110th CONGRESS
2d Session
H. R. 1424
In the Senate of the United
States,
October 1 (legislative
day, September 17), 2008.
Amendments:
That the bill from the House of Representatives
(H.R. 1424) entitled An Act to amend section 712 of the Employee
Retirement Income Security Act of 1974, section 2705 of the Public Health
Service Act, section 9812 of the Internal Revenue Code of 1986 to require
equity in the provision of mental health and substance-related disorder
benefits under group health plans, to prohibit discrimination on the basis of
genetic information with respect to health insurance and employment, and for
other purposes.
, do pass with the following
Strike all after
the enacting clause and insert the
following:
AEmergency Economic
Stabilization
1.Short title and table of
contents
(a)This division may be
cited as the Emergency Economic
Stabilization Act of 2008
.
(b)The table of contents for this division is as
follows:
Sec. 1. Short title and table
of contents.
Sec. 2. Purposes.
Sec. 3.
Definitions.
TITLE I—Troubled Assets Relief
Program
Sec. 101. Purchases of troubled
assets.
Sec. 102. Insurance of troubled
assets.
Sec. 103.
Considerations.
Sec. 104. Financial Stability
Oversight Board.
Sec. 105. Reports.
Sec. 106. Rights; management;
sale of troubled assets; revenues and sale proceeds.
Sec. 107. Contracting
procedures.
Sec. 108. Conflicts of
interest.
Sec. 109. Foreclosure
mitigation efforts.
Sec. 110. Assistance to
homeowners.
Sec. 111. Executive
compensation and corporate governance.
Sec. 112. Coordination with
foreign authorities and central banks.
Sec. 113. Minimization of
long-term costs and maximization of benefits for taxpayers.
Sec. 114. Market
transparency.
Sec. 115. Graduated authorization to
purchase.
Sec. 116. Oversight and
audits.
Sec. 117. Study and report on
margin authority.
Sec. 118. Funding.
Sec. 119. Judicial review and
related matters.
Sec. 120. Termination of
authority.
Sec. 121. Special Inspector
General for the Troubled Asset Relief Program.
Sec. 122. Increase in statutory
limit on the public debt.
Sec. 123. Credit
reform.
Sec. 124. HOPE for Homeowners
amendments.
Sec. 125. Congressional
Oversight Panel.
Sec. 126. FDIC
authority.
Sec. 127. Cooperation with the
FBI.
Sec. 128. Acceleration of
effective date.
Sec. 129. Disclosures on
exercise of loan authority.
Sec. 130. Technical
corrections.
Sec. 131. Exchange
Stabilization Fund reimbursement.
Sec. 132. Authority to suspend
mark-to-market accounting.
Sec. 133. Study on
mark-to-market accounting.
Sec. 134.
Recoupment.
Sec. 135. Preservation of
authority.
Sec. 136. Temporary increase in
deposit and share insurance coverage.
TITLE II—Budget-related
provisions
Sec. 201. Information for
congressional support agencies.
Sec. 202. Reports by the Office
of Management and Budget and the Congressional Budget Office.
Sec. 203. Analysis in
President’s Budget.
Sec. 204. Emergency
treatment.
TITLE III—Tax
Provisions
Sec. 301. Gain or loss from
sale or exchange of certain preferred stock.
Sec. 302. Special rules for tax
treatment of executive compensation of employers participating in the troubled
assets relief program.
Sec. 303. Extension of
exclusion of income from discharge of qualified principal residence
indebtedness.
2.The purposes of this Act are—
(1)to immediately provide authority and
facilities that the Secretary of the Treasury can use to restore liquidity and
stability to the financial system of the United States; and
(2)to ensure that such
authority and such facilities are used in a manner that—
(A)protects home values,
college funds, retirement accounts, and life savings;
(B)preserves homeownership
and promotes jobs and economic growth;
(C)maximizes overall returns
to the taxpayers of the United States; and
(D)provides public
accountability for the exercise of such authority.
3.For purposes of this Act, the following
definitions shall apply:
(1)Appropriate committees
of CongressThe term appropriate committees of
Congress
means—
(A)the Committee on Banking,
Housing, and Urban Affairs, the Committee on Finance, the Committee on the
Budget, and the Committee on Appropriations of the Senate; and
(B)the Committee on
Financial Services, the Committee on Ways and Means, the Committee on the
Budget, and the Committee on Appropriations of the House of
Representatives.
(2)The
term Board means the Board of Governors of the Federal Reserve
System.
(3)Congressional support
agenciesThe term
congressional support agencies means the Congressional Budget
Office and the Joint Committee on Taxation.
(4)The
term Corporation
means the Federal Deposit Insurance
Corporation.
(5)The term financial institution means any
institution, including, but not limited to, any bank, savings association,
credit union, security broker or dealer, or insurance company, established and
regulated under the laws of the United States or any State, territory, or
possession of the United States, the District of Columbia, Commonwealth of
Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or
the United States Virgin Islands, and having significant operations in the
United States, but excluding any central bank of, or institution owned by, a
foreign government.
(6)The
term Fund
means the Troubled Assets Insurance Financing Fund
established under section 102.
(7)The
term Secretary means the Secretary of the Treasury.
(8)The
term TARP means the Troubled Asset Relief Program established
under section 101.
(9)The term troubled assets
means—
(A)residential or commercial
mortgages and any securities, obligations, or other instruments that are based
on or related to such mortgages, that in each case was originated or issued on
or before March 14, 2008, the purchase of which the Secretary determines
promotes financial market stability; and
(B)any other financial
instrument that the Secretary, after consultation with the Chairman of the
Board of Governors of the Federal Reserve System, determines the purchase of
which is necessary to promote financial market stability, but only upon
transmittal of such determination, in writing, to the appropriate committees of
Congress.
<enum>I</enum><header>Troubled Assets Relief
Program</header>
<section id="H2D170E062DD1496CB656DF7E8B977208"><enum>101.</enum><header>Purchases of troubled
assets</header>
<subsection display-inline="no-display-inline" id="HF6C96D4609234F69A325004EE9A82E6F"><enum>(a)</enum><header>Offices;
Authority</header>
<paragraph commented="no" id="H3CD735DA7E1C4454BBDD9ED866F14300"><enum>(1)</enum><header>Authority</header><text>The
Secretary is authorized to establish the Troubled Asset Relief Program (or
<quote>TARP</quote>) to purchase, and to make and fund commitments to purchase,
troubled assets from any financial institution, on such terms and conditions as
are determined by the Secretary, and in accordance with this Act and the
policies and procedures developed and published by the Secretary.</text>
</paragraph><paragraph commented="no" id="id501F55AF2AC64298B9571EF9CC76B174"><enum>(2)</enum><header>Commencement of
program</header><text>Establishment of the policies and procedures and other
similar administrative requirements imposed on the Secretary by this Act are
not intended to delay the commencement of the TARP.</text>
</paragraph><paragraph id="HC3EE127260184074B4834FF9B98BA19"><enum>(3)</enum><header>Establishment of
Treasury office</header>
<subparagraph id="HE6E7403BE29F4F91879DC0EC9CF075A3"><enum>(A)</enum><header>In
general</header><text>The Secretary shall implement any program under paragraph
(1) through an Office of Financial Stability, established for such purpose
within the Office of Domestic Finance of the Department of the Treasury, which
office shall be headed by an Assistant Secretary of the Treasury, appointed by
the President, by and with the advice and consent of the Senate, except that an
interim Assistant Secretary may be appointed by the Secretary.</text>
</subparagraph><subparagraph id="H5F9CDF46624541BB9368EF415D26ED70"><enum>(B)</enum><header>Clerical
amendments</header>
<clause id="id058C7AB124F94A2DB98100B439A7D96F"><enum>(i)</enum><header>Title
5</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended in the
item relating to Assistant Secretaries of the Treasury, by striking
<quote>(9)</quote> and inserting <quote>(10)</quote>.</text>
</clause><clause id="id3578DC6BF3A1467096E59F0B667C9866"><enum>(ii)</enum><header>Title
31</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/301">Section 301(e)</external-xref> of title 31, United States Code, is amended by
striking <quote>9</quote> and inserting <quote>10</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HDC6DFD53D81445678C386F52E4EF5656"><enum>(b)</enum><header>Consultation</header><text display-inline="yes-display-inline">In exercising the authority under this
section, the Secretary shall consult with the Board, the Corporation, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision,
the Chairman of the National Credit Union Administration Board, and the
Secretary of Housing and Urban Development.</text>
</subsection><subsection id="H9682647AA5CB4961A3DF5678F29E17C7"><enum>(c)</enum><header>Necessary
Actions</header><text>The Secretary is authorized to take such actions as the
Secretary deems necessary to carry out the authorities in this Act, including,
without limitation, the following:</text>
<paragraph id="HF50029FC9D784910B62D61B03BDBCB55"><enum>(1)</enum><text>The Secretary shall have
direct hiring authority with respect to the appointment of employees to
administer this Act.</text>
</paragraph><paragraph id="HCE59B3CC601F4C75A30201A759B8A0EA"><enum>(2)</enum><text>Entering into contracts,
including contracts for services authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United
States Code.</text>
</paragraph><paragraph id="H8FBAE98B5BA546DE916C1EB4E001B4ED"><enum>(3)</enum><text>Designating financial
institutions as financial agents of the Federal Government, and such
institutions shall perform all such reasonable duties related to this Act as
financial agents of the Federal Government as may be required.</text>
</paragraph><paragraph id="H986FA5C9A34A4E6BB33200F0837B4F30"><enum>(4)</enum><text>In order to provide the
Secretary with the flexibility to manage troubled assets in a manner designed
to minimize cost to the taxpayers, establishing vehicles that are authorized,
subject to supervision by the Secretary, to purchase, hold, and sell troubled
assets and issue obligations.</text>
</paragraph><paragraph id="HE05ACB2D90D2429EB1912F6BFCDE4647"><enum>(5)</enum><text>Issuing such regulations
and other guidance as may be necessary or appropriate to define terms or carry
out the authorities or purposes of this Act.</text>
</paragraph></subsection><subsection commented="no" id="HFC4C96B4D3F549DEA7FCCD9DDBF62F26"><enum>(d)</enum><header>Program
guidelines</header><text>Before the earlier of the end of the 2-business-day
period beginning on the date of the first purchase of troubled assets pursuant
to the authority under this section or the end of the 45-day period beginning
on the date of enactment of this Act, the Secretary shall publish program
guidelines, including the following:</text>
<paragraph commented="no" id="H15E98A50500B43C28B85BDB0C22C6F29"><enum>(1)</enum><text>Mechanisms for purchasing
troubled assets.</text>
</paragraph><paragraph commented="no" id="HE1E155B2A3DF462EBB4613F7DC002BB5"><enum>(2)</enum><text>Methods for pricing and
valuing troubled assets.</text>
</paragraph><paragraph commented="no" id="HBB96AF9B0CC14B26A8B450A05F8C120"><enum>(3)</enum><text>Procedures for selecting
asset managers.</text>
</paragraph><paragraph commented="no" id="HAF33C796C48D47449F265630B005382"><enum>(4)</enum><text>Criteria for identifying
troubled assets for purchase.</text>
</paragraph></subsection><subsection commented="no" id="H9C47836AF5FA4BA789003E2935A15D48"><enum>(e)</enum><header>Preventing unjust
enrichment</header><text>In making purchases under the authority of this Act,
the Secretary shall take such steps as may be necessary to prevent unjust
enrichment of financial institutions participating in a program established
under this section, including by preventing the sale of a troubled asset to the
Secretary at a higher price than what the seller paid to purchase the asset.
This subsection does not apply to troubled assets acquired in a merger or
acquisition, or a purchase of assets from a financial institution in
conservatorship or receivership, or that has initiated bankruptcy proceedings
under title 11, United States Code.</text>
</subsection></section><section id="id1CC85E3BDD2F4195986EF8E973C740EF"><enum>102.</enum><header>Insurance of troubled
assets</header>
<subsection id="idDE25A2D0B12447148C54DA48C8A3B73C"><enum>(a)</enum><header>Authority</header>
<paragraph id="id00543E44B4F94B6A855E1E2AC2A6DED1"><enum>(1)</enum><header>In
general</header><text>If the Secretary establishes the program authorized under
section 101, then the Secretary shall establish a program to guarantee troubled
assets originated or issued prior to March 14, 2008, including mortgage-backed
securities.</text>
</paragraph><paragraph id="idA85B6238A32A4300B419B9ED508273FE"><enum>(2)</enum><header>Guarantees</header><text>In
establishing any program under this subsection, the Secretary may develop
guarantees of troubled assets and the associated premiums for such guarantees.
