I 111th CONGRESS 1st Session H. R. 467 IN THE HOUSE OF REPRESENTATIVES January 13, 2009 Ms. Speier (for herself and Ms. Eshoo) introduced the following bill; which was referred to the Committee on Financial Services A BILL To put State and local governments and other public entity or instrumentality established under State law in the same position they would have been in had the Secretary of the Treasury and the Board of Governors of the Federal Reserve System provided emergency financial assistance to Lehman Brothers Holdings Inc. by requiring the Secretary of the Treasury to purchase bonds issued by such financial institution, and for other purposes.

1.

Short title

This Act may be cited as the Equitable Treatment of State and Local Governments Act of 2009.

2.

Purchase of certain bonds and other debt instruments from state and local governments and certain other public entities and instrumentalities required

Section 101 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211) is amended by adding at the end the following new subsection: (f)

Acquisition of lehman brothers bonds

(1)

In general

Notwithstanding any other provision of law, the Secretary shall purchase at face value, under subsection (a), bonds and other debt instruments issued by Lehman Brothers Holdings Inc. which— (A)were held as of September 15, 2008, by any State government, any political subdivision of any State, or other public entity or instrumentality established under State law (whether such bonds or other debt instruments are held individually or pooled); (B)have been held by such State, political subdivision, or other public entity or instrumentality continuously since such date; and (C)are subject to the proceedings under title 11, United States Code, pursuant to the petition filed on September 15, 2008, by Lehman Brothers Holdings Inc. (2)

Substitution of secretary

Notwithstanding any other provision of this title, the Secretary shall be substituted for any State government, any political subdivision of any State, or other public entity or instrumentality established under State law from which it purchases any bond or other instrument pursuant to paragraph (1) as a creditor in any proceeding under title 11, United States Code, pursuant to the petition filed on September 15, 2008, by Lehman Brothers Holdings Inc., and shall have the same standing in such proceedings with respect to other creditors as the government or subdivision for which the Secretary is substituted. .