I 

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. 

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 ‘‘TARP Repayment and 

5 Termination Act of 2009’’. 

6 SEC. 2. ADDITIONAL REPAYMENT PROCEDURES. 

7 (a) IN GENERAL.—Title I of the Emergency Eco8 nomic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) 

9 is amended by adding at the end the following new section: 

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1 ‘‘SEC. 137. ADDITIONAL REPAYMENT PROCEDURES. 

2 ‘‘(a) RIGHT OF REPAYMENT FOR WELL CAPITALIZED

3 INSTITUTIONS.—Any financial institution that has re4 ceived or receives assistance under this title shall have the 

5 right to immediately repay all of such assistance, and the 

6 Secretary shall unconditionally accept such a payment, 

7 if— 

8 ‘‘(1) with respect to an insured depository insti9 tution, the appropriate Federal banking agency de10 termines that such financial institution will be well 

11 capitalized after the repayment of all of such assist12 ance; and 

13 ‘‘(2) such financial institution has paid any div14 idend, interest, or other payment due to the Sec15 retary by reason of the financial institution receiving 

16 assistance under this title. 

17 ‘‘(b) RIGHT OF REPAYMENT FOR CERTAIN BANK

18 HOLDING COMPANIES.—Notwithstanding subsection (a), 

19 a bank holding company assessed under SCAP shall have 

20 the right to immediately repay all assistance such com21 pany received under this title, and the Secretary shall un22 conditionally accept such a payment, if the Secretary, in 

23 consultation with the appropriate Federal banking agency, 

24 where applicable, determines that, upon the repayment of 

25 all of such assistance, such company— 

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1 ‘‘(1) will remain in a position to continue to ful2 fill its role as an intermediary that facilitates lend3 ing to creditworthy households and businesses; 

4 ‘‘(2) will be able to maintain capital levels that 

5 are consistent with supervisory expectations; 

6 ‘‘(3) will be able to continue to serve as a 

7 source of financial and managerial strength and sup8 port to any subsidiary bank of such company; and 

9 ‘‘(4) along with any subsidiary bank of such 

10 company, will be able to meet all ongoing funding 

11 requirements and obligations to counterparties while 

12 reducing reliance on Government capital and the 

13 TLGP. 

14 ‘‘(c) PREFERRED SHARE REPURCHASE LEVELS.— 

15 With respect to preferred shares held by the Secretary, 

16 in making a full repayment of all assistance received by 

17 a financial institution under this title on or before Sep18 tember 30, 2009, such institution shall have the right to 

19 repurchase such preferred shares at— 

20 ‘‘(1) in the case of a preferred share purchased 

21 by the Secretary under this title, the same price the 

22 Secretary purchased such share for from the finan23 cial institution; and 

24 ‘‘(2) in the case of a preferred share held by the 

25 Secretary as a result of the Secretary’s exercise of 

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1 a warrant received by the Secretary pursuant to sec2 tion 113(d)(1)(B), the same price the Secretary pur3 chased such warrant for from the financial institu4 tion. 

5 ‘‘(d) REDUCTION IN AUTHORIZATION TO PURCHASE

6 IN CORRESPONDING AMOUNT TO ANY REPAYMENT.— 

7 Each time a financial institution makes a repayment of 

8 assistance provided under this title, the authorization to 

9 purchase authority under section 115 shall be reduced by 

10 a corresponding dollar amount. 

11 ‘‘(e) PROVISION OF REPAYMENT INFORMATION.— 

12 Not later than 15 days after the Secretary is notified by 

13 a financial institution that such financial institution wants 

14 to immediately repay all assistance received by such insti15 tution under this title, the Secretary, in consultation with 

16 the appropriate Federal banking agency, if any, shall ei17 ther— 

18 ‘‘(1) accept such repayment; or 

19 ‘‘(2) notify such institution, in writing, that the 

20 individual financial position of such institution does 

21 not currently permit the repayment of such assist22 ance, and include in such notice information detail23 ing steps the institution can take to satisfy the Sec24 retary and the appropriate Federal banking agency, 

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1 if any, that the institution is in a position to repay 

2 such assistance. 

3 ‘‘(f) DEFINITIONS.—For purposes of this section: 

4 ‘‘(1) APPROPRIATE FEDERAL BANKING AGEN5 CY.—The term ‘appropriate Federal banking agency’ 

6 has the meaning given to such term in section 3(q) 

7 of the Federal Deposit Insurance Act (12 U.S.C. 

8 1813(q)). 

9 ‘‘(2) BANK HOLDING COMPANY.—The term 

10 ‘bank holding company’ has the meaning given to 

11 such term in section 2 of the Bank Holding Com12 pany Act of 1956 (12 U.S.C. 1841). 

13 ‘‘(3) INSURED DEPOSITORY INSTITUTION.—The 

14 term ‘insured depository institution’ has the mean15 ing given to such term in section 3(c) of the Federal 

16 Deposit Insurance Act (12 U.S.C. 1813(c)). 

17 ‘‘(4) SCAP.—The term ‘SCAP’ means the Su18 pervisory Capital Assessment Program conducted by 

19 the Board of Governors of the Federal Reserve Sys20 tem and other Federal regulators, the results of 

21 which were made public on May 7, 2009. 

22 ‘‘(5) TLGP.—The term ‘TLGP’ means the 

23 Temporary Liquidity Guarantee Program, imple24 mented by the Federal Deposit Insurance Corpora25 tion by final rule on November 21, 2008. 

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1 ‘‘(6) WELL CAPITALIZED.—With respect to an 

2 insured depository institution, the term ‘well capital3 ized’ has the meaning given to such term in section 

4 38(b)(1)(A) of the Federal Deposit Insurance Act 

5 (12 U.S.C. 1831o(b)(1)(A)).’’. 

6 (b) WARRANT LIQUIDATION REQUIREMENT.—Sec7 tion 111(g) of the Emergency Economic Stabilization Act 

8 of 2008 (12 U.S.C. 5221(g)) is amended by striking ‘‘, 

9 at the market price, may liquidate warrants associated 

10 with such assistance’’ and inserting ‘‘shall liquidate war11 rants associated with such assistance at the current mar12 ket price, except as otherwise provided in section 

13 137(c)(2)’’. 

14 (c) REPEAL OF EXTENSION AUTHORITY.—Section 

15 120 of the Emergency Economic Stabilization Act of 2008 

16 (12 U.S.C. 5230) is amended— 

17 (1) in subsection (a), by striking ‘‘(a) TERMI18 NATION.—The’’ and inserting ‘‘The’’; and 

19 (2) by striking subsection (b). 

20 (d) CONFORMING AMENDMENT.—The table of con21 tents for the Emergency Economic Stabilization Act of 

22 2008 is amended by inserting after the item relating to 

23 section 136 the following new item: 

‘‘137. Additional repayment procedures.’’. 

Æ 

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