HR 1424 ENR: Heartland Disaster Tax Relief Act of 2008
U.S. House of Representatives
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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="H558705AA90EA46068552CCB4ACED200"><enum>101.</enum><header>Purchases of troubled assets</header>
<subsection display-inline="no-display-inline" id="HE65CD0FA99384565A7D53167FAD1BA3"><enum>(a)</enum><header>Offices; Authority</header>
<paragraph commented="no" id="H6DAEAD34691C48F9B05CF02BC2EF4BCE"><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="HD5C7544320CC4B9F9CECE16983711700"><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="H9E688891855D4605992B72F9519FC2C7"><enum>(3)</enum><header>Establishment of Treasury office</header>
<subparagraph id="H887D13B0D2194008A63858A9D77D4FD1"><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="H3332D4548C9A4FF88E5C00362D9C019C"><enum>(B)</enum><header>Clerical amendments</header>
<clause id="H7487E5B09A0442D9ABCBD2A282AA7C81"><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="HBD09884647F545D389FC5324E940754"><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="HF2E076DF0D9A4BB4BD21F6B874439007"><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="H86C0B941934C43C2B4A1DF63A421E5EC"><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="H9CBB805117B2478BBFE72656905D0693"><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="HF6D5A3F81DBD4CB198FD3FE95B02F7D0"><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="H851D192E37D046C2AC18D4BF5516A0A6"><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="HDB5F6372D0844F7B909517F196A269A9"><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="HDE41311693B149238941C00090A3AAE1"><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="H7B500C0DADB34C1EAC54BA08AF5C556B"><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="H0D293AA5F7AD4FB0AB0093A1FE1EA007"><enum>(1)</enum><text>Mechanisms for purchasing troubled assets.</text></paragraph>
<paragraph commented="no" id="H66756ADF722A4D3FAAB0135FE5B687D"><enum>(2)</enum><text>Methods for pricing and valuing troubled assets.</text></paragraph>
<paragraph commented="no" id="H1076E88BDD3D4BAC94950979C42F8DEB"><enum>(3)</enum><text>Procedures for selecting asset managers.</text></paragraph>
<paragraph commented="no" id="H3CD0E2EAB6FD40A9AA914DE818B4A7C"><enum>(4)</enum><text>Criteria for identifying troubled assets for purchase.</text></paragraph></subsection>
<subsection commented="no" id="H093AD62A731F4D66874C336F05B947B8"><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="H034E56C77D524DFD9B858DF32848548F"><enum>102.</enum><header>Insurance of troubled assets</header>
<subsection id="H7CD6C8F9D9B943F88B50061F2C008571"><enum>(a)</enum><header>Authority</header>
<paragraph id="HCB826F9782AD485782E13C68BF28CCDD"><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="HEDB4A6CE060A4053B4117BD632107B4"><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="H3E349FFC3AB74B14B3799924412C562D"><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="HFB375D0863BE488CB8829792EA240823"><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="HE0D30B67CE67494DB13CF7A4A8C5097D"><enum>(c)</enum><header>Premiums</header>
<paragraph id="H40D3E16465B743439C27699EA6B6600"><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="HC99289B54C134D8295D098951184168D"><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="H0DFF735EAA6A422FB2FBB1D6E72851CC"><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="H7BE12CC3D62F4FAE886BCA95EC3437E6"><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="H19CB9F69EF9A495B9CA70527D3D07744"><enum>(d)</enum><header>Troubled assets insurance financing fund</header>
<paragraph id="HAB2EF3BD1AA24588B6AF978552900038"><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="H830F15CCAB7446079105C2E36B005C3F"><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="H939EC4B30DBC40918EE31E93A7BACA20"><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="HD7BE1000784F4D0A868BD49C20B552DB"><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="HE4C978BC9AC8498EA4E3E2C8DFA11F0"><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="HB1EA62FC229A4B31A2A453CC594EEED1"><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="HEDE715590E42436EA8F8EEAAE45E00CE"><enum>(3)</enum><text>the need to help families keep their homes and to stabilize communities;</text></paragraph>
<paragraph commented="no" id="H758BDE85D961475295655D3B384043F5"><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="H3D1FE67A1B244F859C58004584FAAB77"><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="H01E9A502F5DE4F2B8FD3B44E1F65A2EE"><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="HF0C9C7A0CC84451695A15455E3AFFB21"><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="H1958FAE21ED6449E93E07D8246F6EC3"><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 <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> 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="H620BA997B1394B5B80A6BFFE44A85586"><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="H28E011162A204AF1BE976D3BB532D889"><enum>104.</enum><header>Financial Stability Oversight Board</header>
<subsection id="HADEFFB4606124A1091C3C68288FEE048"><enum>(a)</enum><header>Establishment</header><text>There is established the Financial Stability Oversight Board, which shall be responsible for—</text>
<paragraph id="H1EBBEE17FDDB4B76B5FF06FB72BF07D"><enum>(1)</enum><text>reviewing the exercise of authority under a program developed in accordance with this Act, including—</text>
