[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6659 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6659

    To amend the Federal Deposit Insurance Act to provide the same 
treatment for covered bonds as for other qualified financial contracts 
 to which a depository institution is a party when such institution is 
      in receivership or conservatorship, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2008

  Mr. Garrett of New Jersey introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Federal Deposit Insurance Act to provide the same 
treatment for covered bonds as for other qualified financial contracts 
 to which a depository institution is a party when such institution is 
      in receivership or conservatorship, 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 `` Equal Treatment of Covered Bonds 
Act of 2008''.

SEC. 2. COVERED BONDS TREATMENT.

    (a) In General.--Section 11(e)(8)(D)(i) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(8)(D)(i)) is amended by inserting 
``covered bond,'' after ``forward contract,''.
    (b) Definitions.--Section 11(e)(8)(D) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(8)(D)) is amended--
            (1) by redesignating clauses (vii), (viii), and (ix) as 
        clauses (viii), (ix), and (x), respectively; and
            (2) by inserting after clause (vi) the end the following 
        new clause:
                            ``(vii) Covered bond.--The term `covered 
                        bond' means a nondeposit recourse debt 
                        obligation of an insured depository 
                        institution, with a term to maturity of at 
                        least 1 year, which is secured by specifically 
                        identified assets which are performing in 
                        accordance with the terms of the contracts 
                        which created the assets.''.
    (c) Technical and Conforming Amendment.--Section 8(e)(3)(C) of the 
Federal Deposit Insurance Act (U.S.C. 1818(e)(3)(C)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iii) with respect to a covered bond, 
                        actual direct compensatory damages determined 
                        as of the date of the appointment of the 
                        conservator or receiver equal to the sum of--
                                    ``(I) the outstanding principal 
                                amount of the covered bond on that 
                                date;
                                    ``(II) all interest that had 
                                accrued on the covered bond through 
                                that date but that had not been paid;
                                    ``(III) the cost on that date of a 
                                guaranteed investment contract, deposit 
                                agreement, or other instrument that 
                                would provide for scheduled payments to 
                                be made on the covered bond until its 
                                originally scheduled maturity date; and
                                    ``(IV) the costs (including 
                                reasonable fees of attorneys) incurred 
                                through that date that arise from or 
                                relate to the exercise of any right, 
                                power, or remedy under the covered bond 
                                or a related transaction document.''.
    (d) Regulations.--No regulation of any Federal banking agency (as 
defined in section 3 of the Federal Deposit Insurance Act) shall be 
applicable with respect to any covered bond (as defined in the 
amendment made by subsection (b)(2)) unless the regulation or the 
application of such regulation to such bond, as the case may be, is 
prescribed jointly by the Secretary of the Treasury, the Board of 
Governors of the Federal Reserve System, the Comptroller of the 
Currency, the Director of the Office of Thrift Supervision, and the 
Board of Directors of the Federal Deposit Insurance Corporation.
                                 <all>