I 
111TH CONGRESS 
1ST SESSION 
H. R. 384 
To reform the Troubled Assets Relief Program of the Secretary of the 
Treasury and ensure accountability under such Program. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 9, 2009 
Mr. FRANK of Massachusetts introduced the following bill; which was referred 
to the Committee on Financial Services, and in addition to the Commit-
tees on Ways and Means and the Judiciary, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To reform the Troubled Assets Relief Program of the Sec-
retary of the Treasury and ensure accountability under 
such Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘TARP Reform and Accountability Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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TITLE I—MODIFICATIONS TO TARP AND TARP OVERSIGHT 
Sec. 101. New conditionality for TARP-assisted institutions. 
Sec. 102. Executive compensation and corporate governance. 
Sec. 103. New lending by insured depository institutions that is attributable to 
TARP investments and assistance. 
Sec. 104. Other protections for the taxpayer. 
Sec. 105. Availability of TARP funds to smaller community institutions. 
Sec. 106. Increase in size and authority of Financial Stability Oversight Board. 
Sec. 107. Clarification. 
TITLE II—FORECLOSURE RELIEF 
Sec. 201. TARP foreclosure mitigation plan and implementation. 
Sec. 202. Elements of plan. 
Sec. 203. Program alternatives. 
Sec. 204. Systematic foreclosure prevention and mortgage modification plan es-
tablished. 
Sec. 204. Modification of plan. 
Sec. 205. Servicer safe harbor. 
Sec. 206. Report by Congressional Oversight Panel. 
TITLE III—AUTO INDUSTRY FINANCING AND RESTRUCTURING 
Sec. 301. Short title. 
Sec. 302. Direct loan provisions. 
TITLE IV—CLARIFICATION OF AUTHORITY 
Sec. 401. Consumer loans. 
Sec. 402. Municipal securities. 
Sec. 403. Commercial real estate loans. 
TITLE V—HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTS 
Sec. 501. Changes to HOPE for Homeowners Program. 
Sec. 502. Funding of increased HOPE for Homeowners Program credit subsidy 
costs. 
TITLE VI—HOME BUYER STIMULUS 
Sec. 601. Home buyer stimulus program. 
TITLE VII—FDIC PROVISIONS 
Sec. 701. Permanent increase in deposit insurance. 
Sec. 702. Extension of restoration plan period. 
Sec. 703. Borrowing authority. 
Sec. 704. Systemic risk special assessments. 
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TITLE I—MODIFICATIONS TO 
TARP AND TARP OVERSIGHT 
SEC. 101. NEW CONDITIONALITY FOR TARP-ASSISTED IN-
STITUTIONS. 
(a) IN GENERAL.—Section 113 of the Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 5223) is 
amended by adding at the end the following new sub-
sections: 
‘‘(e) REPORTING, MONITORING
AND
ACCOUNT-
ABILITY.— 
‘‘(1) PERIODIC PUBLIC REPORTING ON USE OF 
ASSISTANCE.—The Secretary shall require any as-
sisted institution that became an assisted institution 
on or after October 3, 2008, to publicly report, not 
less than quarterly, on such institution’s use of the 
assistance . 
‘‘(2) ADDITIONAL REQUIREMENTS AND COMPLI-
ANCE.—The Secretary— 
‘‘(A) may establish additional reporting 
and information requirements for any direct or 
indirect recipient of any assistance or benefit at 
any time on or after October 3, 2008, that in-
volves the obligation or expenditure, loan, or in-
vestment of funds available to the Secretary 
under this title; and 
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‘‘(B) shall establish appropriate mecha-
nisms to ensure appropriate use and compliance 
with all terms of any use of funds made avail-
able under this title. 
‘‘(3) CONSULTATION.—The Secretary shall con-
sult with the appropriate Federal banking agencies 
in establishing the reporting requirements under this 
subsection that are applicable to insured depository 
institutions. 
‘‘(f) USE
AND
ACCOUNTABILITY
FOR
USE
OF 
FUNDS.— 
‘‘(1) INSURED DEPOSITORY INSTITUTION.— 
‘‘(A) INVESTMENT
IN
OR
OTHER
INJEC-
TION OF FUNDS INTO A DEPOSITORY INSTITU-
TION.—As a condition for the provision of any 
investment in the capital or assets of, or any 
other provision of assistance to or for the ben-
efit of, any insured depository institution, the 
Secretary shall incorporate into the agreement 
for such investment or assistance an agreement 
between the depository institution and the ap-
propriate Federal banking agency with respect 
to such institution on the manner in which the 
funds are to be used and benchmarks that the 
institution is required to meet in using the 
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funding so as to advance the purposes of this 
Act to strengthen the soundness of the financial 
system and the availability of credit to the econ-
omy. 
