---
kind: "section"
citation: "12 U.S.C. § 5212"
title: "12"
title_heading: "Banks and Banking"
number: "5212"
heading: "Insurance of troubled assets"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5212"
units:
  - "Chapter 52 — Emergency Economic Stabilization"
  - "Subchapter I — Troubled Assets Relief Program"
---

# §5212. Insurance of troubled assets

- (a) **Authority—**
  - (1) **In general—** If the [Secretary](/usc/12/5202.md?p=7) establishes the program authorized under [section 5211 of this title](/usc/12/5211.md), then the [Secretary](/usc/12/5202.md?p=7) shall establish a program to guarantee [troubled assets](/usc/12/5202.md?p=9) originated or issued prior to March 14, 2008, including [mortgage](/usc/12/1707.md?p=a)-backed securities.
  - (2) **Guarantees—** In establishing any program under this subsection, the [Secretary](/usc/12/5202.md?p=7) may develop guarantees of [troubled assets](/usc/12/5202.md?p=9) and the associated premiums for such guarantees. Such guarantees and premiums may be determined by category or class of the [troubled assets](/usc/12/5202.md?p=9) to be guaranteed.
  - (3) **Extent of guarantee—** Upon request of a [financial institution](/usc/12/5202.md?p=5), the [Secretary](/usc/12/5202.md?p=7) may guarantee the timely payment of principal of, and interest on, [troubled assets](/usc/12/5202.md?p=9) in amounts not to exceed 100 percent of such payments. Such guarantee may be on such terms and conditions as are determined by the [Secretary](/usc/12/5202.md?p=7), provided that such terms and conditions are consistent with the purposes of this chapter.
- (b) **Reports—** Not later than 90 days after October 3, 2008, the [Secretary](/usc/12/5202.md?p=7) shall report to the [appropriate committees of Congress](/usc/12/5202.md?p=1) on the program established under [subsection (a)](#a).
- (c) **Premiums—**
  - (1) **In general—** The [Secretary](/usc/12/5202.md?p=7) shall collect premiums from any [financial institution](/usc/12/5202.md?p=5) participating in the program established under [subsection (a)](#a). Such premiums shall be in an amount that the [Secretary](/usc/12/5202.md?p=7) determines necessary to meet the purposes of this chapter and to provide sufficient reserves pursuant to [paragraph (3)](#c-3).
  - (2) **Authority to base premiums on product risk—** In establishing any premium under [paragraph (1)](#c-1), the [Secretary](/usc/12/5202.md?p=7) may provide for variations in such rates according to the [credit](/usc/12/5481.md?p=7) risk associated with the particular troubled asset that is being guaranteed. The [Secretary](/usc/12/5202.md?p=7) shall publish the methodology for setting the premium for a class of [troubled assets](/usc/12/5202.md?p=9) together with an explanation of the appropriateness of the class of assets for participation in the program established under this section. The methodology shall ensure that the premium is consistent with [paragraph (3)](#c-3).
  - (3) **Minimum level—** The premiums referred to in [paragraph (1)](#c-1) shall be set by the [Secretary](/usc/12/5202.md?p=7) at a level necessary to create reserves sufficient to meet anticipated claims, based on an actuarial analysis, and to ensure that taxpayers are fully protected.
  - (4) **Adjustment to purchase authority—** The purchase authority limit in [section 5225 of this title](/usc/12/5225.md) shall be reduced by an amount equal to the difference between the total of the outstanding guaranteed obligations and the balance in the [Troubled Assets](/usc/12/5202.md?p=9) Insurance Financing [Fund](/usc/12/5202.md?p=6).
- (d) **Troubled Assets Insurance Financing Fund—**
  - (1) **Deposits—** The [Secretary](/usc/12/5202.md?p=7) shall deposit fees collected under this section into the [Fund](/usc/12/5202.md?p=6) established under [paragraph (2)](#d-2).
  - (2) **Establishment—** There is established a [Troubled Assets](/usc/12/5202.md?p=9) Insurance Financing [Fund](/usc/12/5202.md?p=6) that shall consist of the amounts collected pursuant to [paragraph (1)](#d-1), and any balance in such [fund](/usc/12/5202.md?p=6) shall be invested by the [Secretary](/usc/12/5202.md?p=7) in United States Treasury securities, or kept in cash on hand or on deposit, as necessary.
  - (3) **Payments from Fund—** The [Secretary](/usc/12/5202.md?p=7) shall make payments from amounts deposited in the [Fund](/usc/12/5202.md?p=6) to fulfill obligations of the guarantees provided to [financial institutions](/usc/12/5202.md?p=5) under [subsection (a)](#a).

## Source credit

(Pub. L. 110–343, div. A, title I, § 102, Oct. 3, 2008, 122 Stat. 3768.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a)(3) and (c)(1), 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.