Such guarantees and premiums may be determined by category or class of the
troubled assets to be guaranteed.</text>
</paragraph><paragraph id="id049474F6BA444AF09642EBFD9B5AFDC6"><enum>(3)</enum><header>Extent of
guarantee</header><text>Upon request of a financial institution, the Secretary
may guarantee the timely payment of principal of, and interest on, troubled
assets in amounts not to exceed 100 percent of such payments. Such guarantee
may be on such terms and conditions as are determined by the Secretary,
provided that such terms and conditions are consistent with the purposes of
this Act.</text>
</paragraph></subsection><subsection id="id23E288BE15504A398EDAF507026C14F1"><enum>(b)</enum><header>Reports</header><text>Not
later than 90 days after the date of enactment of this Act, the Secretary shall
report to the appropriate committees of Congress on the program established
under subsection (a).</text>
</subsection><subsection id="id882E499670504C7099F798B93EB2EF86"><enum>(c)</enum><header>Premiums</header>
<paragraph id="id31188489A0BE48838AB1DB13EA2964CE"><enum>(1)</enum><header>In
general</header><text>The Secretary shall collect premiums from any financial
institution participating in the program established under subsection (a). Such
premiums shall be in an amount that the Secretary determines necessary to meet
the purposes of this Act and to provide sufficient reserves pursuant to
paragraph (3).</text>
</paragraph><paragraph id="id50507E1BCF7B41218ADF01A57990B000"><enum>(2)</enum><header>Authority to base
premiums on product risk</header><text>In establishing any premium under
paragraph (1), the Secretary may provide for variations in such rates according
to the credit risk associated with the particular troubled asset that is being
guaranteed. The Secretary shall publish the methodology for setting the premium
for a class of troubled assets together with an explanation of the
appropriateness of the class of assets for participation in the program
established under this section. The methodology shall ensure that the premium
is consistent with paragraph (3).</text>
</paragraph><paragraph id="idD3E372B8606B42D4989CA6FDE9CC66DA"><enum>(3)</enum><header>Minimum
level</header><text>The premiums referred to in paragraph (1) shall be set by
the Secretary at a level necessary to create reserves sufficient to meet
anticipated claims, based on an actuarial analysis, and to ensure that
taxpayers are fully protected.</text>
</paragraph><paragraph id="idA4B03399E4414F9994EA77518D22AEFA"><enum>(4)</enum><header>Adjustment to purchase
authority</header><text>The purchase authority limit in section 115 shall be
reduced by an amount equal to the difference between the total of the
outstanding guaranteed obligations and the balance in the Troubled Assets
Insurance Financing Fund.</text>
</paragraph></subsection><subsection id="idDEF5226FD80C4E4EA60053EC0A6A2DC5"><enum>(d)</enum><header>Troubled assets
insurance financing fund</header>
<paragraph id="idCD319EA2D0934AC1802AE86B55ECDF23"><enum>(1)</enum><header>Deposits</header><text>The
Secretary shall deposit fees collected under this section into the Fund
established under paragraph (2).</text>
</paragraph><paragraph id="id4571444AD9BD49ED8288EF474D4C14A1"><enum>(2)</enum><header>Establishment</header><text>There
is established a Troubled Assets Insurance Financing Fund that shall consist of
the amounts collected pursuant to paragraph (1), and any balance in such fund
shall be invested by the Secretary in United States Treasury securities, or
kept in cash on hand or on deposit, as necessary.</text>
</paragraph><paragraph id="idDAA73FEE07E34CDFA91A171851A867CA"><enum>(3)</enum><header>Payments from
fund</header><text>The Secretary shall make payments from amounts deposited in
the Fund to fulfill obligations of the guarantees provided to financial
institutions under subsection (a).</text>
</paragraph></subsection></section><section commented="no" id="H0176C5A3767D44E0B9459D62F5021167"><enum>103.</enum><header>Considerations</header><text display-inline="no-display-inline">In exercising the authorities granted in
this Act, the Secretary shall take into consideration—</text>
<paragraph commented="no" id="H60D4E812CDB84019B2C3C0F4A296079D"><enum>(1)</enum><text>protecting the interests
of taxpayers by maximizing overall returns and minimizing the impact on the
national debt;</text>
</paragraph><paragraph commented="no" id="idF712AE587FD04278A7211735DEF5D3D6"><enum>(2)</enum><text>providing stability and
preventing disruption to financial markets in order to limit the impact on the
economy and protect American jobs, savings, and retirement security;</text>
</paragraph><paragraph commented="no" id="id31D9DDDD2C2D45F2BB3B89B52A77D489"><enum>(3)</enum><text>the need to help families
keep their homes and to stabilize communities;</text>
</paragraph><paragraph commented="no" id="H64E84525B2C04F48B043D35E085B9604"><enum>(4)</enum><text>in determining whether to
engage in a direct purchase from an individual financial institution, the
long-term viability of the financial institution in determining whether the
purchase represents the most efficient use of funds under this Act;</text>
</paragraph><paragraph commented="no" id="H3182012325FF45999B4127C842626C86"><enum>(5)</enum><text display-inline="yes-display-inline">ensuring that all financial institutions
are eligible to participate in the program, without discrimination based on
size, geography, form of organization, or the size, type, and number of assets
eligible for purchase under this Act;</text>
</paragraph><paragraph commented="no" id="H4022FDBF9692452DB000AB9B882D2416"><enum>(6)</enum><text display-inline="yes-display-inline">providing financial assistance to financial
institutions, including those serving low- and moderate-income populations and
other underserved communities, and that have assets less than $1,000,000,000,
that were well or adequately capitalized as of June 30, 2008, and that as a
result of the devaluation of the preferred government-sponsored enterprises
stock will drop one or more capital levels, in a manner sufficient to restore
the financial institutions to at least an adequately capitalized level;</text>
</paragraph><paragraph commented="no" id="H03942D4F142945A8A21E9EB0A15063A2"><enum>(7)</enum><text display-inline="yes-display-inline">the need to ensure stability for United
States public instrumentalities, such as counties and cities, that may have
suffered significant increased costs or losses in the current market
turmoil;</text>
</paragraph><paragraph commented="no" id="id730AEEC5F4E94776990E6D42D0FF635C"><enum>(8)</enum><text display-inline="yes-display-inline">protecting the retirement security of
Americans by purchasing troubled assets held by or on behalf of an eligible
retirement plan described in clause (iii), (iv), (v), or (vi) of section
402(c)(8)(B) of the Internal Revenue Code of 1986, except that such authority
shall not extend to any compensation arrangements subject to section 409A of
such Code; and</text>
</paragraph><paragraph commented="no" id="HC16E05AB4BB646C299ED0067E8A269FE"><enum>(9)</enum><text>the utility of purchasing
other real estate owned and instruments backed by mortgages on multifamily
properties.</text>
</paragraph></section><section id="HA9208E8E68444864A9FB07D7F1C0DD33"><enum>104.</enum><header>Financial Stability
Oversight Board</header>
<subsection id="HDAC3A3F9B0604ED981E368C48EF632F2"><enum>(a)</enum><header>Establishment</header><text>There
is established the Financial Stability Oversight Board, which shall be
responsible for—</text>
<paragraph id="H48018E3D7732485480D1212B87A76748"><enum>(1)</enum><text>reviewing the exercise of
authority under a program developed in accordance with this Act,
including—</text>
<subparagraph id="HDD6F0E7DF8364A1496CB4654EA01246F"><enum>(A)</enum><text>policies implemented by
the Secretary and the Office of Financial Stability created under sections 101
and 102, including the appointment of financial agents, the designation of
asset classes to be purchased, and plans for the structure of vehicles used to
purchase troubled assets; and</text>
</subparagraph><subparagraph id="H450842E8149C4A49A784F806AA7E00DF"><enum>(B)</enum><text>the effect of such
actions in assisting American families in preserving home ownership,
stabilizing financial markets, and protecting taxpayers;</text>
</subparagraph></paragraph><paragraph id="HA3AB6C3A756A4055ABE6E81DA935B5F7"><enum>(2)</enum><text>making recommendations,
as appropriate, to the Secretary regarding use of the authority under this Act;
and</text>
</paragraph><paragraph id="H6396BB39C67149909E30D23103256393"><enum>(3)</enum><text>reporting any suspected
fraud, misrepresentation, or malfeasance to the Special Inspector General for
the Troubled Assets Relief Program or the Attorney General of the United
States, consistent with <external-xref legal-doc="usc" parsable-cite="usc/28/535">section 535(b)</external-xref> of title 28, United States Code.</text>
</paragraph></subsection><subsection commented="no" id="HA5A162DC54954511937368F1AF49FB3B"><enum>(b)</enum><header>Membership</header><text display-inline="yes-display-inline">The Financial Stability Oversight Board
shall be comprised of—</text>
<paragraph commented="no" id="H9777EDA6D9F14343AE411764B9D01691"><enum>(1)</enum><text>the Chairman of the Board
of Governors of the Federal Reserve System;</text>
</paragraph><paragraph commented="no" id="HBA1A0736C8EE4974922998DD7DD0594F"><enum>(2)</enum><text>the Secretary;</text>
</paragraph><paragraph commented="no" id="id5A26C0464007496AB6E546A9AD19CBD2"><enum>(3)</enum><text>the Director of the
Federal Housing Finance Agency;</text>
</paragraph><paragraph commented="no" id="HF988C7F2C5BE4EDEAFACD576E85D5D82"><enum>(4)</enum><text>the Chairman of the
Securities Exchange Commission; and</text>
</paragraph><paragraph commented="no" id="id99D6023082624378B02BBBF2BF250AB3"><enum>(5)</enum><text>the Secretary of Housing
and Urban Development.</text>
</paragraph></subsection><subsection id="H21FCE61D403242FC85FE4941689250AA"><enum>(c)</enum><header>Chairperson</header><text display-inline="yes-display-inline">The chairperson of the Financial Stability
Oversight Board shall be elected by the members of the Board from among the
members other than the Secretary.</text>
</subsection><subsection id="HD0530A31508B4D72B91EC52D70CB0203"><enum>(d)</enum><header>Meetings</header><text display-inline="yes-display-inline">The Financial Stability Oversight Board
shall meet 2 weeks after the first exercise of the purchase authority of the
Secretary under this Act, and monthly thereafter.</text>
</subsection><subsection commented="no" id="id066E1B9D46CF4C5893DA01F3BB23A95D"><enum>(e)</enum><header>Additional
authorities</header><text display-inline="yes-display-inline">In addition to
the responsibilities described in subsection (a), the Financial Stability
Oversight Board shall have the authority to ensure that the policies
implemented by the Secretary are—</text>
<paragraph commented="no" id="id4CE6E243525741D293BE25ED5C236716"><enum>(1)</enum><text display-inline="yes-display-inline">in accordance with the purposes of this
Act;</text>
</paragraph><paragraph commented="no" id="id89771F03511E4D17B28719D8DB2BA056"><enum>(2)</enum><text display-inline="yes-display-inline">in the economic interests of the United
States; and</text>
</paragraph><paragraph commented="no" id="id4512FE0E8E824AA3B5F810D1FE63B7B1"><enum>(3)</enum><text display-inline="yes-display-inline">consistent with protecting taxpayers, in
accordance with section 113(a).</text>
</paragraph></subsection><subsection commented="no" id="id737BC04190AD406E972C166FF280ABDD"><enum>(f)</enum><header>Credit review
committee</header><text display-inline="yes-display-inline">The Financial
Stability Oversight Board may appoint a credit review committee for the purpose
of evaluating the exercise of the purchase authority provided under this Act
and the assets acquired through the exercise of such authority, as the
Financial Stability Oversight Board determines appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id0A05123BBFDF4C5D8F8BD6B83732BF15"><enum>(g)</enum><header>Reports</header><text>The
Financial Stability Oversight Board shall report to the appropriate committees
of Congress and the Congressional Oversight Panel established under section
125, not less frequently than quarterly, on the matters described under
subsection (a)(1).</text>
</subsection><subsection id="idD58030EBC31B4956B09AC8D97DAF48DE"><enum>(h)</enum><header>Termination</header><text>The
Financial Stability Oversight Board, and its authority under this section,
shall terminate on the expiration of the 15-day period beginning upon the later
of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id306B5280376841D6BFAE7871116FDD91"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id97349C6572FA4184B9F94943A1154500"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section commented="no" id="H14669E3C61EF44E08D53E1A73EF439C1" section-type="subsequent-section"><enum>105.</enum><header>Reports</header>
<subsection commented="no" id="H91EFB7C615414FFDAA9C60127BBB5B55"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Before the expiration
of the 60-day period beginning on the date of the first exercise of the
authority granted in section 101(a), or of the first exercise of the authority
granted in section 102, whichever occurs first, and every 30-day period
thereafter, the Secretary shall report to the appropriate committees of
Congress, with respect to each such period—</text>
<paragraph commented="no" id="H0AF9F4BD5C4D4205AB8B34727CAE3876"><enum>(1)</enum><text display-inline="yes-display-inline">an overview of actions taken by the
Secretary, including the considerations required by section 103 and the efforts
under section 109;</text>
</paragraph><paragraph commented="no" id="H55D0C3F531594CBDB87E8514582063D3"><enum>(2)</enum><text>the actual obligation and
expenditure of the funds provided for administrative expenses by section 118
during such period and the expected expenditure of such funds in the subsequent
