[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5125 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5125

To amend the Emergency Economic Stabilization Act of 2008 to establish 
 a fund to be used to make local governments whole for losses incurred 
          from the Lehman Brothers Holding, Inc., bankruptcy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 2010

 Ms. Eshoo (for herself and Ms. Speier) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Emergency Economic Stabilization Act of 2008 to establish 
 a fund to be used to make local governments whole for losses incurred 
          from the Lehman Brothers Holding, Inc., bankruptcy.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restitution for Local Government Act 
of 2010''.

SEC. 2. TARP PROFITS USED TO PURCHASE CERTAIN INSTRUMENTS FROM LOCAL 
              GOVERNMENTS.

    (a) Restitution for Local Governments.--Title I of the Emergency 
Economic Stabilization Act of 2008 is amended by adding at the end the 
following new section:

``SEC. 137. RESTITUTION FOR LOCAL GOVERNMENTS.

    ``(a) Purchases of Certain Instruments From Local Governments.--
            ``(1) In general.--Notwithstanding section 106(d), and with 
        respect to troubled assets purchased from a specific financial 
        institution, the amount of any profit made by the Secretary 
        with respect to such troubled assets shall by used by the 
        Secretary to purchase from local governments securities, bonds, 
        and other financial instruments issued by Lehman Brothers 
        Holding, Inc. that were held by such governments on September 
        12, 2008.
            ``(2) Limitations.--
                    ``(A) Dollar amount.--The aggregate amount of all 
                purchases made by the Secretary under paragraph (1) 
                shall not exceed $1,700,000,000.
                    ``(B) Nonapplicability to pension funds.--Financial 
                instruments held by a pension fund may not be purchased 
                pursuant to paragraph (1).
            ``(3) Purchase amount.--For purposes of determining the 
        purchase price of a financial instrument under paragraph (1)--
                    ``(A) with respect to stock of Lehman Brothers 
                Holding, Inc., the purchase price of such stock shall 
                be calculated based on the value of such stock at the 
                close of trading on September 12, 2008; and
                    ``(B) with respect to any other financial 
                instrument, the purchase price shall be the principal 
                amount of such instrument.
    ``(b) Substitution of Secretary.--Notwithstanding any other 
provision of this title, the Secretary shall be substituted for any 
local government from which the Secretary purchases any financial 
instrument pursuant to subsection (a)(1) as a creditor in any 
proceeding under title 11, United States Code, pursuant to the petition 
filed on September 15, 2008, by Lehman Brothers Holdings Inc., and 
shall have the same standing in such proceedings with respect to other 
creditors as the local government for which the Secretary is 
substituted.
    ``(c) Reporting Requirement.--Each local government from which the 
Secretary makes purchases under subsection (a)(1) must issue a report 
to the Congress--
            ``(1) stating how the local government used the funds 
        received through such purchase; and
            ``(2) demonstrating job creation, retention, and economic 
        activity equal to the difference between--
                    ``(A) the amount of the funds received by the local 
                government through such purchase; and
                    ``(B) the amount of funds received by the Secretary 
                by reason of being substituted as a creditor with 
                respect to the instruments that are the basis of such 
                purchases, pursuant to subsection (b).
    ``(d) Rulemaking.--The Secretary shall issue such regulations as 
are necessary to carry out the provisions of this section.
    ``(e) Local Government Defined.--For purposes of this section, the 
term `local government' means any county, city, town, village, or other 
general purpose political subdivision of a State.''.
    (b) Clerical Amendment.--The table of contents of the Emergency 
Economic Stabilization Act of 2008 is amended by inserting after the 
item relating to section 136 the following:

``Sec. 137. Restitution for local governments.''.
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