(D) by striking subsection (f) and inserting 
the following: 
‘‘(f) Repealed’’; and 
(2) in section 305— 
(A) in subsection (a)(3), by inserting be-
fore the period at the end ‘‘, as described in 
section 2 of the Price Stability Act of 2008’’; 
(B) in subsection (a)(4)— 
(i) by striking ‘‘House sets forth the 
economic goals’’ and all that follows 
through ‘‘designed to achieve,’’ and insert-
ing ‘‘House of Representatives sets forth 
the economic goals and policies, as de-
scribed in section 2 of the Price Stability 
Act of 2008,’’; and 
(ii) by striking ‘‘such goals,’’ and all 
that follows through the end of the para-
graph and inserting ‘‘such goals and poli-
cies.’’; 
(C) in subsection (b)(3), by inserting be-
fore the period at the end ‘‘, as described in 
section 2 of the Price Stability Act of 2008’’; 
and 
(D) in subsection (b)(4)— 
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(i) by striking ‘‘goals (as’’ and all that 
follows through ‘‘designed to achieve,’’ and 
inserting ‘‘goals and policies, as described 
in section 2 of the Price Stability Act of 
2008,’’; and 
(ii) by striking ‘‘such goals,’’ and all 
that follows through the end of the para-
graph and inserting ‘‘such goals and poli-
cies.’’. 
TITLE III—TAX PROVISIONS 
SEC. 301. TEMPORARY ZERO PERCENT CAPITAL GAINS 
RATE 
FOR 
INDIVIDUALS 
AND 
CORPORA-
TIONS. 
(a) IN GENERAL.—Subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART VIII—TEMPORARY ZERO PERCENT CAP-
ITAL GAINS RATE FOR INDIVIDUALS AND 
CORPORATIONS 
‘‘Sec. 59B. Temporary zero percent capital gains rate for individuals and cor-
porations. 
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‘‘SEC. 59B. TEMPORARY ZERO PERCENT CAPITAL GAINS 
RATE 
FOR 
INDIVIDUALS 
AND 
CORPORA-
TIONS. 
‘‘(a) APPLICATION TO INDIVIDUALS.—In the case of 
a specified recognition event occurring on or after Sep-
tember 22, 2008, and on or before December 31, 2010— 
‘‘(1) IN GENERAL.—Section 1(h)(1) shall be ap-
plied by substituting ‘shall not exceed a tax com-
puted at the rates and in the same manner as if this 
subsection had not been enacted on taxable income 
reduced by the net capital gain.’ for ‘shall not ex-
ceed’ and all that follows. 
‘‘(2) ALTERNATIVE
MINIMUM
TAX.—Section 
55(b)(3) shall be applied by substituting ‘shall not 
exceed the amount determined under such first sen-
tence computed at the rates and in the same manner 
as if this paragraph had not been enacted on the 
taxable excess reduced by the net capital gain.’ for 
‘shall not exceed’ and all that follows through the 
end of the first sentence. 
‘‘(b) APPLICATION TO CORPORATIONS.—In the case 
of a specified recognition event occurring on or after Sep-
tember 22, 2008, and on or before December 31, 2010— 
‘‘(1) IN GENERAL.—Section 1201 shall be ap-
plied— 
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‘‘(A) by substituting ‘0 percent’ for ‘35 
percent’ both places it appears, and 
‘‘(B) by treating ‘net capital gain’ as hav-
ing the meaning given such term by section 
1(h)(11). 
‘‘(2) ALTERNATIVE MINIMUM TAX.—For pur-
poses of section 55, the amount determined under 
subsection (b)(1)(B)(i) of such section shall not ex-
ceed the sum of— 
‘‘(A) the amount determined under such 
subsection computed at the rates and in the 
same manner as if this paragraph had not been 
enacted on the taxable excess reduced by the 
net 
capital 
gain 
(as 
defined 
in 
section 
1(h)(11)), plus 
‘‘(B) the amount determined under section 
1201. 
‘‘(c) TECHNICAL PROVISIONS.—In the case of a spec-
ified recognition event occurring on or after September 22, 
2008, and on or before December 31, 2010— 
‘‘(1) Section 1445(e)(1) shall be applied by sub-
stituting ‘0 percent’ for ‘35 percent (or, to the ex-
tent provided in regulations, 15 percent)’. 