period; and</text>
</paragraph><paragraph commented="no" id="H00DFECCBD60546ACB7616B5900296BE4"><enum>(3)</enum><text>a detailed financial
statement with respect to the exercise of authority under this Act,
including—</text>
<subparagraph commented="no" id="HAC3FB8B950E14F24B65DB0BD3BCDD427"><enum>(A)</enum><text>all agreements made or
renewed;</text>
</subparagraph><subparagraph commented="no" id="id38596F79F8864DA4A18ED35FD6BF8A25"><enum>(B)</enum><text>all insurance contracts
entered into pursuant to section 102;</text>
</subparagraph><subparagraph commented="no" id="H48A4227FB195427A9CDCA1DAE3F22DFA"><enum>(C)</enum><text>all transactions
occurring during such period, including the types of parties involved;</text>
</subparagraph><subparagraph commented="no" id="H283FDB4F1B7A493E8322226FA87A6E3"><enum>(D)</enum><text>the nature of the assets
purchased;</text>
</subparagraph><subparagraph commented="no" id="H0B17AE2D59254370ABD00F511A942C9"><enum>(E)</enum><text>all projected costs and
liabilities;</text>
</subparagraph><subparagraph commented="no" id="H12B67FA503F04D9589416B8DE17C2D48"><enum>(F)</enum><text>operating expenses,
including compensation for financial agents;</text>
</subparagraph><subparagraph commented="no" id="H51AD722AD987410D97B6FCE97C5CCBA"><enum>(G)</enum><text>the valuation or pricing
method used for each transaction; and</text>
</subparagraph><subparagraph commented="no" id="HB75BB084A9D94A83A88D3B3E7BE100E"><enum>(H)</enum><text>a description of the
vehicles established to exercise such authority.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H26EE996D888E4EF785C891EBE1260985"><enum>(b)</enum><header>Tranche reports to
Congress</header>
<paragraph commented="no" id="H7733AC2CE27A4031857FEB90F8EAB0D2"><enum>(1)</enum><header>Reports</header><text>The
Secretary shall provide to the appropriate committees of Congress, at the times
specified in paragraph (2), a written report, including—</text>
<subparagraph commented="no" id="HE112C816768241EFA6E9CF4CC4B12ED8"><enum>(A)</enum><text>a description of all of
the transactions made during the reporting period;</text>
</subparagraph><subparagraph commented="no" id="HBED67926731540D38B88B8FD10E94B41"><enum>(B)</enum><text>a description of the
pricing mechanism for the transactions;</text>
</subparagraph><subparagraph commented="no" id="HDD713915A13E46B5B785E3D2339C8306"><enum>(C)</enum><text>a justification of the
price paid for and other financial terms associated with the
transactions;</text>
</subparagraph><subparagraph commented="no" id="HB9CA35BF01B54DF5AA5C52000051C7D"><enum>(D)</enum><text>a description of the
impact of the exercise of such authority on the financial system, supported, to
the extent possible, by specific data;</text>
</subparagraph><subparagraph commented="no" id="HB7683A858FD9440CA03DDF105400B6B7"><enum>(E)</enum><text>a description of
challenges that remain in the financial system, including any benchmarks yet to
be achieved; and</text>
</subparagraph><subparagraph commented="no" id="H64F70C75FEA248C6A8B6CB90F881A8C3"><enum>(F)</enum><text>an estimate of additional
actions under the authority provided under this Act that may be necessary to
address such challenges.</text>
</subparagraph></paragraph><paragraph commented="no" id="H487A17C4F43F40BE85A531D41E08039D"><enum>(2)</enum><header>Timing</header><text>The
report required by this subsection shall be submitted not later than 7 days
after the date on which commitments to purchase troubled assets under the
authorities provided in this Act first reach an aggregate of $50,000,000,000
and not later than 7 days after each $50,000,000,000 interval of such
commitments is reached thereafter.</text>
</paragraph></subsection><subsection commented="no" id="H64651DEF4D3342ABA51C420012534325"><enum>(c)</enum><header>Regulatory
modernization report</header><text display-inline="yes-display-inline">The
Secretary shall review the current state of the financial markets and the
regulatory system and submit a written report to the appropriate committees of
Congress not later than April 30, 2009, analyzing the current state of the
regulatory system and its effectiveness at overseeing the participants in the
financial markets, including the over-the-counter swaps market and
government-sponsored enterprises, and providing recommendations for
improvement, including—</text>
<paragraph commented="no" id="idCC922642A9A64DF4B792CDEDE442026F"><enum>(1)</enum><text display-inline="yes-display-inline">recommendations regarding—</text>
<subparagraph commented="no" id="idD60375AF60EC4E0EAA85BE1B4ECDA72A"><enum>(A)</enum><text display-inline="yes-display-inline">whether any participants in the financial
markets that are currently outside the regulatory system should become subject
to the regulatory system; and</text>
</subparagraph><subparagraph commented="no" id="idEF73B5176B1440F39A523C01B14B403E"><enum>(B)</enum><text display-inline="yes-display-inline">enhancement of the clearing and settlement
of over-the-counter swaps; and</text>
</subparagraph></paragraph><paragraph commented="no" id="id5094E897CCA24182AB9966F26DEB369C"><enum>(2)</enum><text display-inline="yes-display-inline">the rationale underlying such
recommendations.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA7A5C25D4E3B45279CB0AC66A1D6B321"><enum>(d)</enum><header>Sharing of
information</header><text>Any report required under this section shall also be
submitted to the Congressional Oversight Panel established under section
125.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id930D3B7BB3A04B62B81E0CC310E4095A"><enum>(e)</enum><header>Sunset</header><text>The
reporting requirements under this section shall terminate on the later
of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF1D9D655CF2145EC8C7BED10B25311B0"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4BDD59F87F594B0BBAC35B22B29A6423"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section id="H6B02B05ECF0743C7913F191519C312B5"><enum>106.</enum><header>Rights; management;
sale of troubled assets; revenues and sale proceeds</header>
<subsection id="H1F9CC54EEC0146AAA6B9BF1C44CACFA"><enum>(a)</enum><header>Exercise of
rights</header><text>The Secretary may, at any time, exercise any rights
received in connection with troubled assets purchased under this Act.</text>
</subsection><subsection commented="no" id="H2C71E0A0E3804D68BB12C097A77BCD9F"><enum>(b)</enum><header>Management of troubled
assets</header><text>The Secretary shall have authority to manage troubled
assets purchased under this Act, including revenues and portfolio risks
therefrom.</text>
</subsection><subsection id="H568C6FF022934246BE94F848D9008365"><enum>(c)</enum><header>Sale of troubled
assets</header><text>The Secretary may, at any time, upon terms and conditions
and at a price determined by the Secretary, sell, or enter into securities
loans, repurchase transactions, or other financial transactions in regard to,
any troubled asset purchased under this Act.</text>
</subsection><subsection commented="no" id="id8BD06A7A9CC843CE84A86EB8B74FC090"><enum>(d)</enum><header>Transfer to
treasury</header><text>Revenues of, and proceeds from the sale of troubled
assets purchased under this Act, or from the sale, exercise, or surrender of
warrants or senior debt instruments acquired under section 113 shall be paid
into the general fund of the Treasury for reduction of the public debt.</text>
</subsection><subsection id="HC48F6300C1A54C06A8EEDC819F4941CC"><enum>(e)</enum><header>Application of sunset
to troubled assets</header><text>The authority of the Secretary to hold any
troubled asset purchased under this Act before the termination date in section
120, or to purchase or fund the purchase of a troubled asset under a commitment
entered into before the termination date in section 120, is not subject to the
provisions of section 120.</text>
</subsection></section><section id="HEE23F37E2D554AFE9F24F75E9DBF1076"><enum>107.</enum><header>Contracting
procedures</header>
<subsection id="id0E1840F056924D7AB2F41C1F47565EB2"><enum>(a)</enum><header>Streamlined
process</header><text>For purposes of this Act, the Secretary may waive
specific provisions of the Federal Acquisition Regulation upon a determination
that urgent and compelling circumstances make compliance with such provisions
contrary to the public interest. Any such determination, and the justification
for such determination, shall be submitted to the Committees on Oversight and
Government Reform and Financial Services of the House of Representatives and
the Committees on Homeland Security and Governmental Affairs and Banking,
Housing, and Urban Affairs of the Senate within 7 days.</text>
</subsection><subsection commented="no" id="H2FCBC79E224B41538E3301E04CBCDF5E"><enum>(b)</enum><header>Additional contracting
requirements</header><text display-inline="yes-display-inline">In any
solicitation or contract where the Secretary has, pursuant to subsection (a),
waived any provision of the Federal Acquisition Regulation pertaining to
minority contracting, the Secretary shall develop and implement standards and
procedures to ensure, to the maximum extent practicable, 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)), in that solicitation or contract, including contracts to asset
managers, servicers, property managers, and other service providers or expert
consultants.</text>
</subsection><subsection id="H444EBBBD5436444CAFFE6999D021C983"><enum>(c)</enum><header>Eligibility of
FDIC</header><text>Notwithstanding subsections (a) and (b), the
Corporation—</text>
<paragraph id="idB178FABCA43046E1BADAB8E905A05A2E"><enum>(1)</enum><text>shall be eligible for,
and shall be considered in, the selection of asset managers for residential
mortgage loans and residential mortgage-backed securities; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA65EE50E86534555989EE5996C5244B4"><enum>(2)</enum><text>shall be reimbursed by
the Secretary for any services provided.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HC71E77DB2E6E4B14B07BF2118EBA9936"><enum>108.</enum><header>Conflicts of
interest</header>
<subsection id="H6681D7B2D9FA472BB6A1002732CCCE1C"><enum>(a)</enum><header>Standards
required</header><text display-inline="yes-display-inline">The Secretary shall
issue regulations or guidelines necessary to address and manage or to prohibit
conflicts of interest that may arise in connection with the administration and
execution of the authorities provided under this Act, including—</text>
<paragraph id="HF541D1335C62402DB83E1504A2AB45D4"><enum>(1)</enum><text display-inline="yes-display-inline">conflicts arising in the selection or
hiring of contractors or advisors, including asset managers;</text>
</paragraph><paragraph id="HC878E0588FDA4F0390694445612DA351"><enum>(2)</enum><text>the purchase of troubled
assets;</text>
</paragraph><paragraph id="H6D5DAA6E6FE743DCA1D7D92F17FFC249"><enum>(3)</enum><text display-inline="yes-display-inline">the management of the troubled assets
held;</text>
</paragraph><paragraph id="HCB8D56FB652D4D90A13E0605C0562344"><enum>(4)</enum><text display-inline="yes-display-inline">post-employment restrictions on employees;
and</text>
</paragraph><paragraph id="H55E8D590A7434E56B9D09E73FF44267E"><enum>(5)</enum><text display-inline="yes-display-inline">any other potential conflict of interest,
as the Secretary deems necessary or appropriate in the public interest.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H45FFDFE2919D4C66BD2D7CB2EA41A511"><enum>(b)</enum><header>Timing</header><text>Regulations
or guidelines required by this section shall be issued as soon as practicable
after the date of enactment of this Act.</text>
</subsection></section><section id="idCAB3CD580442450D919F0B58A911D8A1"><enum>109.</enum><header>Foreclosure mitigation
efforts</header>
<subsection id="idCE39B3D026C24912827C8F22FFD44BED"><enum>(a)</enum><header>Residential mortgage
loan servicing standards</header><text>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 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.</text>
</subsection><subsection commented="no" id="H2861173A789F40A88B5E4CB3D624E594"><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, 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 id="idBB52EDEAA3F3413FA64A070ACA422A9E"><enum>(c)</enum><header>Consent to reasonable
loan modification requests</header><text>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 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><section display-inline="no-display-inline" id="H34F923B3C38D4D5C98B8E1EE72F300E2" section-type="subsequent-section"><enum>110.</enum><header>Assistance to
homeowners</header>
<subsection id="HE379230BF45D4F33A9E9180011F58600"><enum>(a)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="HAC5A241D36D04E990045E63255A78693"><enum>(1)</enum><text>the term <term>Federal
property manager</term> means—</text>
<subparagraph id="H089C77D40FFC44BC8CE13F15701963DE"><enum>(A)</enum><text>the Federal Housing
Finance Agency, in its capacity as conservator of the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation;</text>
</subparagraph><subparagraph commented="no" id="HD3CDDB63FDEA4293B122DCE60F3A761"><enum>(B)</enum><text>the Corporation, with
respect to residential mortgage loans and mortgage-backed securities held by
any bridge depository institution pursuant to section 11(n) of the Federal
Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="HE19C52AEA0A048BE85D4BB2C78BD4FA4"><enum>(C)</enum><text>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, other than
mortgages or securities held, owned, or controlled in connection with open
market operations under section 14 of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/353">12 U.S.C. 353</external-xref>),
or as collateral for an advance or discount that is not in default;</text>
</subparagraph></paragraph><paragraph id="H9C105D4107CE4C8BAC740084D2685500"><enum>(2)</enum><text>the term
<term>consumer</term> has the same meaning as in section 103 of the Truth in
Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>);</text>
