READ THIS CAREFULLY AND NOTICE HOW MUCH POWER WE ARE GIVING TO
PAULSON.... WE JUST SOLD OUR SOUL TO WALL STREET.
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related 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, mortgage-related assets from any
financial institution having its headquarters in the United States.
(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;
(2) entering into contracts, including contracts for services authorized
by section 3109 of title 5, United States Code, without regard to any
other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the
Government, and they shall perform all such reasonable duties related to
this Act as financial agents of the Government as may be required of
them;
(4) establishing vehicles that are authorized, subject to supervision by
the Secretary, to purchase mortgage-related assets and issue
obligations; and
(5) issuing such regulations and other guidance as may be necessary or
appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall
take into consideration means for--
(1) providing stability or preventing disruption to the financial
markets or banking system; and
(2) protecting the taxpayer.
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 Mortgage-Related Assets.
(a) Exercise of Rights.--The Secretary may, at any time, exercise any
rights received in connection with mortgage-related assets purchased
under this Act.
(b) Management of Mortgage-Related Assets.--The Secretary shall have
authority to manage mortgage-related assets purchased under this Act,
including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related 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.
(d) Application of Sunset to Mortgage-Related Assets.--The authority of
the Secretary to hold any mortgage-related asset purchased under this
Act before the termination date in section 9, or to purchase or fund the
purchase of a mortgage-related asset under a commitment entered into
before the termination date in section 9, is not subject to the
provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary's authority to purchase mortgage-related assets under this
Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the
costs of administering those authorities, the Secretary may use the
proceeds of the sale of any securities issued under chapter 31 of title
31, United States Code, and the purposes for which securities may be
issued under chapter 31 of title 31, United States Code, are extended to
include actions authorized by this Act, including the payment of
administrative expenses. Any funds expended for actions authorized by
this Act, including the payment of administrative expenses, shall be
deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are
non-reviewable and committed to agency discretion, and may not be
reviewed by any court of law or any administrative agency.
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.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under section
2(a) of this Act shall be determined as provided under the Federal
Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.--The term "mortgage-related 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.
(2) Secretary.--The term "Secretary" means the Secretary of the
Treasury.
(3) United States.--The term "United States" means the States,
territories, and possessions of the United States and the District of
Columbia.
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