‘‘(2) Section 1445(e)(2) shall be applied by sub-
stituting ‘0 percent’ for ‘35 percent’. 
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‘‘(3) Section 7518(g)(6)(A) shall be applied by 
substituting ‘0 percent’ for ‘15 percent (34 percent 
in the case of a corporation)’. 
‘‘(4) Section 607(h)(6)(A) of the Merchant Ma-
rine Act, 1936 shall be applied by substituting ‘0 
percent’ for ‘15 percent (34 percent in the case of 
a corporation)’. 
‘‘(d) SPECIFIED RECOGNITION EVENT.—For pur-
poses of this section, the term ‘specified recognition event’ 
means— 
‘‘(1) the sale or exchange of a capital asset held 
for more than 1 year, and 
‘‘(2) the receipt of qualified dividend income (as 
defined in section 1(h)(11)). 
‘‘(e) APPLICATION TO TRANSITIONAL YEARS.—The 
Secretary shall issue regulations providing appropriate 
transition rules for the application of the provisions of this 
title referred to in subsections (a) or (b) for taxable years 
which include September 22, 2008, or December 31, 
2010.’’. 
(b) CONFORMING AMENDMENT.—The table of parts 
for subchapter A of chapter 1 of such Code is amended 
by adding at the end the following new item: 
‘‘PART VIII—TEMPORARY ZERO PERCENT CAPITAL GAINS RATE FOR 
INDIVIDUALS AND CORPORATIONS’’. 
(c) EFFECTIVE DATE.— 
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(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years ending after September 
22, 2008. 
(2) WITHHOLDING.—Paragraphs (1) and (2) of 
section 59B(c) of the Internal Revenue Code of 
1986, as added by this section, shall apply to dis-
positions and distributions after such date. 
SEC. 302. INDEXING OF CERTAIN ASSETS FOR PURPOSES 
OF DETERMINING GAIN OR LOSS. 
(a) IN GENERAL.—Part II of subchapter O of chap-
ter 1 (relating to basis rules of general application) is 
amended by redesignating section 1023 as section 1024 
and by inserting after section 1022 the following new sec-
tion: 
‘‘SEC. 1023. INDEXING OF CERTAIN ASSETS FOR PURPOSES 
OF DETERMINING GAIN OR LOSS. 
‘‘(a) GENERAL RULE.— 
‘‘(1) INDEXED
BASIS
SUBSTITUTED
FOR
AD-
JUSTED BASIS.—Solely for purposes of determining 
gain or loss on the sale or other disposition by a tax-
payer (other than a corporation) of an indexed asset 
which has been held for more than 3 years, the in-
dexed basis of the asset shall be substituted for its 
adjusted basis. 
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‘‘(2) EXCEPTION
FOR
DEPRECIATION, ETC.— 
The deductions for depreciation, depletion, and am-
ortization shall be determined without regard to the 
application of paragraph (1) to the taxpayer or any 
other person. 
‘‘(3) WRITTEN
DOCUMENTATION
REQUIRE-
MENT.—Paragraph (1) shall apply only with respect 
to indexed assets for which the taxpayer has written 
documentation of the original purchase price paid or 
incurred by the taxpayer to acquire such asset. 
‘‘(b) INDEXED ASSET.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘indexed asset’ means— 
‘‘(A) common stock in a C corporation 
(other than a foreign corporation), or 
‘‘(B) tangible property, 
which is a capital asset or property used in the trade 
or business (as defined in section 1231(b)). 
‘‘(2) STOCK
IN
CERTAIN
FOREIGN
CORPORA-
TIONS INCLUDED.—For purposes of this section— 
‘‘(A) IN
GENERAL.—The term ‘indexed 
asset’ includes common stock in a foreign cor-
poration which is regularly traded on an estab-
lished securities market. 
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‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to— 
‘‘(i) stock of a foreign investment 
company, 
‘‘(ii) stock in a passive foreign invest-
ment company (as defined in section 
1296), 
‘‘(iii) stock in a foreign corporation 
held by a United States person who meets 
the requirements of section 1248(a)(2), 
and 
‘‘(iv) stock in a foreign personal hold-
ing company. 
‘‘(C) TREATMENT OF AMERICAN DEPOSI-
TORY RECEIPTS.—An American depository re-
ceipt for common stock in a foreign corporation 
shall be treated as common stock in such cor-
poration. 
