12 USC 5611 - Liquidity event determination

U.S Code last checked for updates: May 01, 2024

§ 5611.

Liquidity event determination

(a)

Determination and written recommendation

(1)

Determination request

(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)

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

(b)

Procedures

Notwithstanding 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 section 5612 of this title, and with the written consent of the Secretary—

(1)

the Corporation shall take action in accordance 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), including—

(A)

the basis for the determination; and

(B)

the likely effect of the actions taken.

(d)

Report to Congress

(Pub. L. 111–203, title XI, § 1104, July 21, 2010, 124 Stat. 2120.)

cite as: 12 USC 5611