<subparagraph id="HD92A4915C3E74638BEA1BEDEAF58809"><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="H406B3327937048808EE92500BA443F3F"><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="H3433D0F9622E47C4A2F37CBFB4A2BD8F"><enum>(2)</enum><text>making recommendations, as appropriate, to the Secretary regarding use of the authority under this Act; and</text></paragraph>
<paragraph id="H53F59C49494D4AF19FBC6F6C60CC2348"><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="HF1648FBB0EE1413E947F6BF7BA0707C7"><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="HEC66ECA1AB2A4D3882E76099F164819E"><enum>(1)</enum><text>the Chairman of the Board of Governors of the Federal Reserve System;</text></paragraph>
<paragraph commented="no" id="HF947DB8434FB496CA200DD7BEFA0F554"><enum>(2)</enum><text>the Secretary;</text></paragraph>
<paragraph commented="no" id="HC9179EA35CAD455680EC39B588015686"><enum>(3)</enum><text>the Director of the Federal Housing Finance Agency;</text></paragraph>
<paragraph commented="no" id="HEAD189ABBE75493B86CC9CC81321D6EC"><enum>(4)</enum><text>the Chairman of the Securities Exchange Commission; and</text></paragraph>
<paragraph commented="no" id="HC9321440FFB44BEEB5E8B9A8C4405588"><enum>(5)</enum><text>the Secretary of Housing and Urban Development.</text></paragraph></subsection>
<subsection id="HC6062B29241E40DCAEE7EF5600D69FD6"><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="H32C6F17F65434DFC9748E739EAE3C85B"><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="H03065EB186F84C8DB7AB5CC7ACCFAD04"><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="HF74CDEE8B18B4F628B2B02E6A8C953E5"><enum>(1)</enum><text display-inline="yes-display-inline">in accordance with the purposes of this Act;</text></paragraph>
<paragraph commented="no" id="H761A8243E16F45D8A2E3C951BE494DF5"><enum>(2)</enum><text display-inline="yes-display-inline">in the economic interests of the United States; and</text></paragraph>
<paragraph commented="no" id="H851124BB90C84CA0B25800D9C1E900F5"><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="H9A8EEA23ACF0450C92735491F0CA4400"><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="H57D4ECD16034489FBCCF56A8D077F262"><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="HECF5A74D73C64306AA63E2FEED5DE461"><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="HC796F3EE03DD467BA632A7AFFB867525"><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="HA1586334D0A0465CB2DC8E471D1B202C"><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="H41205509D1BE407A8D90B66E00CE18C4" section-type="subsequent-section"><enum>105.</enum><header>Reports</header>
<subsection commented="no" id="H24BFE48F07D649D897F948E508C52F00"><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="H6BD5CF5B3A8C4655B5D461006F1DBF7"><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="HDF68CF74AFB740AE8BC9C7E38D8EEB38"><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="H6A352F994AB748DEACCB383960E9831B"><enum>(3)</enum><text>a detailed financial statement with respect to the exercise of authority under this Act, including—</text>
<subparagraph commented="no" id="HF9A202379EC84F89AFD971E46794FA4"><enum>(A)</enum><text>all agreements made or renewed;</text></subparagraph>
<subparagraph commented="no" id="H32CC486242D94905B5EED0FB15F3CBFB"><enum>(B)</enum><text>all insurance contracts entered into pursuant to section 102;</text></subparagraph>
<subparagraph commented="no" id="H744672F81097424686C9E9F1DF856961"><enum>(C)</enum><text>all transactions occurring during such period, including the types of parties involved;</text></subparagraph>
<subparagraph commented="no" id="HF68456D8F77E433EB905D636BA38B45"><enum>(D)</enum><text>the nature of the assets purchased;</text></subparagraph>
<subparagraph commented="no" id="H43AF40C16D7B469C85A191C6B469B240"><enum>(E)</enum><text>all projected costs and liabilities;</text></subparagraph>
<subparagraph commented="no" id="H1F5A1EA24210417CAADE8CF30995994D"><enum>(F)</enum><text>operating expenses, including compensation for financial agents;</text></subparagraph>
<subparagraph commented="no" id="H3A7184439F2C4F31AADF1726AC6A3C"><enum>(G)</enum><text>the valuation or pricing method used for each transaction; and</text></subparagraph>
<subparagraph commented="no" id="H2C23C4FC95A4402B944ED0311FC74317"><enum>(H)</enum><text>a description of the vehicles established to exercise such authority.</text></subparagraph></paragraph></subsection>
<subsection commented="no" id="H37EF4DC66DF54BF0BCBC078D9C95E959"><enum>(b)</enum><header>Tranche reports to Congress</header>
<paragraph commented="no" id="HAA2A4012354D440C854F7B37E869C6B8"><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="HA9CFAEF722534E338B627FC4E0033E2"><enum>(A)</enum><text>a description of all of the transactions made during the reporting period;</text></subparagraph>
<subparagraph commented="no" id="H22DA0396EB5348ADBBDA448DB979DA98"><enum>(B)</enum><text>a description of the pricing mechanism for the transactions;</text></subparagraph>
<subparagraph commented="no" id="HAF5CEE4E724F4AFCBDC157C8452BCB2C"><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="H67856AEF44B54198B1EEFE39F745BD3"><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="HB74091C166C64F429F6482C815F4C249"><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="H5263A08192174C50A7AF69A132FCB886"><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="H56C44E62516C4117941FA5667730B761"><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="HA3F7BA8E946147A2B37BE613F1A07D57"><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="H6B0ABACEC01445BC9E971E1E6CF91B4F"><enum>(1)</enum><text display-inline="yes-display-inline">recommendations regarding—</text>