‘‘(c) INDEXED BASIS.—For purposes of this sec-
tion— 
‘‘(1) GENERAL RULE.—The indexed basis for 
any asset is— 
‘‘(A) the adjusted basis of the asset, in-
creased by 
‘‘(B) the applicable inflation adjustment. 
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‘‘(2) APPLICABLE INFLATION ADJUSTMENT.— 
The applicable inflation adjustment for any asset is 
an amount equal to— 
‘‘(A) the adjusted basis of the asset, multi-
plied by 
‘‘(B) the percentage (if any) by which— 
‘‘(i) 
the 
gross 
domestic 
product 
deflator for the last calendar quarter end-
ing before the asset is disposed of, exceeds 
‘‘(ii) the gross domestic product 
deflator for the last calendar quarter end-
ing before the asset was acquired by the 
taxpayer. 
The percentage under subparagraph (B) shall be 
rounded to the nearest 1⁄10 of 1 percentage point. 
‘‘(3) GROSS DOMESTIC PRODUCT DEFLATOR.— 
The gross domestic product deflator for any cal-
endar quarter is the implicit price deflator for the 
gross domestic product for such quarter (as shown 
in the last revision thereof released by the Secretary 
of Commerce before the close of the following cal-
endar quarter). 
‘‘(d) SUSPENSION OF HOLDING PERIOD WHERE DI-
MINISHED
RISK
OF
LOSS; TREATMENT
OF
SHORT 
SALES.— 
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‘‘(1) IN GENERAL.—If the taxpayer (or a re-
lated person) enters into any transaction which sub-
stantially reduces the risk of loss from holding any 
asset, such asset shall not be treated as an indexed 
asset for the period of such reduced risk. 
‘‘(2) SHORT SALES.— 
‘‘(A) IN GENERAL.—In the case of a short 
sale of an indexed asset with a short sale period 
in excess of 3 years, for purposes of this title, 
the amount realized shall be an amount equal 
to the amount realized (determined without re-
gard to this paragraph) increased by the appli-
cable inflation adjustment. In applying sub-
section (c)(2) for purposes of the preceding sen-
tence, the date on which the property is sold 
short shall be treated as the date of acquisition 
and the closing date for the sale shall be treat-
ed as the date of disposition. 
‘‘(B) SHORT SALE PERIOD.—For purposes 
of subparagraph (A), the short sale period be-
gins on the day that the property is sold and 
ends on the closing date for the sale. 
‘‘(e) TREATMENT
OF
REGULATED
INVESTMENT 
COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.— 
‘‘(1) ADJUSTMENTS AT ENTITY LEVEL.— 
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‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the adjustment 
under subsection (a) shall be allowed to any 
qualified investment entity (including for pur-
poses of determining the earnings and profits of 
such entity). 
‘‘(B) EXCEPTION FOR CORPORATE SHARE-
HOLDERS.—Under regulations— 
‘‘(i) in the case of a distribution by a 
qualified investment entity (directly or in-
directly) to a corporation— 
‘‘(I) the determination of whether 
such distribution is a dividend shall be 
made without regard to this section, 
and 
‘‘(II) the amount treated as gain 
by reason of the receipt of any capital 
gain dividend shall be increased by the 
percentage by which the entity’s net 
capital gain for the taxable year (de-
termined without regard to this sec-
tion) exceeds the entity’s net capital 
gain for such year determined with re-
gard to this section, and 
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‘‘(ii) there shall be other appropriate 
adjustments (including deemed distribu-
tions) so as to ensure that the benefits of 
this section are not allowed (directly or in-
directly) to corporate shareholders of quali-
fied investment entities. 
For purposes of the preceding sentence, any 
amount includible in gross income under section 
852(b)(3)(D) shall be treated as a capital gain 
dividend and an S corporation shall not be 
treated as a corporation. 
‘‘(C) 
EXCEPTION
FOR
QUALIFICATION 
PURPOSES.—This section shall not apply for 
purposes of sections 851(b) and 856(c). 
