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

Summary

When using the powers in this chapter, the Secretary must consider several goals and effects. These include protecting taxpayers by maximizing returns and limiting impact on the national debt; keeping financial markets stable to protect jobs, savings, and retirement; helping families keep homes and stabilizing communities; deciding if buying assets from a single bank is the best use of funds based on that bank’s long-term health; making the program open to all institutions without discrimination by size, location, structure, or asset types; helping small banks with assets under $1,000,000,000 that were well or adequately capitalized on June 30, 2008 and fell one or more capital levels because of devaluation of government-sponsored enterprise preferred stock so they can be restored to at least adequate capital; supporting public bodies like counties and cities facing big losses; protecting retirement security by buying troubled assets held for eligible retirement plans listed in clauses (iii), (iv), (v), or (vi) of section 402(c)(8)(B) of title 26 (but not covering compensation arrangements under section 409A); and considering purchases of other real estate owned and mortgage-backed 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