I 

111TH CONGRESS 

1ST SESSION H. R. 4170 

To amend the Emergency Economic Stabilization Act of 2008 to strike 

the authority of the Secretary of the Treasury to extend the Troubled 

Asset Relief Program after 2009, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 2, 2009 

Mr. HODES introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committees on the Budget 

and Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Emergency Economic Stabilization Act of 

2008 to strike the authority of the Secretary of the 

Treasury to extend the Troubled Asset Relief Program 

after 2009, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Any TARP Ex5 tension Act of 2009’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds as follows: 


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1 (1) On October 7, 2008, Congress established 

2 the Troubled Assets Relief Program (TARP) as part 

3 of the Emergency Economic Stabilization Act (Pub4 lic Law 110–343; 122 Stat. 3765) and allocated 

5 $700,000,000,000 for the purchase of toxic assets 

6 from banks with the goal of restoring liquidity to the 

7 financial sector and restarting the flow of credit in 

8 our markets. 

9 (2) The Secretary of the Treasury, without con10 sultation with the Congress, changed the purpose of 

11 Troubled Assets Relief Program and began injecting 

12 capital into financial institutions through a program 

13 called the Capital Purchase Program (CPP) rather 

14 than purchasing toxic assets. 

15 (3) Lending by financial institutions was not 

16 noticeably increased with the implementation of the 

17 Capital Purchase Program and the expenditure of 

18 $250,000,000,000 of the funds under the Troubled 

19 Assets Relief Program, despite the goal of the pro20 gram. 

21 (4) The recipients of amounts under the Capital 

22 Purchase Program are now faced with additional re23 strictions related to accepting those funds. 

24 (5) A number of community banks and large fi25 nancial institutions have expressed their desire to reVerDate Nov 24 2008 02:42 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4170.IH H4170

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1 turn their Capital Purchase Program funds to the 

2 Secretary of the Treasury and the Secretary has 

3 begun the process of accepting receipt of such funds. 

4 (6) The Secretary of the Treasury should not 

5 unilaterally determine how these returned funds are 

6 spent in the future and the Congress should play a 

7 role in any determination of future spending of 

8 funds returned through the Troubled Assets Relief 

9 Program. 

10 SEC. 3. REPEAL OF TARP EXTENSION AUTHORITY. 

11 Section 120 of the Emergency Economic Stabilization 

12 Act of 2008 (12 U.S.C. 5230) is amended— 

13 (1) by striking ‘‘(a) TERMINATION.—’’; and 

14 (2) by striking subsection (b). 

15 SEC. 4. DEBT REDUCTION. 

16 Subsection (d) of section 106 of the Emergency Eco17 nomic Stabilization Act of 2008 (12 U.S.C. 5216(d)) is 

18 amended to read as follows: 

19 ‘‘(d) DEBT REDUCTION.— 

20 ‘‘(1) IN GENERAL.—The Secretary of the 

21 Treasury shall deposit in Public Debt Reduction 

22 Payment Account— 

23 ‘‘(A) all remaining funds available under 

24 this title not later than 30 days after the date 

25 of enactment of this section; 


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1 ‘‘(B) any amounts received by the Sec2 retary for repayment of financial assistance, for 

3 payment of any interest on the receipt of such 

4 financial assistance by an entity that has re5 ceived financial assistance under this title or 

6 any program enacted by the Secretary under 

7 the authorities granted to the Secretary under 

8 this title, including the Capital Purchase Pro9 gram; and 

10 ‘‘(C) revenues of, and proceeds from the 

11 sale of troubled assets purchased under this 

12 title, or from the sale, exercise, or surrender of 

13 warrants or senior debt instruments acquired 

14 under section 113. 

