall specify the
form, content, and manner of reports required under this paragraph, and shall
require such reports to be provided to the appropriate State bank supervisor
(as defined in section 3 of the Federal Deposit Insurance
Act).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HADE7E695AB0D4FEABFF9126D6B5E74BA"><enum>104.</enum><header>Other
protections for the taxpayer</header>
<subsection id="H324D386AB67A408EB03D79E4BA75D7C2"><enum>(a)</enum><header>Warrant
requirements</header><text display-inline="yes-display-inline">Subsection (d)
of section 113 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5223(d)) is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HC2F55E970BEC4CD49259A2CF37803B19">
<paragraph id="HA6FD37D0E4584923B6DD6C0089B10DE1"><enum>(4)</enum><header>Amount</header><text display-inline="yes-display-inline">For assistance provided after the date of
the enactment of the <short-title>TARP Reform and
Accountability Act of 2009</short-title>, and except as provided in title III
of such Act, the warrants or instruments described in this section shall have a
value at least equal to 15 percent of the aggregate amount of such
assistance.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB81F8533ED1D4A309821AABAD3A6A457"><enum>(b)</enum><header>Repeal of
certain exception</header><text>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).</text>
</subsection></section><section commented="no" id="HFC452D415B3642D8B3A1846612D0F951"><enum>105.</enum><header>Availability of
TARP funds to smaller community institutions</header>
<subsection commented="no" id="H0395826DB77F4B72973EB1241FB8C37"><enum>(a)</enum><header>Prompt
action</header><text display-inline="yes-display-inline">The Secretary shall
promptly take all necessary actions to provide assistance under title I of the
Emergency Economic Stabilization Act of 2008 to smaller community financial
institutions, including such institutions that are privately held.</text>
</subsection><subsection commented="no" id="H1A87E3A3B7AA44DBB27EF3BD173177F3"><enum>(b)</enum><header>Comparable
terms</header><text display-inline="yes-display-inline">An institution that
receives assistance after the date of the enactment of the
<short-title>TARP Reform and Accountability Act of
2009</short-title>, shall do so on terms comparable to the terms applicable to
institutions that received assistance prior to the date of the enactment of
such Act of 2009: <italic>Provided, </italic>That the institution—</text>
<paragraph commented="no" id="HF1A7ED21F963481EB07DEA96DA56C11B"><enum>(1)</enum><text display-inline="yes-display-inline">has submitted an application on which no
action has been taken, such as institutions that are C corporations (including
privately held institutions) and community development financial institutions;
or</text>
</paragraph><paragraph commented="no" id="H2DF6929A6B8C4DFBA6962504A2BACFC2"><enum>(2)</enum><text display-inline="yes-display-inline">is of a type for which the Secretary has
not yet established an application deadline or for which any such deadline has
not yet occurred as of the date of the enactment of this Act, such as
institutions that are non-stock corporations, S-corporations, mutually-owned
insured depository institutions (as defined in section 3 of the Federal Deposit
Insurance Act).</text>
</paragraph></subsection><subsection commented="no" id="H7C4E75A3A10242289D23D33D702360A5"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the terms
<quote>S Corporation</quote> and <quote>C Corporation</quote> shall have the
same meaning given to those terms in section 1361(a) of the Internal Revenue
Code of 1986.</text>
</subsection></section><section id="HA1131874B8434B1EADEB3387DCE244FF"><enum>106.</enum><header>Increase in
size and authority of Financial Stability Oversight Board</header>
<subsection id="HA0F69EE0B33F460E9F8B9C46D8A272CC"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Section 104 of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 2514) is amended—</text>
<paragraph id="HFAA5350C9A13424B0028F88E8EE107E"><enum>(1)</enum><text>by
redesignating subsections (g) and (h) as subsections (h) and (i), respectively;
and</text>
</paragraph><paragraph id="HE2CFDE99FB7D48619D7FBBD783BA318D"><enum>(2)</enum><text>by inserting after
subsection (f) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HCD6B68DAC6F9443791D894B4A92813AD" style="OLC">
<subsection id="HE8AD67242B3D402387E0EAE0A837938B"><enum>(g)</enum><header>Review and
decisionmaking</header><text display-inline="yes-display-inline">After
conducting any review under this section of a policy determination made by the
Secretary, the Financial Stability Oversight Board may overturn any such policy
determination by a two-thirds vote of all members of such
board.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H190C6C81317D4A6DA3C0092001496332"><enum>(b)</enum><header>Appointment of 3
additional members</header><text display-inline="yes-display-inline">Section
104(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 2514(b))
is amended—</text>
<paragraph id="H6A7EE09E51114002A823F62F50615B35"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of paragraph (4);</text>
</paragraph><paragraph id="H43C0EF9EA3F04613AFDAAF729E4B8BD1"><enum>(2)</enum><text>by striking the
period at the end of paragraph (5) and inserting a semicolon; and</text>
</paragraph><paragraph id="H525A7208D3A84D1F9227F80064B0CF89"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HB76269728D464A4BB09568464445C46E" style="OLC">
<paragraph id="H8F90103E52DF48D5B61F8570D728FCD3"><enum>(6)</enum><text display-inline="yes-display-inline">the Chairperson of the Board of Directors
of the Federal Deposit Insurance Corporation; and</text>
</paragraph><paragraph id="H010847E0E2074B81A99907E2C2D161C9"><enum>(7)</enum><text>two members
appointed by the President, by and with the consent of the Senate, from among
individuals who are not officers or employees of the United States
Government.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HC51AB09DE3564EC785E3331910672081" section-type="subsequent-section"><enum>107.</enum><header>Inclusion of women
and minorities</header>
<subsection id="H42880387625846D29A44120CF9CC432C"><enum>(a)</enum><header>Office of
Minority and Women Inclusion</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall
establish an Office of Minority and Women Inclusion, or designate an office of
the entity, that shall be responsible for carrying out this section and
ensuring compliance by the Secretary and each assisted institution (as such
term is defined in section 3 of the Emergency Economic Stabilization Act of
2008) with the requirements of this section. The Office shall be responsible
for all matters of the entity relating to diversity in management, employment,
and business activities in accordance with such standards and requirements as
the Secretary shall establish regarding the use of assistance provided under
title I of such Act.</text>
</subsection><subsection id="HF83588FF79724C9FBF5F46CF8DB94B97"><enum>(b)</enum><header>Inclusion in All
Levels of Business Activities</header><text display-inline="yes-display-inline">The Secretary and each assisted institution
shall develop and implement standards and procedures to ensure, to the maximum
extent possible, the inclusion and utilization of minorities (as such term is
defined in section 1204(c) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1811 note)) and women, and minority- and
women-owned businesses (as such terms are defined in section 21A(r)(4) of the
Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including financial
institutions, investment banking firms, mortgage banking firms, asset
management firms, broker-dealers, financial services firms, underwriters,
accountants, brokers, investment consultants, and providers of legal services)
in all business and activities of the Secretary and each assisted institution
at all levels, including in procurement, insurance, and all types of contracts
(including contracts for the issuance or guarantee of any debt, equity, or
mortgage-related securities, the management of its mortgage and securities
portfolios, the making of its equity investments, the purchase, sale and
servicing of single- and multi-family mortgage loans, and the implementation of
its affordable housing program and initiatives). The processes established by
the Secretary and each assisted institution for review and evaluation for
contract proposals and to hire service providers shall include a component that
gives consideration to the diversity of the applicant.</text>
</subsection><subsection id="H9F155321BDFA414283D3CF7350286D77"><enum>(c)</enum><header>Applicability</header><text display-inline="yes-display-inline">This section shall apply to all contracts
of the Secretary of the Treasury and assisted institutions for services of any
kind, including services that require the services of investment banking, asset
management entities, broker-dealers, financial services entities, underwriters,
accountants, investment consultants, and providers of legal services.</text>
</subsection><subsection id="H250E5C89674A46E098ACED83E6DBE49E"><enum>(d)</enum><header>Reports to
Congress</header><text display-inline="yes-display-inline">Not later than 180
days after the date of the enactment of this Act, the Secretary shall report to
the Congress detailed information describing the actions taken by the Office
and assisted institutions pursuant to this section, which shall include a
statement of the total amounts provided by the Secretary and assisted
institutions under title I of the Emergency Economic Stabilization Act of 2008
to third party contractors since the last such report and the percentage of
such amounts paid to businesses described in subsection (b) of this
section.</text>
</subsection></section><section display-inline="no-display-inline" id="H25E2C8A899BF48B78E5FB73582FA811A" section-type="subsequent-section"><enum>108.</enum><header>Analysis of use of
assistance</header>
<subsection id="H2DEDFF509E7446799A3EA61F2098E09D"><enum>(a)</enum><header>Requirement</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall
regularly analyze timely and detailed information concerning the use of
assistance provided under title I of the Emergency Economic Stabilization Act
of 2008 by assisted institutions to ensure that the program established under
title I of such Act is meeting the goals of the program.</text>
</subsection><subsection id="H17E73504AC144D5398A9362615827F37"><enum>(b)</enum><header>Agency
collection</header><text display-inline="yes-display-inline">The Secretary of
the Treasury shall require the Federal banking agencies (as defined in section
3 of the Federal Deposit Insurance Act) and any other Federal agency the
Secretary chooses to report detailed information to the Secretary on the use of
assistance provided by the Secretary under the Emergency Economic Stabilization
Act of 2008 in a standard electronic form on no less than a quarterly basis.</text>
</subsection><subsection id="H5483C1DCC41842C1988C23E41E82CBEE"><enum>(c)</enum><header>Source of
information</header><text>The data collected and analyzed under subsections (a)
and (b)—</text>
<paragraph id="H89FC77578DC04CB9ACA9A439B33CB437"><enum>(1)</enum><text>shall come from
existing reports filed by all assisted institutions where possible, including
depository institutions and nondepository institutions, with the principal
Federal regulator of each such institution, if any; and</text>
</paragraph><paragraph id="H3309CD9AEA3E454CB5E9F2B688586272"><enum>(2)</enum><text>and should be
sufficiently detailed and timely to enable the Secretary to determine the
effectiveness of the program established under title I of the Emergency
Economic Stabilization Act of 2008 in stimulating prudent lending and
strengthening bank capital.</text>
</paragraph></subsection><subsection id="H14AE2ABE686F4F3588E7B97B0028B665"><enum>(d)</enum><header>Adjustments and
recommendations</header><text>If the Secretary of the Treasury determines
that—</text>
<paragraph id="H03214FF1DFEC4B27AF1E2944C2898AF5"><enum>(1)</enum><text>the goals of the
