12 U.S.C. § 5229 — Judicial review and related matters

Page 1818 TITLE 12—BANKS AND BANKING § 5227 1 So in original. Probably should be ‘‘sections’’. Subsec. (a)(2). Pub. L. 111–22, § 601(2), added subpars. (A) to (E), redesignated former subpar. (C) as (F), and struck out former subpars. (A) and (B) which related to GAO presence and access to records, respectively. § 5227. Study and report on margin authority (a) Study The Comptroller General shall undertake a study to determine the extent to which leverage and sudden deleveraging of financial institu- tions was a factor behind the current financial crisis. (b) Content The study required by this section shall in- clude— (1) an analysis of the roles and responsibil- ities of the Board, the Securities and Ex- change Commission, the Secretary, and other Federal banking agencies with respect to mon- itoring leverage and acting to curtail exces- sive leveraging; (2) an analysis of the authority of the Board to regulate leverage, including by setting mar- gin requirements, and what process the Board used to decide whether or not to use its au- thority; (3) an analysis of any usage of the margin authority by the Board; and (4) recommendations for the Board and ap- propriate committees of Congress with respect to the existing authority of the Board. (c) Report Not later than June 1, 2009, the Comptroller General shall complete and submit a report on the study required by this section to the Com- mittee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. (d) Sharing of information Any reports required under this section shall also be submitted to the Congressional Over- sight Panel established under section 5233 of this title. (Pub. L. 110–343, div. A, title I, § 117, Oct. 3, 2008, 122 Stat. 3786.) § 5228. Funding For the purpose of the authorities granted in this chapter, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under chapter 31 of title 31 are extended to include actions au- thorized by this chapter, including the payment of administrative expenses. Any funds expended or obligated by the Secretary for actions au- thorized by this chapter, including the payment of administrative expenses, shall be deemed ap- propriated at the time of such expenditure or obligation. (Pub. L. 110–343, div. A, title I, § 118, Oct. 3, 2008, 122 Stat. 3786.) 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. § 5229. Judicial review and related matters (a) Judicial review (1) Standard Actions by the Secretary pursuant to the au- thority of this chapter shall be subject to chapter 7 of title 5, including that such final actions shall be held unlawful and set aside if found to be arbitrary, capricious, an abuse of discretion, or not in accordance with law. (2) Limitations on equitable relief (A) Injunction No injunction or other form of equitable relief shall be issued against the Secretary for actions pursuant to section 1 5211, 5212, 5216, and 5219 of this title, other than to rem- edy a violation of the Constitution. (B) Temporary restraining order Any request for a temporary restraining order against the Secretary for actions pur- suant to this chapter shall be considered and granted or denied by the court within 3 days of the date of the request. (C) Preliminary injunction Any request for a preliminary injunction against the Secretary for actions pursuant to this chapter shall be considered and granted or denied by the court on an expe- dited basis consistent with the provisions of rule 65(b)(3) of the Federal Rules of Civil Procedure, or any successor thereto. (D) Permanent injunction Any request for a permanent injunction against the Secretary for actions pursuant to this chapter shall be considered and granted or denied by the court on an expe- dited basis. Whenever possible, the court shall consolidate trial on the merits with any hearing on a request for a preliminary injunction, consistent with the provisions of rule 65(a)(2) of the Federal Rules of Civil Procedure, or any successor thereto. (3) Limitation on actions by participating com- panies No action or claims may be brought against the Secretary by any person that divests its assets with respect to its participation in a program under this chapter, except as pro- vided in paragraph (1), other than as expressly provided in a written contract with the Sec- retary. (4) Stays Any injunction or other form of equitable relief issued against the Secretary for actions pursuant to section 1 5211, 5212, 5216, and 5219 of this title, shall be automatically stayed. The stay shall be lifted unless the Secretary seeks a stay from a higher court within 3 calendar Page 1819 TITLE 12—BANKS AND BANKING § 5231 2 So in original. Probably should be ‘‘a’’. days after the date on which the relief is issued. (b) Related matters (1) Treatment of homeowners’ rights The terms of any residential mortgage loan that is