FACTBOX: Details of House bill to close TARP loopholes

(Reuters) - A senior House Democrat released on Friday the outline of his planned legislation to increase transparency and close loopholes in the Treasury Department's $700 billion Troubled Asset Relief Program (TARP).

Rep. Barney Frank, chairman of the House Financial Services Committee, said his bill included the following provisions and that he hoped to have a floor vote on it next week:

BANKS

* Allow smaller banks to participate in TARP on the same terms as big banks that have already received billions of dollars in federal money.

* Require quarterly disclosures by banks that receive TARP money about how they used the money and whether they increased lending.

* Require banks and their primary federal regulator to agree on how TARP funds are to be used and set benchmarks for the institution to meet in expanding the availability of credit to the U.S. economy.

* Require examinations by a bank's primary federal regulator to review use of TARP money and executive compensation.

* Prohibit the acquisition of a "healthy" institution by a bank receiving TARP funds. A bank must show that an intended acquisition could have been accomplished without funds provided under TARP.

EXECUTIVE COMPENSATION

* Prohibits incentives that encourage "excessive" risks by companies.

* Allows the claw-back of executive pay received that was based on inaccurate information.

* Bans all golden parachute payments for the duration of the U.S. government's investment in the company.

* Applies the same executive pay limits included in the Detroit automakers' bailout bill to any new recipient of TARP funds. These include a ban on bonuses or incentives for 25 highest-paid employees and ban on private airplanes or leases.

* Makes executive compensation restrictions retroactive for all existing recipients of TARP money.

OVERSIGHT

* Allows Treasury Department to have an observer attend board meetings of companies that receive federal money.