[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1225 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1225

   To prohibit Fannie Mae and Freddie Mac from issuing any new debt 
     without approval in advance by the Secretary of the Treasury.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2011

 Mr. Pearce (for himself, Mr. Garrett, Mr. Bachus, and Mr. Hensarling) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
   To prohibit Fannie Mae and Freddie Mac from issuing any new debt 
     without approval in advance by the Secretary of the Treasury.

    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 ``GSE Debt Issuance Approval Act of 
2011''.

SEC. 2. PROHIBITION OF ISSUANCE OF NEW DEBT BY ENTERPRISES WITHOUT 
              ADVANCE APPROVAL BY TREASURY.

    Subtitle B of title XIII of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4611 et seq.) is amended by adding at the end 
the following new section:

``SEC. 1369F. REQUIREMENTS FOR ISSUANCE OF NEW DEBT.

    ``(a) Requirement for Advance Approval by Treasury.--An enterprise 
shall not, after the date of the enactment of the GSE Debt Issuance 
Approval Act of 2011, newly issue any note, bill, bond, debenture, or 
any other debt security, obligation, or instrument of any form or in 
any amount unless the issuance of such debt security, obligation, or 
instrument was approved in advance in accordance with this section by 
the Secretary of the Treasury (in this section referred to as the 
`Secretary').
    ``(b) Written Request.--The Secretary may not approve the issuance 
of any debt security, obligation, or instrument under this section by 
an enterprise unless the enterprise has submitted to the Secretary of 
the Treasury and to the Director, in such form as the Secretary shall 
require, a written request identifying and describing the debt 
securities, obligations, and instruments proposed to be issued, 
including the par values, terms to maturity, interest rates, forms, 
timing of issuance, and all other terms regarding issuance of such 
securities, obligations, and instruments.
    ``(c) Determination and Justification.--Upon receiving a written 
request pursuant to subsection (b) for approval of the issuance of debt 
by an enterprise, the Secretary shall promptly review the request, make 
a determination of whether to approve or deny the request, taking into 
consideration any information or comments of the Director regarding 
such request, and submit to the enterprise, the Congress, and the 
Director written notice of approval or denial of the request, which 
shall include an explanation and justification for the approval or 
denial of the issuance of the new debt.
    ``(d) Conditional Approval.--In approving a request under this 
section by an enterprise to issue any debt security, obligation, or 
instrument, the Secretary may, in the written notice of approval of 
such request pursuant to subsection (c), limit or change the terms of 
the issuance of the debt securities, obligations, or instruments 
approved for issuance from the terms of the proposed issuance of 
securities, obligations, or instruments described in the request for 
such approval submitted by the enterprise pursuant to subsection (b).
    ``(e) Effective Date.--Notwithstanding approval under this section 
of the issuance of debt by an enterprise or submission of the notice of 
such approval as required under subsection (c), the enterprise may not 
issue any debt security, obligation, or instrument pursuant to such 
approval before the expiration of the 7-day period beginning upon 
submission of such notice of approval to the Congress.''.
                                 <all>