part of any purchase by the Secretary under this chapter shall remain subject to all claims and defenses that would otherwise apply, notwithstanding the exercise of author- ity by the Secretary under this chapter. (2) Savings clause Any exercise of the authority of the Sec- retary pursuant to this chapter shall not im- pair the claims or defenses that would other- wise apply with respect to persons other than the Secretary. Except as established in any contract, a servicer of pooled residential mort- gages owes any 2 duty to determine whether the net present value of the payments on the loan, as modified, is likely to be greater than the anticipated net recovery that would result from foreclosure to all investors and holders of beneficial interests in such investment, but not to any individual or groups of investors or beneficial interest holders, and shall be deemed to act in the best interests of all such investors or holders of beneficial interests if the servicer agrees to or implements a modi- fication or workout plan when the servicer takes reasonable loss mitigation actions, in- cluding partial payments. (Pub. L. 110–343, div. A, title I, § 119, Oct. 3, 2008, 122 Stat. 3787.) 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. The Federal Rules of Civil Procedure, referred to in subsec. (a)(2)(C), (D), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure. § 5230. Termination of authority (a) Termination The authorities provided under sections 5211(a), excluding section 5211(a)(3), and 5212 of this title shall terminate on December 31, 2009. (b) Extension upon certification The Secretary, upon submission of a written certification to Congress, may extend the au- thority provided under this chapter to expire not later than 2 years from October 3, 2008. Such certification shall include a justification of why the extension is necessary to assist American families and stabilize financial markets, as well as the expected cost to the taxpayers for such an extension. Notwithstanding the foregoing, the Secretary may further extend the authority pro- vided under this chapter to expire on December 31, 2017, provided that (1) any such extension shall apply only with respect to current pro- gram participants in the Housing Finance Agen- cy Innovation Fund for the Hardest Hit Housing Markets, and (2) funds obligated following such extension shall not exceed $2,000,000,000. (Pub. L. 110–343, div. A, title I, § 120, Oct. 3, 2008, 122 Stat. 3788; Pub. L. 114–113, div. O, title VII, § 709(a), Dec. 18, 2015, 129 Stat. 3030.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (b), 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. AMENDMENTS 2015—Subsec. (b). Pub. L. 114–113 inserted at end ‘‘Notwithstanding the foregoing, the Secretary may further extend the authority provided under this chap- ter to expire on December 31, 2017, provided that (1) any such extension shall apply only with respect to current program participants in the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, and (2) funds obligated following such extension shall not exceed $2,000,000,000.’’ Statutory Notes and Related Subsidiaries TERMINATION OF THE MAKING HOME AFFORDABLE INITIATIVE Pub. L. 114–113, div. O, title VII, § 709(b), Dec. 18, 2015, 129 Stat. 3030, provided that: ‘‘(1) IN GENERAL.—The Making Home Affordable ini- tiative of the Secretary of the Treasury, as authorized under the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), shall terminate on Decem- ber 31, 2016. ‘‘(2) APPLICABILITY.—Paragraph (1) shall not apply to any loan modification application made under the Home Affordable Modification Program under the Mak- ing Home Affordable initiative of the Secretary of the Treasury, as authorized under the Emergency Eco- nomic Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), before December 31, 2016.’’ § 5231. Special Inspector General for the Trou- bled Asset Relief Program (a) Office of Inspector General There is hereby established the Office of the Special Inspector General for the Troubled Asset Relief Program. (b) Appointment of Inspector General; removal (1) The head of the Office of the Special In- spector General for the Troubled Asset Relief Program is the Special Inspector General for the Troubled Asset Relief Program (in this section referred to as the ‘‘Special Inspector General’’), who shall be appointed by the President, by and with the advice and consent of the Senate. (2) The appointment of the Special Inspector General shall be made on the basis of integrity and demonstrated ability in accounting, audit- ing, financial analysis, law, management anal- ysis, public administration, or investigations. (3) The nomination of an individual as Special Inspector General shall be made as soon as prac- ticable after the establishment of any program under sections 5211 and 5212 of this title.