12 U.S.C. § 5211

Purchases of troubled assets

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(a) Offices; authority(1) Authority

The Secretary is authorized to establish the Troubled Asset Relief Program (or “TARP”) to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the Secretary, and in accordance with this chapter and the policies and procedures developed and published by the Secretary.

(2) Commencement of program

Establishment of the policies and procedures and other similar administrative requirements imposed on the Secretary by this chapter are not intended to delay the commencement of the TARP.

(3) Establishment of Treasury office(A) In general

The Secretary shall implement any program under paragraph (1) through an Office of Financial Stability, established for such purpose within the Office of Domestic Finance of the Department of the Treasury, which office shall be headed by an Assistant Secretary of the Treasury, appointed by the President, by and with the advice and consent of the Senate, except that an interim Assistant Secretary may be appointed by the Secretary.

(B) Omitted(b) Consultation

In exercising the authority under this section, the Secretary shall consult with the Board, the Corporation, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Chairman of the National Credit Union Administration Board, and the Secretary of Housing and Urban Development.

(c) Necessary actionsThe Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this chapter, including, without limitation, the following:(1) The Secretary shall have direct hiring authority with respect to the appointment of employees to administer this chapter.(2) Entering into contracts, including contracts for services authorized by section 3109 of title 5.(3) Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this chapter as financial agents of the Federal Government as may be required.(4) In order to provide the Secretary with the flexibility to manage troubled assets in a manner designed to minimize cost to the taxpayers, establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase, hold, and sell troubled assets and issue obligations.(5) Issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes of this chapter.(d) Program guidelinesBefore the earlier of the end of the 2-business-day period beginning on the date of the first purchase of troubled assets pursuant to the authority under this section or the end of the 45-day period beginning on October 3, 2008, the Secretary shall publish program guidelines, including the following:(1) Mechanisms for purchasing troubled assets.(2) Methods for pricing and valuing troubled assets.(3) Procedures for selecting asset managers.(4) Criteria for identifying troubled assets for purchase.(e) Preventing unjust enrichment

In making purchases under the authority of this chapter, the Secretary shall take such steps as may be necessary to prevent unjust enrichment of financial institutions participating in a program established under this section, including by preventing the sale of a troubled asset to the Secretary at a higher price than what the seller paid to purchase the asset. This subsection does not apply to troubled assets acquired in a merger or acquisition, or a purchase of assets from a financial institution in conservatorship or receivership, or that has initiated bankruptcy proceedings under title 11.

(Pub. L. 110–343, div. A, title I, § 101, Oct. 3, 2008, 122 Stat. 3767.)Editorial NotesReferences in Text

This chapter, referred to in subsecs. (a)(1), (2), (c), and (e), was in the original “this Act” and was translated as reading “this division”, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables.

Codification

Section is comprised of section 101 of div. A of Pub. L. 110–343. Subsec. (a)(3)(B) of section 101 of div. A of Pub. L. 110–343 amended section 5315 of Title 5, Government Organization and Employees, and section 301 of Title 31, Money and Finance.

Notes of Decisions

Cited in 43 cases (4 in the last 5 years), 2009–2023 · leading case: Paul Mik, Jr. v. Fed. Home Loan Mortg. Corp., 743 F.3d 149 (6th Cir. 2014).

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Paul Mik, Jr. v. Fed. Home Loan Mortg. Corp., 743 F.3d 149 (6th Cir. 2014). · cites it 2× “The EESA authorized the Treasury Secretary to establish the Troubled Asset Relief Program (“TARP”), codified at 12 U.S.C. §§ 5211 — 41, in order “to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution.”

Caroline Herron v. Fannie Mae, 861 F.3d 160 (D.C. Cir. 2017). “See 12 U.S.C. § 5211 (c)(3) (authorizing Treasury to designate certain institutions as “financial agents of the Federal Government”).”

Anthony L. Thomas v. Pentagon Fed. Credit Union, 393 F. App'x 635 (11th Cir. 2010). · cites it 2× “§§ 1601 -1667f; and the Troubled Asset Relief Program (“TARP”), 12 U.S.C. § 5211 (a)(1). Thomas argues that the district court abused its discretion by (1) finding that he failed to plead a claim of fraud, (2) failing to address his TARP claim, (3) allowing a magistrate judge to…”

Parker v. Motors Liquidation Co. (In Re Motors Liquidation Co.), 430 B.R. 65 (S.D.N.Y. 2010). · cites it 2× “Parker’s alleged injury bears no relation to the interests that are to be served by Section 101 of EESA, 12 U.S.C.A. § 5211 . An inquiry into whether a litigant falls within the zone of interests of a particular statutory provision must start with an examination of the statute…”

Kevin Murray v. United States Dep't of Treasury, 681 F.3d 744 (6th Cir. 2012). · cites it 2× “12 U.S.C. § 5211 (a)(1). The EESA defines a “troubled asset” as a “financial instrument .”

Ruotolo v. Fannie Mae, 933 F. Supp. 2d 512 (S.D.N.Y. 2013). · cites it 2× “k- Third Cause of Action: TARP Claims Next, Plaintiff purports to sue Fannie Mae under the 2008 statute that created the Troubled Asset Relief Program, or TARP, which is now codified at 12 U.S.C. § 5211 et seq. Plaintiff contends that he should be able to sue Fannie Mae under…”

Masters Grp. Int'l, Inc. v. Comerica Bank, 2015 MT 192 (Mont. 2015). · cites it 2× “§ 5212 , or “guarantee troubled assets,” 12 U.S.C. § 5211 , for the purpose of “restor[ing] liquidity and stability to the financial system” during the 2008 economic crisis, 12 U.”

Charest v. Fed. Nat'l Mortg. Ass'n, 9 F. Supp. 3d 114 (D. Mass. 2014). · cites it 2× “” 12 U.S.C. § 5211 (c). It also explicitly directed the Secretary to issue "[p]ro-gram guidelines.”

United States v. Litvak, 808 F.3d 160 (2d Cir. 2015). “7, 2015); see also 12 U.S.C. § 5211 (a)(3)(A); Judicial Watch, Inc.”

Bank of Am., N.A. v. Roberts, 217 Cal. App. 4th 1386 (Cal. Ct. App. 2013). “(See 12 U.S.C. § 5211 .) The EESA, including various programs created under it such as the Making Home Affordable Program and the Home Affordable Modification Program (HAMP), has been consistently construed to create no private rights or private causes of action on the part of…”

Wilson ex rel. Wilson v. Bank of Am., N.A., 48 F. Supp. 3d 787 (E.D. Pa. 2014). “) HAMP is funded by the federal government, primarily with funds from the Troubled Asset Relief Program (“TARP”), 12 U.S.C. § 5211 . (Id. ¶ 23.) Because BOA accepted $25 billion in TARP funds and additional loan guarantees, it was required to participate in HAMP for the mortgage…”

Starr Int'l Co., Inc v. United States, 121 Fed. Cl. 428 (Fed. Cl. 2015). · cites it 2× “At the trial court level, former owners of Chrysler and General Motors ear dealerships alleged an uncompensated taking of their property from the Government’s Troubled Asset Relief Program (“TARP”), 12 U.S.C. § 5211 . Plaintiffs alleged that the takings occurred when the…”

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— 12 U.S.C. § 5211(a)(1) — 1 case

Harvard v. Shore Bank, 88 Va. Cir. 204 (Norfolk Cir. Ct. 2014).

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