Collapse to view only § 5614. Exercise of Federal Reserve authority
- § 5611. Liquidity event determination
- § 5612. Emergency financial stabilization
- § 5613. Additional related matters
- § 5614. Exercise of Federal Reserve authority
§ 5611. Liquidity event determination
(a) Determination and written recommendation
(1) Determination request
(2) Requirements of determinationAny determination pursuant to paragraph (1) shall—
(A) be written; and
(B) contain an evaluation of the evidence that—
(i) a liquidity event exists;
(ii) failure to take action would have serious adverse effects on financial stability or economic conditions in the United States; and
(iii) actions authorized under section 5612 of this title are needed to avoid or mitigate potential adverse effects on the United States financial system or economic conditions.
(b) ProceduresNotwithstanding any other provision of Federal or State law, upon the determination of both the Corporation (upon a vote of not fewer than ⅔ of the members of the Corporation then serving) and the Board of Governors (upon a vote of not fewer than ⅔ of the members of the Board of Governors then serving) under subsection (a) that a liquidity event exists that warrants use of the guarantee program authorized under section 5612 of this title, and with the written consent of the Secretary—
(1) the Corporation shall take action in accordance with section 5612(a) of this title; and
(2) the Secretary (in consultation with the President) shall take action in accordance with section 5612(c) of this title.
(c) Documentation and review
(1) DocumentationThe Secretary shall—
(A) maintain the written documentation of each determination of the Corporation and the Board of Governors under this section; and
(B) provide the documentation for review under paragraph (2).
(2) GAO reviewThe Comptroller General of the United States shall review and report to Congress on any determination of the Corporation and the Board of Governors under subsection (a), including—
(A) the basis for the determination; and
(B) the likely effect of the actions taken.
(d) Report to Congress
(Pub. L. 111–203, title XI, § 1104, July 21, 2010, 124 Stat. 2120.)
§ 5612. Emergency financial stabilization
(a) In general
(b) Rulemaking and terms and conditions
(1) Policies and procedures
(2) Terms and conditions
(c) Determination of guaranteed amount
(1) In general
(2) Additional debt guarantee authority
(d) Resolution of approval
(1) Additional debt guarantee authority
(2) Fast track consideration in Senate
(A) Reconvening
(B) Placement on calendar
(C) Floor consideration
(i) In general
(ii) Debate
(iii) Vote on passage
(iv) Rulings of the Chair on procedure
(3) Rules
(A) Coordination with action by House of RepresentativesIf, before the passage by the Senate of a joint resolution of the Senate, the Senate receives a joint resolution, from the House of Representatives, then the following procedures shall apply:
(i) The joint resolution of the House of Representatives shall not be referred to a committee.
(ii) With respect to a joint resolution of the Senate—(I) the procedure in the Senate shall be the same as if no joint resolution had been received from the other House; but(II) the vote on passage shall be on the joint resolution of the House of Representatives.
(B) Treatment of joint resolution of House of Representatives
(C) Treatment of companion measures
(D) Rules of the SenateThis subsection is enacted by Congress—
(i) as an exercise of the rulemaking power of the Senate, and as such it is deemed a part of the rules of the Senate, but applicable only with respect to the procedure to be followed in the Senate in the case of a joint resolution, and it supersedes other rules, only to the extent that it is inconsistent with such rules; and
(ii) with full recognition of the constitutional right of the Senate to change the rules (so far as relating to the procedure of the Senate) at any time, in the same manner, and to the same extent as in the case of any other rule of the Senate.
(4) DefinitionAs used in this subsection, the term “joint resolution” means only a joint resolution—
(A) that is introduced not later than 3 calendar days after the date on which the request referred to in subsection (c) is received by Congress;
(B) that does not have a preamble;
(C) the title of which is as follows: “Joint resolution relating to the approval of a plan to guarantee obligations under section 1105 of the Dodd-Frank Wall Street Reform and Consumer Protection Act”; and
(D) the matter after the resolving clause of which is as follows: “That Congress approves the obligation of any amount described in section 1105(c) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.”.
(e) Funding
(1) Fees and other charges
(2) Excess funds
(3) Authority of CorporationThe Corporation—
(A) may borrow funds from the Secretary of the Treasury and issue obligations of the Corporation to the Secretary for amounts borrowed, and the amounts borrowed shall be available to the Corporation for purposes of carrying out a program established pursuant to this section, including the payment of reasonable costs of administering the program, and the obligations issued shall be repaid in full with interest through fees and charges paid by participants in accordance with paragraphs (1) and (4), as applicable; and
(B) may not borrow funds from the Deposit Insurance Fund established pursuant to section 1821(a)(4) of this title.
(4) Backup special assessments
(5) Authority of the Secretary
(f) Rule of construction
(g) DefinitionsFor purposes of this section, the following definitions shall apply:
(1) Company
(2) Depository institution holding company
(3) Liquidity eventThe term “liquidity event” means—
(A) an exceptional and broad reduction in the general ability of financial market participants—
(i) to sell financial assets without an unusual and significant discount; or
(ii) to borrow using financial assets as collateral without an unusual and significant increase in margin; or
(B) an unusual and significant reduction in the ability of financial market participants to obtain unsecured credit.
(4) Solvent
(h) Approval of guarantee program during the COVID–19 crisis
(1) In general
(2) Maximum amount
(Pub. L. 111–203, title XI, § 1105, July 21, 2010, 124 Stat. 2121; Pub. L. 116–136, div. A, title IV, § 4008(a), Mar. 27, 2020, 134 Stat. 477.)
§ 5613. Additional related matters
(a) Suspension of parallel Federal Deposit Insurance Act authority
(b) Omitted
(c) Effect of default on an FDIC guaranteeIf an insured depository institution or depository institution holding company (as those terms are defined in section 1813 of this title) participating in a program under section 5612 of this title, or any participant in a debt guarantee program established pursuant to section 1823(c)(4)(G)(i) of this title defaults on any obligation guaranteed by the Corporation after July 21, 2010, the Corporation shall—
(1) appoint itself as receiver for the insured depository institution that defaults; and
(2) with respect to any other participating company that is not an insured depository institution that defaults—
(A) require—
(i) consideration of whether a determination shall be made, as provided in section 5383 of this title to resolve the company under section 5382 of this title; and
(ii) the company to file a petition for bankruptcy under section 301 of title 11 if the Corporation is not appointed receiver pursuant to section 5382 of this title within 30 days of the date of default; or
(B) file a petition for involuntary bankruptcy on behalf of the company under section 303 of title 11.
(Pub. L. 111–203, title XI, § 1106, July 21, 2010, 124 Stat. 2125.)
§ 5614. Exercise of Federal Reserve authority
(1) No decisions by Federal reserve bank presidents
(2) Voting decisions by Board
(Pub. L. 111–203, title XI, § 1108(d), July 21, 2010, 124 Stat. 2127.)