by United States House of Representatives

“ Criteria for identifying troubled assets for
purchase.
(e) PREVENTING UNJUST ENRICHMENT. -- 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. ”

“ STUDY. -- The Securities and Exchange Commission, in consultation
with the Board and the Secretary, shall conduct a study on
mark-to-market accounting standards as provided in Statement Number
157 of the Financial Accounting Standards Board, as such standards are
applicable to financial institutions, including depository
institutions. Such a study shall consider at a minimum --
(1) the effects of such accounting standards on a financial
institution’s balance sheet;
(2) the impacts of such accounting on bank failures in 2008 ”

“ To provide authority for the Federal Government to purchase and insure
certain types of troubled assets for the purposes of providing stability
to and preventing disruption in the economy and financial system and
protecting taxpayers, and for other purposes. ”

“ TITLE I -- TROUBLED ASSETS RELIEF PROGRAM
SEC. 101. PURCHASES OF TROUBLED ASSETS.
(a) OFFICES; AUTHORITY. --
(1) AUTHORITY. -- The Secretary is authorized to establish a troubled
asset relief program (or ‘‘TARP’’) 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. ”

“ The Special Inspector General may obtain services as authorized by
section 3109 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.
(3) 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. ”

“ Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1811 note) ,
women, and minority- and women-owned businesses, including
ascertaining and reporting the total amount of fees paid and other
value delivered by the TARP to all of its agents and representatives,
and such amounts paid or delivered to such firms that are minority-
and women-owned businesses (as such terms are defined in section 21A
of the Federal Home Loan Bank Act (12 U.S.C. 1441a) ) . ”

“ In exercising the authorities granted in this Act, the Secretary shall
take into consideration --
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(1) protecting the interests of taxpayers by maximizing overall
returns and minimizing the impact on the national debt;
(2) 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;
(3) the need to help families keep their homes and to stabilize
communities ”

“ STUDY. -- 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. ”

“ 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.
(E) EXERCISE PRICE. -- The exercise price for any warrant issued
pursuant to this subsection shall be set by the Secretary, in the
interest of the taxpayers.
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(F) SUFFICIENCY. -- The financial institution shall guarantee to the
Secretary that it has authorized shares of nonvoting stock available
to fulfill its obligations under this subsection. ”

“ CONSENT TO REASONABLE LOAN MODIFICATION REQUESTS. -- 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. ”

“ SAVINGS CLAUSE. -- 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 ”

“ REPORTING. -- In conjunction with each annual financial statement
issued under this section, the TARP shall --
(A) state the responsibility of management for establishing and
maintaining adequate internal control over financial reporting; and
(B) 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. ”

“ 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 ”

“ PROHIBITION ON MISREPRESENTATIONS OF INSURED STATUS. -- No
person may knowingly misrepresent --
‘‘ (i) that any deposit liability, obligation, certificate, or
share is insured, under this Act, if such deposit liability,
obligation, certificate, or share is not so insured ”

“ ENFORCEMENT ORDERS. -- Section 8 (c) of the Federal Deposit
Insurance Act (12 U.S.C. 1818 (c) ) is amended by adding at the end the
following new paragraph:
‘‘ (4) FALSE ADVERTISING OR MISUSE OF NAMES TO INDICATE INSURED
STATUS. --
‘‘ (A) TEMPORARY ORDER. --
‘‘ (i) IN GENERAL. -- If a notice of charges served under
subsection (b) (1) specifies on the basis of particular facts that any
person engaged or is engaging in conduct described in section
18 (a) (4) , the
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Corporation or other appropriate Federal banking agency may issue a
temporary order requiring -- ”