program established under title I of the Emergency Economic Stabilization Act
of 2008 are not being met, the Secretary shall work with the Federal agencies
supplying the information under subsection (b) to encourage such agencies to
provide the recipients of assistance under such title with recommendations for
better meeting the goals of the program; and</text>
</paragraph><paragraph id="HC9C11AD36EB346949880D06BB26A9F43"><enum>(2)</enum><text>the goals of the
program are not being met following the recommendations and adjustments made in
accordance with paragraph (1), the Secretary shall adjust the future uses of
assistance provided under such title.</text>
</paragraph></subsection></section><section id="HB94A327811E143E3A64CCE2BB0CD846D"><enum>109.</enum><header>Database of use
of TARP funds</header><text display-inline="no-display-inline">The Secretary of
the Treasury shall create and maintain a fully searchable database, accessible
on the Internet at no cost to the public, that contains the name of each entity
receiving funds made available under section 115(a) of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5225(a)) and the purpose for which such
entity is receiving such funds.</text>
</section><section id="H497687AD89F74E4BA1DCC400742FA6DA"><enum>110.</enum><header>Clarification</header><text display-inline="no-display-inline">Section 101 of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 2514(b)) is amended by adding at the end
the following new subsections:</text>
<quoted-block display-inline="no-display-inline" id="HE93A0918AF3040B180C800946BEBD892" style="OLC">
<subsection id="H9A8FAF7DF6714053A176565EDBB1581B"><enum>(f)</enum><header>Clarification</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HCCB8FF956A9D41238D6C0729EBD47F7E"><enum>(g)</enum><header>Qualified
property</header>
<paragraph id="H942C00BC7D574ADE87C9997EAE6661F2"><enum>(1)</enum><header>Guarantee</header><text display-inline="yes-display-inline">Upon the request of a lessee of qualified
property in leases where the lessee economically defeased its rent and purchase
option payments, the Secretary may serve as a guarantor with respect to all
payment obligations of such lessee with respect to any defeased lease
transaction that is in technical default because of a downgrade of a financial
guarantor. Such guarantee shall be on such terms and conditions as are
determined by the Secretary.</text>
</paragraph><paragraph id="H8773268F654941DEB359882DE2F1DC31"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection, the following definitions shall apply:</text>
<subparagraph id="HB479E761F0D14EE49536698C803D0756"><enum>(A)</enum><header>Qualified
property</header><text display-inline="yes-display-inline">The term
<quote>qualified property</quote> means domestic property subject to a lease
entered into prior to November 1, 2007, in which a State or local government
authority (as defined in section 5302(a) of title 49, United States Code) is
the lessee.</text>
</subparagraph><subparagraph id="H9592E4E461D04C6D9355425C8C3EE4DD"><enum>(B)</enum><header>Guarantor</header><text display-inline="yes-display-inline">The term <quote>guarantor</quote> includes
any guarantor, surety, and payment
undertaker.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HEA4A9D43F608416CB233A925995A4EB2"><enum>111.</enum><header>Investment of
TARP funds in credit unions taken into account in determination of net
worth</header>
<subsection id="HCE41E6F5576246B2A87ED065F817FF7E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 216(o)(2) of
the Federal Credit Union Act (12 U.S.C. 1790d(o)(2)) is amended by striking
subparagraph (A) and inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H178A9BA0291C468AA6689A1B54984A27" style="OLC">
<subparagraph id="H268760D7334048DA996C65A9C1AF398D"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to any insured credit union,
means—</text>
<clause id="H7F5FFB592D7342D8A7FB60B8DCE49240"><enum>(i)</enum><text display-inline="yes-display-inline">the retained earnings balance of the credit
union, as determined under generally accepted accounting principles, together
with any amounts that were previously the retained earnings of any other credit
union with which the credit union has combined; and</text>
</clause><clause id="H557CEB8EA44941CE93BBD861BF652138"><enum>(ii)</enum><text display-inline="yes-display-inline">any donated equity, permanent, and
perpetual capital deposits, or other primary capital made available under Title
I of the Emergency Economic Stabilization Act of 2008, as determined by
regulation or order of the Board with due regard for the accepted capital
standards for United States depository institutions generally; and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC8AC591D25024FAD9DEEB3BF5EC7700C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect at
the end of the 30-day period beginning on the date of the enactment of this
Act.</text>
</subsection></section><section id="H0FB7801A218F40A9B9B292DA927DC481"><enum>112.</enum><header>Treasury
facilitated auction</header><text display-inline="no-display-inline">Section
113(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5223(b))
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC1EBBFA0C0AE437D82423EB7443D781C" style="OLC">
<subsection id="HE4484BBF86CB4AA19C0B40C8741E4968"><enum>(b)</enum><header>Use of market
mechanisms</header>
<paragraph id="H11EE637BDD0A4B0F8566367916EC877B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In making purchases
under this Act, the Secretary shall—</text>
<subparagraph id="HF731DC1C93FF4C26BCE34A3F52FB7E2D"><enum>(A)</enum><text>make such
purchases at the lowest price that the Secretary determines to be consistent
with the purposes of this Act; and</text>
</subparagraph><subparagraph id="H87B865CCF29246CAACF577180CA97CC6"><enum>(B)</enum><text>maximize the
efficiency of the use of taxpayer resources by using market mechanisms,
including auctions or reverse auctions, where appropriate.</text>
</subparagraph></paragraph><paragraph id="H987FBD71EEE34576877D3324488A7931"><enum>(2)</enum><header>Auction
facilitation</header>
<subparagraph id="HA4B0DD0CA0D24A1893C63D177D59399E"><enum>(A)</enum><header>In
general</header><text>The Secretary shall, in coordination with institutions
that volunteer to participate, and not using any funds under this title for
purchases, facilitate an auction of troubled assets owned by such institutions
to third party purchasers.</text>
</subparagraph><subparagraph id="HC76A55FE804C4821BABD048FA6F9D93A"><enum>(B)</enum><header>Report</header><text>If
the auction described in subparagraph (A) does not take place within the 3
month period following the date of the enactment of the TARP Reform and
Accountability Act of 2009, the Secretary shall issue a report to the Congress
stating—</text>
<clause id="HAEC745CBBAD54AF1BDC07969F6488C80"><enum>(i)</enum><text>why such auction
has not taken place; and</text>
</clause><clause id="HA35F5AAF0AE64B65816F0B0F9C0DC9E7"><enum>(ii)</enum><text display-inline="yes-display-inline">by what mechanism the Secretary feels that
troubled assets could most expeditiously be valued and
liquidated.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0D9D5B29528147908ECB3BFCDD0E327D"><enum>113.</enum><header>Broadened
Inspector General Authority</header><text display-inline="no-display-inline">Section 121(c) of the Emergency Economic
Stabilization Act (12 U.S.C. 5231(c)) is amended by striking <quote>the
purchase, management, and sale of assets</quote> and all that follows through
<quote>under section 102</quote> and inserting <quote>any action taken by the
Secretary of the Treasury under this title (except sections 115, 116, 117, and
125), as the Special Inspector General determines appropriate</quote>.</text>
</section><enum>II</enum><header>Foreclosure
relief</header>
<section id="H45C78E3DD2394495A5E63302FB078083"><enum>201.</enum><header>TARP
foreclosure mitigation plan and implementation</header>
<subsection id="H5313E7572DE640C090C3A4C0BA79E574"><enum>(a)</enum><header>Commitment of
resources</header><text display-inline="yes-display-inline">Notwithstanding any
provision of title I of the Emergency Economic Stabilization Act of 2008, not
later than seven days after the date of the enactment of the
<short-title>TARP Reform and Accountability Act of
2009</short-title>, the Secretary of the Treasury (in this title referred to as
the <quote>Secretary</quote>) shall commit funds made available to the
Secretary under title I of the Emergency Economic Stabilization Act of 2008 in
an amount of at least $100,000,000,000, unless the Secretary certifies
otherwise under subsection (d), but in no case less than $40,000,000,000, for
the purposes of foreclosure mitigation. Not less than $20,000,000,000 of this
amount shall be dedicated to the program described under section 204 of this
Act. The Secretary shall consult with the Chairperson of the Board of Directors
of the Federal Deposit Insurance Corporation regarding the administration of
the program.</text>
</subsection><subsection id="HC8E52C4A285B4ACD8D7980824600ABDB"><enum>(b)</enum><header>Plan
required</header><text display-inline="yes-display-inline">Notwithstanding any
provision of title I of the Emergency Economic Stabilization Act of 2008, none
of the funds otherwise available to the Secretary pursuant to section 115(a)(3)
of such Act shall be available to the Secretary after March 15, 2009, unless a
comprehensive plan to use the funds committed under subparagraph (a) to prevent
and mitigate foreclosures on residential properties, in accordance with the
requirements of this title, has been developed by the Secretary and approved by
the Financial Stability Oversight Board by such date.</text>
</subsection><subsection id="HAAAE1274F21545EEADD35B5DBFC7F00"><enum>(c)</enum><header>Implementation
required</header><text display-inline="yes-display-inline">The Secretary shall
begin to implement the comprehensive plan established pursuant to subsection
(b) by not later than April 1, 2009.</text>
</subsection><subsection id="H1C563F0FF87A4188825DAB881639C0E3"><enum>(d)</enum><header>Certification</header><text display-inline="yes-display-inline">If the Secretary does not commit at least
$100,000,000,000 in the plan established under subsection (b), the Secretary
shall certify to the Congress in the plan the specific reasons that such
amounts have not been committed.</text>
</subsection><subsection id="HF69FBE2927B34BD997D1C77AFAC54B1D"><enum>(e)</enum><header>Clarification</header><text display-inline="yes-display-inline">For purposes of this title, the term
<quote>residential properties</quote> shall include 1- to 4-family residential
properties.</text>
</subsection></section><section id="H6C958DACEDB145049C00A73E035700CA" section-type="subsequent-section"><enum>202.</enum><header>Elements of
plan</header>
<subsection id="H1BC37A62D9C048AAB774567E26B3D1EB"><enum>(a)</enum><header>Required
elements</header><text display-inline="yes-display-inline">The comprehensive
plan established pursuant to section 201(b) shall comply with the following
requirements:</text>
<paragraph id="H071A04699A494431975269D6414B6286"><enum>(1)</enum><header>Owner-occupied
residences only</header><text>The programs implemented under the plan shall
prevent and mitigate foreclosures specifically on owner-occupied residential
properties.</text>
</paragraph><paragraph id="H11D4E0BED4524CD18F423492B98D08EF"><enum>(2)</enum><header>Leveraging of
private capital</header><text>The plan shall leverage private capital to the
maximum extent possible consistent with the purpose of preventing and
mitigating foreclosures on such properties.</text>
</paragraph><paragraph id="H6414410C791B4437BB5201B8749CE2E"><enum>(3)</enum><header>Use of program
alternatives</header><text display-inline="yes-display-inline">The actions to
be taken under the plan shall consist of the systematic foreclosure prevention
and mortgage modification program under section 204 and a combination of the
program alternatives set forth in section 203.</text>
</paragraph><paragraph id="HC459A3B8340B459CB5EF805826960689"><enum>(4)</enum><header>Workforce and