<subparagraph commented="no" id="HB5B48E5614A24CBF946CACC9C776EB4"><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="HCC2D56CD8EF04CC395D489B55FD9C95E"><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="HDD29FA8B76B44A808E112EF4DA6D32E0"><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="HCE695EFF57D94287AD00409FB98DCE8F"><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="H5B707BD9BF7E4FF0A38BF76747230050"><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="HB6B597E6DF8448FFAF7221FB7DCF849"><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="H230B44FAB13244BCA8D415F8DF931D7"><enum>(2)</enum><text>the date of expiration of the last insurance contract issued under section 102.</text></paragraph></subsection></section>
<section id="HCE7B068EFF414A20B61CE6F5827F7600"><enum>106.</enum><header>Rights; management; sale of troubled assets; revenues and sale proceeds</header>
<subsection id="H5C4219C252B2437B8C6DFA19F1859876"><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="H630BC117F83442D59F3287606C876EB7"><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="H2D9815AD61BD4C69B4C55060FFF9C1CF"><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="HA7A572C270B8483989223900B2F264B2"><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="H876C7C13C42F4F0584AB5E90DE045BC4"><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="HEEEFEA28F1624F93AE308BA58E8B0042"><enum>107.</enum><header>Contracting procedures</header>
<subsection id="H6DCFE1F62AA443008515D8692EBF5FB4"><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="H409ECC937BD94115872C8F24ABC81701"><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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811</external-xref> 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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1441a">12 U.S.C. 1441a(r)(4)</external-xref>), in that solicitation or contract, including contracts to asset managers, servicers, property managers, and other service providers or expert consultants.</text></subsection>
<subsection id="HC8092E97ED3641C5BC003327FAB6E708"><enum>(c)</enum><header>Eligibility of FDIC</header><text>Notwithstanding subsections (a) and (b), the Corporation—</text>
<paragraph id="H7F23117C8C7B48C6BB8DA65F93F6E207"><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="H294F84CF831540529FE71FBA8F6DE9"><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="H6A7127C00B30417C8E01DFC65BDDA601"><enum>108.</enum><header>Conflicts of interest</header>
<subsection id="H8DD990ED7D9C44878E05C722A4213C7F"><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="HC5283071625C4296BE51EABD7719F7CD"><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="HC6FFFE1117A1447EA100804400DF00EA"><enum>(2)</enum><text>the purchase of troubled assets;</text></paragraph>
<paragraph id="H1428762A929245D8AA312DEE8CA887FB"><enum>(3)</enum><text display-inline="yes-display-inline">the management of the troubled assets held;</text></paragraph>
<paragraph id="HE5D8B3CDB1994E26B9DD1D3C08AD48E3"><enum>(4)</enum><text display-inline="yes-display-inline">post-employment restrictions on employees; and</text></paragraph>
<paragraph id="H38F9DE01D19A4BBE8D5E09207ED569FE"><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="H25029DBC0BDA4C85B9E68F754054A918"><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="H5BFA4EB28D54498CB43861BCC43216A8"><enum>109.</enum><header>Foreclosure mitigation efforts</header>
<subsection id="H0CAD5C6A105D48B6823300D2E8BAA500"><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="HFF5080331E7B4542A7243F646E409517"><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="H178CDB0742734941995BD8CA513F628"><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="HCBF8F462AEF84F4F9D4985ACAF3D5340" section-type="subsequent-section"><enum>110.</enum><header>Assistance to homeowners</header>
<subsection id="H32315F54F3F94000B85D14BFB0055127"><enum>(a)</enum><header>Definitions</header><text>As used in this section—</text>
<paragraph id="HFF738AC396EF463EBFFB38EC8BEF3C1E"><enum>(1)</enum><text>the term <term>Federal property manager</term> means—</text>
<subparagraph id="H3149FEA7D0D044B400753B764277BBAA"><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="H52E54B65821A4DB8A605CD001DF89CA1"><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="HAFB7471E07F44352A3997083F05E6C25"><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="H3B0030050178439DB0E17E085BC2C0EE"><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="H3061FCC6BF6B4D96A1A9BBDFDC18F1EC"><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="H9E9BE9A49DA74171A0717D5581979913"><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="H88B119F3AB86479A82BC03006BE79D00"><enum>(b)</enum><header>Homeowner assistance by agencies</header>
<paragraph id="HE8269A01A28D47E1BF64489782DCEFCB"><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="H54254BBA5D1E427A831DC030CC266D2F"><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="H0D155EFE76704A69AF53FE6C2169EAF8"><enum>(A)</enum><text>reduction in interest rates;</text></subparagraph>
<subparagraph id="H22B57803CFE84B20BFD717743E24E7"><enum>(B)</enum><text>reduction of loan principal; and</text></subparagraph>
<subparagraph id="H082ED8A64A17405D8F72056885089400"><enum>(C)</enum><text>other similar modifications.</text></subparagraph></paragraph>
<paragraph id="H84C0D23473484BF4A038453947ED50C0"><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="H553DB4BF6BFC44B6ACB881291E5040D8"><enum>(A)</enum><text>the continuation of any existing Federal, State, and local rental subsidies and protections; and</text></subparagraph>
<subparagraph id="HC7B28E676A2940ED839C2F79C2346B74"><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="HD147112AED1C4AF5892108A05453E47C"><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="HDB7665988F974032BA3310A239DDD033"><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="H65DA0327AF8042559CD266BD403B0029"><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="H959C03BE26414C78B0116D78D185176D"><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="H816285F094114D24BEC3CB98046E00FA"><enum>(1)</enum><text>encourage implementation by the loan servicers of loan modifications developed under subsection (b); and</text></paragraph>
<paragraph id="H2870BFFB83DA444EB0B4E2C4D7243CEE"><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="H60F0D1971C0542139E35004134AF19F2"><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="H036A731803704F579136FD4B5C286800"><enum>111.</enum><header>Executive compensation and corporate governance</header>
<subsection commented="no" display-inline="no-display-inline" id="H2B09D9D09E8247AAADBC53BA3DF15A8"><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="H06071CBD70844E1CA375716BCAC1F62E"><enum>(b)</enum><header>Direct purchases</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9180983D646B48ACA8EC60C944D78600"><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="H221B05C0CF6D450C9C57EDC615B3C85F"><enum>(2)</enum><header>Criteria</header><text>The standards required under this subsection shall include—</text>
<subparagraph id="H55D5409E49EF463990F3361F7E49F247"><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="HD964FBEB769649B39F65A7FB07C98778"><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="HC98150312DA0491681574F577D39D8BC"><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="HF6AF7298DD77455AA27CF05999A60640"><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="H167F082153314625AA4FC2075646136F"><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="H7615F17B0100489CA7BD2B42AF48E"><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="H1C9BE17325C84CDBA691405226FA8C06"><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="H43E6FDA544A44D8DBF2CB09EF35B8B5"><enum>113.</enum><header>Minimization of long-term costs and maximization of benefits for taxpayers</header>
<subsection commented="no" id="H0848779F032F41CB8C95FF3B635C1CD8"><enum>(a)</enum><header>Long-term costs and benefits</header>
<paragraph commented="no" id="H9F9EE566DDD5424C804003158CECC760"><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="H9A2832DFB9CB460199CD1FF80020FEA2"><enum>(2)</enum><header>Authority</header><text>In carrying out paragraph (1), the Secretary shall—</text>
<subparagraph commented="no" id="H7DA2926D06BA4A84B9948853F16D03A2"><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="HED6CCCF1F3C2466A988D00E9B6578070"><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="H4498EAA9C46A40CDA731F3872847BAC"><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="H121758061B37464EBEF6F60799F354AE"><enum>(b)</enum><header>Use of market mechanisms</header><text>In making purchases under this Act, the Secretary shall—</text>
<paragraph commented="no" id="H584837507D354663BB12E1337349B817"><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="H109F70ECEC9E4308ABDFDF897BD06026"><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="HC7A4539634464AF3A897551B5F32117F"><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="H7F99B81134D546AE93830524B2E222D2"><enum>(d)</enum><header>Conditions on purchase authority for warrants and debt instruments</header>
<paragraph commented="no" id="H21672E816A6046948194D8B8EB689EE6"><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="H19EF08E5A0814121A34272EA34D9F9B0"><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="H5B3123AB4D7B468DA4711B38E504DFCC"><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="H36103C927ADD40EE982ED939966E7C2B"><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="HD886CF664C814AF39F00C4AACD6C2100"><enum>(A)</enum><header>Purposes</header><text>Such terms and conditions shall, at a minimum, be designed—</text>
<clause commented="no" id="H3643CFA038864233ACC550EC04725905"><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="H3ED64B54AEB146C68FB369301D00D812"><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="HD1F4C4A4175740A2B18E38C46B9375AE"><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="HC0087BFC34F547389911001259118893"><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="H03CADA8A17E7422CA6E2E8002BAEC578"><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="HFBC358943EDF46CB8CB8C073D8D1A1B8"><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="HA7A892297A5540B192D991A0FDEE0097"><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="H36EE8DA0FEDA4C7788C25C3C6C44CDDA"><enum>(3)</enum><header>Exceptions</header>
<subparagraph commented="no" id="HC95DC333647E447EB15DA98CF85AB84"><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="HC07B063081014AE3B5AF5F2251FE841"><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="H1A93CC8476484777BD1000CC3C459E46"><enum>114.</enum><header>Market transparency</header>
<subsection id="HDA3D2096CBAC4064A9B124D7D8156194"><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="H0900D24D731847E4B717C3279E39C25B"><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="H2FAA2E28DA344673A702DEE95CD4E8DC"><enum>115.</enum><header>Graduated authorization to purchase</header>
<subsection commented="no" id="H2D6735A2B17D4F08ADDD77008B175B01"><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="H64E912371ED94D6AB7BC87F333C928F1"><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="HEA8400BF4D8B4AD781C22462AB9206A"><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="HD8C51AD825E0432AA391615541C76F23"><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="HCA165CC764344736B6720003583B2577"><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="H9C907ABB08DC4136B4A5B5E116E29F00"><enum>(c)</enum><header>Joint resolution of disapproval</header>
