(C) contract with a private servicer to serv-
ice any preferred equity instrument purchased 
by the Secretary under subparagraph (A). 
(3) TRANSFER OF NOTES AND PAPERS.—When 
the preferred equity instrument is redeemed by the 
Secretary, a digital copy of all notes and papers 
shall be provided to the Secretary upon request of 
the Secretary. Upon request of the Secretary, an 
original document shall be provided. 
(4) ADMINISTRATIVE
COSTS.—The Secretary 
shall use amounts described under subsection 
(c)(1)(E) for administrative costs of carrying out 
this section. 
(5) RULEMAKING.—Not later than 30 days 
after the date of the enactment of this Act, the Sec-
retary shall issue such rules or guidance as the Sec-
retary determines necessary to carry out this sec-
tion. 
(g) FINANCIAL INSTITUTION REQUIREMENTS AND 
AUTHORITIES.— 
(1) DEADLINE
FOR
MAKING
FUNDS
AVAIL-
ABLE.—A financial institution submitting a pre-
ferred equity instrument to the Secretary under this 
section shall, if the Secretary approves such instru-
ment, make funds available to the borrower in con-
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nection with such instrument not later than 14 cal-
endar days after such approval. 
(2) SALE OF INSTRUMENT TO TREASURY.—A 
financial institution may sell a preferred equity in-
strument to the Secretary after the end of the 10- 
year period beginning on the date on which the fi-
nancial institution purchased the instrument at par 
plus interest less origination fees. 
(3) FORECLOSURE.—In the event of a fore-
closure on the subject property securing a commer-
cial mortgage relating to a preferred equity instru-
ment, a financial institution shall sell the preferred 
equity instrument to the Secretary within 90 days 
after the date of foreclosure at par plus interest and 
origination fees. 
(4) ADDITIONAL COLLATERAL.—A financial in-
stitution may require additional collateral from a 
borrower, including personal recourse, corporate re-
course, a first lien on another encumbered property, 
or a claim on business assets. The financial institu-
tion may not receive a lien on the subject property. 
(h) OTHER REQUIREMENTS.— 
(1) PUBLIC REPORTING.—A borrower that re-
ceives financial assistance under this Act shall issue 
a public statement announcing such receipt imme-
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diately after such receipt. The Secretary periodically 
shall make publicly available a list of such bor-
rowers, along with the amount each such borrower 
received. 
(2) INDEMNIFICATION.—A preferred equity in-
strument issued under this section shall require that 
an approved guarantor (as determined by the finan-
cial institution) provide a guarantee to the financial 
institution and to the Secretary that provides for in-
demnification of such financial institution if the bor-
rower, a parent company of the borrower, or any af-
filiate of the borrower, with respect to the property 
securing the commercial mortgage, does the fol-
lowing: 
(A) Commits fraud, or misappropriates or 
misapplies any amounts received from the pur-
chase of such instrument. 
(B) Fails to apply such amounts in accord-
ance with the requirements of subsection 
(c)(1)(K). 
(C) Fails to comply with the requirements 
of subsection (f). 
(D) Intentionally wastes the property. 
(3) ADDITIONAL FEE.—A financial institution 
may charge additional fees to a borrower from which 
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the financial institution purchases a preferred equity 
instrument. 
(i) TREATMENT
OF
INSTRUMENTS
BY
REGU-
LATORS.—For purposes of calculating any capital require-
ment, the appropriate Federal banking agencies shall treat 
preferred equity instruments, the purchase of which are 
guaranteed under this section, in the same manner as 
loans guaranteed under the Paycheck Protection Program 
under section 7(a)(36) of the Small Business Act. 
(j) LIMITATION ON FINANCIAL ASSISTANCE GOING 
TO ENTITIES CONTROLLED BY SENIOR MEMBERS OF THE 
EXECUTIVE BRANCH OR MEMBERS OF CONGRESS.— 
(1) PROHIBITION.—A covered entity may not 
receive financial assistance under this section. 
(2) DEFINITION.—In this subsection, the term 
‘‘covered entity’’ has the meaning given that term 
under section 4019(a) of the CARES Act (15 U.S.C. 
9054(a)). 
(k) FUNDING.—The Secretary shall, without further 
appropriation, use amounts made available under section 
4003(b)(4) of the CARES Act (15 U.S.C. 9042(b)(4)) to 
carry out this section. 
(l) DEFINITIONS.—In this section: 
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(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’— 
(A) has the meaning given that term under 
section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813); and 
(B) means the National Credit Union Ad-
ministration, in the case of an insured credit 
union (as defined under section 101 of the Fed-
eral Credit Union Act (12 U.S.C. 1752)). 
(2) BORROWER.—The term ‘‘borrower’’ means 
a borrower of a commercial mortgage loan. 
(3) COMMERCIAL MORTGAGE.—The term ‘‘com-
mercial mortgage’’ means a mortgage loan secured 
by an interest in real property owned for rental in-
come. 
(4) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means— 
(A) a person authorized to make and ap-
prove loans under section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)) or section 
1109 of the CARES Act (Public Law 116– 
136); 
(B) a national banking association; and 
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