Text of Draft Proposal for Bailout Plan

SEC. 119. JUDICIAL REVIEW AND RELATED MATTERS.
9 (a) JUDICIAL REVIEW."
10 (1) STANDARD."Actions by the Secretary pur11
suant to the authority of this Act shall be subject to
12 chapter 7 of title 5, United States Code, including
13 that such final actions shall be held unlawful and set
14 aside if found to be arbitrary, capricious, an abuse
15 of discretion, or not in accordance with law.
16 (2) LIMITATIONS ON EQUITABLE RELIEF."
17 (A) INJUNCTION."No injunction or other
18 form of equitable relief shall be issued against
19 the Secretary for actions pursuant to section
20 101, 102, 106, and 109, other than to remedy
21 a violation of the Constitution.
22 (B) TEMPORARY RESTRAINING ORDER."
23 Any request for a temporary restraining order
24 against the Secretary for actions pursuant to
25 this Act shall be considered and granted or de59
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1 nied by the court within 3 days of the date of
2 the request.
3 (C) PRELIMINARY INJUNCTION."Any re4
quest for a preliminary injunction against the
5 Secretary for actions pursuant to this Act shall
6 be considered and granted or denied by the
7 court on an expedited basis consistent with the
8 provisions of rule 65(b)(3) of the Federal Rules
9 of Civil Procedure, or any successor thereto.
10 (D) PERMANENT INJUNCTION."Any re11
quest for a permanent injunction against the
12 Secretary for actions pursuant to this Act shall
13 be considered and granted or denied by the
14 court on an expedited basis. Whenever possible,
15 the court shall consolidate trial on the merits
16 with any hearing on a request for a preliminary
17 injunction, consistent with the provisions of rule
18 65(a)(2) of the Federal Rules of Civil Proce19
dure, or any successor thereto.
20 (3) LIMITATION ON ACTIONS BY PARTICIPATING
21 COMPANIES."No action or claims may be brought
22 against the Secretary by any person that divests its
23 assets with respect to its participation in a program
24 under this Act, except as provided in paragraph (1),
60
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1 other than as expressly provided in a written con2
tract with the Secretary.
3 (4) STAYS."Any injunction or other form of
4 equitable relief issued against the Secretary for ac5
tions pursuant to section 101, 102, 106, and 109,
6 shall be automatically stayed. The stay shall be lift7
ed unless the Secretary seeks a stay from a higher
8 court within 3 calendar days after the date on which
9 the relief is issued.
10 (b) RELATED MATTERS."
11 (1) TREATMENT OF HOMEOWNERS’ RIGHTS."
12 The terms of any residential mortgage loan that is
13 part of any purchase by the Secretary under this Act
14 shall remain subject to all claims and defenses that
15 would otherwise apply, notwithstanding the exercise
16 of authority by the Secretary under this Act.
17 (2) SAVINGS CLAUSE."Any exercise of the au18
thority of the Secretary pursuant to this Act shall
19 not impair the claims or defenses that would other20
wise apply with respect to persons other than the
21 Secretary. Except as established in any contract, a
22 servicer of pooled residential mortgages owes any
23 duty to determine whether the net present value of
24 the payments on the loan, as modified, is likely to
25 be greater than the anticipated net recovery that
61
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1 would result from foreclosure to all investors and
2 holders of beneficial interests in such investment,
3 but not to any individual or groups of investors or
4 beneficial interest holders, and shall be deemed to
5 act in the best interests of all such investors or hold6
ers of beneficial interests if the servicer agrees to or
7 implements a modification or workout plan when the
8 servicer takes reasonable loss mitigation actions, in9
cluding partial payments.

WaMu CEO Stands to Make Millions
By Aaron Smith, CNNMoney.com
posted: 3 DAYS 7 HOURS AGO

NEW YORK (Sept. 27) -- Washington Mutual Chief Executive Alan Fishman could walk away with more than $18 million in salary, bonuses and severance after less than three weeks on the job, according to the terms of his employment agreement.