</paragraph><paragraph id="H004BFBEF6C4A48F8871F194C2D00F3EB"><enum>(3)</enum><text>the term <term>insured
depository institution</term> has the same meaning as in section 3 of the
Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text>
</paragraph><paragraph id="H71B09EC19F8B4ABCBF936E9DA4807CF2"><enum>(4)</enum><text>the term
<term>servicer</term> has the same meaning as in section 6(i)(2) of the Real
Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2605">12 U.S.C. 2605(i)(2)</external-xref>).</text>
</paragraph></subsection><subsection id="H693C0D528A044078ADC185005FE93842"><enum>(b)</enum><header>Homeowner assistance by
agencies</header>
<paragraph id="idC6D99905C6DE495E828513F627BA440C"><enum>(1)</enum><header>In
general</header><text>To the extent that the Federal property manager holds,
owns, or controls mortgages, mortgage backed securities, and other assets
secured by residential real estate, including multifamily housing, the Federal
property manager shall implement a plan that seeks to maximize assistance for
homeowners and use its authority to encourage the servicers of the underlying
mortgages, and 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.</text>
</paragraph><paragraph id="HDDE145FD53DF4E86AB4900BB08299500"><enum>(2)</enum><header>Modifications</header><text>In
the case of a residential mortgage loan, modifications made under paragraph (1)
may include—</text>
<subparagraph id="HAE486C0539214CFE9F38D834AF00C522"><enum>(A)</enum><text>reduction in interest
rates;</text>
</subparagraph><subparagraph id="H5255376A680140F300A1B600C7CA6CF4"><enum>(B)</enum><text>reduction of loan
principal; and</text>
</subparagraph><subparagraph id="H7345CFDF951C44D9B0263BD59ED5A206"><enum>(C)</enum><text>other similar
modifications.</text>
</subparagraph></paragraph><paragraph id="H1C154B289350454C92D71115F96661CB"><enum>(3)</enum><header>Tenant
protections</header><text display-inline="yes-display-inline">In the case of
mortgages on residential rental properties, modifications made under paragraph
(1) shall ensure—</text>
<subparagraph id="H57001CCD00C841229B8E486434801700"><enum>(A)</enum><text>the continuation of any
existing Federal, State, and local rental subsidies and protections; and</text>
</subparagraph><subparagraph id="H2C7BA1ACF8AE4A03B8B4C35D5FDA1692"><enum>(B)</enum><text>that modifications take
into account the need for operating funds to maintain decent and safe
conditions at the property.</text>
</subparagraph></paragraph><paragraph id="H077F0CFB11D647389FB04C197EF5568"><enum>(4)</enum><header>Timing</header><text>Each
Federal property manager shall develop and begin implementation of the plan
required by this subsection not later than 60 days after the date of enactment
of this Act.</text>
</paragraph><paragraph id="H39866FB6F7F44FC9A888AAD538560733"><enum>(5)</enum><header>Reports to
congress</header><text>Each Federal property manager shall, 60 days after the
date of enactment of this Act and every 30 days thereafter, report to Congress
specific information on the number and types of loan modifications made and the
number of actual foreclosures occurring during the reporting period in
accordance with this section.</text>
</paragraph><paragraph id="H560F59EC0C1C476EBDC190F9D2279FB"><enum>(6)</enum><header>Consultation</header><text>In
developing the plan required by this subsection, the Federal property managers
shall consult with one another and, to the extent possible, utilize consistent
approaches to implement the requirements of this subsection.</text>
</paragraph></subsection><subsection id="HD8759276D5824B91B6A0F63DC39F0D8"><enum>(c)</enum><header>Actions with respect to
servicers</header><text>In any case in which a Federal property manager is not
the owner of a residential mortgage loan, but holds an interest in obligations
or pools of obligations secured by residential mortgage loans, the Federal
property manager shall—</text>
<paragraph id="HFAC0B6F5AAD1478392931D16CBCCE507"><enum>(1)</enum><text>encourage implementation
by the loan servicers of loan modifications developed under subsection (b);
and</text>
</paragraph><paragraph id="H001D9B1BBDD046349BD093BC8FEEDD6"><enum>(2)</enum><text>assist in facilitating
any such modifications, to the extent possible.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H092E4CDC465948F08F2E63DAE07B2F28"><enum>(d)</enum><header>Limitation</header><text>The
requirements of this section shall not supersede any other duty or requirement
imposed on the Federal property managers under otherwise applicable law.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id3837E53086144667AB08B35D3215782C"><enum>111.</enum><header>Executive compensation
and corporate governance</header>
<subsection commented="no" display-inline="no-display-inline" id="idA4B2BCB23B354344809F9C443253E62B"><enum>(a)</enum><header>Applicability</header><text>Any
financial institution that sells troubled assets to the Secretary under this
Act shall be subject to the executive compensation requirements of subsections
(b) and (c) and the provisions under the Internal Revenue Code of 1986, as
provided under the amendment by section 302, as applicable.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id4119BA663FDD4C09BAE4D7A2F302BF01"><enum>(b)</enum><header>Direct
purchases</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7EBA8C56FDAE4D529AE86DEB0FF31FF0"><enum>(1)</enum><header>In
general</header><text>Where the Secretary determines that the purposes of this
Act are best met through direct purchases of troubled assets from an individual
financial institution where no bidding process or market prices are available,
and the Secretary receives a meaningful equity or debt position in the
financial institution as a result of the transaction, the Secretary shall
require that the financial institution meet appropriate standards for executive
compensation and corporate governance. The standards required under this
subsection shall be effective for the duration of the period that the Secretary
holds an equity or debt position in the financial institution.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2D68FD335F1144FB918F4B54C2411670"><enum>(2)</enum><header>Criteria</header><text>The
standards required under this subsection shall include—</text>
<subparagraph id="IDda93fba7ce8d4fe0b08b59b5ead32744"><enum>(A)</enum><text>limits on compensation
that exclude incentives for senior executive officers of a financial
institution to take unnecessary and excessive risks that threaten the value of
the financial institution during the period that the Secretary holds an equity
or debt position in the financial institution;</text>
</subparagraph><subparagraph id="ID19a0f36e5b324314847e7ebe61045959"><enum>(B)</enum><text>a provision for the
recovery by the financial 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 proven to be materially inaccurate; and</text>
</subparagraph><subparagraph id="ID3c333442909e482cb607d9f4cb756024"><enum>(C)</enum><text>a prohibition on the
financial institution making any golden parachute payment to its senior
executive officer during the period that the Secretary holds an equity or debt
position in the financial institution.</text>
</subparagraph></paragraph><paragraph id="id101AE2F1F0C64480B64602A2EF4C2164"><enum>(3)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>senior executive officer</term> means an individual who is one of the top
5 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>
</paragraph></subsection><subsection commented="no" id="idF9F11470114A477DA05C976C11439178"><enum>(c)</enum><header>Auction
purchases</header><text>Where the Secretary determines that the purposes of
this Act are best met through auction purchases of troubled assets, and only
where such purchases per financial institution in the aggregate exceed
$300,000,000 (including direct purchases), the Secretary shall prohibit, for
such financial institution, any new employment contract with a senior executive
officer that provides a golden parachute in the event of an involuntary
termination, bankruptcy filing, insolvency, or receivership. The Secretary
shall issue guidance to carry out this paragraph not later than 2 months after
the date of enactment of this Act, and such guidance shall be effective upon
issuance.</text>
</subsection><subsection commented="no" id="idD909C248652347A6B3EAB7073D29A097"><enum>(d)</enum><header>Sunset</header><text>The
provisions of subsection (c) shall apply only to arrangements entered into
during the period during which the authorities under section 101(a) are in
effect, as determined under section 120.</text>
</subsection></section><section id="H7B968D187E2C4F72959DF1215E2CFD9C"><enum>112.</enum><header>Coordination with
foreign authorities and central banks</header><text display-inline="no-display-inline">The Secretary shall coordinate, as
appropriate, with foreign financial authorities and central banks to work
toward the establishment of similar programs by such authorities and central
banks. To the extent that such foreign financial authorities or banks hold
troubled assets as a result of extending financing to financial institutions
that have failed or defaulted on such financing, such troubled assets qualify
for purchase under section 101.</text>
</section><section commented="no" id="H1397E18565EE48D8ABC7D4217098F289"><enum>113.</enum><header>Minimization of
long-term costs and maximization of benefits for taxpayers</header>
<subsection commented="no" id="HA21E74D3B4F74750B73F5060D050B62C"><enum>(a)</enum><header>Long-term costs and
benefits</header>
<paragraph commented="no" id="id2234E5967F9449A784FB81AA83BC6AD5"><enum>(1)</enum><header>Minimizing negative
impact</header><text>The Secretary shall use the authority under this Act in a
manner that will minimize any potential long-term negative impact on the
taxpayer, taking into account the direct outlays, potential long-term returns
on assets purchased, and the overall economic benefits of the program,
including economic benefits due to improvements in economic activity and the
availability of credit, the impact on the savings and pensions of individuals,
and reductions in losses to the Federal Government.</text>
</paragraph><paragraph commented="no" id="id5AAC236F6A61498FB426660E4D4CA68F"><enum>(2)</enum><header>Authority</header><text>In
carrying out paragraph (1), the Secretary shall—</text>
<subparagraph commented="no" id="idB62712C220064EE5999AADD54B69E821"><enum>(A)</enum><text>hold the assets to
maturity or for resale for and until such time as the Secretary determines that
the market is optimal for selling such assets, in order to maximize the value
for taxpayers; and</text>
</subparagraph><subparagraph commented="no" id="id3D2F46BCC2F44AC5871A285CFBB923A4"><enum>(B)</enum><text>sell such assets at a
price that the Secretary determines, based on available financial analysis,
will maximize return on investment for the Federal Government.</text>
</subparagraph></paragraph><paragraph commented="no" id="id4808F06E39094896A7B3CAF27D2A4EDB"><enum>(3)</enum><header>Private sector
participation</header><text>The Secretary shall encourage the private sector to
participate in purchases of troubled assets, and to invest in financial
institutions, consistent with the provisions of this section.</text>
</paragraph></subsection><subsection commented="no" id="H467000B1F2B2492A86846CD5FD4BE42C"><enum>(b)</enum><header>Use of market
mechanisms</header><text>In making purchases under this Act, the Secretary
shall—</text>
<paragraph commented="no" id="id999ACA8A600543198C81413F7B10CCD1"><enum>(1)</enum><text>make such purchases at
the lowest price that the Secretary determines to be consistent with the
purposes of this Act; and</text>
</paragraph><paragraph commented="no" id="idABF352447EBD491DB23AE7EB45E1DB84"><enum>(2)</enum><text>maximize the efficiency
of the use of taxpayer resources by using market mechanisms, including auctions
or reverse auctions, where appropriate.</text>
</paragraph></subsection><subsection commented="no" id="H01068E20BD864D55AC8B95264D67E8B3"><enum>(c)</enum><header>Direct
purchases</header><text>If the Secretary determines that use of a market
mechanism under subsection (b) is not feasible or appropriate, and the purposes
of the Act are best met through direct purchases from an individual financial
institution, the Secretary shall pursue additional measures to ensure that
prices paid for assets are reasonable and reflect the underlying value of the
asset.</text>
</subsection><subsection commented="no" id="H643B8D791E0E454CB2915FB846DF802F"><enum>(d)</enum><header>Conditions on purchase
authority for warrants and debt instruments</header>
<paragraph commented="no" id="HA754EF64D7B94303AA003CCB7058CA6B"><enum>(1)</enum><header>In
general</header><text>The Secretary may not purchase, or make any commitment to
purchase, any troubled asset under the authority of this Act, unless the
Secretary receives from the financial institution from which such assets are to
be purchased—</text>
<subparagraph commented="no" id="HC08E6D1F2E9B4BA39661879D63A289EC"><enum>(A)</enum><text>in the case of a
financial institution, the securities of which are traded on a national
securities exchange, a warrant giving the right to the Secretary to receive
nonvoting common stock or preferred stock in such financial institution, or
voting stock with respect to which, the Secretary agrees not to exercise voting
power, as the Secretary determines appropriate; or</text>
</subparagraph><subparagraph commented="no" id="H21A5D8D3A7D04C46BD4FCBC6C597BCD5"><enum>(B)</enum><text>in the case of any
financial institution other than one described in subparagraph (A), a warrant
for common or preferred stock, or a senior debt instrument from such financial
institution, as described in paragraph (2)(C).</text>
</subparagraph></paragraph><paragraph commented="no" id="H1772ECE054194FF0972C4F011CAE375E"><enum>(2)</enum><header>Terms and
conditions</header><text>The terms and conditions of any warrant or senior debt
instrument required under paragraph (1) shall meet the following
requirements:</text>