‘‘(D) EXCEPTION FOR CERTAIN TAXES IM-
POSED AT ENTITY LEVEL.— 
‘‘(i) TAX ON FAILURE TO DISTRIBUTE 
ENTIRE GAIN.—If any amount is subject to 
tax under section 852(b)(3)(A) for any 
taxable year, the amount on which tax is 
imposed under such section shall be in-
creased by the percentage determined 
under subparagraph (B)(i)(II). A similar 
rule shall apply in the case of any amount 
subject to tax under paragraph (2) or (3) 
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of section 857(b) to the extent attributable 
to the excess of the net capital gain over 
the deduction for dividends paid deter-
mined with reference to capital gain divi-
dends only. The first sentence of this 
clause shall not apply to so much of the 
amount subject to tax under section 
852(b)(3)(A) as is designated by the com-
pany under section 852(b)(3)(D). 
‘‘(ii) OTHER
TAXES.—This section 
shall not apply for purposes of determining 
the amount of any tax imposed by para-
graph (4), (5), or (6) of section 857(b). 
‘‘(2) ADJUSTMENTS
TO
INTERESTS
HELD
IN 
ENTITY.— 
‘‘(A) REGULATED
INVESTMENT
COMPA-
NIES.—Stock in a regulated investment com-
pany (within the meaning of section 851) shall 
be an indexed asset for any calendar quarter in 
the same ratio as— 
‘‘(i) the average of the fair market 
values of the indexed assets held by such 
company at the close of each month during 
such quarter, bears to 
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‘‘(ii) the average of the fair market 
values of all assets held by such company 
at the close of each such month. 
‘‘(B) 
REAL
ESTATE
INVESTMENT 
TRUSTS.—Stock in a real estate investment 
trust (within the meaning of section 856) shall 
be an indexed asset for any calendar quarter in 
the same ratio as— 
‘‘(i) the fair market value of the in-
dexed assets held by such trust at the close 
of such quarter, bears to 
‘‘(ii) the fair market value of all as-
sets held by such trust at the close of such 
quarter. 
‘‘(C) RATIO OF 80 PERCENT OR MORE.—If 
the ratio for any calendar quarter determined 
under subparagraph (A) or (B) would (but for 
this subparagraph) be 80 percent or more, such 
ratio for such quarter shall be 100 percent. 
‘‘(D) RATIO OF 20 PERCENT OR LESS.—If 
the ratio for any calendar quarter determined 
under subparagraph (A) or (B) would (but for 
this subparagraph) be 20 percent or less, such 
ratio for such quarter shall be zero. 
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‘‘(E) LOOK-THRU OF PARTNERSHIPS.—For 
purposes of this paragraph, a qualified invest-
ment entity which holds a partnership interest 
shall be treated (in lieu of holding a partnership 
interest) as holding its proportionate share of 
the assets held by the partnership. 
‘‘(3) TREATMENT OF RETURN OF CAPITAL DIS-
TRIBUTIONS.—Except as otherwise provided by the 
Secretary, a distribution with respect to stock in a 
qualified investment entity which is not a dividend 
and which results in a reduction in the adjusted 
basis of such stock shall be treated as allocable to 
stock acquired by the taxpayer in the order in which 
such stock was acquired. 
‘‘(4) QUALIFIED
INVESTMENT
ENTITY.—For 
purposes of this subsection, the term ‘qualified in-
vestment entity’ means— 
‘‘(A) a regulated investment company 
(within the meaning of section 851), and 
‘‘(B) a real estate investment trust (within 
the meaning of section 856). 
‘‘(f) OTHER PASS-THRU ENTITIES.— 
‘‘(1) PARTNERSHIPS.— 
‘‘(A) IN GENERAL.—In the case of a part-
nership, the adjustment made under subsection 
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(a) at the partnership level shall be passed 
through to the partners. 
‘‘(B) SPECIAL RULE IN THE CASE OF SEC-
TION 754 ELECTIONS.—In the case of a transfer 
of an interest in a partnership with respect to 
which the election provided in section 754 is in 
effect— 
‘‘(i) the adjustment under section 
743(b)(1) shall, with respect to the trans-
feror partner, be treated as a sale of the 
partnership assets for purposes of applying 
this section, and 
‘‘(ii) with respect to the transferee 
partner, the partnership’s holding period 
for purposes of this section in such assets 
shall be treated as beginning on the date 
of such adjustment. 
‘‘(2) S CORPORATIONS.—In the case of an S 
corporation, the adjustment made under subsection 
(a) at the corporate level shall be passed through to 
the shareholders. This section shall not apply for 
purposes of determining the amount of any tax im-
posed by section 1374 or 1375. 