outreach</header><text display-inline="yes-display-inline">The plan shall set
forth how the Secretary intends to develop, second, or contract for appropriate
staffing to carry out the plan and the component programs and to ensure that
private mortgage servicers utilizing the programs established by the Secretary
will provide sufficient staffing and resources to engage in the outreach, loss
mitigation activities, and homeowner education necessary for successful
foreclosure mitigation.</text>
</paragraph></subsection><subsection id="HA440679D59FD4F80B33834431BB08223"><enum>(b)</enum><header>Concentrations
of foreclosures</header><text>The comprehensive plan established pursuant to
section 201(b) may include provisions designed to prevent and mitigate
foreclosures on residential properties located in areas that are most seriously
affected by such foreclosures.</text>
</subsection></section><section id="HDF7CA30BD847444D00D0DA045EB21990"><enum>203.</enum><header>Program
alternatives</header><text display-inline="no-display-inline">The program
alternatives set forth in this section are as follows:</text>
<paragraph id="HD7133E257CFA41EEB2B10079E16935AC"><enum>(1)</enum><header>Reduction of
HOPE for Homeowners program costs</header><text>A program under which the
Secretary—</text>
<subparagraph id="HA214066FCC9C4D5AAF7CACC8363060EC"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HA5BCCEF1F09E4D48A6E060234FA82015"><enum>(B)</enum><text>ensures the
affordability of interest rates of mortgages insured under such Program.</text>
</subparagraph></paragraph><paragraph id="H15CB432D94B941449900F818AFC42D94"><enum>(2)</enum><header>Buy-down of
second lien mortgages</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HA92E8E38982848FAB4BD9F3ED272A9F1"><enum>(3)</enum><header>Servicer
incentives and assistance</header><text display-inline="yes-display-inline">A
program under which the Secretary may make payments to servicers, including
servicers that are not affiliated with a depository institution, who implement
modifications to mortgages that result in mortgages that meet such requirements
as the Secretary shall establish.</text>
</paragraph><paragraph id="H2F9279D5EEE34ABFBE8B3623435CC564"><enum>(4)</enum><header>Loan
purchases</header><text display-inline="yes-display-inline">A program under
which the Secretary, or one or more entities that the Secretary, in
consultation with the Secretary of Housing and Urban Development, enters into a
contract with to carry out the program under this paragraph, which may include
the Federal Deposit Insurance Corporation, regional public-private
partnerships, and entities selected as contractors under section 107 of the
Emergency Economic Stabilization Act of 2008, purchases whole loans for the
purpose of modifying or refinancing the loans.</text>
</paragraph><paragraph id="H9BD78C96E0C44D9CB40E134D0489227A"><enum>(5)</enum><header>Substitution of
trust</header><text display-inline="yes-display-inline">A program under which
modifications are allowed to the securitization trust agreements with respect
to securities secured by pools of mortgages to allow a new qualified buyer to
be substituted on a foreclosed property or a delinquent mortgage without
seeking new financing.</text>
</paragraph></section><section id="H053E3F7148164033AFC56EABDE608600"><enum>204.</enum><header>Systematic
foreclosure prevention and mortgage modification plan established</header>
<subsection id="HE3258961D8334FA0BF760048F640EE3F"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="H49B77D050788477583E3667E6EC229FA"><enum>(1)</enum><text>provides lenders
and loan servicers with certain compensation to cover administrative costs for
each loan modified according to the required standards; and</text>
</paragraph><paragraph id="H029335807AE64DEBBD381CC65CEACD7C"><enum>(2)</enum><text>provides loss
sharing or guarantees for certain losses incurred if a modified loan should
subsequently re-default.</text>
</paragraph></subsection><subsection id="H3B489431FACA4DE800DE35C3489805F0"><enum>(b)</enum><header>Program
administration</header><text display-inline="yes-display-inline">The Secretary,
in consultation with the Chairperson of the Federal Deposit Insurance
Corporation and the Secretary of Housing and Urban Development, may contract
with one or more entities, including the Federal Deposit Insurance Corporation
and entities selected as contractors under section 107 of the Emergency
Economic Stabilization Act of 2008, to conduct the program activities required
under the program under this section.</text>
</subsection><subsection id="HAF722F9DB5B44EB980449259585B69F"><enum>(c)</enum><header>Program
components</header><text>The program established under subsection (a) may
include the following components:</text>
<paragraph id="H7A7ADFB6C55047E3A6EA46BF018C908D"><enum>(1)</enum><header>Eligible
borrowers</header><text>The program shall be limited to loans secured by
owner-occupied properties.</text>
</paragraph><paragraph id="H89D63F4D4852455A00E390282B39D63"><enum>(2)</enum><header>Exclusion for
early payment default</header><text>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.</text>
</paragraph><paragraph id="HAA1C7D247E784F80AC17BE72557E6510"><enum>(3)</enum><header>Standard net
present value test</header><text>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.</text>
</paragraph><paragraph id="H0312A2FF338F481F84A40000CB246332"><enum>(4)</enum><header>Systematic loan
review by participating lenders and servicers</header><text>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.</text>
</paragraph><paragraph id="H33940FD6FDE54ECB85AFA683CFA4E2BB"><enum>(5)</enum><header>Modifications</header><text>Modifications
may include any of the following:</text>
<subparagraph id="H78B17A6D24374BC000291287EB0093FB"><enum>(A)</enum><text>Reduction in
interest rates and fees.</text>
</subparagraph><subparagraph id="HB6E4DF6FF31544ECA7E7BCFF48424539"><enum>(B)</enum><text>Term or
amortization extensions.</text>
</subparagraph><subparagraph id="HB27414C9B5D6486D9893F0DE3151A62F"><enum>(C)</enum><text>Forbearance or
forgiveness of principal.</text>
</subparagraph><subparagraph id="H9C99426D8B3B4C2C909E4CE3987239D1"><enum>(D)</enum><text>Other similar
modifications.</text>
</subparagraph></paragraph><paragraph id="H4722EE0892D84072B8FDBB8EEA272831"><enum>(6)</enum><header>Simplified loss
share calculation</header><text>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.</text>
</paragraph><paragraph id="H327A7682B1804631A900EA2E00328EF4"><enum>(7)</enum><header>De minimis
test</header><text>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.</text>
</paragraph><paragraph id="H52C8019214654177A3407630E0F83F77"><enum>(8)</enum><header>8 year limit on
loss sharing payment</header><text>The loss sharing guarantee shall terminate
at the end of the 8-year period beginning on the date the modification was
consummated.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HF2F3EE3AA2E14C3C82DC003835EB8531"><enum>(d)</enum><header>Alternative
components</header><text display-inline="yes-display-inline">The Secretary may,
with the approval of the Board, implement foreclosure prevention and mitigation
actions other than those included pursuant to subsection (c) in the
comprehensive plan initially approved by the Board pursuant to section 201(b)
that the Secretary believes would provide equivalent or greater impact on
foreclosure mitigation.</text>
</subsection><subsection id="H31F7A9AEA77A42D595D0802E4932701F"><enum>(e)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be necessary to implement
this section and prevent evasions thereof.</text>
</subsection><subsection id="H5706553A69E84E59B797421471A849A0"><enum>(f)</enum><header>Troubled
assets</header><text>The costs incurred by the Federal Government in carrying
out the loan modification program established under this section shall be
covered out of the funds made available to the Secretary of the Treasury under
title I of the Emergency Economic Stabilization Act of 2008 or such other funds
as may be available to the Secretary.</text>
</subsection><subsection id="HDE26C55BB8AE449FB53DD59911039861"><enum>(g)</enum><header>Report</header><text>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.</text>
</subsection></section><section id="HC26D6072D22E4A5B94E0E5C1CDC412ED"><enum>205.</enum><header>Modification of
plan</header>
<subsection id="HE879477E07494616BF75DE53677E9E92"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Secretary, in
consultation with the Chairperson of the Board of Directors of the Federal
Deposit Insurance Corporation and the Secretary of Housing and Urban
Development, determines at any time that modification of the comprehensive plan
initially approved by the Board pursuant to section 201(b) (as such plan may
subsequently have been modified pursuant to this section), or that modification
of any component program element, is necessary to maximize the prevention of
foreclosures on residential properties or minimize costs to taxpayers of such
foreclosure mitigation, the Secretary may modify the plan or program element,
but only to the extent such modifications are approved by the Board.</text>
</subsection></section><section id="H9E2A1E3D23AA4FEDB355137FB3934A"><enum>206.</enum><header>Servicer safe
harbor</header>
<subsection id="HA45C0035F73840B7B2B36B1017202C8"><enum>(a)</enum><header>Safe
harbor</header>
<paragraph id="HECAC084D8C3C4DF9A9F5DFE84E5FEA4"><enum>(1)</enum><header>Loan
modifications and workout plans</header><text>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—</text>
<subparagraph id="HCB3137D86ADE4BE18800F0204FB718AB"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H2AF1600F70B74E78B3B41368F931F667"><enum>(B)</enum><text>any person who is
obligated to make payments determined in reference to any loan or any interest
referred to in subparagraph (A); or</text>
</subparagraph><subparagraph id="H351D55E338AE49A08B9D28F9A02D9852"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HFD80307A2F764D06A85900DB00420856"><enum>(2)</enum><header>Ability to
modify mortgages</header>
<subparagraph id="HB9D00C080E034194905BCBF2C2E98BD5"><enum>(A)</enum><header>Ability</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
and notwithstanding any investment contract between a servicer and a
securitization vehicle or investor, a servicer—</text>
<clause id="H0A7698F1C9E942F2AC00D210B300B313"><enum>(i)</enum><text>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</text>
</clause><clause id="H46205823F6E8494B822828BB44239C6"><enum>(ii)</enum><text>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,</text>
</clause><continuation-text continuation-text-level="subparagraph">if any
mortgage so modified meets all of the criteria set forth in subparagraph
(B).</continuation-text></subparagraph><subparagraph id="H64A1777A0C1943ADAB19DAD63259D37E"><enum>(B)</enum><header>Criteria</header><text>The
criteria under this subparagraph with respect to a mortgage are as
follows:</text>
<clause id="H0CCCC1BE3ACD4A418D6F46DF2C00614B"><enum>(i)</enum><text>Default on the
payment of such mortgage has occurred or is reasonably foreseeable.</text>
</clause><clause id="H3C9283F5CC2445BFA12F9964E344E959"><enum>(ii)</enum><text>The
property securing such mortgage is occupied by the mortgagor of such
mortgage.</text>
</clause><clause id="H5C4324503DD247FD91F44BE700FCDB3B"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="H9582535C7ECD4F398B82369CF39F3CF2"><enum>(3)</enum><header>Applicability</header><text>This
subsection shall apply only with respect to modifications, workouts, and other
loss mitigation plans initiated before January 1, 2012.</text>
</paragraph></subsection><subsection id="H4B9E223943944E6982F66BB57F25A219"><enum>(b)</enum><header>Reporting</header><text>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.</text>
</subsection><subsection id="H6C2D08AEC48A426197C520B9D04D30AA"><enum>(c)</enum><header>Definition of
securitization vehicles</header><text>For purposes of this section, the term
<quote>securitization vehicle</quote> means a trust, corporation, partnership,
limited liability entity, special purpose entity, or other structure
