[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 828 Introduced in Senate (IS)]
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115th CONGRESS
1st Session
S. 828
To amend the Federal Deposit Insurance Act to require the appropriate
Federal banking agencies to treat certain municipal obligations as
level 2B liquid assets, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 5 (legislative day, April 4), 2017
Mr. Rounds (for himself, Mr. Warner, Mr. Tester, Mr. Scott, Mr.
Donnelly, Ms. Heitkamp, Mr. Cotton, Mr. Tillis, Mr. Van Hollen, Mr.
Kennedy, and Mr. Schumer) introduced the following bill; which was read
twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to require the appropriate
Federal banking agencies to treat certain municipal obligations as
level 2B liquid assets, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. 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) Definitions.--In this subsection--
``(A) the term `investment grade', with respect to
an obligation, has the meaning given the term in
section 1.2 of title 12, Code of Federal Regulations,
or any successor thereto;
``(B) the term `liquid and readily-marketable' has
the meaning given the term in section 249.3 of title
12, Code of Federal Regulations, or any successor
thereto; and
``(C) the term `municipal obligation' means an
obligation of--
``(i) a State or any political subdivision
thereof; or
``(ii) any agency or instrumentality of a
State or any political subdivision thereof.
``(2) Municipal obligations.--For purposes of the final
rule entitled `Liquidity Coverage Ratio: Liquidity Risk
Measurement Standards' (79 Fed. Reg. 61439 (October 10, 2014)),
the final rule entitled `Liquidity Coverage Ratio: Treatment of
U.S. Municipal Securities as High-Quality Liquid Assets' (81
Fed. Reg. 21223 (April 11, 2016)), and any other regulation
that incorporates a definition of the term `high-quality liquid
asset' or another substantially similar term, the appropriate
Federal banking agencies shall treat a municipal obligation as
a high-quality liquid asset that is a level 2B liquid asset if
that obligation is, as of the date of calculation--
``(A) liquid and readily-marketable; and
``(B) investment grade.''.
(b) Amendment to Liquidity Coverage Ratio Regulations.--Not later
than 90 days after the date of 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 entitled ``Liquidity Coverage Ratio: Liquidity Risk
Measurement Standards'' (79 Fed. Reg. 61439 (October 10, 2014)) and the
final rule entitled ``Liquidity Coverage Ratio: Treatment of U.S.
Municipal Securities as High-Quality Liquid Assets'' (81 Fed. Reg.
21223 (April 11, 2016)) to implement the amendments made by this Act.
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