§5216 — Title 12 Banks and Banking | U.S. Code

Summary

Give the Treasury Secretary power to use, manage, and sell troubled assets bought under this law. The Secretary can exercise any rights from those assets at any time, handle their revenues and risks, and sell them or enter into loans, repurchase deals, or other financial transactions on terms and prices the Secretary sets. Money made from those assets, or from selling or using related warrants or senior debt, must go into the government’s general fund to pay down public debt. The Secretary can hold or finish purchases tied to commitments made before the program’s end date without being limited by that end date’s rules. The Treasury must report to Congress every 6 months on amounts sent to the general fund.

Title 12, §5216

Banks and Banking — Source: USLM XML via OLRC

(a)The Secretary may, at any time, exercise any rights received in connection with troubled assets purchased under this chapter.

(b)The Secretary shall have authority to manage troubled assets purchased under this chapter, including revenues and portfolio risks therefrom.

(c)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 chapter.

(d)Revenues of, and proceeds from the sale of troubled assets purchased under this chapter, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under section 5223 of this title shall be paid into the general fund of the Treasury for reduction of the public debt.

(e)The authority of the Secretary to hold any troubled asset purchased under this chapter before the termination date in section 5230 of this title, or to purchase or fund the purchase of a troubled asset under a commitment entered into before the termination date in section 5230 of this title, is not subject to the provisions of section 5230 of this title.

(f)The Secretary of the Treasury shall report to Congress every 6 months on amounts received and transferred to the general fund under subsection (d).

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.

Amendments

2010—Subsec. (f). Pub. L. 111–203 added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an

Effective Date

note under section 5301 of this title.

§5216 Rights; management; sale of troubled assets; revenues and sale proceeds

Summary

Title 12, §5216

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata