---
kind: "section"
citation: "12 U.S.C. § 5211"
title: "12"
title_heading: "Banks and Banking"
number: "5211"
heading: "Purchases of troubled assets"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5211"
units:
  - "Chapter 52 — Emergency Economic Stabilization"
  - "Subchapter I — Troubled Assets Relief Program"
---

# §5211. Purchases of troubled assets

- (a) **Offices; authority—**
  - (1) **Authority—** The [Secretary](/usc/12/5202.md?p=7) is authorized to establish the Troubled Asset Relief Program (or “[TARP](/usc/12/5202.md?p=8)”) to purchase, and to make and [fund](/usc/12/5202.md?p=6) commitments to purchase, [troubled assets](/usc/12/5202.md?p=9) from any [financial institution](/usc/12/5202.md?p=5), on such terms and conditions as are determined by the [Secretary](/usc/12/5202.md?p=7), and in accordance with this chapter and the policies and procedures developed and published by the [Secretary](/usc/12/5202.md?p=7).
  - (2) **Commencement of program—** Establishment of the policies and procedures and other similar administrative requirements imposed on the [Secretary](/usc/12/5202.md?p=7) by this chapter are not intended to delay the commencement of the [TARP](/usc/12/5202.md?p=8).
  - (3) **Establishment of Treasury office—**
    - (A) **In general—** The [Secretary](/usc/12/5202.md?p=7) shall implement any program under [paragraph (1)](#a-1) through an Office of Financial Stability, established for such purpose within the Office of Domestic Finance of the Department of the Treasury, which office shall be headed by an Assistant [Secretary](/usc/12/5202.md?p=7) of the Treasury, appointed by the President, by and with the advice and consent of the Senate, except that an interim Assistant [Secretary](/usc/12/5202.md?p=7) may be appointed by the [Secretary](/usc/12/5202.md?p=7).
    - (B) **Omitted—**
- (b) **Consultation—** In exercising the authority under this section, the [Secretary](/usc/12/5202.md?p=7) shall consult with the [Board](/usc/12/5202.md?p=2), the [Corporation](/usc/12/5202.md?p=4), the Comptroller of the Currency, the [Director](/usc/12/5481.md?p=10) of the Office of Thrift Supervision, the Chairman of the National [Credit](/usc/12/5481.md?p=7) Union Administration [Board](/usc/12/5202.md?p=2), and the [Secretary](/usc/12/5202.md?p=7) of Housing and Urban Development.
- (c) **Necessary actions—** The [Secretary](/usc/12/5202.md?p=7) is authorized to take such actions as the [Secretary](/usc/12/5202.md?p=7) deems necessary to carry out the authorities in this chapter, including, without limitation, the following:
  - (1) The [Secretary](/usc/12/5202.md?p=7) shall have direct hiring authority with respect to the appointment of employees to administer this chapter.
  - (2) Entering into contracts, including contracts for services authorized by [section 3109 of title 5](/usc/5/3109.md).
  - (3) Designating [financial institutions](/usc/12/5202.md?p=5) as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this chapter as financial agents of the Federal Government as may be required.
  - (4) In order to provide the [Secretary](/usc/12/5202.md?p=7) with the flexibility to manage [troubled assets](/usc/12/5202.md?p=9) in a manner designed to minimize cost to the taxpayers, establishing vehicles that are authorized, subject to supervision by the [Secretary](/usc/12/5202.md?p=7), to purchase, hold, and sell [troubled assets](/usc/12/5202.md?p=9) and issue obligations.
  - (5) Issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes of this chapter.
- (d) **Program guidelines—** Before the earlier of the end of the 2-business-day period beginning on the date of the first purchase of [troubled assets](/usc/12/5202.md?p=9) pursuant to the authority under this section or the end of the 45-day period beginning on October 3, 2008, the [Secretary](/usc/12/5202.md?p=7) shall publish program guidelines, including the following:
  - (1) Mechanisms for purchasing [troubled assets](/usc/12/5202.md?p=9).
  - (2) Methods for pricing and valuing [troubled assets](/usc/12/5202.md?p=9).
  - (3) Procedures for selecting asset managers.
  - (4) Criteria for identifying [troubled assets](/usc/12/5202.md?p=9) for purchase.
- (e) **Preventing unjust enrichment—** In making purchases under the authority of this chapter, the [Secretary](/usc/12/5202.md?p=7) shall take such steps as may be necessary to prevent unjust enrichment of [financial institutions](/usc/12/5202.md?p=5) participating in a program established under this section, including by preventing the sale of a troubled asset to the [Secretary](/usc/12/5202.md?p=7) at a higher price than what the seller paid to purchase the asset. This subsection does not apply to [troubled assets](/usc/12/5202.md?p=9) acquired in a merger or acquisition, or a purchase of assets from a [financial institution](/usc/12/5202.md?p=5) in conservatorship or receivership, or that has initiated bankruptcy proceedings under title 11.

## Source credit

(Pub. L. 110–343, div. A, title I, § 101, Oct. 3, 2008, 122 Stat. 3767.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a)(1), (2), (c), and (e), was in the original “this Act” and was translated as reading “this division”, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables.

### Codification

Section is comprised of section 101 of div. A of Pub. L. 110–343. Subsec. (a)(3)(B) of section 101 of div. A of Pub. L. 110–343 amended section 5315 of Title 5, Government Organization and Employees, and section 301 of Title 31, Money and Finance.