Page:United States Statutes at Large Volume 122.djvu/2708

 12 2 STA T . 2 685PUBLIC LA W 11 0– 28 9—J UL Y3 0, 2008 ‘ ‘ (l)TEMPORA R YAUTH OR I TYO F TREA S URY TO P UR C HASE OBL I G A - TIO N SAN DS ECURITIES ONDITIONS .— ‘‘( 1 ) AUTHORITY TO PURCHASE.— ‘‘(A) G ENERAL AUTHORITY.— Inad d it i o ntot he a u tho r it y under s u b se c tion (c) o f this section , the Secretary of the Treasury is authori z ed to p urchase any obli g ations and other securities issued by the Corporation under any sec- tion of this Act, on such ter m s and conditions as the Sec- retary may determine and in such amounts as the Sec- retary may determine. N othing in this subsection re q uires the Corporation to issue obligations or securities to the Secretary w ithout mutual agreement between the Secretary and the Corporation. Nothing in this subsection permits or authorizes the Secretary, without the agreement of the Corporation, to engage in open mar k et purchases of the common securities of the Corporation. ‘‘( B ) E MERGENCY DETERMINATION RE Q UIRED.—In connection with any use of this authority, the Secretary must determine that such actions are necessary to— ‘‘(i) pro v ide stability to the financial markets; ‘‘(ii) prevent disruptions in the availability of mort- gage finance; and ‘‘(iii) protect the ta x payer. ‘‘(C) CONSIDERATIONS.—To protect the taxpayers, the Secretary of the Treasury shall take into consideration the following in connection with exercising the authority contained in this paragraph
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‘‘(i) The need for preferences or priorities regarding payments to the Government. ‘‘(ii) L imits on maturity or disposition of obligations or securities to be purchased. ‘‘(iii) The Corporation ’ s plan for the orderly resumption of private market funding or capital market access. ‘‘(iv) The probability of the Corporation fulfilling the terms of any such obligation or other security, including repayment. ‘‘(v) The need to maintain the Corporation’s status as a private shareholder-owned company. ‘‘(vi) R estrictions on the use of Corporation resources, including limitations on the payment of divi- dends and executive compensation and any such other terms and conditions as appropriate for those purposes. ‘‘( D ) REPORTS TO CONGRESS.— U pon exercise of this authority, the Secretary shall report to the Committees on the Budget, F inancial Services, and W ays and M eans of the H ouse of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate as to the necessity for the purchase and the determinations made by the Secretary under subparagraph (B) and with respect to the considerations required under subparagraph (C), and the size, terms, and probability of repayment or fulfillment of other terms of such purchase. ‘‘( 2 ) RIGHTS; SALE OF OBLIGATIONS AND SECURITIES.—

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