WASHINGTON, Sept 23, 2008 (AFP) - Following are highlights of proposed changes to the 700-billion-dollar financial rescue package sought by President George W. Bush's administration, presented by Democratic Senator Christopher Dodd, chairman of the Senate Banking Committee:

- An 'oversight board' would supervise the actions of Treasury in buying up distressed mortgage securities and related assets.

- The Treasury would be required to explain its policies and procedures 'to ensure that the new authority is not used on a completely ad hoc basis,' Dodd said in a statement. 'The Congress, the markets, and the American people deserve to understand how the Treasury is using these funds.'

- Monthly updates to Congress on the plan would be required, instead of semiannual reports. Financial statements based on generally accepted accounting principles would be required, and would be reviewed by the congressional Government Accountability Office.

- The government would receive warrants, or special shares, in exchange for bad assets sold, in a manner similar to the aid given to insurance giant American Internationa Group and mortgage finance firms Fannie Mae and Freddie Mac.

- Any financial firms hired by Treasury to manage the assets would be screened to avoid conflicts of interest.

- Bank deposits would have the same insurance protection as money market fuds, which were temporarily given unlimited insurance under a program announced last week by the Treasury. Some feared the higher level of protection for money market funds might cause a run on bank deposits, which are insured up to 100,000 dollars.

- Companies that benefit from the bailout would agree to limit executive pay, including a 'claw-back provision' to recover funds from executives who misstate financial information.

- Aid for homeowners would be boosted, allowing borrowers to get the mortgages on their homes reduced to the market value of the homes through bankruptcy. According to lawmakers, the provision would help encourage banks to reduce the value of the loans before a homeowner files for bankruptcy.

- Mortgage securities would be managed by the Federal Deposit Insurance Corporation, the agency that insures bank deposits. FDIC would have the authority to modify those loans where possible.

- Twenty percent of any profits made by the government on the mortgage assets would go into a fund to help provide affordable housing.