<subparagraph commented="no" id="H1DD39DCD21C14AEA80C1BF87E88BD089"><enum>(A)</enum><header>Purposes</header><text>Such
terms and conditions shall, at a minimum, be designed—</text>
<clause commented="no" id="H2EE0B5D37F5B4149AB331985B7B2C153"><enum>(i)</enum><text>to provide for reasonable
participation by the Secretary, for the benefit of taxpayers, in equity
appreciation in the case of a warrant or other equity security, or a reasonable
interest rate premium, in the case of a debt instrument; and</text>
</clause><clause id="IDeb44d54519d34690930b399224757f0d"><enum>(ii)</enum><text>to provide additional
protection for the taxpayer against losses from sale of assets by the Secretary
under this Act and the administrative expenses of the TARP.</text>
</clause></subparagraph><subparagraph commented="no" id="H7F57551D0C7141F289BE52C07B11BC32"><enum>(B)</enum><header>Authority to sell,
exercise, or surrender</header><text>The Secretary may sell, exercise, or
surrender a warrant or any senior debt instrument received under this
subsection, based on the conditions established under subparagraph (A).</text>
</subparagraph><subparagraph commented="no" id="H558B94B87F4F480FB4A3FCEF64563654"><enum>(C)</enum><header>Conversion</header><text>The
warrant shall provide that if, after the warrant is received by the Secretary
under this subsection, the financial institution that issued the warrant is no
longer listed or traded on a national securities exchange or securities
association, as described in paragraph (1)(A), such warrants shall convert to
senior debt, or contain appropriate protections for the Secretary to ensure
that the Treasury is appropriately compensated for the value of the warrant, in
an amount determined by the Secretary.</text>
</subparagraph><subparagraph commented="no" id="H7C8861BEB17B4FD88BAB6505A83BCDA7"><enum>(D)</enum><header>Protections</header><text>Any
warrant representing securities to be received by the Secretary under this
subsection shall contain anti-dilution provisions of the type employed in
capital market transactions, as determined by the Secretary. Such provisions
shall protect the value of the securities from market transactions such as
stock splits, stock distributions, dividends, and other distributions, mergers,
and other forms of reorganization or recapitalization.</text>
</subparagraph><subparagraph commented="no" id="HC8911F4477AF4998A6DFCB1E4976A605"><enum>(E)</enum><header>Exercise
price</header><text>The exercise price for any warrant issued pursuant to this
subsection shall be set by the Secretary, in the interest of the
taxpayers.</text>
</subparagraph><subparagraph commented="no" id="H1101D789E17E4A1CA792BA1EF919B38C"><enum>(F)</enum><header>Sufficiency</header><text>The
financial institution shall guarantee to the Secretary that it has authorized
shares of nonvoting stock available to fulfill its obligations under this
subsection. Should the financial institution not have sufficient authorized
shares, including preferred shares that may carry dividend rights equal to a
multiple number of common shares, the Secretary may, to the extent necessary,
accept a senior debt note in an amount, and on such terms as will compensate
the Secretary with equivalent value, in the event that a sufficient shareholder
vote to authorize the necessary additional shares cannot be obtained.</text>
</subparagraph></paragraph><paragraph commented="no" id="id869358B6A24141AEA0B3C696A551CFA8"><enum>(3)</enum><header>Exceptions</header>
<subparagraph commented="no" id="id7E3610C9266A4FE4894DBE8FA83A35A8"><enum>(A)</enum><header>De
minimis</header><text>The Secretary shall establish de minimis exceptions to
the requirements of this subsection, based on the size of the cumulative
transactions of troubled assets purchased from any one financial institution
for the duration of the program, at not more than $100,000,000.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfdeaa39d329b42689409d706ebd72e35"><enum>(B)</enum><header>Other
exceptions</header><text>The Secretary shall establish an exception to the
requirements of this subsection and appropriate alternative requirements for
any participating financial institution that is legally prohibited from issuing
securities and debt instruments, so as not to allow circumvention of the
requirements of this section.</text>
</subparagraph></paragraph></subsection></section><section id="H8C94784D2C60438C847233BD0056A088"><enum>114.</enum><header>Market
transparency</header>
<subsection id="H379DEE31B2EC40ACA6A962B2CF37F15C"><enum>(a)</enum><header>Pricing</header><text display-inline="yes-display-inline">To facilitate market transparency, the
Secretary shall make available to the public, in electronic form, a
description, amounts, and pricing of assets acquired under this Act, within 2
business days of purchase, trade, or other disposition.</text>
</subsection><subsection commented="no" id="H0268974F49264B2FB5CD3EA7EF24D8B4"><enum>(b)</enum><header>Disclosure</header><text display-inline="yes-display-inline">For each type of financial institutions
that sells troubled assets to the Secretary under this Act, the Secretary shall
determine whether the public disclosure required for such financial
institutions with respect to off-balance sheet transactions, derivatives
instruments, contingent liabilities, and similar sources of potential exposure
is adequate to provide to the public sufficient information as to the true
financial position of the institutions. If such disclosure is not adequate for
that purpose, the Secretary shall make recommendations for additional
disclosure requirements to the relevant regulators.</text>
</subsection></section><section commented="no" id="idD37B5FD9832745079887E5EFDBEB8148"><enum>115.</enum><header>Graduated
authorization to purchase</header>
<subsection commented="no" id="idA4F160EBD5494A07B848A43CDD1D5250"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">The authority of the Secretary to purchase
troubled assets under this Act shall be limited as follows:</text>
<paragraph commented="no" id="idFA7B2F914F774B6B86CEC90F3E4A8531"><enum>(1)</enum><text>Effective upon the date
of enactment of this Act, such authority shall be limited to $250,000,000,000
outstanding at any one time.</text>
</paragraph><paragraph commented="no" id="id7C093303C101475FBB75D16B2312E09F"><enum>(2)</enum><text display-inline="yes-display-inline">If at any time, the President submits to
the Congress a written certification that the Secretary needs to exercise the
authority under this paragraph, effective upon such submission, such authority
shall be limited to $350,000,000,000 outstanding at any one time.</text>
</paragraph><paragraph commented="no" id="id40056A9F2FA34DE796123197E6BA74C4"><enum>(3)</enum><text display-inline="yes-display-inline">If, at any time after the certification in
paragraph (2) has been made, the President transmits to the Congress a written
report detailing the plan of the Secretary to exercise the authority under this
paragraph, unless there is enacted, within 15 calendar days of such
transmission, a joint resolution described in subsection (c), effective upon
the expiration of such 15-day period, such authority shall be limited to
$700,000,000,000 outstanding at any one time.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id940100C70B7A49A1BB36D089FF9B7C27"><enum>(b)</enum><header>Aggregation of purchase
prices</header><text display-inline="yes-display-inline">The amount of troubled
assets purchased by the Secretary outstanding at any one time shall be
determined for purposes of the dollar amount limitations under subsection (a)
by aggregating the purchase prices of all troubled assets held.</text>
</subsection><subsection commented="no" id="id5D9612D3126347DB9B1A2BD8CB4C2D42"><enum>(c)</enum><header>Joint resolution of
disapproval</header>
<paragraph commented="no" id="ID482303EEB3E34D328EC542B335C783D2"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this section, the
Secretary may not exercise any authority to make purchases under this Act with
regard to any amount in excess of $350,000,000,000 previously obligated, as
described in this section if, within 15 calendar days after the date on which
Congress receives a report of the plan of the Secretary described in subsection
(a)(3), there is enacted into law a joint resolution disapproving the plan of
the Secretary with respect to such additional amount.</text>
</paragraph><paragraph commented="no" id="ID6D3232A9937040D2A2454946BE35D3D6"><enum>(2)</enum><header>Contents of joint
resolution</header><text>For the purpose of this section, the term <term>joint
resolution</term> means only a joint resolution—</text>
<subparagraph commented="no" id="idA6F3343B96AA4C9AB75DF860327D39EA"><enum>(A)</enum><text>that is introduced not
later than 3 calendar days after the date on which the report of the plan of
the Secretary referred to in subsection (a)(3) is received by Congress;</text>
</subparagraph><subparagraph id="id95DD94EEFDC747DF92059DAE20D25441"><enum>(B)</enum><text>which does not have a
preamble;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id45A3562885854D1D9C1DC7884497E0B4"><enum>(C)</enum><text>the title of which is as
follows: <quote>Joint resolution relating to the disapproval of obligations
under the <short-title>Emergency Economic Stabilization
Act of 2008</short-title></quote>; and</text>
</subparagraph><subparagraph commented="no" id="id56F629F2D8364DB9B7AC47F06487B437"><enum>(D)</enum><text>the matter after the
resolving clause of which is as follows: <quote>That Congress disapproves the
obligation of any amount exceeding the amounts obligated as described in
paragraphs (1) and (2) of section 115(a) of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>.</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idA859DB67CF624E66B368465A82CFC994"><enum>(d)</enum><header>Fast track
consideration in House of Representatives</header>
<paragraph id="id79A912745E794105B9F1508389AAEAB5"><enum>(1)</enum><header>Reconvening</header><text>Upon
receipt of a report under subsection (a)(3), the Speaker, if the House would
otherwise be adjourned, shall notify the Members of the House that, pursuant to
this section, the House shall convene not later than the second calendar day
after receipt of such report;</text>
</paragraph><paragraph id="idBC2B5E2C589947C186DC3AD08C53D1E5"><enum>(2)</enum><header>Reporting and
discharge</header><text>Any committee of the House of Representatives to which
a joint resolution is referred shall report it to the House not later than 5
calendar days after the date of receipt of the report described in subsection
(a)(3). If a committee fails to report the joint resolution within that period,
the committee shall be discharged from further consideration of the joint
resolution and the joint resolution shall be referred to the appropriate
calendar.</text>
</paragraph><paragraph id="idDE056D2DC832454582CB33324DA0DB4C"><enum>(3)</enum><header>Proceeding to
consideration</header><text>After each committee authorized to consider a joint
resolution reports it to the House or has been discharged from its
consideration, it shall be in order, not later than the sixth day after
Congress receives the report described in subsection (a)(3), to move to proceed
to consider the joint resolution in the House. All points of order against the
motion are waived. Such a motion shall not be in order after the House has
disposed of a motion to proceed on the joint resolution. The previous question
shall be considered as ordered on the motion to its adoption without
intervening motion. The motion shall not be debatable. A motion to reconsider
the vote by which the motion is disposed of shall not be in order.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE30EF39978094F288FEB2C93E9EF6F9D"><enum>(4)</enum><header>Consideration</header><text>The
joint resolution shall be considered as read. All points of order against the
joint resolution and against its consideration are waived. The previous
question shall be considered as ordered on the joint resolution to its passage
without intervening motion except two hours of debate equally divided and
controlled by the proponent and an opponent. A motion to reconsider the vote on
passage of the joint resolution shall not be in order.</text>
</paragraph></subsection><subsection commented="no" id="id96204C07D317456BB0C6165B60C96E3A"><enum>(e)</enum><header>Fast track
consideration in Senate</header>
<paragraph id="id8D32E52DA9594ED1B4C32F83B01C94BE"><enum>(1)</enum><header>Reconvening</header><text>Upon
receipt of a report under subsection (a)(3), if the Senate has adjourned or
recessed for more than 2 days, the majority leader of the Senate, after
consultation with the minority leader of the Senate, shall notify the Members
of the Senate that, pursuant to this section, the Senate shall convene not
later than the second calendar day after receipt of such message.</text>
</paragraph><paragraph commented="no" id="id142666AB949B4AC892184AB592BE9C60"><enum>(2)</enum><header>Placement on
calendar</header><text>Upon introduction in the Senate, the joint resolution
shall be placed immediately on the calendar.</text>
</paragraph><paragraph commented="no" id="ID05749AE46BE2458A9D09AEB8341032F8"><enum>(3)</enum><header>Floor
consideration</header>
<subparagraph commented="no" id="ID2D873B5ADA6E496B89D6EC9C49CFC011"><enum>(A)</enum><header>In
general</header><text>Notwithstanding Rule XXII of the Standing Rules of the
Senate, it is in order at any time during the period beginning on the 4th day
after the date on which Congress receives a report of the plan of the Secretary
described in subsection (a)(3) and ending on the 6th day after the date on
which Congress receives a report of the plan of the Secretary described in
subsection (a)(3) (even though a previous motion to the same effect has been
disagreed to) to move to proceed to the consideration of the joint resolution,
and all points of order against the joint resolution (and against consideration
of the joint resolution) are waived. The motion to proceed is not debatable.