that—</text>
<paragraph id="H1AF146805E4040B3A3B8BD6FA327EB"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="HBA718B51B79C44CFABFB41FE9619D77C"><enum>(2)</enum><text>holds such
mortgages.</text>
</paragraph></subsection></section><section id="H6B0730ECD66C42958BA3063C9101E663"><enum>207.</enum><header>Foreclosure
moratorium recommendation</header>
<subsection id="H771CDD5C7BFA458681F6EAC42264D946"><enum>(a)</enum><header>Foreclosure
deferment</header><text display-inline="yes-display-inline">It is the sense of
the Congress that any institution which becomes an assisted institution on or
after the date of the enactment of this Act should not initiate, or allow to
continue, a foreclosure proceeding or a foreclosure sale on any with respect to
any principal homeowner mortgage, until the earliest of the following:</text>
<paragraph id="H22316C8BBC8748E0AFD2402242ED00B7"><enum>(1)</enum><text display-inline="yes-display-inline">The date by which the comprehensive plan to
prevent and mitigate foreclosures has been developed by the Secretary and the
Federal Deposit Insurance Corporation and approved by the Financial Stability
Oversight Board under section 201 and become fully operational.</text>
</paragraph><paragraph id="H86C78CC9BC89469D8410803241EA570E"><enum>(2)</enum><text display-inline="yes-display-inline">The date by which the systematic
foreclosure prevention and mortgage modification plan has been established by
the Secretary in accordance with section 204 and become fully
operational.</text>
</paragraph><paragraph id="H84DFD5C882A642C3887F415C4749F27C"><enum>(3)</enum><text>The end of the
9-month period beginning on the date of the enactment of this Act.</text>
</paragraph></subsection><subsection id="HD7E32000600F4094B30CFD3707EF42C7"><enum>(b)</enum><header>FHA-regulated
loan modification agreements</header><text display-inline="yes-display-inline">If an assisted institution to which
subsection (a) applies reaches a loan modification agreement with a homeowner
under the auspices of the Federal Housing Administration before any plan
referred to in paragraph (1) or (2) of such subsection takes effect, subsection
(a) shall cease to apply to such institution as of the effective date of the
loan modification agreement.</text>
</subsection><subsection id="HF3F45E98F46E4114868792928DF52144"><enum>(c)</enum><header>Duty of consumer
to maintain property</header><text display-inline="yes-display-inline">Any
homeowner for whose benefit any foreclosure proceeding or sale is barred under
subsection (a) from being instituted, continued , or consummated with respect
to any homeowner mortgage may not, with respect to any property securing such
mortgage, destroy, damage, or impair such property, allow the property to
deteriorate, or commit waste on the property.</text>
</subsection><subsection id="H588F2FD13E0B4A6FB4F1672D2B5A4EB2"><enum>(d)</enum><header>Duty of consumer
to respond to reasonable inquiries</header><text display-inline="yes-display-inline">Any homeowner for whose benefit any
foreclosure proceeding or sale is barred under subsection (a) from being
instituted, continued , or consummated with respect to any homeowner mortgage
shall respond to reasonable inquiries from a creditor or servicer during the
period during which such foreclosure proceeding or sale is barred.</text>
</subsection></section><section commented="no" id="H6B34381E567A4F45BDC98457FCFF7F1D"><enum>208.</enum><header>Foreclosure
prevention for affordable housing</header><text display-inline="no-display-inline">Section 109 of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5219) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HED57F172E59345B4AEB05D43786027D2" style="OLC">
<section commented="no" id="H8A356435268D424BB4E7EDE4610DF21F"><enum>109.</enum><header>Foreclosure
mitigation efforts</header>
<subsection commented="no" id="HC977961C3B8544C7A33D464C194A508D"><enum>(a)</enum><header>Residential
mortgage servicing standards</header><text display-inline="yes-display-inline">To the extent that the Secretary acquires
mortgages, mortgage backed securities, and other assets secured by residential
real estate, including multifamily housing, the Secretary shall implement a
plan that seeks to maximize assistance for homeowners and renters and use the
authority of the Secretary to encourage the servicers of the underlying
mortgages, considering net present value to the taxpayer, to take advantage of
the HOPE for Homeowners Program under section 257 of the National Housing Act
or other available programs to minimize foreclosures. In addition, the
Secretary may use loan guarantees and credit enhancements to facilitate loan
modifications to prevent avoidable foreclosures on single-family and
multifamily housing.</text>
</subsection><subsection commented="no" id="H4F3E0CF6E7AA47D7B3E29DB6CEADC874"><enum>(b)</enum><header>Coordination</header><text>The
Secretary shall coordinate with the Corporation, the Board (with respect to any
mortgage or mortgage-backed securities or pool of securities held, owned, or
controlled by or on behalf of a Federal reserve bank, as provided in section
110(a)(1)(C)), the Federal Housing Finance Agency, the Secretary of Housing and
Urban Development, and other Federal Government entities that hold troubled
assets to attempt to identify opportunities for the acquisition of classes of
troubled assets that will improve the ability of the Secretary to improve the
loan modification and restructuring process and, where permissible, to permit
bona fide tenants who are current on their rent to remain in their homes under
the terms of the lease. In the case of a mortgage on a residential rental
property, including a qualified low-income building under section 42 of the
Internal Revenue Code of 1986, the plan required under this section shall
include protecting Federal, State, and local rental subsidies and protections,
and ensuring any modification takes into account the need for operating funds
to maintain decent and safe conditions at the property.</text>
</subsection><subsection commented="no" id="HEFEEB92EC3C64E1EBCA86BC81C6739E0"><enum>(c)</enum><header>Consent to
Reasonable Loan Modification Requests</header><text display-inline="yes-display-inline">Upon any request arising under existing
investment contracts, the Secretary shall consent, where appropriate and
considering net present value to the taxpayer, to reasonable requests by
homeowners and owners of multifamily housing, including qualified low-income
buildings under section 42 of the Internal Revenue Code of 1986, for loss
mitigation measures, including term extensions, rate reductions, principal
write downs, increases in the proportion of loans within a trust or other
structure allowed to be modified, or removal of other limitation on
modifications.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFC88C2C5166A4A89A54C979043514043"><enum>209.</enum><header>Report by
Congressional Oversight Panel</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H64CB5F33F92C4CCA966F4404008B9486"><enum>(1)</enum><text>the actions taken
by the Secretary pursuant to this title;</text>
</paragraph><paragraph id="H373767DBC7DF4D65AA594C5D003E25E8"><enum>(2)</enum><text>the impact and
effectiveness of such actions on foreclosures on residential properties;
and</text>
</paragraph><paragraph id="H02EA56D792764667A6CE27A0421D96EF"><enum>(3)</enum><text>the effectiveness
of such actions from the standpoint of minimizing costs to the
taxpayers.</text>
</paragraph></section><section id="H13BC9B3C0F524173ADBAE8B69F0FDACE"><enum>210.</enum><header>Mortgage
modification data collecting and reporting</header>
<subsection id="HFFFA92D4B21B469DBA680A55C236482E"><enum>(a)</enum><header>Reporting
requirements</header><text display-inline="yes-display-inline">Not later than
120 days after the date of the enactment of this Act, and quarterly thereafter,
the Comptroller of the Currency, in coordination with the Director of the
Office of Thrift Supervision, shall submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial
Services of the House of Representatives, and the Joint Economic Committee on
the volume of mortgage modifications reported to the Office of the Comptroller
of the Currency and the Office of Thrift Supervision, under the mortgage
metrics program of each such Office, during the previous quarter, including the
following:</text>
<paragraph id="HA655054C20EB45BFA46F952A38FEC26B"><enum>(1)</enum><text>The total number
of mortgage modifications resulting in each of the following:</text>
<subparagraph id="HB46D7798045B48928775DC9C9BC90CC6"><enum>(A)</enum><text>Additions of
delinquent payments and fees to loan balances.</text>
</subparagraph><subparagraph id="H5C6FDCC390604648B0F346B61F482483"><enum>(B)</enum><text>Interest rate
reductions and freezes.</text>
</subparagraph><subparagraph id="H14A0A7457B63468E87CED30BDEC42B3C"><enum>(C)</enum><text>Term
extensions.</text>
</subparagraph><subparagraph id="HBF82BC17C97F49DD81DBB805F4A02663"><enum>(D)</enum><text>Reductions of
principal.</text>
</subparagraph><subparagraph id="H94C884EE3A954CC68A561927DD352078"><enum>(E)</enum><text>Deferrals of
principal.</text>
</subparagraph><subparagraph id="H7611B83C7BD142D8B1422D7604EDCFCD"><enum>(F)</enum><text>Combinations of
modifications described in subparagraph (A), (B), (C), (D), or (E).</text>
</subparagraph></paragraph><paragraph id="H30D1A70A531B459A9387D4F4EDE3C5E2"><enum>(2)</enum><text display-inline="yes-display-inline">The total number of mortgage modifications
in which the total monthly principal and interest payment resulted in the
following:</text>
<subparagraph id="H1F7AB736BF6041F291845EB46E73C78B"><enum>(A)</enum><text>An
increase.</text>
</subparagraph><subparagraph id="H2D497BA7A2A749FBAF9AA540DA1153CD"><enum>(B)</enum><text>Remained the
same.</text>
</subparagraph><subparagraph id="H1DFB36E3BAEF4E56AD41FD19C63D01E3"><enum>(C)</enum><text>Decreased less
than 10 percent.</text>
</subparagraph><subparagraph id="H973CE21091854247A34C1BE47734906C"><enum>(D)</enum><text>Decreased 10
percent or more.</text>
</subparagraph></paragraph></subsection><subsection id="HFCB9CB2568044F5AB1AEB9182850A8F8"><enum>(b)</enum><header>Data
collection</header>
<paragraph id="H11F36F845AF3433B8F8789753D10DE6A"><enum>(1)</enum><header>Required</header>
<subparagraph id="H23BB3896CB5748579238CEBE90C1F412"><enum>(A)</enum><header>In
general</header><text>Not later than 60 days after the date of the enactment of
this Act, the Comptroller of the Currency and the Director of the Office of
Thrift Supervision, shall issue mortgage modification data collection and
reporting requirements to institutions covered under the reporting requirement
of the mortgage metrics program of the Comptroller or the Director.</text>
</subparagraph><subparagraph id="H9E9A0F114A3A448083B91A0BE629EA9B"><enum>(B)</enum><header>Inclusiveness of
collections</header><text>The requirements under subparagraph (A) shall provide
for the collection of all mortgage modification data needed by the Comptroller
of the Currency and the Director of the Office of Thrift Supervision to fulfill
the reporting requirements under subsection (a).</text>
</subparagraph></paragraph><paragraph id="HB45A70A9E1984A248A59356E9E2D5FF9"><enum>(2)</enum><header>Report</header><text>The
Comptroller of the Currency shall report all requirements established under
paragraph (1) to each committee receiving the report required under subsection
(a).</text>
</paragraph></subsection></section><enum>III</enum><header>Auto industry
financing and restructuring</header>
<section id="H62774AE5037745A99812CA74B3DCA884"><enum>301.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>TARP Reform and Accountability
Act of 2009</short-title></quote>.</text>
</section><section id="HD68337D59D7B4E978B7B8708FC7F10AA"><enum>302.</enum><header>Direct loan
provisions</header>
<subsection id="HF457E14B417C443781F68BE36ED0C255"><enum>(a)</enum><header>In
general</header><text>The Emergency Economic Stabilization Act of 2008
(division A of Public Law 110–343) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H552BE6B6E8034EE88B72F8FCA21F4CD9" style="OLC">