<paragraph commented="no" id="H9CC8B62166574FC681C5F3A058A9D7F8"><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="H2E4E95A728FD465E9225788880A898F5"><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="H5FB2B762F92F476BA89DD482608E8B21"><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="H7BC60E3322134807A6A8890089023825"><enum>(B)</enum><text>which does not have a preamble;</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H11691B57E9B14F948D58F564FEC8C6D"><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="H4D7099ABAFAC46DBA4F5556660F3D47F"><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="H4EA964A86C264F0A8646EAB6DA87D5C"><enum>(d)</enum><header>Fast track consideration in House of Representatives</header>
<paragraph id="H5571B32F376C4F6F879CAFA377EB903C"><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="HF53FB4F231024E7E002B30966B495C21"><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="H4E5438468A414C028CB1030034E86357"><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="HEE3C1B021C33479984DB7313346947A3"><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="H9F27DD03951B45A4B88E046CEF612300"><enum>(e)</enum><header>Fast track consideration in Senate</header>
<paragraph id="HEFC8A4D029904ED8BF64836E2F8EC2C"><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="HEECA9155531044C7923699B0D7F0D1A9"><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="H9FB01AFC00724EE9B4021BF58D68EEE"><enum>(3)</enum><header>Floor consideration</header>
<subparagraph commented="no" id="H911399D6B22B433191A4C54F8CC57D11"><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="H9815FFE925934F478D702700FAECC0C8"><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="H630AD997C7264858AC86697C392E86FA"><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="H37829F0A722E485D9E8EFD9EFD4DDD50"><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="HC0A3744CB72A44B70057096190629488"><enum>(f)</enum><header>Rules relating to Senate and House of Representatives</header>
<paragraph commented="no" id="H201CE343E7A44EB49F64DD99A8A78E6F"><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="HEC93F99B82A64AFABCAEFD5F23189E7B"><enum>(A)</enum><text>The joint resolution of the other House shall not be referred to a committee.</text></subparagraph>
<subparagraph commented="no" id="H00364B2CBF00433B869582464FAEBF45"><enum>(B)</enum><text>With respect to a joint resolution of the House receiving the resolution—</text>
<clause commented="no" id="H1A0B824E00914859A0CDDD57EBFE72FB"><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="HC3F4AFF3748D49758D5712EF36F56DF3"><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="HA9224C0DE15D49D8A34F57E94F30007D"><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="HF79766811BA548568DE7A31071551D9E"><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="HBDB58EAE8D2F45068FA5ED8E4139CF04"><enum>(4)</enum><header>Consideration after passage</header>
<subparagraph id="H3375E4ADADD34FD3A703579B0010D5BE"><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="HA27F23C8E60542D5A1A99824F4750000"><enum>(B)</enum><header>Vetoes</header><text>If the President vetoes the joint resolution—</text>
<clause id="H825A54295E274ED4A9A3AB43405B449B"><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="H5A621456B36D4AF1BE391EE3CCDF52B1"><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="H3379EB1614E1450BBAE87831EF791DBA"><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="H388A960DA12B414AB4F48541F3BFC635"><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="HBCB049D6BDBE4489BDE0031DFF5CFE6"><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="HAF00195FA26A46F59636C1F5BB022677"><enum>116.</enum><header>Oversight and audits</header>
<subsection commented="no" id="H41F816AB95714DC0BDBA447E758050D2"><enum>(a)</enum><header>Comptroller General Oversight</header>
<paragraph commented="no" id="HBBC89072BF6044F79BCA3B2D50AE35A2"><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="H61DB65E48D084F29A0106FAD5841B5F"><enum>(A)</enum><text>The performance of the TARP in meeting the purposes of this Act, particularly those involving—</text>
<clause commented="no" id="HB2F0AF5C4D804C7285D2F7E5021E7000"><enum>(i)</enum><text>foreclosure mitigation;</text></clause>
<clause commented="no" id="H0614496B221244D1978F1CC91527F230"><enum>(ii)</enum><text>cost reduction;</text></clause>
<clause commented="no" id="H1FCD0921A39C4F0F9008655200A1CA8B"><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="H42508E948C484543B0ED073171F887A5"><enum>(iv)</enum><text>whether it has protected taxpayers.</text></clause></subparagraph>
<subparagraph commented="no" id="H26732DD21FE9474E94EBA3FED0B8B58"><enum>(B)</enum><text>The financial condition and internal controls of the TARP, its representatives and agents.</text></subparagraph>
<subparagraph commented="no" id="HB54DAB41A1414EAC820000BF52B604B2"><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="HF17B5E939AC5453B8CE965C6E17C153C"><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="H5A4855BF9EA540E5A22794F919FFBA16"><enum>(E)</enum><text>Efficiency of the operations of the TARP in the use of appropriated funds.</text></subparagraph>
<subparagraph commented="no" id="H4B019B3A704345A2965B64A7A1B3172"><enum>(F)</enum><text>Compliance with all applicable laws and regulations by the TARP, its agents and representatives.</text></subparagraph>