The motion is not subject to a motion to postpone. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall not be in order. If
a motion to proceed to the consideration of the resolution is agreed to, the
joint resolution shall remain the unfinished business until disposed of.</text>
</subparagraph><subparagraph commented="no" id="ID1C1DC9BB930B4B36BF782994D80EB557"><enum>(B)</enum><header>Debate</header><text>Debate
on the joint resolution, and on all debatable motions and appeals in connection
therewith, shall be limited to not more than 10 hours, which shall be divided
equally between the majority and minority leaders or their designees. A motion
further to limit debate is in order and not debatable. An amendment to, or a
motion to postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the joint resolution is not in order.</text>
</subparagraph><subparagraph commented="no" id="ID62AC32EF7D3B40A6B0B727E915C69DF0"><enum>(C)</enum><header>Vote on
passage</header><text>The vote on passage shall occur immediately following the
conclusion of the debate on a joint resolution, and a single quorum call at the
conclusion of the debate if requested in accordance with the rules of the
Senate.</text>
</subparagraph><subparagraph commented="no" id="ID6ADB593D428240C8AE2899C00F821C22"><enum>(D)</enum><header>Rulings of the chair on
procedure</header><text>Appeals from the decisions of the Chair relating to the
application of the rules of the Senate, as the case may be, to the procedure
relating to a joint resolution shall be decided without debate.</text>
</subparagraph></paragraph></subsection><subsection id="id6EC3B0584AFB4BD581A4B5956C3B873C"><enum>(f)</enum><header>Rules relating to
Senate and House of Representatives</header>
<paragraph commented="no" id="IDA3DFA7772CD448B3BD84EF7C44EDA778"><enum>(1)</enum><header>Coordination with
action by other house</header><text>If, before the passage by one House of a
joint resolution of that House, that House receives from the other House a
joint resolution, then the following procedures shall apply:</text>
<subparagraph commented="no" id="ID66A9FA2864BC4D358A166B0BDDA2CA15"><enum>(A)</enum><text>The joint resolution of
the other House shall not be referred to a committee.</text>
</subparagraph><subparagraph commented="no" id="IDC1FD56C0EAF14721B9FB246A916976C1"><enum>(B)</enum><text>With respect to a joint
resolution of the House receiving the resolution—</text>
<clause commented="no" id="ID8A6C0611762643088B82591FEFA98E56"><enum>(i)</enum><text>the procedure in that
House shall be the same as if no joint resolution had been received from the
other House; but</text>
</clause><clause commented="no" id="ID25C0FC1DC51D4DBEBDE75C730A54C2E1"><enum>(ii)</enum><text>the vote on passage
shall be on the joint resolution of the other House.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="id4CDE81960BAA4F4A8DA3C295A329BB7F"><enum>(2)</enum><header>Treatment of joint
resolution of other House</header><text>If one House fails to introduce or
consider a joint resolution under this section, the joint resolution of the
other House shall be entitled to expedited floor procedures under this
section.</text>
</paragraph><paragraph commented="no" id="id793FF90BFA7B4DB9AAF9F5E5F3BB9CBE"><enum>(3)</enum><header>Treatment of companion
measures</header><text>If, following passage of the joint resolution in the
Senate, the Senate then receives the companion measure from the House of
Representatives, the companion measure shall not be debatable.</text>
</paragraph><paragraph id="id9996C9C9C707477FB124B10A1C6E7D56"><enum>(4)</enum><header>Consideration after
passage</header>
<subparagraph id="id38C3E0DE2EAB4255958289C5B4D02BCD"><enum>(A)</enum><header>In
general</header><text>If Congress passes a joint resolution, the period
beginning on the date the President is presented with the joint resolution and
ending on the date the President takes action with respect to the joint
resolution shall be disregarded in computing the 15-calendar day period
described in subsection (a)(3).</text>
</subparagraph><subparagraph id="id3124DBDEA33743C0B05211DF4E010527"><enum>(B)</enum><header>Vetoes</header><text>If
the President vetoes the joint resolution—</text>
<clause id="idE66AEEB3C8CB45D3B1157733F08C80CC"><enum>(i)</enum><text>the period beginning on
the date the President vetoes the joint resolution and ending on the date the
Congress receives the veto message with respect to the joint resolution shall
be disregarded in computing the 15-calendar day period described in subsection
(a)(3), and</text>
</clause><clause id="idB138CDEB37E0418BAB1D27EEEF57E03C"><enum>(ii)</enum><text>debate on a veto message
in the Senate under this section shall be 1 hour equally divided between the
majority and minority leaders or their designees.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="ID0E886CE5DC3C44FCB8474D8C5CC91C42"><enum>(5)</enum><header>Rules of house of
representatives and senate</header><text>This subsection and subsections (c),
(d), and (e) are enacted by Congress—</text>
<subparagraph commented="no" id="IDEA098FC265CC4D49B42A4C054A3DABFF"><enum>(A)</enum><text>as an exercise of the
rulemaking power of the Senate and House of Representatives, respectively, and
as such it is deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in that House in
the case of a joint resolution, and it supersedes other rules only to the
extent that it is inconsistent with such rules; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDED819FD050DE4839BDF2821B011EFE46"><enum>(B)</enum><text>with full recognition of
the constitutional right of either House to change the rules (so far as
relating to the procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that House.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7E50F4FCD8F34CE38C04BE9888501040"><enum>116.</enum><header>Oversight and
audits</header>
<subsection commented="no" id="HFC540D17E5C64ECBA8F066FC85E1B1FC"><enum>(a)</enum><header>Comptroller General
Oversight</header>
<paragraph commented="no" id="HFDE944F270794367BEA9B28DD1D3C00"><enum>(1)</enum><header>Scope of
Oversight</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall, upon establishment of the troubled assets
relief program under this Act (in this section referred to as the
<quote>TARP</quote>), commence ongoing oversight of the activities and
performance of the TARP and of any agents and representatives of the TARP (as
related to the agent or representative’s activities on behalf of or under the
authority of the TARP), including vehicles established by the Secretary under
this Act. The subjects of such oversight shall include the following:</text>
<subparagraph commented="no" id="H80D1B06718EE49619F1FEE3601413D51"><enum>(A)</enum><text>The performance of the
TARP in meeting the purposes of this Act, particularly those involving—</text>
<clause commented="no" id="id0B4709FB26C24FE794045E40804C203C"><enum>(i)</enum><text>foreclosure
mitigation;</text>
</clause><clause commented="no" id="id31B24724B81944168375D52183DF6F9E"><enum>(ii)</enum><text>cost reduction;</text>
</clause><clause commented="no" id="idF122810157624332B32B60C749D834CF"><enum>(iii)</enum><text>whether it has provided
stability or prevented disruption to the financial markets or the banking
system; and</text>
</clause><clause commented="no" id="id696013D878354F538A60DB83ADC51B6A"><enum>(iv)</enum><text>whether it has protected
taxpayers.</text>
</clause></subparagraph><subparagraph commented="no" id="H6BA31A44E65248C693D1F9A3DE542211"><enum>(B)</enum><text>The financial condition
and internal controls of the TARP, its representatives and agents.</text>
</subparagraph><subparagraph commented="no" id="H1E3F8DA8A01B40759354E4D9C3E4588"><enum>(C)</enum><text>Characteristics of
transactions and commitments entered into, including transaction type,
frequency, size, prices paid, and all other relevant terms and conditions, and
the timing, duration and terms of any future commitments to purchase
assets.</text>
</subparagraph><subparagraph commented="no" id="HB9BE37035A4C46719CC710251CF998E"><enum>(D)</enum><text>Characteristics and
disposition of acquired assets, including type, acquisition price, current
market value, sale prices and terms, and use of proceeds from sales.</text>
</subparagraph><subparagraph commented="no" id="H7B0A34911AAB4E27AFCBA81911B12338"><enum>(E)</enum><text>Efficiency of the
operations of the TARP in the use of appropriated funds.</text>
</subparagraph><subparagraph commented="no" id="H1ED6340777804786AD1164F0BF50A070"><enum>(F)</enum><text>Compliance with all
applicable laws and regulations by the TARP, its agents and
representatives.</text>
</subparagraph><subparagraph commented="no" id="HC7212FB8F0754F1FA3A129C5E1846D32"><enum>(G)</enum><text>The efforts of the TARP
to prevent, identify, and minimize conflicts of interest involving any agent or
representative performing activities on behalf of or under the authority of the
TARP.</text>
</subparagraph><subparagraph commented="no" id="H98FCB305607B416CB208ACD5F6004768"><enum>(H)</enum><text display-inline="yes-display-inline">The efficacy of contracting procedures
pursuant to section 107(b), including, as applicable, the efforts of the TARP
in evaluating proposals for inclusion and contracting to the maximum extent
possible of minorities (as such term is defined in 1204(c) of the Financial
Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1811
note), women, and minority- and women-owned businesses, including ascertaining
and reporting the total amount of fees paid and other value delivered by the
TARP to all of its agents and representatives, and such amounts paid or
delivered to such firms that are minority- and women-owned businesses (as such
terms are defined in section 21A of the Federal Home Loan Bank Act (12 U.S.C.
