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H.R. 1624 (115th): Municipal Finance Support Act of 2017

The text of the bill below is as of Sep 12, 2017 (Reported by House Committee).


IB

Union Calendar No. 219

115th CONGRESS

1st Session

H. R. 1624

[Report No. 115–306]

IN THE HOUSE OF REPRESENTATIVES

March 20, 2017

(for himself, Mrs. Carolyn B. Maloney of New York, Mr. Hultgren, Mr. Meeks, Ms. Kelly of Illinois, Ms. Sewell of Alabama, Ms. Sinema, Mr. King of New York, Ms. Norton, Ms. Moore, Mr. Poliquin, Mr. Veasey, Mr. Sherman, and Mr. Kind) introduced the following bill; which was referred to the Committee on Financial Services

September 12, 2017

Additional sponsors: Mr. Hudson, Mr. Curbelo of Florida, Mr. Ross, Ms. Velázquez, Mr. Delaney, and Mr. Fitzpatrick

September 12, 2017

Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Strike out all after the enacting clause and insert the part printed in italic

For text of introduced bill, see copy of bill as introduced on March 20, 2017


A BILL

To require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes.


1.

Short title

This Act may be cited as the Municipal Finance Support Act of 2017.

2.

Treatment of certain municipal obligations

(a)

In general

Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended—

(1)

by moving subsection (z) so that it appears after subsection (y); and

(2)

by adding at the end the following:

(aa)

Treatment of certain municipal obligations

(1)

In general

For purposes of the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) (the Final Rule) and any other regulation which incorporates a definition of the term high-quality liquid asset, the appropriate Federal banking agencies shall treat a municipal obligation that is both liquid and readily marketable (as defined in the Final Rule) and investment grade as of the calculation date as a high-quality liquid asset that is no lower than a level 2B liquid asset.

(2)

Definitions

For purposes of this subsection:

(A)

Investment grade

With respect to an obligation, the term investment grade has the meaning given that term under part 1 of title 12, Code of Federal Regulations.

(B)

Municipal obligation

The term municipal obligation means an obligation of a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof.

.

(b)

Amendment to liquidity coverage ratio regulations

Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency shall amend the final rule titled Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule (79 Fed. Reg. 61439; published October 10, 2014) to implement the amendments made by this Act.

Amend the title so as to read: A bill to require the appropriate Federal banking agencies to treat certain municipal obligations as no lower than level 2B liquid assets, and for other purposes..

September 12, 2017

Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed