Fannie Mae and Freddie Mac Taxpayer Payback Act of 2011

Fannie Mae and Freddie Mac Taxpayer Payback Act of 2011 - Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to prohibit a reduction in the rate of dividends paid on the Variable Liquidation Preference Senior Preferred Stock of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) purchased by the Secretary of the Treasury.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2436 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2436

    To prohibit any reduction in the rate of dividends paid to the 
 Secretary of the Treasury on the senior preferred stock of Fannie Mae 
              and Freddie Mac purchased by the Secretary.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 7, 2011

  Mr. Manzullo (for himself, Mr. Garrett, Mr. Royce, and Mr. Bachus) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
    To prohibit any reduction in the rate of dividends paid to the 
 Secretary of the Treasury on the senior preferred stock of Fannie Mae 
              and Freddie Mac purchased by the Secretary.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fannie Mae and Freddie Mac Taxpayer 
Payback Act of 2011''.

SEC. 2. PROHIBITION OF REDUCTION IN RATE OF DIVIDENDS.

    (a) Fannie Mae.--Section 304 of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1719) is amended by adding at the 
end the following new subsection:
    ``(h) Prohibition of Reduction in Rate of Dividends on Senior 
Preferred Stock.--Notwithstanding any provision of subsection (g), any 
provision of the Senior Preferred Stock Purchase Agreement entered into 
between the Department of the Treasury and the corporation in September 
2008 (as such Agreement may be amended and restated), or any provision 
of any certificate in connection with such Agreement creating or 
designating the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Preference Senior 
Preferred Stock of the corporation issued pursuant to such Agreement, 
the rate of dividends paid on the Variable Liquidation Preference 
Senior Preferred Stock of the corporation issued pursuant to such 
Agreement shall not be reduced from the rate in effect pursuant to such 
Agreement as of March 1, 2011.''.
    (b) Freddie Mac.--Section 306 of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1455) is amended by adding at the end the 
following new subsection:
    ``(m) Prohibition of Reduction in Rate of Dividends on Senior 
Preferred Stock.--Notwithstanding any provision of subsection (l), any 
provision of the Senior Preferred Stock Purchase Agreement entered into 
between the Department of the Treasury and the Corporation in September 
2008 (as such Agreement may be amended and restated), or any provision 
of any certificate in connection with such Agreement creating or 
designating the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Preference Senior 
Preferred Stock of the Corporation issued pursuant to such Agreement, 
the rate of dividends paid on the Variable Liquidation Preference 
Senior Preferred Stock of the Corporation issued pursuant to such 
Agreement shall not be reduced from the rate in effect pursuant to such 
Agreement as of March 1, 2011.''.
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