Page:Emergency Economic Stabilization Act of 2008.djvu/11

 0:L4YOL4Y008 C04.xaxd 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11 (1) IN GENERAL.--The SecretroT shall collect premiums from any financial institution partici- pating in the program established under subsection (a). Such premiums shall be in an amount that the Secretary determines necessary to meet the purposes of this Act and to provide sufficient resetwes pursu- ant to paragraph (3). (2) AUTHORITY TO BASE PREMIUMS ON PROD- UCT RISK.--In establishing any premium under paragraph (1), the Secretary may provide for vari- ations in such rates according to the credit risk as- sociated with the particular troubled asset that is being guaranteed. The Secretary shall publish the methodology for setting the premium for a class of troubled assets together with an explanation of the appropriateness of the class of assets for participa- tion in the program established under this section. The methodology shall ensure that the premium is consistent with paragraph (3). (3) MINIMUM LEVEL. The premiums referred to in paragraph (1) shall be set by the SecretroT at a level neeessmT to create resetwes sufficient to meet anticipated claims, based on an aetuarial analysis, and to ensure that taxpayers are fMlly protected.

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