Page:Emergency Economic Stabilization Act of 2008.djvu/36

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O:kiYOkiYO08C04.xml 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 36 financial institution, as the Secreta?T deter- mines appropriate; or (B) in the case of any financial institution other than one described in subparagraph (A), a senior debt instrument from such financial in- stitution, as described in paragraph (2)(C). (2) TERMS AND CONDITIONS.--The terms and conditions of any warrant or senior debt instrument required under paragraph (1) shall meet the fol- lowing requirements: (A) PURPOSEs.--Sueh terms and condi- tions shall, at a minimum, be designed- (i) to provide for reasonable participa- tion by the Seereta?T, for the benefit of taxpayers, in equity appreciation in the ease of a warrant, or a reasonable interest rate premium, in the ease of a debt instru- ment; and (ii) to provide additional protection for the taxpayer against losses from sale of assets by the Seereta?T under this Act and the administrative expenses of the TARP. (B) AUTHORITY TO SELL, EXERCISE, OR SURRENDER. The Seereta?T may sell, exercise, or surrender a warrant or any senior debt in-