‘‘(B) EXAMINATIONS.—In the case of any 
assisted insured depository institution that be-
came an assisted institution on or after October 
3, 2008, the appropriate Federal banking agen-
cy shall specifically review at least once annu-
ally the use, by the institution, of funds made 
available under this Act and compliance by the 
institution with the requirements established by 
or pursuant to this title or by agreement of the 
institution with the Secretary or the appro-
priate Federal banking agency, including execu-
tive compensation and any other specific agree-
ment terms. Such review may be conducted in 
connection with the regular full-site examina-
tion, or any other examination. 
‘‘(C) 
COMPLIANCE
PROCEDURES
RE-
QUIRED.—Each appropriate Federal banking 
agency shall prescribe regulations requiring as-
sisted insured depository institutions to estab-
lish and maintain procedures designed to assure 
and monitor the compliance of such depository 
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institutions with the requirements established 
by or pursuant to this title or by agreement of 
the institution with the Secretary or such agen-
cy. 
‘‘(2) USE OF TARP FUNDS FOR MERGERS OR 
ACQUISITIONS.—Effective as of the date of the en-
actment of the TARP Reform and Accountability 
Act of 2009, no assisted institution that became an 
assisted institution at any time on or after October 
3, 2008, may merge or consolidate with any insured 
depository institution or, either directly or indirectly, 
acquire the assets of, or assume liability to pay any 
deposits made in, any insured depository institution, 
and no Federal banking agency may approve any 
such action under section 18(c) of the Federal De-
posit Insurance Act, while any of such assistance is 
outstanding unless, prior to the approval of such 
agency, the Secretary has determined in consultation 
with any relevant Federal banking agencies that— 
‘‘(A) such action will reduce risk to the 
taxpayer; or 
‘‘(B) the transaction could have been con-
summated without funds provided under this 
title. 
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‘‘(3) NONDEPOSITORY
INSTITUTIONS.—In the 
case of any assisted institution that became an as-
sisted institution on or after October 3, 2008, and 
is not described in and subject to paragraph (1), the 
Secretary shall establish such reporting requirements 
and require any other conditions or agreements no 
less stringent than those applicable to assisted in-
sured depository institutions, including requirements 
to conduct examinations of the books, affairs, and 
procedures of any such financial institution by the 
Secretary or by delegation to the Board. 
‘‘(g) NO IMPEDIMENT TO WITHDRAWAL.—Subject to 
consultation with the appropriate Federal banking agen-
cies, the Secretary may permit an insured depository insti-
tution to repay any assistance previously provided under 
this title to such depository institution without regard to 
whether the depository institution has replaced such funds 
from any other source.’’. 
(b) DEFINITIONS.—Section 3 of the Emergency Eco-
nomic Stabilization Act of 2008 (12 U.S.C. 5202) is 
amended by adding at the end the following new para-
graphs: 
‘‘(10) DEFINITIONS RELATING TO INSURED DE-
POSITORY INSTITUTIONS.—The terms ‘depository in-
stitution’, ‘insured depository institution’, ‘Federal 
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banking agency’ and ‘appropriate Federal banking 
agency’ have the same meanings as in section 3 of 
the Federal Deposit Insurance Act. 
‘‘(11) ASSISTED INSTITUTION.—The terms ‘as-
sisted institution’ or ‘assisted insured depository in-
stitution’ means any such institution that receives, 
directly or indirectly, any assistance or benefit that 
involves the obligation or expenditure, loan, or in-
vestment of funds available to the Secretary under 
title I.’’. 
SEC. 102. EXECUTIVE COMPENSATION AND CORPORATE 
GOVERNANCE. 
(a) IN GENERAL.—Section 111 of the Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 5221) is 
amended by adding at the end the following new sub-
sections: 
‘‘(e) ACROSS-THE-BOARD EXECUTIVE COMPENSA-
TION AND CORPORATE GOVERNANCE REQUIREMENTS.— 
‘‘(1) STANDARDS REQUIRED.—Effective as of 
the date of the enactment of the TARP Reform and 
Accountability Act of 2009 and notwithstanding any 
provision of, and in addition to any requirement of 
subsection (a), (b), or (c) (other than the definitions 
in subsection (b)(3)), the Secretary shall require any 
assisted institution to meet standards for executive 
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compensation and corporate governance while any 
assistance under this title is outstanding. 
‘‘(2) SPECIFIC REQUIREMENTS.—The standards 
established under paragraph (1) shall include— 
‘‘(A) limits on compensation that exclude 
incentives for senior executive officers of an as-
sisted institution which received assistance 
under this title to take unnecessary and exces-
sive risks that threaten the value of such insti-
tution during the period that any assistance 
under this title is outstanding; 
‘‘(B) a provision for the recovery by such 
institution of any bonus or incentive compensa-
tion paid to a senior executive officer based on 
statements of earnings, gains, or other criteria 
that are later found to be materially inaccurate; 
‘‘(C) a prohibition on such institution mak-
ing any golden parachute payment to a senior 
executive officer during the period that the as-
sistance under this title is outstanding; 
‘‘(D) a prohibition on such institution pay-
ing or accruing any bonus or incentive com-
pensation, during the period that the assistance 
under this title is outstanding, to the 25 most 
highly-compensated employees; and 
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