<subparagraph commented="no" id="H1523DA957B1443E6AD1CC5749D512334"><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="HBF2FE6BE257241E6A4D0B05104D41BB"><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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811</external-xref> 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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1441a">12 U.S.C. 1441a</external-xref>)).</text></subparagraph></paragraph>
<paragraph commented="no" id="H368B8ACC10AD4C8FBE56B77DAB5E9E10"><enum>(2)</enum><header>Conduct and Administration of oversight</header>
<subparagraph commented="no" id="H22B82FA00D0B4DF0888F007DBE309400"><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="HFEBBABF1E9154529AFBBE76B8EBC705D"><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="H7D503E6BA4CB47EEAD00456E821C5060"><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="HDFDC6F6AC2BC49DD97BBB3F9A4550173"><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="H25165E4F3F9F4209B3A317A64186AB2B"><enum>(b)</enum><header>Comptroller General audits</header>
<paragraph commented="no" id="HA3BD4FE3CE5846C7B308DDA7C352A565"><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 <external-xref legal-doc="usc" parsable-cite="usc/31/1102">section 1102</external-xref> of title 31, United States Code.</text></paragraph>
<paragraph commented="no" id="HB3A201F650EF4E849157C3B23300AE5B"><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="H53B91DE21FCF4F7184B6BA629E72616D"><enum>(3)</enum><header>Corrective responses to audit problems</header><text>The TARP shall—</text>
<subparagraph commented="no" id="H35DE0FA95E3049A8A8C00044113CF356"><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="H7EEB6854E37748B9B75E98C3068E399D"><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="HFC05E7063B104C33844B008F46DBAEF1"><enum>(c)</enum><header>Internal Control</header>
<paragraph commented="no" id="H12A32B1D7BDF4CBFAA8449CF1F88A97C"><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="H7CDDDA6E974942E5AFB735B98B87079"><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="HCFBBC8601B454E17973828269BF1B6A5"><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="H19280D750A434E2F87B005B81A2A854"><enum>(C)</enum><text>compliance with applicable laws and regulations.</text></subparagraph></paragraph>
<paragraph commented="no" id="HD0F5F54305884F14B0823201612E4694"><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="H16E645A0C2F049BD81F694FF3955841B"><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="H1231713FF7764956BDAD16F3AF806EE5"><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="H1604AE6460F04B7EB0E68FA455EFD603"><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="H74064849CBCC4C629FF7B3E590FA497"><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="H34D5D87A9AA347C584E1A13B92E57FDA"><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="H160158BA887E426700518000ED2E4570"><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="H876B5E1204054FF2AC6DA1F1DB7A906" section-type="subsequent-section"><enum>117.</enum><header>Study and report on margin authority</header>
<subsection commented="no" id="H155D46F2E3434837829F5F7EC6501784"><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="H500DE2A17AC1445C9F812D8314AF0087"><enum>(b)</enum><header>Content</header><text>The study required by this section shall include—</text>
<paragraph commented="no" id="H198816DAE5054E4B8300FBEAE200D7E8"><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="HE900790CD1BB49B5A35E485E57FD5B8D"><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="H8E90B706959741B18D74BFA5DD7FAFBF"><enum>(3)</enum><text>an analysis of any usage of the margin authority by the Board; and</text></paragraph>
<paragraph commented="no" id="H5B3E0C4D3E764A77B56682B262D17CAA"><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="H097F440388854A4AADA37009753C14C6"><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="H7C2702A631C04A5D8F64A4A3C941E0D8"><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="H27476C3BD74B4874A980C5CC9FD8FC54"><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="H63CFAF4CD8D2438C94A4FDD9BFC0B3C3"><enum>119.</enum><header>Judicial review and related matters</header>
<subsection id="H8F0217B9DFA14EC7B0FED200A484FAF6"><enum>(a)</enum><header>Judicial review</header>
<paragraph id="HE030459805BA43C49E7955D73E499F06"><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="H130D28B6CE7249F8A0F80049B4E6BFD"><enum>(2)</enum><header>Limitations on equitable relief</header>
<subparagraph id="H4BE077DE28FE4D60B8DE814D5C27E1A1"><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="H346B05B9DCB14A379F13F784E00D555"><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="H8EC17191B1C145F594509CB26E94CB8F"><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="H9E5AF916DF47486BA4E2D0C6EE5E001C"><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="H407B9383775845A6B08806EA8500DBD8"><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="HB48817E8E9074C84B810C5FFEC109F79"><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="HA0C95D1A6B0C4E2FBAF394C3729D1BB0"><enum>(b)</enum><header>Related matters</header>
<paragraph commented="no" id="H15DAC2AFBD874F41BE4718FBDAD624"><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="HC4E63A04BCA749738648E2277773C300"><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="H58FA1A149CF14C13A228193D9D6300CD" section-type="subsequent-section"><enum>120.</enum><header>Termination of authority</header>
<subsection id="H9869D4AF05EE4EE081906154F97EAD11"><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="H5A00F42D2BDD4C15972D8F9C98A9108B"><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="H57FD068E48D344DB83D3A8ECB804BB2F" section-type="subsequent-section"><enum>121.</enum><header>Special Inspector General for the Troubled Asset Relief Program</header>
<subsection commented="no" id="H578BE0CCCD3848E6B45EEBE1C2B1F26"><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="HD3305879941144D88EAD33ADD00EBCF"><enum>(b)</enum><header>Appointment of Inspector General; removal</header>
<paragraph commented="no" display-inline="yes-display-inline" id="HBCC2CD96C51D4FE0B846A6FD11347F7B"><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 commented="no" id="H7230D8451B4243D68FF472BDB8A7E400" indent="up1"><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 commented="no" id="H9F7ACCDB6DE2448AB97E4DE994E4E8BA" indent="up1"><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 commented="no" id="H8C780CF4449043C2B01D9C8BE4741D24" indent="up1"><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 commented="no" id="H5F27D102395E4914BDF25516CE00C000" indent="up1"><enum>(5)</enum><text>For purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/7324">section 7324</external-xref> 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 commented="no" id="HAC7BD94252D14D638132C900105BF4E8" indent="up1"><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="H923A1DF0B1824C17B8F3BDC2D9FE00F8"><enum>(c)</enum><header>Duties</header>
<paragraph commented="no" display-inline="yes-display-inline" id="H81AF744745DD46110000211000ABC48D"><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 commented="no" id="HA7C635B908A54CC89B75DCF8E5750D2" indent="up1"><enum>(A)</enum><text>A description of the categories of troubled assets purchased or otherwise procured by the Secretary.</text></subparagraph>
<subparagraph commented="no" id="H2396D10415F74BB0A0DE03ACAB1357D0" indent="up1"><enum>(B)</enum><text>A listing of the troubled assets purchased in each such category described under subparagraph (A).</text></subparagraph>
<subparagraph commented="no" id="HA7D1CA26D108481A8D89E2701903CC27" indent="up1"><enum>(C)</enum><text>An explanation of the reasons the Secretary deemed it necessary to purchase each such troubled asset.</text></subparagraph>
<subparagraph commented="no" id="HDCDB32D93CAF4B3FB1D72FE431A00E6" indent="up1"><enum>(D)</enum><text>A listing of each financial institution that such troubled assets were purchased from.</text></subparagraph>
<subparagraph commented="no" id="H2835690F602C49F8AE543E592FE4EEFD" indent="up1"><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 commented="no" id="H61958306EF214537A2E7977476F7DBA5" indent="up1"><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 commented="no" id="H9BC5906C67D9426D8155D008F6ACCF16" indent="up1"><enum>(G)</enum><text>A listing of the insurance contracts issued under section 102.</text></subparagraph></paragraph>
<paragraph commented="no" id="HF42AEA5712BA45758C8F28DA4B414645" indent="up1"><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 commented="no" id="H924356BA4EAA4D8300BDFC53E0089CC" indent="up1"><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="HA8364229500E4B42AA30820049FD28DF"><enum>(d)</enum><header>Powers and authorities</header>
<paragraph commented="no" display-inline="yes-display-inline" id="H744F48B164CD48E0B0823EDCA6FB4EB3"><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 commented="no" id="H8E79A77AA0594C2BB751D34B62467BC8" indent="up1"><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="HED9ADBB9E53F4A9A9B517CDB67C0F58D"><enum>(e)</enum><header>Personnel, facilities, and other resources</header>
<paragraph commented="no" display-inline="yes-display-inline" id="H2E8E53E979F0492B9638AEA5C0CC7DEE"><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 commented="no" id="HCA501CC29769408B8D756D80FBA674A1" indent="up1"><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 commented="no" id="HDB3724B5A57647C69FEFE1BDF7D2CC2" indent="up1"><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 commented="no" id="H0BE2C09E16E2480E979C76308C11CE5" indent="up1"><enum>(4)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H96FB544AFD25429C9CD4EC75EFC88CF"><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 commented="no" id="H161455A031F34E93B326AAAD63052126" indent="up1"><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="H35E59D78082044B58CBE587EB22B2C94"><enum>(f)</enum><header>Reports</header>
<paragraph commented="no" display-inline="yes-display-inline" id="HA12B61E4EDCA4C9CAF9F3EF807600B1"><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 commented="no" id="HFEAB2EB15B7D4B868C07184068B3FFA0" indent="up1"><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="HD75BD94703704A3B9E869D8D00C31256"><enum>(A)</enum><text>specifically prohibited from disclosure by any other provision of law;</text></subparagraph>
<subparagraph commented="no" id="H61F08782B12F460C94A341FE986B6911"><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="H8AFFF7AF42E249939600023EA176B4B"><enum>(C)</enum><text>a part of an ongoing criminal investigation.</text></subparagraph></paragraph>
<paragraph commented="no" id="H0740B33DA9714BE69067F2B2E3F6A015" indent="up1"><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="H70DD90E659A544DF8362A327CD7C7BCE"><enum>(g)</enum><header>Funding</header>
<paragraph commented="no" display-inline="yes-display-inline" id="HD9B695C031374B3EA15B23119C9D7371"><enum>(1)</enum><text>Of the amounts made available to the Secretary of the Treasury under section 118, $50,000,000 shall be available to the Special Inspector General to carry out this section.</text></paragraph>
<paragraph commented="no" id="H3A9014919DC547E3924C2273593E91FE" indent="up1"><enum>(2)</enum><text>The amount available under paragraph (1) shall remain available until expended.</text></paragraph></subsection>
