H.R. 1086 (103rd): Small Business Loan Securitization and Secondary Market Enhancement Act of 1993

Introduced:
Feb 24, 1993 (103rd Congress, 1993–1994)
Status:
Died (Referred to Committee)
See Instead:

S. 384 (same title)
Reported by Committee — Sep 21, 1993

Sponsor
Richard Baker
Representative for Louisiana's 6th congressional district
Party
Republican
Text
Read Text »
Last Updated
Feb 24, 1993
Length
13 pages
Related Bills
S. 384 (identical)

Reported by Committee
Last Action: Sep 21, 1993

H.R. 5110 (Related)
Uruguay Round Agreements Act

Signed by the President
Dec 08, 1994

 
Status

This bill was introduced on February 24, 1993, in a previous session of Congress, but was not enacted.

Progress
Introduced Feb 24, 1993
Referred to Committee Feb 24, 1993
 
Full Title

To increase the availability of credit to small businesses by eliminating impediments to securitization and facilitating the development of a secondary market in small business loans, and for other purposes.

Summary

No summaries available.

Cosponsors
32 cosponsors (27R, 5D) (show)
Committees

House Education and the Workforce

Health, Employment, Labor, and Pensions

House Energy and Commerce

House Financial Services

House Ways and Means

The committee chair determines whether a bill will move past the committee stage.

 
Primary Source

THOMAS.gov (The Library of Congress)

GovTrack gets most information from THOMAS, which is updated generally one day after events occur. Activity since the last update may not be reflected here. Data comes via the congress project.

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Notes

H.R. stands for House of Representatives bill.

A bill must be passed by both the House and Senate in identical form and then be signed by the president to become law.

The bill’s title was written by its sponsor.

GovTrack’s Bill Summary

We don’t have a summary available yet.

Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.


2/24/1993--Introduced.
Small Business Loan Securitization and Secondary Market Enhancement Act of 1993 - Amends the Securities Exchange Act of 1934 to define a "small business related security" (SBRS) as generally a high rated security that represents and is secured by promissory notes evidencing, and that provides for payments of principal in relation to payments on the notes.
Provides that SBRSs shall be exempt from:
(1) certain restrictions in the margin and securities delivery rules;
(2) certain restrictions on borrowing on securities by and lending among, brokers, dealers, and other members of national securities exchanges; and
(3) certain prohibitions on the extension of credit by members of exchanges, brokers, and dealers against a security which was part of a new issue.
Amends the Home Owners' Loan Act, the Federal Credit Union Act, and related statutes to allow banks, credit unions, and other depository institutions to invest in SBRSs. Amends the Secondary Mortgage Market Enhancement Act of 1984 to:
(1) authorize any U.S. person or entity to invest in SBRS, to the same extent such person is authorized to invest in U.S. obligations issued; and
(2) exempt SBRSs from any State law's security registration and qualification to the same extent that U.S. securities are so exempt.
Provides for States to enact provisions prescribing specific requirement for SBRSs. Requires the accounting principles applicable to the transfer of a small business loan with recourse contained in reports or statements required by appropriate Federal banking agencies to be uniform and consistent with generally accepted accounting principles.
Prohibits the amount of capital required to be maintained by a depository institution with respect to the sale of a small business loan with recourse from exceeding an amount sufficient to meet the institution's reasonable estimated liability under the recourse arrangement.
Requires an SBRS to be treated as a mortgage-backed security under the risk-based capital requirements applicable to insured depository institutions.
Directs the Secretary of Labor to exclude transactions involving SBRSs from certain restrictions and taxes imposed on "prohibited transactions" Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (thereby allowing pension fund managers to participate in the pooling and packaging of small business loans for sale as securities).
Requires the Secretary of the Treasury to promulgate regulations providing for the taxation of a small business loan investment conduit and the holder of an interest therein similar to the taxation of a real estate mortgage investment conduit and the holder of an interest therein under the Internal Revenue Code.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.


No summary available.

House Democratic Caucus Summary

The House Democratic Caucus does not provide summaries of bills.

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