I 

112TH CONGRESS 

1ST SESSION H. R. 2436 

To prohibit any reduction in the rate of dividends paid to the Secretary 

of the Treasury on the senior preferred stock of Fannie Mae and Freddie 

Mac purchased by the Secretary. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 7, 2011 

Mr. MANZULLO (for himself, Mr. GARRETT, Mr. ROYCE, and Mr. BACHUS) 

introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To prohibit any reduction in the rate of dividends paid to 

the Secretary of the Treasury on the senior preferred 

stock of Fannie Mae and Freddie Mac purchased by 

the Secretary. 

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 ‘‘Fannie Mae and 

5 Freddie Mac Taxpayer Payback Act of 2011’’. 


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•HR 2436 IH

1 SEC. 2. PROHIBITION OF REDUCTION IN RATE OF DIVI2 DENDS. 

3 (a) FANNIE MAE.—Section 304 of the Federal Na4 tional Mortgage Association Charter Act (12 U.S.C. 1719) 

5 is amended by adding at the end the following new sub6 section: 

7 ‘‘(h) PROHIBITION OF REDUCTION IN RATE OF DIVI8 DENDS ON SENIOR PREFERRED STOCK.—Notwith9 standing any provision of subsection (g), any provision of 

10 the Senior Preferred Stock Purchase Agreement entered 

11 into between the Department of the Treasury and the cor12 poration in September 2008 (as such Agreement may be 

13 amended and restated), or any provision of any certificate 

14 in connection with such Agreement creating or designating 

15 the terms, powers, preferences, privileges, limitations, or 

16 any other conditions of the Variable Liquidation Pref17 erence Senior Preferred Stock of the corporation issued 

18 pursuant to such Agreement, the rate of dividends paid 

19 on the Variable Liquidation Preference Senior Preferred 

20 Stock of the corporation issued pursuant to such Agree21 ment shall not be reduced from the rate in effect pursuant 

22 to such Agreement as of March 1, 2011.’’. 

23 (b) FREDDIE MAC.—Section 306 of the Federal 

24 Home Loan Mortgage Corporation Act (12 U.S.C. 1455) 

25 is amended by adding at the end the following new sub26 section: 


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3 

•HR 2436 IH

1 ‘‘(m) PROHIBITION OF REDUCTION IN RATE OF

2 DIVIDENDS ON SENIOR PREFERRED STOCK.—Notwith3 standing any provision of subsection (l), any provision of 

4 the Senior Preferred Stock Purchase Agreement entered 

5 into between the Department of the Treasury and the Cor6 poration in September 2008 (as such Agreement may be 

7 amended and restated), or any provision of any certificate 

8 in connection with such Agreement creating or designating 

9 the terms, powers, preferences, privileges, limitations, or 

10 any other conditions of the Variable Liquidation Pref11 erence Senior Preferred Stock of the Corporation issued 

12 pursuant to such Agreement, the rate of dividends paid 

13 on the Variable Liquidation Preference Senior Preferred 

14 Stock of the Corporation issued pursuant to such Agree15 ment shall not be reduced from the rate in effect pursuant 

16 to such Agreement as of March 1, 2011.’’. 

Æ 


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