Page:United States Statutes at Large Volume 122.djvu/3792

 12 2 STA T .3769PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 200 8(1)INGE NE RAL.— I ftheS e cr et a r y e s ta bli shes the p r og ra m a u thori z e d u n der section 1 0 1, then the Secretary shall establish a program to guarantee troubled assets originated or issued prior to M arch 1 4, 2 00 8 , including mortgage - bac k ed securities. (2) GU ARAN T EE S .—In establishing any program under this subsection, the Secretary may de v elop guarantees of troubled assets and the associated premiums for such guarantees. Such guarantees and premiums may be determined by category or class of the troubled assets to be guaranteed. ( 3 ) EX TENT OF GUARANTEE.— U pon re q uest of a financial institution, the Secretary may guarantee the timely payment of principal of, and interest on, troubled assets in amounts nottoe x ceed 100 percent of such payments. Such guarantee may be on such terms and conditions as are determined by the Secretary, provided that such terms and conditions are consistent w ith the purposes of this A ct. (b) R E P ORTS.— N ot later than 9 0 days after the date of enact- ment of this Act, the Secretary shall report to the appropriate committees of C ongress on the program established under sub- section (a). (c) P RE MI UMS.— (1) IN GENERAL.— T he Secretary shall collect premiums from any financial institution participating 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 reserves pursuant to paragraph (3). (2) AUT H ORIT Y TO B ASE PREMIUMS ON PRO D U C T RIS K .— In establishing any premium under paragraph (1), the Sec- retary may provide for variations in such rates according to the credit risk associated with the particular troubled asset that is being guaranteed. The Secretary shall publish the meth- odology for setting the premium for a class of troubled assets together with an explanation of the appropriateness of the class of assets for participation in the program established under this section. The methodology shall ensure that the pre- mium is consistent with paragraph (3). (3) MINIMUM LE V EL.—The premiums referred to in para- graph (1) shall be set by the Secretary at a level necessary to create reserves sufficient to meet anticipated claims, based on an actuarial analysis, and to ensure that taxpayers are fully protected. (4) AD J USTMENT TO PURCHASE AUTHORITY.—The purchase authority limit in section 11 5 shall be reduced by an amount equal to the difference between the total of the outstanding guaranteed obligations and the balance in the Troubled Assets Insurance F inancing Fund. (d) TROUBLED ASSETS INSURANCE FINANCING FUND.— (1) D EPOSITS.—The Secretary shall deposit fees collected under this section into the Fund established under paragraph (2). (2) ESTABLISHMENT.—There is established a Troubled Assets Insurance Financing Fund that shall consist of the amounts collected pursuant to paragraph (1), and any balance in such fund shall be invested by the Secretary in United States Treasury securities, or kept in cash on hand or on deposit, as necessary. Method o l o gy.Pub l ica tio n .

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