§5235 Disclosures on Exercise of Loan Authority

Summary

When the Federal Reserve Board uses its special loan power under section 13, it must send a report to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services within 7 days. The report must say why the loan was made and list the key terms: how big and how long the loan is, what is known about any collateral, who might get warrants or other equity, and the expected cost to taxpayers. While the loan is still active, the Board must update those committees at least every 60 days with the loan status, the value of collateral held by the Reserve bank that made the loan, and the projected taxpayer cost. Copies of these reports must also go to the Congressional Oversight Panel. If the Chair of the Federal Reserve Board asks in writing, the information stays confidential and is shared only with the Chairs and Ranking Members of those two committees. These rules apply to uses of the loan authority that happened between March 1, 2008 and October 3, 2008, and the reports in the first paragraph had to start no later than 30 days after October 3, 2008.