Text: H.R.2745 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (06/08/2009)


111th CONGRESS
1st Session
H. R. 2745

To amend the Emergency Economic Stabilization Act of 2008 to provide repayment procedures for certain assistance received under the Troubled Asset Relief Program.


IN THE HOUSE OF REPRESENTATIVES
June 8, 2009

Mr. Hensarling introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To amend the Emergency Economic Stabilization Act of 2008 to provide repayment procedures for certain assistance received under the Troubled Asset Relief Program.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “TARP Repayment and Termination Act of 2009”.

SEC. 2. Additional repayment procedures.

(a) In general.—Title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) is amended by adding at the end the following new section:

“SEC. 137. Additional repayment procedures.

“(a) Right of repayment for well capitalized institutions.—Any financial institution that has received or receives assistance under this title shall have the right to immediately repay all of such assistance, and the Secretary shall unconditionally accept such a payment, if—

“(1) with respect to an insured depository institution, the appropriate Federal banking agency determines that such financial institution will be well capitalized after the repayment of all of such assistance; and

“(2) such financial institution has paid any dividend, interest, or other payment due to the Secretary by reason of the financial institution receiving assistance under this title.

“(b) Right of repayment for certain bank holding companies.—Notwithstanding subsection (a), a bank holding company assessed under SCAP shall have the right to immediately repay all assistance such company received under this title, and the Secretary shall unconditionally accept such a payment, if the Secretary, in consultation with the appropriate Federal banking agency, where applicable, determines that, upon the repayment of all of such assistance, such company—

“(1) will remain in a position to continue to fulfill its role as an intermediary that facilitates lending to creditworthy households and businesses;

“(2) will be able to maintain capital levels that are consistent with supervisory expectations;

“(3) will be able to continue to serve as a source of financial and managerial strength and support to any subsidiary bank of such company; and

“(4) along with any subsidiary bank of such company, will be able to meet all ongoing funding requirements and obligations to counterparties while reducing reliance on Government capital and the TLGP.

“(c) Preferred share repurchase levels.—With respect to preferred shares held by the Secretary, in making a full repayment of all assistance received by a financial institution under this title on or before September 30, 2009, such institution shall have the right to repurchase such preferred shares at—

“(1) in the case of a preferred share purchased by the Secretary under this title, the same price the Secretary purchased such share for from the financial institution; and

“(2) in the case of a preferred share held by the Secretary as a result of the Secretary’s exercise of a warrant received by the Secretary pursuant to section 113(d)(1)(B), the same price the Secretary purchased such warrant for from the financial institution.

“(d) Reduction in authorization To purchase in corresponding amount to any repayment.—Each time a financial institution makes a repayment of assistance provided under this title, the authorization to purchase authority under section 115 shall be reduced by a corresponding dollar amount.

“(e) Provision of repayment information.—Not later than 15 days after the Secretary is notified by a financial institution that such financial institution wants to immediately repay all assistance received by such institution under this title, the Secretary, in consultation with the appropriate Federal banking agency, if any, shall either—

“(1) accept such repayment; or

“(2) notify such institution, in writing, that the individual financial position of such institution does not currently permit the repayment of such assistance, and include in such notice information detailing steps the institution can take to satisfy the Secretary and the appropriate Federal banking agency, if any, that the institution is in a position to repay such assistance.

“(f) Definitions.—For purposes of this section:

“(1) APPROPRIATE FEDERAL BANKING AGENCY.—The term ‘appropriate Federal banking agency’ has the meaning given to such term in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)).

“(2) BANK HOLDING COMPANY.—The term ‘bank holding company’ has the meaning given to such term in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841).

“(3) INSURED DEPOSITORY INSTITUTION.—The term ‘insured depository institution’ has the meaning given to such term in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).

“(4) SCAP.—The term ‘SCAP’ means the Supervisory Capital Assessment Program conducted by the Board of Governors of the Federal Reserve System and other Federal regulators, the results of which were made public on May 7, 2009.

“(5) TLGP.—The term ‘TLGP’ means the Temporary Liquidity Guarantee Program, implemented by the Federal Deposit Insurance Corporation by final rule on November 21, 2008.

“(6) WELL CAPITALIZED.—With respect to an insured depository institution, the term ‘well capitalized’ has the meaning given to such term in section 38(b)(1)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1831o(b)(1)(A)).”.

(b) Warrant liquidation requirement.—Section 111(g) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5221(g)) is amended by striking “, at the market price, may liquidate warrants associated with such assistance” and inserting “shall liquidate warrants associated with such assistance at the current market price, except as otherwise provided in section 137(c)(2)”.

(c) Repeal of extension authority.—Section 120 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5230) is amended—

(1) in subsection (a), by striking “(a) Termination.—The” and inserting “The”; and

(2) by striking subsection (b).

(d) Conforming amendment.—The table of contents for the Emergency Economic Stabilization Act of 2008 is amended by inserting after the item relating to section 136 the following new item:


“137. Additional repayment procedures.”.