§5235 Disclosures on exercise of loan authority

Summary

When the Federal Reserve Board uses its loan power under section 13 to lend to businesses, the Board must tell two congressional committees within 7 days: the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. The report must say why the loan was made and give the loan details — how big it is, how long it lasts, what collateral and equity terms apply, and any expected cost to taxpayers. While the loan is still outstanding, the Board must give updates at least every 60 days on the loan’s status, the value of collateral the Fed holds, and the projected taxpayer cost. The Board’s chairman can ask that the information be kept confidential; then only the committee chairs and ranking members may see it. These rules cover uses of the authority from March 1, 2008 through October 3, 2008, and reports had to begin no later than 30 days after October 3, 2008. Copies must also go to the Congressional Oversight Panel.