<title id="HE637D55C6B5B44ABA0B411C85C4BF08D"><enum>IV</enum><header>Auto industry
financing and restructuring</header>
<section display-inline="no-display-inline" id="HE95F18CF269E41C083086B4912EEE631"><enum>401.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this title are—</text>
<paragraph id="H3B433497CCEA4E36A9E6C5EA91261C7D"><enum>(1)</enum><text>to clarify and
confirm the authority and facilities to restore liquidity and stability to
domestic vehicle manufacturers in the United States; and</text>
</paragraph><paragraph id="H5D35EEFF72294994A4274331CA7EF725"><enum>(2)</enum><text>to ensure that
such authority and such facilities are used in a manner that—</text>
<subparagraph id="H73CBECEF0CBB45A18444B2F5F4675775"><enum>(A)</enum><text>results in a
viable and competitive domestic automobile industry that minimizes adverse
effects on the environment;</text>
</subparagraph><subparagraph id="H3D760A12282B4EF6829074A19C3023D0"><enum>(B)</enum><text>enhances the
ability and the capacity of the domestic automobile industry to pursue the
timely and aggressive production of energy-efficient advanced technology
vehicles;</text>
</subparagraph><subparagraph id="H823832D509274993BE4556A553C953EC"><enum>(C)</enum><text>preserves and
promotes the jobs of American workers employed directly by the domestic
automobile industry and in related industries;</text>
</subparagraph><subparagraph id="H10A48A77DD044D97BF519939D00B567"><enum>(D)</enum><text>safeguards the
ability of the domestic automobile industry to provide retirement and health
care benefits for the industry's retirees and their dependents; and</text>
</subparagraph><subparagraph id="HBECCA7A092124D8FB7242543ACB5811D"><enum>(E)</enum><text>stimulates
manufacturing and sales of automobiles produced by automobile manufacturers in
the United States.</text>
</subparagraph></paragraph></section><section id="H9B0331D24F23421C813100147BE51BEF"><enum>402.</enum><header>Presidential
designation</header>
<subsection id="HEDAD90524826441C97B99CDE4B667FD1"><enum>(a)</enum><header>Designation</header><text display-inline="yes-display-inline">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 <quote>President’s
designee</quote>) 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.</text>
</subsection><subsection id="H732A986FCA45425699E78796704896EB"><enum>(b)</enum><header>Additional
persons</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H8655D50E311B42F88FD0B19600AC62B2"><enum>(c)</enum><header>Participation by
other agency personnel</header><text>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.</text>
</subsection></section><section commented="no" id="HBFAD27C760614C5AA5C3F2CC75CCEC90"><enum>403.</enum><header>Bridge
financing</header>
<subsection commented="no" id="H8AFD0B3B8C344AF0A331321CB4CD8BA4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 <term>eligible automobile manufacturer</term>), 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.</text>
</subsection><subsection commented="no" id="H154ED83281774767912B0379B7A11412"><enum>(b)</enum><header>Amount of
assistance</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="HFE62CFBA268D4A0DAA833600D0A8F1EE"><enum>404.</enum><header>Restructuring
progress assessment</header>
<subsection id="H26D06AD92AA443C89631E1FB8E049BDB"><enum>(a)</enum><header>Establishment of
measures for assessing progress</header><text display-inline="yes-display-inline">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).</text>
</subsection><subsection id="HF6C3B8EF6B0F40A3ADF3972823BAE36"><enum>(b)</enum><header>Evaluation of
progress on basis of restructuring progress assessment measures</header>
<paragraph id="HDEADC9E3D0B145C49B5770FFCCAE2472"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H8FFAFDE5FF4C4527963EB12B6B48B3D1"><enum>(2)</enum><header>Timing</header><text>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.</text>
</paragraph></subsection></section><section id="H3FD730EDD8AC450392E58BA988C81CB"><enum>405.</enum><header>Submission of
plans</header>
<subsection id="H7DBFFC2272594B56978786D350EAD360"><enum>(a)</enum><header>Negotiated
plans</header>
<paragraph id="H0531C2440CD340C6882C8273F96B785E"><enum>(1)</enum><header>Facilitation</header>
<subparagraph id="HD1B8CAC9ABE2409686B3007ECBA95B2D"><enum>(A)</enum><header>In
general</header><text>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 <term>negotiated plan</term>) with respect to
any eligible automobile manufacturer.</text>
</subparagraph><subparagraph id="H94F6A95F0899495BA66FAD58A5AE9C2B"><enum>(B)</enum><header>Interested
parties</header><text>For purposes of this section, the term <term>interested
party</term> shall be construed broadly so as to include all persons who have a
direct financial interest in a particular automobile manufacturer,
including—</text>
<clause id="H96C9C5EB903D43A8823CE682C65F5F87"><enum>(i)</enum><text display-inline="yes-display-inline">employees and retirees of the eligible
automobile manufacturer;</text>
</clause><clause id="H244591E4FFF24E0094EA8666C251E566"><enum>(ii)</enum><text>trade
unions;</text>
</clause><clause id="H345029879BC44DE7B9590085D4007B13"><enum>(iii)</enum><text>creditors;</text>
</clause><clause id="H3BD3E7B8F40C4FDD9987A577E3A8EB8E"><enum>(iv)</enum><text>suppliers;</text>
</clause><clause id="H08687BACB3AF4CAEBFAD00C566CF01EE"><enum>(v)</enum><text>automobile
dealers; and</text>
</clause><clause id="H8E80B5D601C64A6F8E7BADFABF21C8"><enum>(vi)</enum><text>shareholders.</text>
</clause></subparagraph></paragraph><paragraph id="H0160FB85AA404179B7C21992966CBDCA"><enum>(2)</enum><header>Actions of the
President's designee</header>
<subparagraph id="HB1D4BABAA7234E20AEA57D1751288704"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H92B9EB247D9F4EB391F73225681DCFB1"><enum>(B)</enum><header>Clarification</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H19711BC81B984F71B928B16D467EF024"><enum>(b)</enum><header>Restructuring
plan</header><text display-inline="yes-display-inline">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 <term>restructuring plan</term>)
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—</text>
<paragraph id="HFC39DF99AF67408798C531401BEABF58"><enum>(1)</enum><text>the repayment of
all Government-provided financing, consistent with the terms specified in
section 408, or otherwise agreed to;</text>
</paragraph><paragraph id="HE91C2CE6462946379829142F6B6F4597"><enum>(2)</enum><text display-inline="yes-display-inline">the ability—</text>
<subparagraph commented="no" id="H6A1685DDB71345558F656B019DBCEFC6"><enum>(A)</enum><text>to comply with
applicable fuel efficiency and emissions requirements;</text>
</subparagraph><subparagraph commented="no" id="H37B85CF3F44F4E15A1155B0704A5F1D4"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H4DEB39FDF88C4904912B83C14974C137"><enum>(C)</enum><text>to produce new and
existing products and capacity;</text>
</subparagraph></paragraph><paragraph id="H19D8BE12342343AA9B35ADD17FCFC9CB"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H546BC017275F4FE1A2521EDEF900CC4B"><enum>(4)</enum><text display-inline="yes-display-inline">the ability to rationalize costs,
capitalization, and capacity with respect to the manufacturing workforce,
suppliers, and dealerships of the eligible automobile manufacturer;</text>
</paragraph><paragraph id="HAF28A1147C934B8EBC5769DC791C18D2"><enum>(5)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="H4D0ACC02404F4AB0B4F2AF7147DBAE3F"><enum>(6)</enum><text>a product mix and
cost structure that is competitive in the marketplace.</text>
</paragraph></subsection><subsection id="H26AE49209611447DA0F900FBEE6DABB5"><enum>(c)</enum><header>Extension of
negotiations and plan deadline</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section id="HAB9F648E6AFC45B7B0D987705B008519"><enum>406.</enum><header>Financing for
restructuring</header><text display-inline="no-display-inline">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.</text>
</section><section id="H878F08A20BCC4BE7981E3E029D00A2D4"><enum>407.</enum><header>Disapproval and
call of loan</header><text display-inline="no-display-inline">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.</text>
</section><section id="HC4233C8F7EAF4CFD9D7E3C45FEDEB424"><enum>408.</enum><header>Terms and
conditions</header>
<subsection id="H259995D883F3461E9800B03535865C5B"><enum>(a)</enum><header>Duration</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection display-inline="no-display-inline" id="H899ABFEA946D414F81E4008C53304B5E"><enum>(b)</enum><header>No prepayment
penalty</header><text display-inline="yes-display-inline">A loan made under
this title shall be prepayable without penalty at any time.</text>
</subsection><subsection id="HD3AC7A7458B84AC9B1A52752616334DF"><enum>(c)</enum><header>Information
access</header><text>As a condition for the receipt of any financial assistance
made under this title, an eligible automobile manufacturer shall agree—</text>
<paragraph id="H7DBAE1D3D6324B2E8FBA9C8A0AE3252"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="HF68041152DFC41A38888770846F43F82"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="H4B2D32BD76DF44D3B6F603800E12F57"><enum>(d)</enum><header>Oversight of
transactions and financial condition</header>
<paragraph id="HC2CDDD725F62458B95C4BE1BE0DF9D"><enum>(1)</enum><header>Duty to
inform</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H110C1B6D5B4B4A248090949566A6E9FC"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="HBA8EEC44CB0445CBB251A9BA7C74119F"><enum>(B)</enum><text display-inline="yes-display-inline">any other material change in the financial
condition of such eligible automobile manufacturer.</text>
</subparagraph></paragraph><paragraph id="H7A77F9AB4BC64B39892CE8E592964C00"><enum>(2)</enum><header>Authority of the
President's designee</header><text display-inline="yes-display-inline">During
the period in which any loan extended under this title remains outstanding, the
President's designee may—</text>
<subparagraph id="H396D355FA5F442DC90578E43744143E0"><enum>(A)</enum><text display-inline="yes-display-inline">review any asset sale, investment,
contract, commitment, or other transaction described in paragraph (1);
and</text>
</subparagraph><subparagraph id="H3D208FE6B7544DD9ACE4139B37C3E0B"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="H96CC72C497124BC281BB63804246D663"><enum>(3)</enum><header>Procedures</header><text display-inline="yes-display-inline">The President's designee may establish
procedures for conducting any review under this subsection.</text>
</paragraph></subsection><subsection id="H99AB67F0CE5C49A5B75521B183F06E49"><enum>(e)</enum><header>Consequences for
failure To comply</header><text display-inline="yes-display-inline">The terms
of any financial assistance made under this title shall provide that if—</text>
<paragraph id="H62CFC5F7090F4EB4A8C5E3007DF4223E"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H524FA3B484B54276BAA68B26E34F018B"><enum>(2)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="H79BA84CBBF394B8C89D8A224D54D9797"><enum>(3)</enum><text>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,</text>
</paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection></section><section id="H31E2619BCA554CEC8195473FB495B2C3"><enum>409.</enum><header>Taxpayer
protection</header>
<subsection id="H16A2121FE32E47E998B0762F87523434"><enum>(a)</enum><header>Warrants</header>
<paragraph id="H9D3DC6857D424F61A6DBE009B83058CF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HF17DBCFE610746109C9857F59E794315"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="HB722A554697745EE8FD9B0D9845BEEC4"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="HF1F9C8CB22B54C0FB625838D00155213"><enum>(2)</enum><header>Amount</header>
<subparagraph id="HF95A4D7E1FF64CD88431B55336BFF59E"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="HED6250E4FB774F3A88B15E6BAB2DAD82"><enum>(i)</enum><text>nonvoting common
stock, up to a maximum amount of 20 percent of the issued and outstanding
common stock of—</text>
<subclause id="HD1BE367F25F64A858E4EE602C3988201"><enum>(I)</enum><text>the eligible
automobile manufacturer; or</text>
</subclause><subclause id="H1D8B9A1C499A4073B370A659EADA5C5"><enum>(II)</enum><text>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
<quote>warrant common</quote>); and</text>
</subclause></clause><clause id="H9FB4CF7635744C7BBEF5B6B7D4777C75"><enum>(ii)</enum><text>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 <term>warrant
preferred</term>).</text>
</clause></subparagraph><subparagraph id="H43C08CE9A1914204BB7081EC934CB582"><enum>(B)</enum><header>Common stock
warrant price</header><text>The exercise price on a warrant or instrument
described in paragraph (1) shall be—</text>
<clause id="HE883A860755A4D2E829EE3C3A16AC03"><enum>(i)</enum><text>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</text>
</clause><clause id="H8FAE9C7BBD8E4E499DBB3407ED097CE9"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H712F90A028BF412DB846C012649D08EA"><enum>(C)</enum><header>Terms of
preferred stock warrant</header>
<clause id="H58BE5B472C9244A88FBC64A67600D9D5"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H17FB614FE57440669E003E003C634337"><enum>(ii)</enum><header>Redemption</header><text>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.</text>
</clause><clause id="HE3A58B45E1B64B948BA6DA5534030034"><enum>(iii)</enum><header>Other terms
and conditions</header><text>Other terms and conditions of the warrant
preferred shall be determined by the President’s designee to protect the
interests of taxpayers.</text>
</clause></subparagraph></paragraph><paragraph id="H1C6A8716A6B044778BAC872E300070ED"><enum>(3)</enum><header>Application of
other provisions of law</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HE83F4DFFB69044BFB57C2F5E76A48559"><enum>(b)</enum><header>Executive
compensation and corporate governance</header>
<paragraph id="H100CB40CA3B34165B2BA93D60828D496"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H33D0102F40A9426AB4E6B89E11981673"><enum>(A)</enum><text display-inline="yes-display-inline">the standards established by the
President's designee under paragraph (2); and</text>
</subparagraph><subparagraph id="H3BEDBFB9B7454DB2847CA8E3E8843DD"><enum>(B)</enum><text display-inline="yes-display-inline">the provisions of section 162(m)(5) of the
Internal Revenue Code of 1986, as applicable.</text>
</subparagraph></paragraph><paragraph id="H00A827F3927644B88BBDE9A0D5358BAD"><enum>(2)</enum><header>Standards
required</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H81D3A8E02E124824891CDB5FCC441D03"><enum>(3)</enum><header>Specific
requirements</header><text>The standards established under paragraph (2) shall
include—</text>
<subparagraph id="H360F67855C8748D5B5805863CCB09D16"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text>
</subparagraph><subparagraph id="HFBD52F21601D487ABCF5C2F8342CF3AF"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="HE6DB8C7647C84A57AA8C8800EDD1E168"><enum>(C)</enum><text display-inline="yes-display-inline">a prohibition on such automobile
manufacturer making any golden parachute payment to a senior executive officer
during the period that the loan is outstanding;</text>
</subparagraph><subparagraph id="H64655C0F0B50456383E9662FD93DBF"><enum>(D)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="HD454D118DA1C42EB8E73456604F4EE82"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="HDFB1CABE49FA482F0019C7800119241"><enum>(4)</enum><header>Divestiture</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HDB30E74697684C3FB886BB28725B35"><enum>(5)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the
following definitions shall apply:</text>
<subparagraph id="H8640CA6AE4BE4A319B008672F5B93D7B"><enum>(A)</enum><header>Senior executive
officer</header><text>The term <term>senior executive officer</term> 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.</text>
</subparagraph><subparagraph id="H4D47C0B51A614DE78C302044916C005F"><enum>(B)</enum><header>Golden parachute
payment</header><text>The term <term>golden parachute payment</term> 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.</text>
</subparagraph></paragraph></subsection><subsection id="H02DC925D4FE146A791FBE5E3EAF22CC6"><enum>(c)</enum><header>Prohibition on
payment of dividends</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H7AAEE08C735F41C1A1E44511AFBE2BFB"><enum>(d)</enum><header>Other interests
subordinated</header>
<paragraph id="H9190F61CD46C4054BB2E97366977E768"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of an
eligible automobile manufacturer which received a loan under this title, to the
extent permitted by the terms of any existing vested legal rights and the
Constitution, any other obligation of such eligible automobile manufacturer
shall be subordinate to such loan, and such loan shall be senior and prior to
all obligations, liabilities, and debts of the eligible automobile
manufacturer, and such eligible automobile manufacturer shall provide to the
Government, all available security and collateral against which the loans under
this title shall be secured.</text>
</paragraph><paragraph commented="no" id="H5D4C5DABFEF14C37BD31B83214DF577C"><enum>(2)</enum><header>Applicability in
certain cases</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" id="HA695DFDF75994DF287CF69B78BF3D804"><enum>(A)</enum><text display-inline="yes-display-inline">be treated as a loan to any holding company
of, or company that controls a majority stake in, the eligible automobile
manufacturer; and</text>
</subparagraph><subparagraph commented="no" id="HB03AB4ABF0184EA0BBD584934C16F4CB"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H68C04FA0CFAB466A80AAFA6DAF54101"><enum>(e)</enum><header>Additional
taxpayer protections</header>
<paragraph id="HEBF38CD58AD34AD0B74B9F002EDCC93E"><enum>(1)</enum><header>Discharge</header><text>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.</text>
</paragraph><paragraph id="H2633994CBF364AA7BF4F18A09C00EDAA"><enum>(2)</enum><header>Exemption</header><text>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.</text>
</paragraph><paragraph id="H5B16340BE17544DEBA5D95658097CE46"><enum>(3)</enum><header>Interested
parties</header><text>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.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H3DA0F4A5995C4D5C8D491C7CB24CDE61" section-type="subsequent-section"><enum>410.</enum><header>Oversight and
audits</header>
<subsection id="HA3E83C38FD1F4F1C970311AF11E9B377"><enum>(a)</enum><header>Comptroller
General oversight</header>
<paragraph id="HECC6AC06385E4752B583D0A459D67D59"><enum>(1)</enum><header>Scope of
oversight</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall conduct ongoing oversight of the activities
and performance of the President's designee.</text>
</paragraph><paragraph id="H0AA1C27D8A7D4BAC93FE5968070036D0"><enum>(2)</enum><header>Conduct and
administration of oversight</header>
<subparagraph id="H84B3CDB3E0CE44EBA6C84FCB4C20219"><enum>(A)</enum><header>GAO
presence</header><text>The President's designee shall provide to the
Comptroller General appropriate space and facilities for purposes of this
subsection.</text>
</subparagraph><subparagraph id="HBEFBFA6B454B474384CD29BDB928E618"><enum>(B)</enum><header>Access to
records</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HD78EE159674F47149E42CA3BFAFC69BD"><enum>(3)</enum><header>Reporting</header><text>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.</text>
</paragraph></subsection><subsection id="HB1E7DD5D27694FE483D96E09FB9271B0"><enum>(b)</enum><header>Special
Inspector General</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBCF50A4B80F94F9CA26F7B2E32D3C37E"><enum>(c)</enum><header>Access to
records of borrowers by GAO</header><text>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 <term>related entities</term>),
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.</text>
</subsection></section><section id="H5B6CE2EFD8814D3385EFD7B5AB427CC2"><enum>411.</enum><header>Reporting and
monitoring</header>
<subsection id="HBF316BCD8B014ECBB59C96345CD80053"><enum>(a)</enum><header>Reporting on
consummation of loans</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H7A538ED2222E40EDA14035A0E3703C65"><enum>(b)</enum><header>Reporting on
restructuring progress assessment measures</header><text>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.</text>
</subsection><subsection id="H0986817E1EB5461DBBBC24C1FB3316B7"><enum>(c)</enum><header>Reporting on
evaluations</header><text>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).</text>
</subsection><subsection id="H175105514FA04942AF58F2A816D3092"><enum>(d)</enum><header>Reporting on
consequences for failure to comply</header><text>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.</text>
</subsection><subsection id="HB3C817FFC2C54930A8C48CAD1F67CE10"><enum>(e)</enum><header>Monitoring</header><text>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.</text>
</subsection></section><section id="HF83146C32C9740B8AFAFA066CE80766C"><enum>412.</enum><header>Report to
Congress on lack of progress toward achieving an acceptable negotiated
plan</header>
<subsection id="HEBAA4D685D1741E0009923B31CB021DF"><enum>(a)</enum><header>Authority To
facilitate a negotiated plan</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HCC85D01BBE2445EBB2AC53A992BE1964"><enum>(b)</enum><header>Impediments to
achieving negotiated plans</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H64AEAA6C98264C879496EED72935DC28"><enum>413.</enum><header>Submission of
plan to Congress by the President's designee</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="H442334AB0580426CB6E55D720029E56F" section-type="subsequent-section"><enum>414.</enum><header>Coordination with
other laws</header>
<subsection display-inline="no-display-inline" id="HA69ACD2A59F847E488C2E657A39D00B0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">No provision of this
title may be construed as altering, affecting, or superseding—</text>
<paragraph display-inline="no-display-inline" id="H9E593F1579CF4C769386CFF75D42E47B"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H16584324713B4B3DBCADCE9E896FD7E2"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9D69D647FB7F4CBA0000747D7B6F06AA"><enum>(b)</enum><header>Antitrust
provisions</header>
<paragraph id="H59B81FE9FDF2489E8413BBC8799FCA00"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="H05484333823D44E3944985AB8C1040FC"><enum>(2)</enum><header>Exclusions</header><text>Paragraph
(1) shall not apply with respect to price-fixing, allocating a market between
competitors, monopolizing (or attempting to monopolize) a market, or
boycotting.</text>
</paragraph><paragraph id="H8182FD0400C9489C8BF4EA1B4448F0AC"><enum>(3)</enum><header>Antitrust agency
participation</header><text>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).</text>
</paragraph><paragraph id="H7D8E35F4D106458083CB01FECE07E896"><enum>(4)</enum><header>Preservation of
enforcement authority</header><text>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.</text>
</paragraph><paragraph id="H21259FA372BC43D59127A2D4A5D6E631"><enum>(5)</enum><header>Sunset</header><text>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.</text>
</paragraph><paragraph id="HE80BDF77AFA344DDAD3CA4CCD8BF5621"><enum>(6)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>antitrust laws</term>—</text>
<subparagraph id="H7DAA9D7FCA994BEA9478BDBA85AF8DAF"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H2991FCF3C04A4C38A2702869E4493248"><enum>(B)</enum><text>includes any
provision of State law that is similar to the laws referred to in subparagraph
(A).</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB74B2DCDBD374ECE96D3EEFFAF3B00"><enum>415.</enum><header>Treatment of
restructuring for purposes of applying limitations on net operating loss
carryforwards and certain built-in losses</header><text display-inline="no-display-inline">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.</text>
</section><section id="H630AD9F76DCB4BEDAAD928BBD952200"><enum>416.</enum><header>Clarification of
availability of financial support for financing arms</header><text display-inline="no-display-inline">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.</text>
</section>.
