[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 722 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 722

     To authorize the Secretary of the Treasury to issue guarantee 
  commitments for debt securities issued by the Community Development 
          Financial Institutions Fund, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 27, 1995

  Ms. Waters introduced the following bill; which was referred to the 
               Committee on Banking and Financial Service

_______________________________________________________________________

                                 A BILL


 
     To authorize the Secretary of the Treasury to issue guarantee 
  commitments for debt securities issued by the Community Development 
          Financial Institutions Fund, 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. SHORT TITLE.

    This Act may be cited as the ``Community Development Financial 
Institutions Fund Securities Guarantee Act of 1995''.

SEC. 2. DEBT SECURITIES GUARANTEES AUTHORIZED.

    (a) In General.--Section 104 of the Community Development Banking 
and Financial Institutions Act of 1994 (12 U.S.C. 4703(h)) is amended--
            (1) by redesignating subsections (i), (j), and (k) as 
        subsections (j), (k), and (l), respectively; and
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Guarantees for Debt Securities Issued by Fund.--
            ``(1) In general.--Subject to paragraph (2) and under such 
        terms and conditions as the Secretary of the Treasury may 
        determine to be appropriate, the Secretary may issue, in fiscal 
        years 1996, 1997, and 1998, guarantees assuring against losses 
        of principal, interest, or principal and interest incurred in 
        connection with debt securities issued by the Fund in support 
        of the financial assistance provided by the Fund pursuant to 
        section 108.
            ``(2) Maximum amount limitations.--The total amount of 
        principal of debt securities for which guarantees may be issued 
        under paragraph (1) shall not exceed the following amount with 
        respect to each of the following fiscal years:
  
                                                                Maximum
          ``Fiscal year:
                                                                amount:
                1996.................................    $2,000,000,000
                1997.................................    $2,000,000,000
                1998.................................   $2,000,000,000.
            ``(3) Maximum term to maturity limitation.--No guarantee 
        issued under this subsection may be effective for a period 
        exceeding 20 years.
            ``(4) Full faith and credit.--Guarantees issued under this 
        section shall constitute obligations, in accordance with the 
        terms of such guarantees, of the United States of America and 
        the full faith and credit of the United States of America is 
        hereby pledged for the full payment and performance of such 
        obligations.
            ``(5) Provisions relating to budget act requirement.--
                    ``(A) Credit authority.--Guarantees may be issued 
                under this subsection for any fiscal year only to such 
                extent and in such amounts as are provided in advance 
                in appropriation Acts.
                    ``(B) Budget authority to cover cost.--Guarantees 
                may be issued under this subsection for any fiscal year 
                only to the extent that appropriations of budget 
                authority to cover the costs (as defined in section 
                502(5) of the Congressional Budget Act of 1974) of such 
                guarantees are made in advance.''.
    (b) Exception to Prohibition on Issuance of Debt Securities for 
Guaranteed Securities.--Subsection (h) of section 104 of the Community 
Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 
4703(h)) is amended to read as follows:
    ``(h) Prohibition on Issuance of Securities.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Fund may not issue stocks, bonds, debentures, notes or other 
        securities.
            ``(2) Exception for guaranteed debt instruments.--Paragraph 
        (1) shall not apply with respect to any debt instrument issued 
        by the Fund--
                    ``(A) for which a guarantee has been issued by the 
                Secretary of the Treasury in accordance with subsection 
                (i) so long as such guarantee remains in effect for 
                such debt instrument; and
                    ``(B) the period to maturity of which does not 
                exceed the effective period of such guarantee.''.
    (c) Limitation on Uses of Proceeds of Guaranteed Debt Securities.--
Section 108(a) of the Community Development Banking and Financial 
Institutions Act of 1994 (12 U.S.C. 4707(a)) is amended by adding at 
the end the following new paragraph:
            ``(5) Limitation on uses of proceeds of guaranteed debt 
        securities.--In the case of any debt security issued by the 
        Fund for which a guarantee has been issued by the Secretary of 
        the Treasury under section 104(i), the proceeds from the 
        issuance of such security may not be used by the Fund to 
        provide financial assistance under this section, including 
        equity investment, with respect to any community development 
        financial institution which has total assets of more than 
        $50,000,000.''.
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