§5235 Disclosures on Exercise of Loan Authority

Summary

When the Federal Reserve uses its special loan power to lend to people, partnerships, or companies, the Board must tell Congress within 7 days. The report must say why the loan was made and give key details: how big the loan is, how long it will last, what collateral covers it and what that collateral is worth, whether anyone gets warrants or other equity, and the expected cost to taxpayers. The same report must also go to the Congressional Oversight Panel. While the loan is still active, the Board must send updates at least every 60 days about the loan’s status, the value of the collateral, and the projected taxpayer cost. If the Fed Chair asks in writing, the information can be kept confidential and shown only to the chairs and ranking members of the two named committees. These rules apply to uses of this loan power from March 1, 2008 through after October 3, 2008, and reports must start no later than 30 days after October 3, 2008 for any such loan.