Text: H.R.2745 — 111th Congress (2009-2010)

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Introduced in House (06/08/2009)


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[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 2745 Introduced in House (IH)]

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.''.
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