TEXT-Updated U.S. Treasury proposal for asset-purchase fund

WASHINGTON, Sept 21 (Reuters) - The following is the full
text of an updated U.S. Treasury Department legislative
proposal for an asset-purchase fund delivered to the Congress.
The document was obtained by Reuters on Sunday.

The updated proposal comports with a 'fact sheet" issued by
the U.S. Treasury on Saturday.
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE TROUBLED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Troubled Assets.
(a) Authority to Purchase.--The Secretary is authorized to
purchase, and to make and fund commitments to purchase, on such
terms and conditions as determined by the Secretary, Troubled
Assets from any Financial Institution, as those terms are
defined in section 12 of the Act.
(b) Necessary Actions.--The Secretary is authorized to take
such actions as the Secretary deems necessary to carry out the
authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out
the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services
authorized by section 3109 of title 5, United States Code,
without regard to any other provision of law regarding public
contracts;
(3) designating Financial Institutions as financial agents of
the Government, and they shall perform all such reasonable
duties related to this Act as financial agents of the
Government as may be required of them;
(4) establishing vehicles that are authorized, subject to
supervision by the Secretary, to purchase Troubled Assets and
issue obligations; and
(5) issuing such regulations and other guidance as may be
necessary or appropriate to define terms or carry out the
authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the
Secretary shall take into consideration means for--
(1) providing stability or preventing disruption to the
financial markets or banking system;
(2) protecting the taxpayer; and
(3) take appropriate steps to manage any conflicts of interest
in the hiring of contractors or advisors. Any regulation issued
under this authority shall not be subject to section 553 of
title 5, United States Code.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority
granted in section 2(a), and semiannually thereafter, the
Secretary shall report to the Committees on the Budget,
Financial Services, and Ways and Means of the House of
Representatives and the Committees on the Budget, Finance, and
Banking, Housing, and Urban Affairs of the Senate with respect
to the authorities exercised under this Act and the
considerations required by section 3.
Sec. 5. Rights; Management; Sale of Troubled Assets.
(a) Exercise of Rights.--The Secretary may, at any time,
exercise any rights received in connection with Troubled Assets
purchased under this Act.
(b) Management of Troubled Assets.--The Secretary shall have
authority to manage Troubled Assets purchased under this Act,
including revenues and portfolio risks therefrom.
(c) Sale of Troubled Assets.--The Secretary may, at any time,
upon terms and conditions and at prices determined by the
Secretary, sell, or enter into securities loans, repurchase
transactions or other financial transactions in regard to, any
mortgage-related asset purchased under this Act.
(d) Application of Sunset to Troubled Assets.--The authority of
the Secretary to hold any mortgage-related asset purchased
under this Act before the termination date in section 9, or to
purchase or fund the purchase of a mortgage-related asset under
a commitment entered into before the termination date in
section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary's authority to purchase Troubled Assets under
this Act shall be limited to $700,000,000,000 outstanding at
any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, 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, United States Code, and the purposes
for which securities may be issued under chapter 31 of title
31, United States Code, are extended to include actions
authorized by this Act, including the payment of administrative
expenses. Any funds expended for actions authorized by this
Act, including the payment of administrative expenses, shall be
deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this
Act are non-reviewable and committed to agency discretion, and
may not be reviewed by any court of law or any administrative
agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of
authorities granted in sections 2(b)(5), 5 and 7, shall
terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code,
is amended by striking out the dollar limitation contained in
such subsection and inserting in lieu thereof
$11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of Troubled Assets made under section
2(a) of this Act shall be determined as provided under the
Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this Act, the following definitions shall
apply:
(1) Financial Institution.--The term "Financial Institutions"
means any institution including, but not limited to, banks,
thrifts, credit unions, broker-dealers, and insurance
companies, having significant operations in the United States;
and, upon the Secretary's determination in consultation with
the Chairman of the Board of Governors of the Federal Reserve,
any other institution he determines necessary to promote
financial market stability.
(2) Secretary.--The term "Secretary" means the Secretary of the
Treasury.
(3) Troubled Assets.--The term "Troubled Assets" means
residential or commercial mortgages and any securities,
obligations, or other instruments that are based on or related
to such mortgages, that in each case was originated or issued
on or before September 17, 2008; and, upon the determination of
the Secretary in consultation with the Chairman of the Board of
Governors of the Federal Reserve, any other financial
instrument, as he determines necessary to promote financial
market stability.
(4) United States.--The term "United States" means the States,
territories, and possessions of the United States and the
District of Columbia.