S. 116

TARP Assistance for Local Governments Act of 2009

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II

111th CONGRESS

1st Session

S. 116

IN THE SENATE OF THE UNITED STATES

January 6, 2009

Mrs. Feinstein introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To require the Secretary of the Treasury to allocate $10,000,000,000 of Troubled Asset Relief Program funds to local governments that have suffered significant losses due to highly-rated investments in failed financial institutions.

1.

Short title

This Act may be cited as the TARP Assistance for Local Governments Act of 2009.

2.

Assistance to local governments

Section 101(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)) is amended by adding at the end the following:

(4)

Assistance to local governments

(A)

Purchase authority

The Secretary shall use $10,000,000,000 of funds made available for the TARP to assist public instrumentalities, such as counties and cities, that have suffered significant increased costs or losses due to investments with failed financial institutions, as described in subparagraph (B).

(B)

Limited to highly rated investments

Assistance under this paragraph shall be limited to public instrumentalities that have suffered due to investments that the Secretary determines were highly rated in any failed financial institution, whether or not the financial institution is assisted under this Act.

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