I 
112TH CONGRESS 
1ST SESSION H. R. 2436 
To prohibit any reduction in the rate of dividends paid to the Secretary 
of the Treasury on the senior preferred stock of Fannie Mae and Freddie 
Mac purchased by the Secretary. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 7, 2011 
Mr. MANZULLO (for himself, Mr. GARRETT, Mr. ROYCE, and Mr. BACHUS) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To prohibit any reduction in the rate of dividends paid to 
the Secretary of the Treasury on the senior preferred 
stock of Fannie Mae and Freddie Mac purchased by 
the Secretary. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fannie Mae and 
Freddie Mac Taxpayer Payback Act of 2011’’. 
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SEC. 2. PROHIBITION OF REDUCTION IN RATE OF DIVI-
DENDS. 
(a) FANNIE MAE.—Section 304 of the Federal Na-
tional Mortgage Association Charter Act (12 U.S.C. 1719) 
is amended by adding at the end the following new sub-
section: 
‘‘(h) PROHIBITION OF REDUCTION IN RATE OF DIVI-
DENDS
ON
SENIOR
PREFERRED
STOCK.—Notwith-
standing any provision of subsection (g), any provision of 
the Senior Preferred Stock Purchase Agreement entered 
into between the Department of the Treasury and the cor-
poration in September 2008 (as such Agreement may be 
amended and restated), or any provision of any certificate 
in connection with such Agreement creating or designating 
the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Pref-
erence Senior Preferred Stock of the corporation issued 
pursuant to such Agreement, the rate of dividends paid 
on the Variable Liquidation Preference Senior Preferred 
Stock of the corporation issued pursuant to such Agree-
ment shall not be reduced from the rate in effect pursuant 
to such Agreement as of March 1, 2011.’’. 
(b) FREDDIE MAC.—Section 306 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1455) 
is amended by adding at the end the following new sub-
section: 
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‘‘(m) PROHIBITION
OF REDUCTION
IN RATE
OF 
DIVIDENDS ON SENIOR PREFERRED STOCK.—Notwith-
standing any provision of subsection (l), any provision of 
the Senior Preferred Stock Purchase Agreement entered 
into between the Department of the Treasury and the Cor-
poration in September 2008 (as such Agreement may be 
amended and restated), or any provision of any certificate 
in connection with such Agreement creating or designating 
the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Pref-
erence Senior Preferred Stock of the Corporation issued 
pursuant to such Agreement, the rate of dividends paid 
on the Variable Liquidation Preference Senior Preferred 
Stock of the Corporation issued pursuant to such Agree-
ment shall not be reduced from the rate in effect pursuant 
to such Agreement as of March 1, 2011.’’. 
Æ 
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