H. R. 1424—24 
a servicer of pooled residential mortgages owes any duty to 
determine whether the net present value of the payments on 
the loan, as modified, is likely to be greater than the anticipated 
net recovery that would result from foreclosure to all investors 
and holders of beneficial interests in such investment, but 
not to any individual or groups of investors or beneficial interest 
holders, and shall be deemed to act in the best interests of 
all such investors or holders of beneficial interests if the servicer 
agrees to or implements a modification or workout plan when 
the servicer takes reasonable loss mitigation actions, including 
partial payments. 
SEC. 120. TERMINATION OF AUTHORITY. 
(a) TERMINATION.—The authorities provided under sections 
101(a), excluding section 101(a)(3), and 102 shall terminate on 
December 31, 2009. 
(b) EXTENSION UPON CERTIFICATION.—The Secretary, upon 
submission of a written certification to Congress, may extend the 
authority provided under this Act to expire not later than 2 years 
from the date of enactment of this Act. Such certification shall 
include a justification of why the extension is necessary to assist 
American families and stabilize financial markets, as well as the 
expected cost to the taxpayers for such an extension. 
SEC. 121. SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET 
RELIEF PROGRAM. 
(a) OFFICE OF INSPECTOR GENERAL.—There is hereby estab-
lished the Office of the Special Inspector General for the Troubled 
Asset Relief Program. 
(b) APPOINTMENT OF INSPECTOR GENERAL; REMOVAL.—(1) The 
head of the Office of the Special Inspector General for the Troubled 
Asset Relief Program is the Special Inspector General for the Trou-
bled Asset Relief Program (in this section referred to as the ‘‘Special 
Inspector General’’), who shall be appointed by the President, by 
and with the advice and consent of the Senate. 
(2) The appointment of the Special Inspector General shall 
be made on the basis of integrity and demonstrated ability in 
accounting, auditing, financial analysis, law, management analysis, 
public administration, or investigations. 
(3) The nomination of an individual as Special Inspector Gen-
eral shall be made as soon as practicable after the establishment 
of any program under sections 101 and 102. 
(4) The Special Inspector General shall be removable from 
office in accordance with the provisions of section 3(b) of the 
Inspector General Act of 1978 (5 U.S.C. App.). 
(5) For purposes of section 7324 of title 5, United States Code, 
the Special Inspector General shall not be considered an employee 
who determines policies to be pursued by the United States in 
the nationwide administration of Federal law. 
(6) The annual rate of basic pay of the Special Inspector General 
shall be the annual rate of basic pay for an Inspector General 
under section 3(e) of the Inspector General Act of 1978 (5 U.S.C. 
App.). 
(c) DUTIES.—(1) It shall be the duty of the Special Inspector 
General to conduct, supervise, and coordinate audits and investiga-
tions of the purchase, management, and sale of assets by the 
Secretary of the Treasury under any program established by the 
Secretary under section 101, and the management by the Secretary
H. R. 1424—25 
of any program established under section 102, including by col-
lecting and summarizing the following information: 
(A) A description of the categories of troubled assets pur-
chased or otherwise procured by the Secretary. 
(B) A listing of the troubled assets purchased in each 
such category described under subparagraph (A). 
(C) An explanation of the reasons the Secretary deemed 
it necessary to purchase each such troubled asset. 
(D) A listing of each financial institution that such troubled 
assets were purchased from. 
(E) A listing of and detailed biographical information on 
each person or entity hired to manage such troubled assets. 
(F) A current estimate of the total amount of troubled 
assets purchased pursuant to any program established under 
section 101, the amount of troubled assets on the books of 
the Treasury, the amount of troubled assets sold, and the 
profit and loss incurred on each sale or disposition of each 
such troubled asset. 
(G) A listing of the insurance contracts issued under section 
102. 
(2) The Special Inspector General shall establish, maintain, 
and oversee such systems, procedures, and controls as the Special 
Inspector General considers appropriate to discharge the duty under 
paragraph (1). 
(3) In addition to the duties specified in paragraphs (1) and 
(2), the Inspector General shall also have the duties and responsibil-
ities of inspectors general under the Inspector General Act of 1978. 
