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

(a)

Determination and written recommendation

(1)

Determination request

section 5612 of this titleThe 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 .

(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 serious adverse effects on financial stability or economic conditions in the United States; and

(iii)

section 5612 of this title actions authorized under are needed to avoid or mitigate potential adverse effects on the United States financial system or economic conditions.

(b)

Procedures

section 5612 of this titleNotwithstanding any other provision of Federal or State law, upon the determination of both the Corporation (upon a vote of not fewer than ⅔ of the members of the Corporation then serving) and the Board of Governors (upon a vote of not fewer than ⅔ of the members of the Board of Governors then serving) under subsection (a) that a liquidity event exists that warrants use of the guarantee program authorized under , and with the written consent of the Secretary—

(1)

section 5612(a) of this title the Corporation shall take action in accordance with ; and

(2)

section 5612(c) of this title the Secretary (in consultation with the President) shall take action in accordance with .

(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), including—

(A)

the basis for the determination; and

(B)

the likely effect of the actions taken.

(d)

Report to Congress

section 5612(c) of this titleOn the earlier of the date of a submission made to Congress under , or within 30 days of the date of a determination under subsection (a), the Secretary shall provide written notice of the determination of the Corporation and the Board of Governors to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, including a description of the basis for the determination.

Pub. L. 111–203, title XI, § 1104July 21, 2010124 Stat. 2120(, , .)

Statutory Notes and Related Subsidiaries

Effective Date

July 21, 2010section 4 of Pub. L. 111–203 section 5301 of this titleSubchapter effective 1 day after , except as otherwise provided, see , set out as a note under .