‘‘(3) COMMON TRUST FUNDS.—In the case of a 
common trust fund, the adjustment made under sub-
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section (a) at the trust level shall be passed through 
to the participants. 
‘‘(4) INDEXING ADJUSTMENT DISREGARDED IN 
DETERMINING LOSS ON SALE OF INTEREST IN ENTI-
TY.—Notwithstanding the preceding provisions of 
this subsection, for purposes of determining the 
amount of any loss on a sale or exchange of an in-
terest in a partnership, S corporation, or common 
trust fund, the adjustment made under subsection 
(a) shall not be taken into account in determining 
the adjusted basis of such interest. 
‘‘(g) DISPOSITIONS BETWEEN RELATED PERSONS.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to any sale or other disposition of property between 
related persons except to the extent that the basis 
of such property in the hands of the transferee is a 
substituted basis. 
‘‘(2) RELATED PERSONS DEFINED.—For pur-
poses of this section, the term ‘related persons’ 
means— 
‘‘(A) persons bearing a relationship set 
forth in section 267(b), and 
‘‘(B) persons treated as single employer 
under subsection (b) or (c) of section 414. 
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‘‘(h) TRANSFERS TO INCREASE INDEXING ADJUST-
MENT.—If any person transfers cash, debt, or any other 
property to another person and the principal purpose of 
such transfer is to secure or increase an adjustment under 
subsection (a), the Secretary may disallow part or all of 
such adjustment or increase. 
‘‘(i) SPECIAL RULES.—For purposes of this section— 
‘‘(1) TREATMENT OF IMPROVEMENTS, ETC.—If 
there is an addition to the adjusted basis of any tan-
gible property or of any stock in a corporation dur-
ing the taxable year by reason of an improvement to 
such property or a contribution to capital of such 
corporation— 
‘‘(A) such addition shall never be taken 
into account under subsection (c)(1)(A) if the 
aggregate amount thereof during the taxable 
year with respect to such property or stock is 
less than $1,000, and 
‘‘(B) such addition shall be treated as a 
separate asset acquired at the close of such tax-
able year if the aggregate amount thereof dur-
ing the taxable year with respect to such prop-
erty or stock is $1,000 or more. 
A rule similar to the rule of the preceding sentence 
shall apply to any other portion of an asset to the 
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extent that separate treatment of such portion is ap-
propriate to carry out the purposes of this section. 
‘‘(2) ASSETS WHICH ARE NOT INDEXED ASSETS 
THROUGHOUT HOLDING PERIOD.—The applicable in-
flation adjustment shall be appropriately reduced for 
periods during which the asset was not an indexed 
asset. 
‘‘(3) TREATMENT
OF
CERTAIN
DISTRIBU-
TIONS.—A distribution with respect to stock in a 
corporation which is not a dividend shall be treated 
as a disposition. 
‘‘(4) SECTION
CANNOT
INCREASE
ORDINARY 
LOSS.—To the extent that (but for this paragraph) 
this section would create or increase a net ordinary 
loss to which section 1231(a)(2) applies or an ordi-
nary loss to which any other provision of this title 
applies, such provision shall not apply. The taxpayer 
shall be treated as having a long-term capital loss in 
an amount equal to the amount of the ordinary loss 
to which the preceding sentence applies. 
‘‘(5) ACQUISITION
DATE
WHERE
THERE
HAS 
BEEN
PRIOR
APPLICATION
OF
SUBSECTION (a)(1) 
WITH RESPECT TO THE TAXPAYER.—If there has 
been a prior application of subsection (a)(1) to an 
asset while such asset was held by the taxpayer, the 
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date of acquisition of such asset by the taxpayer 
shall be treated as not earlier than the date of the 
most recent such prior application. 
‘‘(j) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part II of subchapter O of chapter 1 is amended by 
striking the item relating to section 1023 and by inserting 
after the item relating to section 1022 the following new 
item: 
‘‘Sec. 1022. Indexing of certain assets for purposes of determining gain or loss. 
‘‘Sec. 1023. Cross references.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales and other dispositions of 
indexed assets after the date of the enactment of this Act, 
in taxable years ending after such date. 