1441a)).</text>
</subparagraph></paragraph><paragraph commented="no" id="HA6202E8B05774646BA4CA780E10496C"><enum>(2)</enum><header>Conduct and
Administration of oversight</header>
<subparagraph commented="no" id="H75A27BBA4F9A4587B754D61CD0AF1B82"><enum>(A)</enum><header>GAO
presence</header><text display-inline="yes-display-inline">The Secretary shall
provide the Comptroller General with appropriate space and facilities in the
Department of the Treasury as necessary to facilitate oversight of the TARP
until the termination date established in section 120.</text>
</subparagraph><subparagraph commented="no" id="H76706027AFFC45EB998EDB425EFACE3B"><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 TARP, or any vehicles established by the Secretary under this Act, and to
the officers, directors, employees, independent public accountants, financial
advisors, and other agents and representatives of the TARP (as related to the
agent or representative’s activities on behalf of or under the authority of the
TARP) or any such vehicle 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><subparagraph commented="no" id="H2517E843267D472F82920891968D00D"><enum>(C)</enum><header>Reimbursement of
costs</header><text>The Treasury shall reimburse the Government Accountability
Office for the full cost of any such oversight activities as billed therefor by
the Comptroller General of the United States. Such reimbursements shall be
credited to the appropriation account “Salaries and Expenses, Government
Accountability Office” current when the payment is received and remain
available until expended.</text>
</subparagraph></paragraph><paragraph commented="no" id="H84E619D1D0A0481296D759D4C2917100"><enum>(3)</enum><header>Reporting</header><text display-inline="yes-display-inline">The Comptroller General shall submit
reports of findings under this section, regularly and no less frequently than
once every 60 days, to the appropriate committees of Congress, and the Special
Inspector General for the Troubled Asset Relief Program established under this
Act on the activities and performance of the TARP. The Comptroller may also
submit special reports under this subsection as warranted by the findings of
its oversight activities.</text>
</paragraph></subsection><subsection commented="no" id="HD2FFBD1F42C04AD584BF0199DD8D00D6"><enum>(b)</enum><header>Comptroller General
audits</header>
<paragraph commented="no" id="H25A0B37A549B4243A07D1668B19B42"><enum>(1)</enum><header>Annual
audit</header><text display-inline="yes-display-inline">The TARP shall annually
prepare and issue to the appropriate committees of Congress and the public
audited financial statements prepared in accordance with generally accepted
accounting principles, and the Comptroller General shall annually audit such
statements in accordance with generally accepted auditing standards. The
Treasury shall reimburse the Government Accountability Office for the full cost
of any such audit as billed therefor by the Comptroller General. Such
reimbursements shall be credited to the appropriation account “Salaries and
Expenses, Government Accountability Office” current when the payment is
received and remain available until expended. The financial statements prepared
under this paragraph shall be on the fiscal year basis prescribed under section
1102 of title 31, United States Code.</text>
</paragraph><paragraph commented="no" id="H3A8D5FC977CF4C96BE009795050020D"><enum>(2)</enum><header>Authority</header><text>The
Comptroller General may audit the programs, activities, receipts, expenditures,
and financial transactions of the TARP and any agents and representatives of
the TARP (as related to the agent or representative’s activities on behalf of
or under the authority of the TARP), including vehicles established by the
Secretary under this Act.</text>
</paragraph><paragraph commented="no" id="HD95B4B38F5864D24912CB5ACD8B13EC6"><enum>(3)</enum><header>Corrective responses to
audit problems</header><text>The TARP shall—</text>
<subparagraph commented="no" id="H763D3C02526A42B5A4259165D850DFDB"><enum>(A)</enum><text>take action to address
deficiencies identified by the Comptroller General or other auditor engaged by
the TARP; or</text>
</subparagraph><subparagraph commented="no" id="HBBFA3E5512364360B4611C887ECD160"><enum>(B)</enum><text>certify to appropriate
committees of Congress that no action is necessary or appropriate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HEC8097B04DF04416A516C30580FF8D6B"><enum>(c)</enum><header>Internal
Control</header>
<paragraph commented="no" id="HC851427AD87B4B93A821B489806A37D"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The TARP shall establish and maintain an
effective system of internal control, consistent with the standards prescribed
under <external-xref legal-doc="usc" parsable-cite="usc/31/3512">section 3512(c)</external-xref> of title 31, United States Code, that provides reasonable
assurance of—</text>
<subparagraph commented="no" id="H48BE34C33C1C4ED8A5CEF0BEEF74F05E"><enum>(A)</enum><text>the effectiveness and
efficiency of operations, including the use of the resources of the
TARP;</text>
</subparagraph><subparagraph commented="no" id="H386EC37259214BADB0A500163EA4B45"><enum>(B)</enum><text>the reliability of
financial reporting, including financial statements and other reports for
internal and external use; and</text>
</subparagraph><subparagraph commented="no" id="HBC27B8585A964653A64400B007045EB"><enum>(C)</enum><text>compliance with
applicable laws and regulations.</text>
</subparagraph></paragraph><paragraph commented="no" id="H8EBD6ABD48E04B7D861B34E5B31BC5BE"><enum>(2)</enum><header>Reporting</header><text>In
conjunction with each annual financial statement issued under this section, the
TARP shall—</text>
<subparagraph commented="no" id="H2227A0F154E145068B539FD8AFA9A2E2"><enum>(A)</enum><text>state the responsibility
of management for establishing and maintaining adequate internal control over
financial reporting; and</text>
</subparagraph><subparagraph commented="no" id="H43F906B0105B44FEA4F3701F88003BCD"><enum>(B)</enum><text>state its assessment, as
of the end of the most recent year covered by such financial statement of the
TARP, of the effectiveness of the internal control over financial
reporting.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id72C6F70F53944BDC9A5D5EFB15C79254"><enum>(d)</enum><header>Sharing of
information</header><text>Any report or audit required under this section shall
also be submitted to the Congressional Oversight Panel established under
section 125.</text>
</subsection><subsection id="id1F84EEE20C2249658BB17D4BBE86D45F"><enum>(e)</enum><header>Termination</header><text>Any
oversight, reporting, or audit requirement under this section shall terminate
on the later of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idD5E3F9348AEB4B779669805FC1672A09"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE824107166274AD295F55ABBFFA20A71"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HEEC44684D74B4A779213D178A91FBFD8" section-type="subsequent-section"><enum>117.</enum><header>Study and report on
margin authority</header>
<subsection commented="no" id="H0AFF47B9952245B286F1AC50B8148DA9"><enum>(a)</enum><header>Study</header><text>The
Comptroller General shall undertake a study to determine the extent to which
leverage and sudden deleveraging of financial institutions was a factor behind
the current financial crisis.</text>
</subsection><subsection commented="no" id="H15FBDF0F3F4A4991B5C06CF6F9C48499"><enum>(b)</enum><header>Content</header><text>The
study required by this section shall include—</text>
<paragraph commented="no" id="H6C534FC338BB4F8CBA53960057797504"><enum>(1)</enum><text>an analysis of the roles
and responsibilities of the Board, the Securities and Exchange Commission, the
Secretary, and other Federal banking agencies with respect to monitoring
leverage and acting to curtail excessive leveraging;</text>
</paragraph><paragraph commented="no" id="H6F378EE411B14471B3B200E316D1E7A0"><enum>(2)</enum><text>an analysis of the
authority of the Board to regulate leverage, including by setting margin
requirements, and what process the Board used to decide whether or not to use
its authority;</text>
</paragraph><paragraph commented="no" id="HEA72AF40357D4055B2C31FA131EE41AF"><enum>(3)</enum><text>an analysis of any usage
of the margin authority by the Board; and</text>
</paragraph><paragraph commented="no" id="HF39388B36520444B824600B720E2EF52"><enum>(4)</enum><text>recommendations for the
Board and appropriate committees of Congress with respect to the existing
authority of the Board.</text>
</paragraph></subsection><subsection commented="no" id="H3F818295E5AA4344A449E7D1FEB0477"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than June 1, 2009, the
Comptroller General shall complete and submit a report on the study required by
this section to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idEB388D33F64C40F7B3115611D1778F9A"><enum>(d)</enum><header>Sharing of
information</header><text>Any reports required under this section shall also be
submitted to the Congressional Oversight Panel established under section
125.</text>
</subsection></section><section id="HA5B4B2703CFF4A36864145459BD34EE5"><enum>118.</enum><header>Funding</header><text display-inline="no-display-inline">For the purpose of the authorities granted
in this Act, and for the costs of administering those authorities, the
Secretary may use the proceeds of the sale of any securities issued under
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, and the purposes for which
securities may be issued under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, are
extended to include actions authorized by this Act, including the payment of
administrative expenses. Any funds expended or obligated by the Secretary for
actions authorized by this Act, including the payment of administrative
expenses, shall be deemed appropriated at the time of such expenditure or
obligation.</text>
</section><section id="idA3A89637E3D349E4AFD1C880C9D7AF48"><enum>119.</enum><header>Judicial review and
related matters</header>
<subsection id="IDfd85a85be8464729973d71d75f0f4239"><enum>(a)</enum><header>Judicial
review</header>
<paragraph id="ID737ed94bf68348b5a9ee01fda00de120"><enum>(1)</enum><header>Standard</header><text>Actions
by the Secretary pursuant to the authority of this Act shall be subject to
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code, including that such final actions
shall be held unlawful and set aside if found to be arbitrary, capricious, an
abuse of discretion, or not in accordance with law.</text>
</paragraph><paragraph id="ID535ff72df5984ed992bb7d8171182385"><enum>(2)</enum><header>Limitations on
equitable relief</header>
<subparagraph id="ID2f165cf3a789458ca676681c7735a77e"><enum>(A)</enum><header>Injunction</header><text>No
injunction or other form of equitable relief shall be issued against the
Secretary for actions pursuant to section 101, 102, 106, and 109, other than to
remedy a violation of the Constitution.</text>
</subparagraph><subparagraph id="ID711be2a1c981420ca3f3ce7f9417d255"><enum>(B)</enum><header>Temporary restraining
order</header><text>Any request for a temporary restraining order against the
Secretary for actions pursuant to this Act shall be considered and granted or
denied by the court within 3 days of the date of the request.</text>
</subparagraph><subparagraph id="IDe58c31c6314c4d339a9fbe4eedaa7d15"><enum>(C)</enum><header>Preliminary
injunction</header><text>Any request for a preliminary injunction against the
Secretary for actions pursuant to this Act shall be considered and granted or
denied by the court on an expedited basis consistent with the provisions of
rule 65(b)(3) of the Federal Rules of Civil Procedure, or any successor
thereto.</text>
</subparagraph><subparagraph id="ID393898196fa9480a8abad71c5da05250"><enum>(D)</enum><header>Permanent
injunction</header><text>Any request for a permanent injunction against the
Secretary for actions pursuant to this Act shall be considered and granted or
denied by the court on an expedited basis. Whenever possible, the court shall
consolidate trial on the merits with any hearing on a request for a preliminary
injunction, consistent with the provisions of rule 65(a)(2) of the Federal
Rules of Civil Procedure, or any successor thereto.</text>
</subparagraph></paragraph><paragraph id="ID85cd1e6f23e2446f824770a31f772aba"><enum>(3)</enum><header>Limitation on actions
by participating companies</header><text>No action or claims may be brought
against the Secretary by any person that divests its assets with respect to its
participation in a program under this Act, except as provided in paragraph (1),
other than as expressly provided in a written contract with the
Secretary.</text>
</paragraph><paragraph id="IDa7bad5b1964246508ed50902720918f4"><enum>(4)</enum><header>Stays</header><text>Any
injunction or other form of equitable relief issued against the Secretary for
actions pursuant to section 101, 102, 106, and 109, shall be automatically
stayed. The stay shall be lifted unless the Secretary seeks a stay from a
higher court within 3 calendar days after the date on which the relief is
issued.</text>
</paragraph></subsection><subsection id="IDbd16a1fb29184a9f99c1502762423866"><enum>(b)</enum><header>Related
matters</header>
<paragraph commented="no" id="ID82bb797544d34326ac01f31a31d35593"><enum>(1)</enum><header>Treatment of
homeowners' rights</header><text>The terms of any residential mortgage loan
that is part of any purchase by the Secretary under this Act shall remain
subject to all claims and defenses that would otherwise apply, notwithstanding
the exercise of authority by the Secretary under this Act.</text>
</paragraph><paragraph id="ID7c7bd03d381c4e2ea6b91ad2db16f9ab"><enum>(2)</enum><header>Savings
