The Capital Purchase Program (“CPP”)
The Capital Purchase Program (CPP) is a voluntary program.Under the CPP, the U.S. Department of Treasury provides an immediate influx of capital, under standardized terms, in return for preferred equity securities issued by financial institutions. This influx of U.S. Government funds is intended to provide immediate capital to stabilize the financial and banking system. See Factsheet on Capital Purchase Program, Updated March 17, 2009.
Participation in the voluntary CPP is governed by standardized terms as outlined by Treasury guidelines and the provisions contained in the standard contracts each participating entity entered into. Pursuant to the plans, and the authority provided by H.R. 1424 Title I Sec. 109-110, the United States Treasury has ordered as follows:
Mortgage Foreclosure Mitigation: All recipients of capital investments under the Financial Stability Plan will be required to commit to participate in mortgage modification program. http://www.treasury.gov/initiatives/financial-stability/about/transparency/Pages/transparencyaccountability.aspx. (April 16, 2009).