LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE TROUBLED ASSETS
Sec. 12. Definitions.
For purposes of this Act, the following definitions shall apply:
(3) Troubled Assets. – The term "Troubled Assets" means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008; and, upon the determination of the Secretary in consultation with the Chairman of the Board of Governors of the Federal Reserve, any other financial instrument, as he determines necessary to promote financial market stability.
Sec. 2. Purchases of Troubled Assets.
(a) Authority to Purchase. – The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, Troubled Assets from any Financial Institution, as those terms are defined in section 12 of the Act.
(b) Necessary Actions. – The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;...
(3) designating Financial Institutions as financial agents of the Government....
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Troubled Assets.
(a) Exercise of Rights. – The Secretary may, at any time, exercise any rights received in connection with Troubled Assets purchased under this Act....
(c) Sale of Troubled Assets. – The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act....
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary's authority to purchase Troubled Assets under this Act shall be limited to $700,000,000,000 outstanding at any one time...
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000....