[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1280 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1280

   To authorize the Secretary of the Treasury to delegate management 
   authority over troubled assets purchased under the Troubled Asset 
   Relief Program, to require the establishment of a trust to manage 
 assets of certain designated TARP recipients, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 17, 2009

 Mr. Corker (for himself, Mr. Warner, and Mr. Bennett) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To authorize the Secretary of the Treasury to delegate management 
   authority over troubled assets purchased under the Troubled Asset 
   Relief Program, to require the establishment of a trust to manage 
 assets of certain designated TARP recipients, and for other purposes.

    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 ``TARP Recipient Ownership Trust Act 
of 2009''.

SEC. 2. AUTHORITY OF THE SECRETARY OF THE TREASURY TO DELEGATE TARP 
              ASSET MANAGEMENT.

    Section 106(b) of the Emergency Economic Stabilization Act of 2008 
(12 U.S.C. 5216(b)) is amended by inserting before the period at the 
end the following: ``, and the Secretary may delegate such management 
authority to a private entity, as the Secretary determines appropriate, 
with respect to any entity assisted under this Act''.

SEC. 3. CREATION OF MANAGEMENT AUTHORITY FOR DESIGNATED TARP 
              RECIPIENTS.

    (a) Federal Assistance Limited.--Notwithstanding any provision of 
the Emergency Economic Stabilization Act of 2008, or any other 
provision of law, no funds may be expended under the Troubled Asset 
Relief Program, or any other provision of that Act, on or after the 
date of enactment of this Act, until the Secretary of the Treasury 
transfers all voting, nonvoting, and common equity in any designated 
TARP recipient to a limited liability company established by the 
Secretary for such purpose, to be held and managed in trust on behalf 
of the United States taxpayers.
    (b) Appointment of Trustees.--
            (1) In general.--The President shall appoint 3 independent 
        trustees to manage the equity held in the trust, separate and 
        apart from the United States Government.
            (2) Criteria.--Trustees appointed under this subsection--
                    (A) may not be elected or appointed Government 
                officials;
                    (B) shall serve at the pleasure of the President, 
                and may be removed for just cause in violation of their 
                fiduciary responsibilities only; and
                    (C) shall serve without compensation for their 
                services under this section.
    (c) Duties of Trust.--Pursuant to protecting the interests and 
investment of the United States taxpayer, the trust established under 
this section shall, with the purpose of maximizing the profitability of 
the designated TARP recipient--
            (1) exercise the voting rights of the shares of the 
        taxpayer on all core governance issues;
            (2) select the representation on the boards of directors of 
        any designated TARP recipient; and
            (3) have a fiduciary duty to the American taxpayer for the 
        maximization of the return on the investment of the taxpayer 
        made under the Emergency Economic Stabilization Act of 2008, in 
        the same manner and to the same extent that any director of an 
        issuer of securities has with respect to its shareholders under 
        the securities laws and all applications of State law.
    (d) Liquidation.--The trustees shall liquidate the trust 
established under this section, including the assets held by such 
trust, not later than December 24, 2011, unless the trustees submit a 
report to Congress that liquidation would not maximize the 
profitability of the company and the return on investment to the 
taxpayer.

SEC. 4. DEFINITIONS.

    As used in this Act--
            (1) the term ``designated TARP recipient'' means any entity 
        that has received, or will receive, financial assistance under 
        the Troubled Asset Relief Program or any other provision of the 
        Emergency Economic Stabilization Act of 2008 (Public Law 110-
        343), such that the Federal Government holds or controls, or 
        will hold or control at a future date, not less than a 20 
        percent ownership stake in the company as a result of such 
        assistance;
            (2) the term ``Secretary'' means the Secretary of the 
        Treasury or the designee of the Secretary; and
            (3) the terms ``director'', ``issuer'', ``securities'', and 
        ``securities laws'' have the same meanings as in section 3 of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78c).
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