12 U.S.C. § 5213: Considerations

Summary

The Secretary must weigh certain goals when using the powers in this chapter. He must protect taxpayers by trying to get the best overall returns and reduce impact on the national debt. He must try to keep financial markets stable to limit harm to the economy and to American jobs, savings, and retirements. He must help families stay in their homes and stabilize communities. When buying assets directly from a bank or lender, he must consider whether that firm can survive long-term and whether the purchase is the best use of funds. All banks should be allowed to take part without unfair limits by size, place, form, or kinds of assets. The Secretary should help institutions with assets under $1,000,000,000 that were well or adequately capitalized on June 30, 2008, but may fall a capital level because preferred government-sponsored enterprise stock lost value, enough to restore at least adequate capital. He should also protect counties, cities, and other public entities facing big losses, buy troubled assets held by certain eligible retirement plans listed in section 402(c)(8)(B)(iii)–(vi) of title 26 (but not arrangements covered by section 409A), and consider buying other real estate owned and mortgage instruments tied to 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