§5213 — Title 12 Banks and Banking | U.S. Code

Summary

When using the powers in this law, the Secretary must weigh several goals. They must protect taxpayers by getting strong returns and limiting harm to the national debt. They must keep financial markets steady to protect the economy, jobs, savings, and retirement security. They must help families keep their homes and stabilize communities. The Secretary must also consider whether a direct purchase from a financial firm makes sense for that firm’s long-term survival and is the best use of funds. The program must be open to all financial institutions without discrimination. It must help institutions with assets under $1,000,000,000 that were well or adequately capitalized on June 30, 2008 and dropped capital levels because of the devaluation of preferred government‑sponsored enterprises stock, enough to restore them to at least an adequately capitalized level. The Secretary should also consider aid to local governments, buying troubled assets held by eligible retirement plans described in clauses (iii), (iv), (v), or (vi) of section 402(c)(8)(B) of title 26 (but not compensation arrangements under section 409A), and buying other real estate owned and mortgage instruments on multifamily properties.

Title 12, §5213

Banks and Banking — Source: USLM XML via OLRC

In exercising the authorities granted in this chapter, the Secretary shall take into consideration—

(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;

(4)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 chapter;

(5)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 chapter;

(6)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;

(7)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;

(8)protecting the retirement security of Americans by purchasing troubled assets held by or on behalf of an eligible retirement plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B) of title 26, except that such authority shall not extend to any compensation arrangements subject to section 409A of such title; and

(9)the utility of purchasing other real estate owned and instruments backed by mortgages on multifamily properties.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this Act” and was translated as reading “this division”, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see

Short Title

note set out under section 5201 of this title and Tables.

§5213 Considerations