clause</header><text>Any exercise of the authority of the Secretary pursuant to
this Act shall not impair the claims or defenses that would otherwise apply
with respect to persons other than the Secretary. Except as established in any
contract, a servicer of pooled residential mortgages owes any duty to determine
whether the net present value of the payments on the loan, as modified, is
likely to be greater than the anticipated net recovery that would result from
foreclosure to all investors and holders of beneficial interests in such
investment, but not to any individual or groups of investors or beneficial
interest holders, and shall be deemed to act in the best interests of all such
investors or holders of beneficial interests if the servicer agrees to or
implements a modification or workout plan when the servicer takes reasonable
loss mitigation actions, including partial payments.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HEFC14F3DB8104D74B039C7CD89B4CB6" section-type="subsequent-section"><enum>120.</enum><header>Termination of
authority</header>
<subsection id="H4F21B1FF505C4057A159D6E345E8DBB"><enum>(a)</enum><header>Termination</header><text display-inline="yes-display-inline">The authorities provided under sections
101(a), excluding section 101(a)(3), and 102 shall terminate on December 31,
2009.</text>
</subsection><subsection id="H5CC9121102244F6DB73BCD5876447EE2"><enum>(b)</enum><header>Extension upon
certification</header><text display-inline="yes-display-inline">The Secretary,
upon submission of a written certification to Congress, may extend the
authority provided under this Act to expire not later than 2 years from the
date of enactment of this Act. Such certification shall include a justification
of why the extension is necessary to assist American families and stabilize
financial markets, as well as the expected cost to the taxpayers for such an
extension.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF6B9710DB26542A796B3A951D9B4A96C" section-type="subsequent-section"><enum>121.</enum><header>Special Inspector
General for the Troubled Asset Relief Program</header>
<subsection commented="no" id="H6F6552EAC0BB4C018775D7FEAD03B765"><enum>(a)</enum><header>Office of Inspector
General</header><text>There is hereby established the Office of the Special
Inspector General for the Troubled Asset Relief Program.</text>
</subsection><subsection commented="no" id="H37842AF32B92405381DFB3CC77628C66"><enum>(b)</enum><header>Appointment of
Inspector General; removal</header><paragraph commented="no" display-inline="yes-display-inline" id="HD5696747B6D44E3DAAEE00CA1E39EBBB"><enum>(1)</enum><text>The head of the Office
of the Special Inspector General for the Troubled Asset Relief Program is the
Special Inspector General for the Troubled Asset Relief Program (in this
section referred to as the <quote>Special Inspector General</quote>), who shall
be appointed by the President, by and with the advice and consent of the
Senate.</text>
</paragraph><paragraph changed="added" commented="no" id="H35CB50655FD140A2A0CC402D18774C04" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The appointment of the
Special Inspector General shall be made on the basis of integrity and
demonstrated ability in accounting, auditing, financial analysis, law,
management analysis, public administration, or investigations.</text>
</paragraph><paragraph changed="added" commented="no" id="H8F93ACD3540D49A7B34EC0DB178221D8" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The nomination of an
individual as Special Inspector General shall be made as soon as practicable
after the establishment of any program under sections 101 and 102.</text>
</paragraph><paragraph changed="added" commented="no" id="HFF71BAFF7E2544D6AD004745A83C5C00" indent="up1" reported-display-style="italic"><enum>(4)</enum><text>The Special Inspector
General shall be removable from office in accordance with the provisions of
<external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(b)</external-xref> of the Inspector General Act of 1978 (5 U.S.C. App.).</text>
</paragraph><paragraph changed="added" commented="no" id="HA2B1ABBA322C4889AF6CBBD625168E5B" indent="up1" reported-display-style="italic"><enum>(5)</enum><text>For purposes of section
7324 of title 5, United States Code, the Special Inspector General shall not be
considered an employee who determines policies to be pursued by the United
States in the nationwide administration of Federal law.</text>
</paragraph><paragraph changed="added" commented="no" id="HFC70C47E8FAD4CD0A5106B179456D485" indent="up1" reported-display-style="italic"><enum>(6)</enum><text>The annual rate of basic
pay of the Special Inspector General shall be the annual rate of basic pay for
an Inspector General under <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(e)</external-xref> of the Inspector General Act of 1978 (5
U.S.C. App.).</text>
</paragraph></subsection><subsection commented="no" id="H13CFD12E2D6045929277E8854BE60800"><enum>(c)</enum><header>Duties</header><paragraph commented="no" display-inline="yes-display-inline" id="H066AB0AB859A4C4F8CB1D2FCE41BB214"><enum>(1)</enum><text>It shall be the duty of
the Special Inspector General to conduct, supervise, and coordinate audits and
investigations of the purchase, management, and sale of assets by the Secretary
of the Treasury under any program established by the Secretary under section
101, and the management by the Secretary of any program established under
section 102, including by collecting and summarizing the following
information:</text>
<subparagraph changed="added" commented="no" id="HD57E442555464BA8BA050800F1C7654D" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>A description of the
categories of troubled assets purchased or otherwise procured by the
Secretary.</text>
</subparagraph><subparagraph changed="added" commented="no" id="HBE344C4B69A940C281D09B6F584F08D9" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>A listing of the troubled
assets purchased in each such category described under subparagraph (A).</text>
</subparagraph><subparagraph changed="added" commented="no" id="HA8EB6062F4EA43BD81AEB0752E68C5E" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>An
explanation of the reasons the Secretary deemed it necessary to purchase each
such troubled asset.</text>
</subparagraph><subparagraph changed="added" commented="no" id="H5742D83AA94F4E23975917D3E2A17DF2" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>A listing of each
financial institution that such troubled assets were purchased from.</text>
</subparagraph><subparagraph changed="added" commented="no" id="HADC934C194E64D31BF5978AE24CEEEF" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>A
listing of and detailed biographical information on each person or entity hired
to manage such troubled assets.</text>
</subparagraph><subparagraph changed="added" commented="no" id="HB67F39AB9BC74975B94FAEE6BCDA3CFE" indent="up1" reported-display-style="italic"><enum>(F)</enum><text>A current estimate of the
total amount of troubled assets purchased pursuant to any program established
under section 101, the amount of troubled assets on the books of the Treasury,
the amount of troubled assets sold, and the profit and loss incurred on each
sale or disposition of each such troubled asset.</text>
</subparagraph><subparagraph changed="added" commented="no" id="idEEFBF6ED70F94074B60964CCF16C0FBD" indent="up1" reported-display-style="italic"><enum>(G)</enum><text>A listing of the
insurance contracts issued under section 102.</text>
</subparagraph></paragraph><paragraph changed="added" commented="no" id="HE0773E1176F44752B142CAAD9156B1AB" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector
General shall establish, maintain, and oversee such systems, procedures, and
controls as the Special Inspector General considers appropriate to discharge
the duty under paragraph (1).</text>
</paragraph><paragraph changed="added" commented="no" id="H545E0A5618C44513B94DFC5398EF25EB" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>In addition to the duties
specified in paragraphs (1) and (2), the Inspector General shall also have the
duties and responsibilities of inspectors general under the Inspector General
Act of 1978.</text>
</paragraph></subsection><subsection commented="no" id="H9288419FCEF54E6096FA197DAE36E413"><enum>(d)</enum><header>Powers and
authorities</header><paragraph commented="no" display-inline="yes-display-inline" id="H7D16601DD83B4249960484CE00A74F96"><enum>(1)</enum><text>In carrying out the
duties specified in subsection (c), the Special Inspector General shall have
the authorities provided in section 6 of the Inspector General Act of
1978.</text>
</paragraph><paragraph changed="added" commented="no" id="H62D24C238E994CEA921FB87839FF00F6" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector
General shall carry out the duties specified in subsection (c)(1) in accordance
with section 4(b)(1) of the Inspector General Act of 1978.</text>
</paragraph></subsection><subsection commented="no" id="HAE7ACF34BBA14737B366DCE124397F36"><enum>(e)</enum><header>Personnel, facilities,
and other resources</header><paragraph commented="no" display-inline="yes-display-inline" id="H6C1EB49C7FDB4E08926B379B25F915CF"><enum>(1)</enum><text>The Special Inspector
General may select, appoint, and employ such officers and employees as may be
necessary for carrying out the duties of the Special Inspector General, subject
to the provisions of title 5, United States Code, governing appointments in the
competitive service, and the provisions of chapter 51 and subchapter III of
chapter 53 of such title, relating to classification and General Schedule pay
rates.</text>
</paragraph><paragraph changed="added" commented="no" id="HF646E4B8B0D44A2E8FF3431BB65242D" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector
General may obtain services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United
States Code, at daily rates not to exceed the equivalent rate prescribed for
grade GS–15 of the General Schedule by section 5332 of such title.</text>
</paragraph><paragraph changed="added" commented="no" id="H9030DBEE3A7641CE88C1BDC37BC6D49" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The Special Inspector
General may enter into contracts and other arrangements for audits, studies,
analyses, and other services with public agencies and with private persons, and
make such payments as may be necessary to carry out the duties of the Inspector
General.</text>
</paragraph><paragraph changed="added" commented="no" id="H68FCB1341AA34AF78B421FF2F98727E3" indent="up1" reported-display-style="italic"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HEB6D1521946F4F1DB6B480F7A8EFA197"><enum>(A)</enum><text>Upon request of the
Special Inspector General for information or assistance from any department,
agency, or other entity of the Federal Government, the head of such entity
shall, insofar as is practicable and not in contravention of any existing law,
furnish such information or assistance to the Special Inspector General, or an
authorized designee.</text>
</subparagraph><subparagraph changed="added" commented="no" id="H3D27224BEF6B45FAB3BE62A58CF4A7D9" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Whenever information or
assistance requested by the Special Inspector General is, in the judgment of
the Special Inspector General, unreasonably refused or not provided, the
Special Inspector General shall report the circumstances to the appropriate
committees of Congress without delay.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H5A58A18FB3A944DEB4E0957C2F6244"><enum>(f)</enum><header>Reports</header><paragraph commented="no" display-inline="yes-display-inline" id="H8612D479217741F1A3A6FAC998ED004F"><enum>(1)</enum><text>Not later than 60 days
after the confirmation of the Special Inspector General, and every calendar
quarter thereafter, the Special Inspector General shall submit to the
appropriate committees of Congress a report summarizing the activities of the
Special Inspector General during the 120-day period ending on the date of such
report. Each report shall include, for the period covered by such report, a
detailed statement of all purchases, obligations, expenditures, and revenues
associated with any program established by the Secretary of the Treasury under
sections 101 and 102, as well as the information collected under subsection
(c)(1).</text>
</paragraph><paragraph changed="added" commented="no" id="HFC58BAAFC17041DD8FC76B6FB4A4FA96" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>Nothing in this
subsection shall be construed to authorize the public disclosure of information
that is—</text>
<subparagraph commented="no" id="H6056CCCE3A5B490B88682E766344B6BF"><enum>(A)</enum><text>specifically prohibited
from disclosure by any other provision of law;</text>
</subparagraph><subparagraph commented="no" id="HC59B381515374CA885AB2207477C1B3E"><enum>(B)</enum><text>specifically required by
Executive order to be protected from disclosure in the interest of national
defense or national security or in the conduct of foreign affairs; or</text>
</subparagraph><subparagraph commented="no" id="HC1476DF1D5284F649BF4F1EF374E14D3"><enum>(C)</enum><text>a part of an ongoing
criminal investigation.</text>
</subparagraph></paragraph><paragraph changed="added" commented="no" id="id2CFEC063F4394919AE6B3C6F670A1F48" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>Any reports required
under this section shall also be submitted to the Congressional Oversight Panel
established under section 125.</text>
</paragraph></subsection><subsection commented="no" id="H5EF2689BD1BF41279EE1D9BB5600A54E"><enum>(g)</enum><header>Funding</header><paragraph commented="no" display-inline="yes-display-inline" id="H63D1840806D545949EE400F91FB3C5BB"><enum>(1)</enum><text>Of the amounts made
a