12 U.S.C. § 5217 — Contracting procedures

Page 1804 TITLE 12—BANKS AND BANKING § 5216 1 See References in Text note below. 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 re- flect 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. § 5216. Rights; management; sale of troubled as- sets; revenues and sale proceeds (a) Exercise of rights The Secretary may, at any time, exercise any rights received in connection with troubled as- sets purchased under this chapter. (b) Management of troubled assets The Secretary shall have authority to manage troubled assets purchased under this chapter, in- cluding revenues and portfolio risks therefrom. (c) Sale of troubled assets The Secretary may, at any time, upon terms and conditions and at a price determined by the Secretary, sell, or enter into securities loans, re- purchase transactions, or other financial trans- actions in regard to, any troubled asset pur- chased under this chapter. (d) Transfer to Treasury Revenues of, and proceeds from the sale of troubled assets purchased under this chapter, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under sec- tion 5223 of this title shall be paid into the gen- eral fund of the Treasury for reduction of the public debt. (e) Application of sunset to troubled assets The authority of the Secretary to hold any troubled asset purchased under this chapter be- fore the termination date in section 5230 of this title, or to purchase or fund the purchase of a troubled asset under a commitment entered into before the termination date in section 5230 of this title, is not subject to the provisions of sec- tion 5230 of this title. (f) Report The Secretary of the Treasury shall report to Congress every 6 months on amounts received and transferred to the general fund under sub- section (d). (Pub. L. 110–343, div. A, title I, § 106, Oct. 3, 2008, 122 Stat. 3773; Pub. L. 111–203, title XIII, § 1303, July 21, 2010, 124 Stat. 2133.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’ and was translated as reading ‘‘this divi- sion’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Sta- bilization 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. AMENDMENTS 2010—Subsec. (f). Pub. L. 111–203 added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. § 5217. Contracting procedures (a) Streamlined process For purposes of this chapter, the Secretary may waive specific provisions of the Federal Ac- quisition Regulation upon a determination that urgent and compelling circumstances make compliance with such provisions contrary to the public interest. Any such determination, and the justification for such determination, shall be submitted to the Committees on Oversight and Government Reform and Financial Services of the House of Representatives and the Commit- tees on Homeland Security and Governmental Affairs and Banking, Housing, and Urban Affairs of the Senate within 7 days. (b) Additional contracting requirements In any solicitation or contract where the Sec- retary has, pursuant to subsection (a), waived any provision of the Federal Acquisition Regula- tion pertaining to minority contracting, the Secretary shall develop and implement stand- ards and procedures to ensure, to the maximum extent practicable, the inclusion and utilization of minorities (as such term is defined in section 1204(c) of the Financial Institutions Reform, Re- covery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and women, and minority- and women-owned businesses (as such terms are de- fined in section 1441a(r)(4) 1 of this title), and in- dividuals with disabilities and businesses owned by individuals with disabilities (for purposes of this subsection the term ‘‘individual with dis- ability’’ has the same meaning as the term ‘‘handicapped individual’’ as that term is de- fined in section 632(f) of title 15), in that solici- tation or contract, including contracts to asset managers, servicers, property managers, and other service providers or expert consultants. (c) Eligibility of FDIC Notwithstanding subsections (a) and (b), the Corporation— (1) shall be eligible for, and shall be consid- ered in, the selection of asset managers for residential mortgage loans and residential mortgage-backed securities; and (2) shall be reimbursed by the Secretary for any services provided. (Pub. L. 110–343, div. A, title I, § 107, Oct. 3, 2008, 122 Stat. 3773; Pub. L. 111–5, div. A, title XVI, § 1608, Feb. 17, 2009, 123 Stat. 304.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), 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 Sta- bilization 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. Section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in subsec. (b), is section 1204(c) of Pub. L. 101–73, which is set out as a note under section 1811 of this title. Page 1805 TITLE 12—BANKS AND BANKING § 5219 1 So in original. Probably should be ‘‘mortgage-backed’’. Section 1441a(r)(4) of this title, referred to in subsec. (b), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. AMENDMENTS 2009—Subsec. (b). Pub. L. 111–5 inserted ‘‘and individ- uals with disabilities and businesses owned by individ- uals with disabilities (for purposes of this subsection the term ‘individual with disability’ has the same meaning as the term ‘handicapped individual’ as that term is defined in section 632(f) of title 15),’’ after ‘‘sec- tion 1441a(r)(4) of this title),’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Con- gress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representa- tives by House Resolution No. 5, One Hundred Eight- eenth Congress, Jan. 9, 2023. § 5218. Conflicts of interest (a) Standards required The Secretary shall issue regulations or guide- lines necessary to address and manage or to pro- hibit conflicts of interest that may arise in con- nection with the administration and execution of the authorities provided under this chapter, including— (1) conflicts arising in the selection or hiring of contractors or advisors, including asset managers; (2) the purchase of troubled assets; (3) the management of the troubled assets held; (4) post-employment restrictions on employ- ees; and (5) any other potential conflict of interest, as the Secretary deems necessary or appro- priate in the public interest. (b) Timing Regulations or guidelines required by this sec- tion shall be issued as soon as practicable after October 3, 2008. (Pub. L. 110–343, div. A, title I, § 108, Oct. 3, 2008, 122 Stat. 3774.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), 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 Sta- bilization 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. § 5219. Foreclosure mitigation efforts (a) Residential mortgage loan servicing stand- ards (1) In general To the extent that the Secretary acquires mortgages, mortgage backed 1 securities, and other assets secured by residential real estate, including multifamily housing, the Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the author- ity of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advan- tage of the HOPE for Homeowners Program under section 1715z–23 of this title or other available programs to minimize foreclosures. In addition, the Secretary may use loan guar- antees and credit enhancements to facilitate loan modifications to prevent avoidable fore- closures and to remediate lead and asbestos hazards in residential properties. (2) Waiver of certain provisions in connection with loan modifications The Secretary shall not be required to apply executive compensation restrictions under section 5221 of this title, or to receive war- rants or debt instruments under section 5223 of this title, solely in connection with any loan modification under this section. (b) Coordination The Secretary shall coordinate with the Cor- poration, the Board (with respect to any mort- gage or mortgage-backed securities or pool of securities held, owned, or controlled by or on be- half of a Federal reserve bank, as provided in section 5220(a)(1)(C) of this title), the Federal Housing Finance Agency, the Secretary of Hous- ing and Urban Development, and other Federal Government entities that hold troubled assets to attempt to identify opportunities for the ac- quisition of classes of troubled assets that will improve the ability of the Secretary to improve the loan modification and restructuring process and, where permissible, to permit bona fide ten- ants who are current on their rent to remain in their homes under the terms of the lease. In the case of a mortgage on a residential rental prop- erty, the plan required under this section shall include protecting Federal, State, and local rental subsidies and protections, and ensuring any modification takes into account the need for operating funds to maintain decent and safe conditions at the property. (c) Consent to reasonable loan modification re- quests Upon any request arising under existing in- vestment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term exten- sions, rate reductions, principal write downs, in- creases in the proportion of loans within a trust or other structure allowed to be modified, or re- moval of other limitation on modifications. (Pub. L. 110–343, div. A, title I, § 109, Oct. 3, 2008, 122 Stat. 3774; Pub. L. 111–5, div. B, title VII, § 7002, Feb. 17, 2009, 123 Stat. 521; Pub. L. 115–174, title III, § 305, May 24, 2018, 132 Stat. 1339.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–174 inserted before pe- riod at end ‘‘and to remediate lead and asbestos hazards in residential properties’’.