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Title 12, Banks and BankingRelease 119-110

§5216 Rights; Management; Sale of Troubled Assets; Revenues and Sale Proceeds

Title 12 › CHAPTER 52 — EMERGENCY ECONOMIC STABILIZATION › SUBCHAPTER I — TROUBLED ASSETS RELIEF PROGRAM › § 5216

Last updated Sep 22, 2026|Official source

Summary

The Secretary may use any rights that come with troubled assets bought under this law. The Secretary must be able to manage those assets, including their income and risks. The Secretary may sell the assets or enter into securities loans, repurchase deals, or other financial transactions at any time and on terms the Secretary sets. Money earned from the assets, and proceeds from selling the assets or from selling, exercising, or giving up warrants or senior debt instruments acquired under section 5223, must go into the Treasury’s general fund to reduce the public debt. The Secretary’s power to hold or to buy assets under commitments made before the termination date in section 5230 is not limited by section 5230. The Secretary must report to Congress every 6 months on amounts sent to the general fund.

Full Legal Text

Title 12, §5216

Banks and Banking, Source: USLM XML via OLRC

(a)Exercise of rights
The Secretary may, at any time, exercise any rights received in connection with troubled assets purchased under this chapter.
(b)Management of troubled assets
The Secretary shall have authority to manage troubled assets purchased under this chapter, including revenues and portfolio risks therefrom.
(c)Sale of troubled assets
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)Transfer to Treasury
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)Application of sunset to troubled assets
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)Report
The Secretary of the Treasury shall report to Congress every 6 months on amounts received and transferred to the general fund under subsection (d).

Legislative History

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 5216

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110