TITLE IV—FAIR VALUE 
ACCOUNTING REFORM ACT 
SEC. 401. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds that— 
(1) for many purposes, fair value accounting re-
quirements can inform and protect investors; 
(2) in periods of market turmoil when there is 
an inactive market, fair value accounting require-
ments can force financial institutions to write down 
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the value of a long-term, non-trading asset below its 
true economic value even though the cash flow on 
the asset remains unimpaired and other indicia of 
value of the asset reflect value consistent with the 
cash flow; and 
(3) the application of fair value accounting re-
quirements on assets for which there is an inactive 
market has the unintended effect of exacerbating 
economic downturns by reducing the ability of finan-
cial institutions to provide credit to consumers and 
businesses. 
(b) PURPOSE.—The purpose of this Act is to— 
(1) maintain the ability of all financial institu-
tions to provide credit in periods of market stress; 
(2) permit financial institutions to maintain the 
economic value of long term, non-trading assets in 
an inactive market; and 
(3) continue to provide transparency to inves-
tors. 
SEC. 402. DEFINITIONS. 
For purposes of this legislation, ‘‘long-term, non- 
trading assets’’ are defined as all instances in which fair 
value measurement is required under U.S. Generally Ac-
cepted Accounting Principles for which the company is not 
actively trading and for which the company has the ability 
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to hold those financial instruments for an extended period 
of time. 
SEC. 403. TEMPORARY SUSPENSION OF FAIR VALUE AC-
COUNTING. 
(a) IN GENERAL.—Effective on the date of enact-
ment of the Troubled Asset Relief Act of 2008, the Securi-
ties and Exchange Commission shall suspend the applica-
tion of fair value reporting standards to troubled assets 
held by financial institutions, as those terms are defined 
in such Act. The suspension required by this subsection 
shall remain in effect until the issuance of the guidance 
required in subsection (b). Until such guidance is issued, 
the fair value of these assets should be estimated using 
the best available information of the instrument’s value, 
including the entity’s intended use of that asset, from the 
point of view of the holder of that instrument. 
(b) GUIDANCE.—Within 90 days of the date of enact-
ment of this Act, the Securities and Exchange Commission 
shall issue guidance on the reporting requirements for 
long-term, non-trading assets during periods in which 
there is no active market for such assets. Such guidance 
shall: 
(1) define ‘‘market participants’’ eligible for 
such guidance; 
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(2) define an inactive market which will trigger 
such guidance; 
(3) specify a valuation method that reflects the 
economic value of such assets; and 
(4) determine the period in which such assets 
should be evaluated under this method. 
SEC. 404. GAO ANALYSIS OF FAIR VALUE ACCOUNTING. 
(a) IN GENERAL.—The General Accountability Office 
shall prepare an analysis of the effect of fair value ac-
counting standards on financial institutions. Such analysis 
shall— 
(1) describe the current impact of fair value ac-
counting on financial institutions during different 
economic cycles and under different market condi-
tions, including periods in which there is an inactive 
market for long-term, non-trading assets held by 
such institutions; 
(2) evaluate auditors’ practices and procedures 
in reviewing the application of fair value accounting 
on long-term, non-trading assets in an inactive mar-
ket; and 
(3) describe the impact of the Securities and 
Exchange Commission’s application of fair value ac-
counting, as prescribed by such guidance required in 
Section 4 (b). 
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(b) TIMING.—The analysis required by subsection (a) 
shall be completed within 1 year of the date of enactment 
of this Act, and shall be submitted to the Committee on 
Financial Services of the House of Representatives and 
the Committee on Banking, Housing and Urban Affairs 
of the Senate. 
TITLE V—MORTGAGE-BACKED 
SECURITIES 
SEC. 501. THE INSURANCE OF MORTGAGE-BACKED SECURI-
TIES. 
(a) MORTGAGE-BACKED SECURITY INSURANCE.— 
Upon the enactment of this Act, the timely payment of 
up to 100 percent of principal of and interest on each 
mortgage-backed security held by a financial institution 
on or before September 24, 2008 is hereby insured on such 
terms and conditions as determined by the Secretary con-
sistent with this title, as those terms are defined in Section 
111. 
(b) NECESSARY ACTIONS.—The Secretary is author-
ized to take such actions as he deems necessary to carry 
out the authorities in this title, including— 
(1) appointing such employees as may be re-
quired to carry out the authorities in this title and 
defining their duties; 
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