<subsection id="H6731CF3417564A4FAFB4E0A19770001D"><enum>(h)</enum><header>Termination</header><text>The Office of the Special Inspector General shall terminate on the later of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFD4C887237484EC7BE3976633953D091"><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="HA48505F1B82349A69228F0EBCA6FD6E0"><enum>(2)</enum><text>the date of expiration of the last insurance contract issued under section 102.</text></paragraph></subsection></section>
<section id="HC147EB9790924AEC97B375D2F8755051"><enum>122.</enum><header>Increase in statutory limit on the public debt</header><text display-inline="no-display-inline">Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/31/3101">section 3101</external-xref> of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting <quote>$11,315,000,000,000</quote>.</text></section>
<section id="HBDFCCD58C0734FC59937829C964552FC"><enum>123.</enum><header>Credit reform</header>
<subsection id="HBAB60B57EE6F45C68F3883E99B239481"><enum>(a)</enum><header>In General</header><text display-inline="yes-display-inline">Subject to subsection (b), the costs of purchases of troubled assets made under section 101(a) and guarantees of troubled assets under section 102, and any cash flows associated with the activities authorized in section 102 and subsections (a), (b), and (c) of section 106 shall be determined as provided under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et. seq.).</text></subsection>
<subsection id="H778A8857A4154AA98E85CE9D07EE2C4B"><enum>(b)</enum><header>Costs</header><text>For the purposes of section 502(5) of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)</external-xref>)—</text>
<paragraph id="H74B8994FC37B4910BCCA873B3368131B"><enum>(1)</enum><text>the cost of troubled assets and guarantees of troubled assets shall be calculated by adjusting the discount rate in section 502(5)(E) (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(E)</external-xref>) for market risks; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4D16A785E58B48C89F6652AAAD67A088"><enum>(2)</enum><text>the cost of a modification of a troubled asset or guarantee of a troubled asset shall be the difference between the current estimate consistent with paragraph (1) under the terms of the troubled asset or guarantee of the troubled asset and the current estimate consistent with paragraph (1) under the terms of the troubled asset or guarantee of the troubled asset, as modified.</text></paragraph></subsection></section>
<section commented="no" id="H8D35B922B150468CAC66F9A04883DB23"><enum>124.</enum><header>HOPE for Homeowners amendments</header><text display-inline="no-display-inline">Section 257 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-23">12 U.S.C. 1715z–23</external-xref>) is amended—</text>
<paragraph commented="no" id="H34B8EF497CDE485895BAE650C04100A1"><enum>(1)</enum><text>in subsection (e)—</text>
<subparagraph commented="no" id="HCA951ED9E8E74E368FDEB76DA6E3CA8E"><enum>(A)</enum><text>in paragraph (1)(B), by inserting before <quote>a ratio</quote> the following: <quote>, or thereafter is likely to have, due to the terms of the mortgage being reset,</quote>;</text></subparagraph>
<subparagraph commented="no" id="HE673BBF9920C46BE999B4BE999232FD0"><enum>(B)</enum><text>in paragraph (2)(B), by inserting before the period at the end <quote>(or such higher percentage as the Board determines, in the discretion of the Board)</quote>;</text></subparagraph>
<subparagraph commented="no" id="H9D9DFFBA649347829D1CAE8DAEFE3F44"><enum>(C)</enum><text>in paragraph (4)(A)—</text>
<clause commented="no" id="H81FB9BF12A024A7AA4683C8679021FD1"><enum>(i)</enum><text>in the first sentence, by inserting after <quote>insured loan</quote> the following: <quote>and any payments made under this paragraph,</quote>; and</text></clause>
<clause commented="no" id="HEE16389F56CD4310AE464853CCD45289"><enum>(ii)</enum><text>by adding at the end the following: <quote>Such actions may include making payments, which shall be accepted as payment in full of all indebtedness under the eligible mortgage, to any holder of an existing subordinate mortgage, in lieu of any future appreciation payments authorized under subparagraph (B).</quote>; and</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H36371A726C1F4E21B0EE79EFA7CE41A0"><enum>(2)</enum><text>in subsection (w), by inserting after <quote>administrative costs</quote> the following: <quote>and payments pursuant to subsection (e)(4)(A)</quote>.</text></paragraph></section>
<section commented="no" display-inline="no-display-inline" id="H34116F934E2249E2A857D4583C4900F4" section-type="subsequent-section"><enum>125.</enum><header>Congressional Oversight Panel</header>
<subsection commented="no" id="H4F3EAD145B164273A39D97AFE0CA1835"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is hereby established the Congressional Oversight Panel (hereafter in this section referred to as the <quote>Oversight Panel</quote>) as an establishment in the legislative branch.</text></subsection>
<subsection commented="no" id="H8CAA04B4EC574587871916DB19FD8809"><enum>(b)</enum><header>Duties</header><text>The Oversight Panel shall review the current state of the financial markets and the regulatory system and submit the following reports to Congress:</text>
<paragraph commented="no" id="H68B6F4C828E541ACAF7B273036D193B4"><enum>(1)</enum><header>Regular reports</header>
<subparagraph commented="no" id="HD09557FC52724C958CDEC6A2FBF24E5"><enum>(A)</enum><header>In general</header><text>Regular reports of the Oversight Panel shall include the following:</text>
<clause commented="no" id="HF5D20A3E0C4C4F21B0758025C60095DC"><enum>(i)</enum><text>The use by the Secretary of authority under this Act, including with respect to the use o