12 U.S.C. § 5611 — Liquidity event determination

Page 2006 TITLE 12—BANKS AND BANKING § 5611 (3) recommendations for regulations to en- sure the appropriate protection of such con- sumers. (c) Program Not later than 2 years after the date of the submission of the report under subsection (b), the Bureau shall, consistent with part B, pro- pose regulations or otherwise establish a pro- gram to protect consumers who use exchange facilitators. (d) Exchange facilitator defined In this section, the term ‘‘exchange facilitator’’ means a person that— (1) facilitates, for a fee, an exchange of like kind property by entering into an agreement with a taxpayer by which the exchange facilitator acquires from the taxpayer the con- tractual rights to sell the taxpayer’s relin- quished property and transfers a replacement property to the taxpayer as a qualified inter- mediary (within the meaning of Treasury Reg- ulations section 1.1031(k)–1(g)(4)) or enters into an agreement with the taxpayer to take title to a property as an exchange accommodation titleholder (within the meaning of Revenue Procedure 2000–37) or enters into an agreement with a taxpayer to act as a qualified trustee or qualified escrow holder (within the meaning of Treasury Regulations section 1.1031(k)–1(g)(3)); (2) maintains an office for the purpose of so- liciting business to perform the services de- scribed in paragraph (1); or (3) advertises any of the services described in paragraph (1) or solicits clients in printed pub- lications, direct mail, television or radio ad- vertisements, telephone calls, facsimile trans- missions, or other electronic communications directed to the general public for purposes of providing any such services. (Pub. L. 111–203, title X, § 1079, July 21, 2010, 124 Stat. 2077.) SUBCHAPTER VI—FEDERAL RESERVE SYSTEM PROVISIONS § 5611. Liquidity event determination (a) Determination and written recommendation (1) Determination request The Secretary may request the Corporation and the Board of Governors to determine whether a liquidity event exists that warrants use of the guarantee program authorized under section 5612 of this title. (2) Requirements of determination Any determination pursuant to paragraph (1) shall— (A) be written; and (B) contain an evaluation of the evidence that— (i) a liquidity event exists; (ii) failure to take action would have se- rious adverse effects on financial stability or economic conditions in the United States; and (iii) actions authorized under section 5612 of this title are needed to avoid or mitigate potential adverse effects on the United States financial system or eco- nomic conditions. (b) Procedures Notwithstanding any other provision of Fed- eral or State law, upon the determination of both the Corporation (upon a vote of not fewer than 2⁄3 of the members of the Corporation then serving) and the Board of Governors (upon a vote of not fewer than 2⁄3 of the members of the Board of Governors then serving) under sub- section (a) that a liquidity event exists that warrants use of the guarantee program author- ized under section 5612 of this title, and with the written consent of the Secretary— (1) the Corporation shall take action in ac- cordance with section 5612(a) of this title; and (2) the Secretary (in consultation with the President) shall take action in accordance with section 5612(c) of this title. (c) Documentation and review (1) Documentation The Secretary shall— (A) maintain the written documentation of each determination of the Corporation and the Board of Governors under this section; and (B) provide the documentation for review under paragraph (2). (2) GAO review The Comptroller General of the United States shall review and report to Congress on any determination of the Corporation and the Board of Governors under subsection (a), in- cluding— (A) the basis for the determination; and (B) the likely effect of the actions taken. (d) Report to Congress On the earlier of the date of a submission made to Congress under section 5612(c) of this title, or within 30 days of the date of a deter- mination under subsection (a), the Secretary shall provide written notice of the determina- tion of the Corporation and the Board of Gov- ernors to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Representatives, including a description of the basis for the determination. (Pub. L. 111–203, title XI, § 1104, July 21, 2010, 124 Stat. 2120.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Subchapter effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5612. Emergency financial stabilization (a) In general Upon the written determination of the Cor- poration and the Board of Governors under sec- tion 5611 of this title, the Corporation shall cre- ate a widely available program to guarantee ob- ligations of solvent insured depository institu- tions or solvent depository institution holding companies (including any affiliates thereof) dur- ing times of severe economic distress, except that a guarantee of obligations under this sec- tion may not include the provision of equity in any form.