15 ‘‘(2) PUBLIC DEBT REDUCTION PAYMENT AC16 COUNT.—The term ‘Public Debt Reduction Payment 

17 Account’ means the account established under sec18 tion 3114 of title 31, United States Code.’’. 

19 SEC. 5. ESTABLISHMENT OF PUBLIC DEBT REDUCTION 

20 PAYMENT ACCOUNT. 

21 (a) IN GENERAL.—Subchapter I of chapter 31 of title 

22 31, United States Code, is amended by adding at the end 

23 the following new section: 


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1 ‘‘§ 3114. Public Debt Reduction Payment Account 

2 ‘‘(a) ACCOUNT ESTABLISHED.—There is hereby es3 tablished in the Treasury of the United States an account 

4 to be known as the Public Debt Reduction Payment Ac5 count (hereinafter in this section referred to as the ‘Ac6 count’). 

7 ‘‘(b) USE OF ACCOUNT.—The Secretary of the Treas8 ury shall use amounts in the Account to pay at maturity, 

9 or to redeem or buy before maturity, any obligation of the 

10 Government held by the public and included in the public 

11 debt. Any obligation which is paid, redeemed, or bought 

12 with amounts from the account shall be canceled and re13 tired and may not be reissued. Amounts deposited in the 

14 account are appropriated and may only be expended to 

15 carry out this section. 

16 ‘‘(c) DEPOSITS.—There shall be deposited in the Ac17 count any amounts which are received by the Secretary 

18 of the Treasury pursuant to section 137 of the Emergency 

19 Economic Stabilization Act of 2008. The funds deposited 

20 to this account shall remain available until expended. 

21 ‘‘(d) IMPLEMENTATION.—The Secretary of the 

22 Treasury and the Director of the Office of Management 

23 and Budget shall each take such actions as may be nec24 essary to promptly carry out this section in accordance 

25 with sound debt management policies. 


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1 ‘‘(e) COORDINATION WITH DEBT MANAGEMENT.— 

2 Reducing the debt pursuant to this section shall not inter3 fere with the debt management policies or goals of the Sec4 retary of the Treasury.’’. 

5 (b) CLERICAL AMENDMENT.—The table of contents 

6 for chapter 31 of title 31, United States Code, is amended 

7 by inserting after the item relating to section 3113 the 

8 following new item: 

‘‘3114. Public Debt Reduction Payment Account.’’. 

9 SEC. 6. REDUCTION OF STATUTORY LIMIT ON THE PUBLIC 

10 DEBT. 

11 Section 3101(b) of title 31, United States Code, is 

12 amended by inserting ‘‘minus the aggregate amounts de13 posited into the Public Debt Reduction Payment Account 

14 pursuant to section 3114(c)’’ before ‘‘, outstanding at one 

15 time’’. 

16 SEC. 7. OFF-BUDGET STATUS OF PUBLIC DEBT REDUCTION 

17 PAYMENT ACCOUNT. 

18 Notwithstanding any other provision of law, the re19 ceipts and disbursements of the Public Debt Reduction 

20 Payment Account established by section 3114 of title 31, 

21 United States Code, shall not be counted as new budget 

22 authority, outlays, receipts, or deficit or surplus for pur23 poses of— 

24 (1) the budget of the United States Govern25 ment as submitted by the President; 


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1 (2) the congressional budget; or 

2 (3) the Balanced Budget and Emergency Def3 icit Control Act of 1985. 

4 SEC. 8. REMOVING PUBLIC DEBT REDUCTION PAYMENT AC5 COUNT FROM BUDGET PRONOUNCEMENTS. 

6 (a) IN GENERAL.—Any official statement issued by 

7 the Office of Management and Budget, the Congressional 

8 Budget Office, or any other agency or instrumentality of 

9 the Federal Government of surplus or deficit totals of the 

10 budget of the United States Government as submitted by 

11 the President or of the surplus or deficit totals of the con12 gressional budget, and any description of, or reference to, 

13 such totals in any official publication or material issued 

14 by either of such Offices or any other such agency or in15 strumentality, shall exclude the outlays and receipts of the 

16 Public Debt Reduction Payment Account established by 

17 section 3114 of title 31, United States Code. 

18 (b) SEPARATE PUBLIC DEBT REDUCTION PAYMENT

19 ACCOUNT BUDGET DOCUMENTS.—The excluded outlays 

20 and receipts of the Public Debt Reduction Payment Ac21 count established by section 3114 of title 31, United 

22 States Code, shall be submitted in separate budget docu23 ments. 

Æ 


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