<enum>IV</enum><header>Clarification of
authority</header>
<section commented="no" id="HBC622101A2F64D88B771F95FCDFB29D6"><enum>401.</enum><header>Consumer
loans</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H78A41C4A7D7A4B26B92EFF4691F08214" style="OLC">
<section commented="no" id="HB2660FC15D6B49F19F63EB8CB3C748F0"><enum>137.</enum><header>Clarification
of authority regarding consumer loans</header><text display-inline="no-display-inline">The authority of the Secretary to take any
action under this title includes the authority to establish or support
facilities to support the availability of consumer loans, including loans for
autos and other vehicles and student loans, including through purchase of
asset-backed securities, directly or through the Board or any Federal reserve
bank. In determining which classes of consumer loans to support, the Secretary
may consider the applicable regulatory structure and level of consumer
protection afforded to such
loans.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H49D92F74E73B42B5A3FA5BAAC7B1A6C" section-type="subsequent-section"><enum>402.</enum><header>Municipal
securities</header><text display-inline="no-display-inline">Section 101 of the
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211) is amended by
inserting after subsection (g) (as added by section 110 of this Act) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HACE5851331F4444896B5A27F1EA0434D" style="OLC">
<subsection id="HE024E022DFED40528ED808A184DCF59D"><enum>(h)</enum><header>Clarification of
authority regarding municipal securities</header>
<paragraph id="H289CAE8DA1DB421DB6BC2BF64704B201"><enum>(1)</enum><header>Clarification</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H21BED5D3E69A4B5B92FBA3EE7DA59DFB"><enum>(2)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>municipal security</term> has the meaning given the term <term>State or
local bond</term> in section 103(c) of the Internal Revenue Code of 1986 (26
U.S.C. 103(c)) and the regulations issued thereunder or any other entity
eligible to issue bonds the interest on which is excludable from gross income
for Federal income tax
purposes.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HB26B8594FB5740A5ACA5A849AEA2F2B"><enum>403.</enum><header>Commercial real
estate loans</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H15CFD1F0C7DD413EB6BF9E9D46D1C4FD" style="OLC">
<section commented="no" id="H5E934D1A14F2412681C800E11EF56F33"><enum>138.</enum><header>Clarification
of authority regarding commercial real estate loans</header><text display-inline="no-display-inline">The authority of the Secretary to take any
action under this title includes the authority to establish or support
facilities to support the availability of commercial real estate loans,
including loans for multifamily housing, including through purchase of
asset-backed securities, directly or through the Board of Governors of the
Federal Reserve System or any Federal reserve
bank.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H869FB85909E6472484C638F4BD954302"><enum>404.</enum><header>Small business
loans</header><text display-inline="no-display-inline">Title I of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by
adding after section 138 (as added by section 403 of this title) the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="H64E68C1A494B48FDA89628F15AF53AB5" style="OLC">
<section commented="no" id="H02BDDEF144414D93BEAE49D8F33FBB15"><enum>139.</enum><header>Clarification
of authority regarding small business loans</header><text display-inline="no-display-inline">The authority of the Secretary to take any
action under this title includes the authority to establish or support
facilities to support the availability of small business loans, including farm
loans, loans to minority and disadvantaged businesses, debtor-in-possession
financing, dealer floor plan financing, and any other small business loans,
including through purchase of asset-backed securities, directly or through the
Board or any Federal reserve
bank.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H52D3AB570C714DA5BAF1FD5FFD3772A1"><enum>405.</enum><header>Commercial
loans</header><text display-inline="no-display-inline">Title I of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is amended by
adding after section 139 (as added by section 404 of this title) the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="HB6B8C845C49247F28F3F615D72E412A6" style="OLC">
<section commented="no" id="HAFA41E8D22A141BABD64D25D43EB7586"><enum>140.</enum><header>Clarification
of authority regarding commercial loans</header><text display-inline="no-display-inline">The authority of the Secretary to take any
action under this title includes the authority to establish or support
facilities to support the availability of commercial loans, including through
purchase of asset-backed securities, directly or through the Board or any
Federal reserve
bank.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H1513AE756B8A40C08F2E7BE01A959400"><enum>406.</enum><header>Automobile
fleet purchase loans</header><text display-inline="no-display-inline">Title I
of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) is
amended by adding after section 140 (as added by section 405 of this title) the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H2E7619666CBA47A49BEB68E569B254C2" style="OLC">
<section commented="no" id="H0A8970333BCF42978F17EB20816ABCA4"><enum>141.</enum><header>Clarification
of authority regarding automobile fleet purchase loans</header><text display-inline="no-display-inline">The authority of the Secretary to take any
action under this title includes the authority to establish or support
facilities to support the availability of automobile fleet purchase loans,
including loans for the automobile rental industry and other fleet purchasers,
including through purchase of asset-backed securities, directly or through the
Board or any Federal reserve
bank.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB513E4B8EBBA4B6998C8BBA65C61E86F"><enum>407.</enum><header>Certification</header><text display-inline="no-display-inline">Subsection (a) of section 105 of the
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5215(a)) is
amended—</text>
<paragraph id="H582BD4D2EC5A43D2B0B9D35406A05A45"><enum>(1)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H4C73259F0ED94E9FAFC02EE7D76E5CED"><enum>(2)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H31443E6E1C244F219C357AC896BA8274"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H56344BD2261941D2B751ECC4FD1E44ED" style="OLC">
<paragraph id="H32BF35D33CDC43AD998E68117ED9DF8C"><enum>(4)</enum><text display-inline="yes-display-inline">the use of the authority for the purposes
specified in the amendments made by title IV of the
<short-title>TARP Reform and Accountability Act of
2009</short-title>.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>V</enum><header>HOPE
for Homeowners Program improvements</header>
<section id="HFF9776C4CFDC433186FCD3DF50EADCC6" section-type="subsequent-section"><enum>501.</enum><header>Changes to HOPE for
Homeowners Program</header><text display-inline="no-display-inline">Section 257
of the National Housing Act (12 U.S.C. 1715z–23) is amended—</text>
<paragraph id="H86065E6322594DB284186E5B8E084D27"><enum>(1)</enum><text>in subsection
(e)—</text>
<subparagraph id="H1B501CD864D7498E9968E6E2EA68038B"><enum>(A)</enum><text>by striking
paragraph (1);</text>
</subparagraph><subparagraph id="H223D6DCF2A064FADA58463C1122CAFA7"><enum>(B)</enum><text>in paragraph
(2)(B), by striking <quote>90 percent</quote> and inserting <quote>93
percent</quote>;</text>
</subparagraph><subparagraph id="HC0499B8E6271446096C91B21FA0165A1"><enum>(C)</enum><text>by striking
paragraph (7);</text>
</subparagraph><subparagraph id="H70E3597A26E249DB8BE71431028496A3"><enum>(D)</enum><text>in paragraph (9),
by striking <quote>by procuring</quote> and all that follows through <quote>by
any other method</quote>; and</text>
</subparagraph><subparagraph id="HCD83CFA7068F441495FFC134C769417C"><enum>(E)</enum><text>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;</text>
</subparagraph></paragraph><paragraph id="HDB108A434E844F9D81FC3B2F884B9E96"><enum>(2)</enum><text>in subsection
(h)(2), by striking <quote>, or in any case in which a mortgagor fails to make
the first payment on a refinanced eligible mortgage</quote>;</text>
</paragraph><paragraph id="H1718399F3A2F4A28852DD94256DDE262"><enum>(3)</enum><text display-inline="yes-display-inline">by striking subsection (i) and inserting
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H521328DFBD8D493C882ECBB1B1A2AED2" style="OLC">
<subsection id="H719A6332C4244F9C98D914EEF71C7460"><enum>(i)</enum><header>Annual
premiums</header>
<paragraph id="HF343ED3FA3754E33AD5B562800457828"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H828EC29E977D4C34973150B063885F44"><enum>(2)</enum><header>Reduction or
termination during mortgage term</header><text>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).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H84B58B04320846738F6EB18683CADF32"><enum>(4)</enum><text>in subsection
(k)—</text>
<subparagraph id="HAF9563281EFD45BCA2230057BF384B46"><enum>(A)</enum><text>by striking the
subsection heading and inserting <quote><header-in-text level="subsection" style="OLC">Exit fee</header-in-text></quote>;</text>
</subparagraph><subparagraph id="HC9274CB3E66F4D2891F17573D2158C84"><enum>(B)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by striking <quote>such sale or
refinancing</quote> and inserting <quote>the mortgage being insured under this
section</quote>; and</text>
</subparagraph><subparagraph id="HE1AA4A252BC84C78B9B2F721295BBB76"><enum>(C)</enum><text>by striking
paragraph (2);</text>
</subparagraph></paragraph><paragraph commented="no" id="HD6EE51FA1FC04463A3D571EA029F3D35"><enum>(5)</enum><text>in subsection
(s)(3)(A)(ii), by striking <quote>subsection (e)(1)(B) and such other</quote>
and inserting <quote>such</quote>;</text>
</paragraph><paragraph id="HD35B0277BD754F959E25A7A6F8B189D3"><enum>(6)</enum><text>in subsection (v),
by inserting after the period at the end the following: <quote>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.</quote>;</text>
</paragraph><paragraph commented="no" id="H4B3D551BFF4346E69E23C8A45605D1EA"><enum>(7)</enum><text>in subsection
(w)(1)(C), by striking <quote>(e)(4)(A)</quote> and inserting
<quote>(e)(3)(A)</quote>; and</text>
</paragraph><paragraph id="HDDA7E4847E324FEF8475AE5D0028B75F"><enum>(8)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HC3805BC763C94E2BBE261190C93BDE7B" style="OLC">
<subsection id="HCCAA9253A5AF458483AC549809558D87"><enum>(x)</enum><header>Payment to
existing loan servicer</header><text display-inline="yes-display-inline">The
Board may establish a payment to the servicer of the existing senior mortgage
for every loan insured under the HOPE for Homeowners
Program.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>VI</enum><header>Home
buyer Stimulus</header>
<section id="H41EE71C990CC433F995D826EED7A7B9"><enum>601.</enum><header>Home buyer
stimulus program</header>
<subsection id="H55C3BAF14F4146289059D4BD1BDCC340"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury (in this title referred to as the <term>Secretary</term>) shall
establish and implement, within 60 days of the date of the enactment of the
<short-title>TARP Reform and Accountability Act of
2009</short-title>, a program to stimulate demand for home purchases and reduce
unsold inventories of residential properties, by providing mechanisms to ensure
the availability of affordable, below-market interest rates on mortgages made
for the purchase, by qualified home buyers, of 1- to 4-family residential
properties.</text>
</subsection><subsection display-inline="no-display-inline" id="H673544DD62E64822AE21A093B50F578D"><enum>(b)</enum><header>Implementation</header><text display-inline="yes-display-inline">The Secretary shall execute the program
under this section using the authority to purchase obligations and other
securities issued by the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation, and the Federal Home Loan Banks made available
by the Housing and Economic Recovery Act of 2008 and such other authority as
the Secretary may have (other than that provided by title I of the Emergency
Economic Stabilization Act of 2008) to make affordable, below-market interest
rates available directly through portfolio lenders.</text>
</subsection><subsection id="H3E6DCA1E84AF4625A455AD86FC74B739"><enum>(c)</enum><header>Availability of
affordable loans under HOPE for Homeowners Program</header><text display-inline="yes-display-inline">The
Secretary, in consultation with the Secretary of Housing and Urban Development,
shall ensure that the affordable, below-market interest rates made available
through the program under this section are made available in connection with
mortgages made for refinancing eligible mortgages, as such term is defined in
section 257 of the National Housing Act (12 U.S.C. 1715z–23), to be insured
under the HOPE for Homeowners Program under such section.</text>
</subsection><subsection id="H6B1246D1CADF4E55B7F377DD6EC95874"><enum>(d)</enum><header>Targeting for
housing disaster areas</header>
<paragraph id="H7B17338867184134B8FCC925FD8AE1BF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In carrying out the
