I 112th CONGRESS 1st Session H. R. 2436 IN THE HOUSE OF REPRESENTATIVES July 7, 2011 Mr. Manzullo (for himself, Mr. Garrett, Mr. Royce, and Mr. Bachus) introduced the following bill; which was referred to the Committee on Financial Services A BILL To prohibit any reduction in the rate of dividends paid to the Secretary of the Treasury on the senior preferred stock of Fannie Mae and Freddie Mac purchased by the Secretary.

1.

Short title

This Act may be cited as the Fannie Mae and Freddie Mac Taxpayer Payback Act of 2011.

2.

Prohibition of reduction in rate of dividends

(a)

Fannie Mae

Section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719) is amended by adding at the end the following new subsection: (h)

Prohibition of reduction in rate of dividends on senior preferred stock

Notwithstanding any provision of subsection (g), any provision of the Senior Preferred Stock Purchase Agreement entered into between the Department of the Treasury and the corporation in September 2008 (as such Agreement may be amended and restated), or any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of the corporation issued pursuant to such Agreement, the rate of dividends paid on the Variable Liquidation Preference Senior Preferred Stock of the corporation issued pursuant to such Agreement shall not be reduced from the rate in effect pursuant to such Agreement as of March 1, 2011. . (b)

Freddie Mac

Section 306 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455) is amended by adding at the end the following new subsection: (m)

Prohibition of reduction in rate of dividends on senior preferred stock

Notwithstanding any provision of subsection (l), any provision of the Senior Preferred Stock Purchase Agreement entered into between the Department of the Treasury and the Corporation in September 2008 (as such Agreement may be amended and restated), or any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of the Corporation issued pursuant to such Agreement, the rate of dividends paid on the Variable Liquidation Preference Senior Preferred Stock of the Corporation issued pursuant to such Agreement shall not be reduced from the rate in effect pursuant to such Agreement as of March 1, 2011. .