(d) POWERS AND AUTHORITIES.—(1) In carrying out the duties 
specified in subsection (c), the Special Inspector General shall have 
the authorities provided in section 6 of the Inspector General Act 
of 1978. 
(2) The Special Inspector General shall carry out the duties 
specified in subsection (c)(1) in accordance with section 4(b)(1) of 
the Inspector General Act of 1978. 
(e) PERSONNEL, FACILITIES, AND OTHER RESOURCES.—(1) The 
Special Inspector General may select, appoint, and employ such 
officers and employees as may be necessary for carrying out the 
duties of the Special Inspector General, subject to the provisions 
of title 5, United States Code, governing appointments in the 
competitive service, and the provisions of chapter 51 and subchapter 
III of chapter 53 of such title, relating to classification and General 
Schedule pay rates. 
(2) The Special Inspector General may obtain services as 
authorized by section 3109 of title 5, United States Code, at daily 
rates not to exceed the equivalent rate prescribed for grade GS– 
15 of the General Schedule by section 5332 of such title. 
(3) The Special Inspector General may enter into contracts 
and other arrangements for audits, studies, analyses, and other 
services with public agencies and with private persons, and make 
such payments as may be necessary to carry out the duties of 
the Inspector General. 
(4)(A) Upon request of the Special Inspector General for 
information or assistance from any department, agency, or other 
entity of the Federal Government, the head of such entity shall, 
insofar as is practicable and not in contravention of any existing 
law, furnish such information or assistance to the Special Inspector 
General, or an authorized designee.
H. R. 1424—26 
(B) Whenever information or assistance requested by the Spe-
cial Inspector General is, in the judgment of the Special Inspector 
General, unreasonably refused or not provided, the Special Inspector 
General shall report the circumstances to the appropriate commit-
tees of Congress without delay. 
(f) REPORTS.—(1) Not later than 60 days after the confirmation 
of the Special Inspector General, and every calendar quarter there-
after, the Special Inspector General shall submit to the appropriate 
committees of Congress a report summarizing the activities of the 
Special Inspector General during the 120-day period ending on 
the date of such report. Each report shall include, for the period 
covered by such report, a detailed statement of all purchases, obliga-
tions, expenditures, and revenues associated with any program 
established by the Secretary of the Treasury under sections 101 
and 102, as well as the information collected under subsection 
(c)(1). 
(2) Nothing in this subsection shall be construed to authorize 
the public disclosure of information that is— 
(A) specifically prohibited from disclosure by any other 
provision of law; 
(B) specifically required by Executive order to be protected 
from disclosure in the interest of national defense or national 
security or in the conduct of foreign affairs; or 
(C) a part of an ongoing criminal investigation. 
(3) Any reports required under this section shall also be sub-
mitted to the Congressional Oversight Panel established under 
section 125. 
(g) FUNDING.—(1) Of the amounts made available to the Sec-
retary of the Treasury under section 118, $50,000,000 shall be 
available to the Special Inspector General to carry out this section. 
(2) The amount available under paragraph (1) shall remain 
available until expended. 
(h) TERMINATION.—The Office of the Special Inspector General 
shall terminate on the later of— 
(1) the date that the last troubled asset acquired by the 
Secretary under section 101 has been sold or transferred out 
of the ownership or control of the Federal Government; or 
(2) the date of expiration of the last insurance contract 
issued under section 102. 
SEC. 122. INCREASE IN STATUTORY LIMIT ON THE PUBLIC DEBT. 
Subsection (b) of section 3101 of title 31, United States Code, 
is amended by striking out the dollar limitation contained in such 
subsection and inserting ‘‘$11,315,000,000,000’’. 
SEC. 123. CREDIT REFORM. 
(a) IN GENERAL.—Subject to subsection (b), the costs of pur-
chases of troubled assets made under section 101(a) and guarantees 
of troubled assets under section 102, and any cash flows associated 
with the activities authorized in section 102 and subsections (a), 
(b), and (c) of section 106 shall be determined as provided under 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et. seq.). 
(b) COSTS.—For the purposes of section 502(5) of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a(5))— 
(1) the cost of troubled assets and guarantees of troubled 
assets shall be calculated by adjusting the discount rate in 
section 502(5)(E) (2 U.S.C. 661a(5)(E)) for market risks; and