program under this section, the Secretary shall take into consideration impact
of activities under the program on housing disaster areas.</text>
</paragraph><paragraph id="H284FF23A70E7483F802FD4F6B92FFFBD"><enum>(2)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 60 days after the Secretary
first has authority to purchase troubled assets pursuant to section 115(a)(3)
of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)), the
Secretary shall—</text>
<subparagraph id="HF98CF7D3E13A493AA76B8FB46AF5BB3C"><enum>(A)</enum><text display-inline="yes-display-inline">evaluate the impact of existing Federal
foreclosure prevention activities on housing disaster areas;</text>
</subparagraph><subparagraph id="HC7BAD1BCD2944F05AA18E8066757C8C9"><enum>(B)</enum><text display-inline="yes-display-inline">make a determination of whether the
foreclosure rates and anticipated default rates in such areas have been
adequately reduced; and</text>
</subparagraph><subparagraph id="H411104D50027479E8316F978CC62BDC0"><enum>(C)</enum><text display-inline="yes-display-inline">submit a report to the Congress that
describes the impact of such activities and the determination of the Secretary
under subparagraph (B).</text>
</subparagraph></paragraph><paragraph id="H0FFC5CEB93D347B78D8B84941A051DFA"><enum>(3)</enum><header>Alternative
proposals</header><text>If the Secretary determines that the foreclosure rates
and anticipated default rates in housing disaster areas have not been
adequately reduced, the Secretary shall—</text>
<subparagraph id="H188E56361B81416289DB07A658196287"><enum>(A)</enum><text>consider carrying
out alternative proposals, including a proposal under which the Federal
Government makes available affordable mortgages, including refinancings,
through subsidized financing or mortgage purchases; and</text>
</subparagraph><subparagraph id="H281A01C984B247409F25DC5D91DF17C6"><enum>(B)</enum><text>establish and
carry out alternative programs as the Secretary considers necessary to ensure
that foreclosure prevention efforts are most effective in the areas of greatest
need, including housing disaster areas.</text>
</subparagraph></paragraph><paragraph id="HA949695034434D4D8A6E4722BD1C9F78"><enum>(4)</enum><header>Housing disaster
areas</header><text display-inline="yes-display-inline">For purposes of this
section, the term <quote>housing disaster area</quote> means a geographic area
having both—</text>
<subparagraph id="H9A2C2D18146A4ECBBC8724494A0AED62"><enum>(A)</enum><text display-inline="yes-display-inline">a high foreclosure rate during the 12
months preceding the date of the enactment of this Act, as measured by
percentages of homes in or having gone through foreclosure during such period
and compared to other areas; and</text>
</subparagraph><subparagraph id="H62553AA60ECB47B1BEAA5EEB1BCB49F7"><enum>(B)</enum><text>a substantial
decline in home prices during the 12 months preceding the date of the enactment
of this Act, as measured by the Office of Federal Housing Enterprise and
Oversight and compared to other areas.</text>
</subparagraph></paragraph></subsection></section><enum>VII</enum><header>FDIC
provisions</header>
<section id="HDF888090ABD444128E38D4E343138734"><enum>701.</enum><header>Permanent
increase in deposit insurance</header>
<subsection id="HBAB9B2A65F004ABB86CFAF241031C418"><enum>(a)</enum><header>Amendments to
Federal Deposit Insurance Act</header><text>Section 11(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)) is amended—</text>
<paragraph id="H97F2E78670F347F884BDE3A519FAED01"><enum>(1)</enum><text>in paragraph
(1)(E), by striking <quote>$100,000</quote> and inserting
<quote>$250,000</quote>;</text>
</paragraph><paragraph id="HA0061BD2B4AF4D07ACD279136EF515AD"><enum>(2)</enum><text>in paragraph
(1)(F)(i), by striking <quote>2010</quote> and inserting
<quote>2015</quote>;</text>
</paragraph><paragraph id="H4A80FF90AE834EBF964728FD95E54C13"><enum>(3)</enum><text>in subclause (I)
of paragraph (1)(F)(i), by striking <quote>$100,000</quote> and inserting
<quote>$250,000</quote>;</text>
</paragraph><paragraph id="H246CE114DD4342CA8C20B000A0D73394"><enum>(4)</enum><text>in subclause (II)
of paragraph (1)(F)(i), by striking <quote>the calendar year preceding the date
this subparagraph takes effect under the Federal Deposit Insurance Reform Act
of 2005</quote> and inserting <quote>calendar year 2008</quote>; and</text>
</paragraph><paragraph id="H399F07FBD855498F855888CD78B5CC40"><enum>(5)</enum><text>in paragraph
(3)(A)(iii), by striking <quote>, except that $250,000 shall be substituted for
$100,000 wherever such term appears in such paragraph</quote>.</text>
</paragraph></subsection><subsection id="HE99EB391CC684B5A86909DB5F368E319"><enum>(b)</enum><header>Repeal of EESA
provision</header><text>Section 136 of the Emergency Economic Stabilization Act
(Public Law 110–343; 122 Stat. 3765) is hereby repealed.</text>
</subsection><subsection id="H8339E94BCC83438E85C7E4D3FA68578"><enum>(c)</enum><header>Amendment to
Federal Credit Union Act</header><text>Section 207(k) of the Federal Credit
Union Act (12 U.S.C. 1787(k) is amended—</text>
<paragraph id="HF6D7C64F887849449CDF494977AE00B9"><enum>(1)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H7CE0B102BD364B7D8462855323B7B36"><enum>(A)</enum><text>by striking the
opening quotation mark before <quote>$250,000</quote>;</text>
</subparagraph><subparagraph id="H903E1E8FF87B4BECAD00E31FCA1362"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>, except that $250,000
shall be substituted for $100,000 wherever such term appears in such
section</quote>; and</text>
</subparagraph><subparagraph id="H54B46525563A450D993DBF9C17B9B00"><enum>(C)</enum><text>by striking the
closing quotation mark after the closing parenthesis; and</text>
</subparagraph></paragraph><paragraph id="H3D71128BDC45412396CFE006E6F516D"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), by striking
<quote>$100,000</quote> and inserting <quote>$250,000</quote>;</text>
</paragraph></subsection></section><section id="H54FB1032295843ACA68CCF705671D1BD"><enum>702.</enum><header>Extension of
restoration plan period</header><text display-inline="no-display-inline">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
<quote>5-year period</quote> and inserting <quote>8-year period</quote>.</text>
</section><section id="H9AD41292C34447C7AC372C04CB7169D"><enum>703.</enum><header>Borrowing
authority</header><text display-inline="no-display-inline">Section 14(a) of the
Federal Deposit Insurance Act (12 U.S.C. 1824(a)) is amended—</text>
<paragraph id="H5C63E894184245C480ED57B49B3CDD30"><enum>(1)</enum><text>by striking
<quote>$30,000,000,000</quote> and inserting <quote>$100,000,000,000</quote>;
and</text>
</paragraph><paragraph id="H96D353E19D644E6A9C05C7DE13B16E13"><enum>(2)</enum><text>by inserting prior
to the last sentence, the following new sentence: <quote>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.</quote>.</text>
</paragraph></section><section id="HDC1EA6B770A24FB08F196978C696CB73"><enum>704.</enum><header>Systemic risk
special assessments</header><text display-inline="no-display-inline">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:</text>
<quoted-block id="H8DE76951AEF54B139B07B227B0676DC5" style="OLC">
<clause id="HC99119B963B94D56B8EA89CF17808049"><enum>(ii)</enum><header>Repayment of
loss</header>
<subclause id="H5165C3683338433E8556CD60C4143122"><enum>(I)</enum><header>In
general</header><text>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.</text>
</subclause><subclause id="H49FF92D3ED7D4A30AAA16F359EAFEB02"><enum>(II)</enum><header>Treatment of
depository institution holding companies</header><text>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.</text>
</subclause><subclause id="H4D8EB2F810624DE8BEF6322C4C9D86BD"><enum>(III)</enum><header>Regulations</header><text>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.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VIII</enum><header>Reports on the
guarantee of certain Citigroup assets</header>
<section id="H8C249D4A4287402D8D36F0971A7A6A6C"><enum>801.</enum><header>Reports
required</header>
<subsection id="H38DDC79FE640481B90D8DD49C3AD0879"><enum>(a)</enum><header>Treasury
reports</header><text display-inline="yes-display-inline">Not later than 30
days after the date of the enactment of this Act, the Secretary of the
Treasury, in coordination with the Chairperson of the Board of Directors of the
Federal Deposit Insurance Corporation, shall issue a report to the Committee on
Financial Services of the House of Representatives, the Committee on Banking of
the Senate, and to the Comptroller General of the United States containing the
following:</text>
<paragraph id="HD1B3D7ACD1C94693A22E390B48DA35EC"><enum>(1)</enum><text>The authority
under which the Citigroup guarantee and purchases were made.</text>
</paragraph><paragraph id="H7DFF532E2C294ABE80D94F929058B9D3"><enum>(2)</enum><text>A
complete accounting of the specific loans, securities, and any other financial
instruments in the asset pool covered by the Citigroup guarantee.</text>
</paragraph></subsection><subsection id="H07771014E9C84E78B3CE298B7FFE2965"><enum>(b)</enum><header>GAO
report</header><text display-inline="yes-display-inline">Not later than 60 days
after the date the Secretary of the Treasury issues the report required by
subsection (a), the Comptroller General of the United States shall issue a
report to the Committee on Financial Services of the House of Representatives
and the Committee on Banking of the Senate examining the probable long-term
cost to the Federal Government of the Citigroup guarantee.</text>
</subsection><subsection id="H112800F841D04F989D09B46E8CFC13D3"><enum>(c)</enum><header>Citigroup
guarantee defined</header><text display-inline="yes-display-inline">For the
purpose of this section, the term <quote>Citigroup guarantee</quote> means the
agreement announced November 23, 2008, between Citigroup and the Treasury and
the Federal Deposit Insurance Corporation to guarantee or purchase, partly
through the use of funds authorized under the Emergency Economic Stabilization
Act of 2008 (12 U.S.C. 5201 et seq.), an asset pool of approximately $306
billion of loans and securities backed by residential and commercial real
estate and other such assets on Citigroup's balance sheet.</text>
</subsection></section><enum>IX</enum><header>GAO
study of financial crisis</header>
<section id="HFA490EDE15D14E1DB28BEA369F8630A6"><enum>901.</enum><header>Study
required</header><text display-inline="no-display-inline">The Comptroller
General of the United States shall—</text>
<paragraph id="HBC6CF9FA265E4F269592E99DABE1818C"><enum>(1)</enum><text>conduct an
in-depth study of the root causes of the financial crisis; and</text>
</paragraph><paragraph id="H2114ACE1661C4B7D8C358430A03392D5"><enum>(2)</enum><text>submit a report to
the Congress and the President, and transmit a copy to the Secretary of the
Treasury, containing the findings and conclusions of the Comptroller General
with respect to the study under paragraph (1), together with such
recommendations for legislative and administrative action as the Comptroller
General may determine to be appropriate before the end of the 6-month period
beginning on the date of the enactment of this Act.</text>
</paragraph></section><section id="HA791E126544B401CA0EF152D2CF3D924"><enum>902.</enum><header>Treasury
strategy and timeline</header><text display-inline="no-display-inline">Using
the findings and conclusions of the Comptroller General in the report under
section 901(2), within 30 days, the Secretary of the Treasury shall issue an
overall strategy and timeline for implementing the recommendations contained in
the report with the goal of financial stability and the well-being of
taxpayers.</text>
</section><enum>X</enum><header>Agency MBS
Purchase Program disclosure</header>
<section id="H076D81FD823F4FB39941A073DF141BD4"><enum>1001.</enum><header>Disclosure
required</header><text display-inline="no-display-inline">Not later than 1
month after the date of the enactment of this Act, the Chairman of the Board of
Governors of the Federal Reserve System shall issue to the Congress a report
disclosing—</text>
<paragraph id="HF03142C4FD464AB2B96FE87DB3329F23"><enum>(1)</enum><text display-inline="yes-display-inline">the details of the competitive request for
proposal process that was used to select the investment managers of the Federal
Reserve System’s Agency Mortgage-Backed Security Purchase Program announced by
the Federal Reserve System on November 25, 2008;</text>
</paragraph><paragraph id="H0E20EE0102CF4535AEF6308EF36D8728"><enum>(2)</enum><text>all details of the
contracts, including contract price, made between the Federal Reserve System
and such investment managers; and</text>
</paragraph><paragraph id="H546E5B1D20F844508594FBEF734EB172"><enum>(3)</enum><text display-inline="yes-display-inline">steps that each such investment manager has
taken to ensure that the investment manager has appropriately segregated the
investment management team that implements the Agency Mortgage-Backed Security
Purchase Program from other advisory and propriety trading activities
undertaken by the investment manager and the members of the investment
management team.</text>
</paragraph></section>
Passed the House of
Representatives January 21, 2009.
Lorraine C. Miller,
Clerk.