[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 188 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
S. RES. 188

           Opposing State bailouts by the Federal Government.


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                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2011

Mr. Kirk submitted the following resolution; which was referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                               RESOLUTION


 
           Opposing State bailouts by the Federal Government.

Whereas each State of the Union is a sovereign entity with a constitution and 
        authority to issue sovereign debt;
Whereas the legislature of each State of the Union has the authority to reduce 
        spending or raise taxes to pay the obligations to which the State has 
        committed itself;
Whereas the officials of each State of the Union have the legal obligation to 
        fully disclose the financial condition of the State to investors who 
        purchase the debt of such State;
Whereas Congress has rejected prior requests from State creditors for payment of 
        defaulted State debt; and
Whereas during the financial crisis in 1842, the Senate requested that the 
        Secretary of State report any negotiations with State creditors to 
        assume or guaranty State debts, to ensure that no promises of Federal 
        Government support were proffered: Now, therefore, be it
    Resolved, That--
            (1) the Federal Government should take no action to redeem, 
        assume, or guarantee State debt; and
            (2) the Secretary of the Treasury should report to Congress 
        negotiations to engage in actions that would result in an 
        outlay of Federal funds on behalf of creditors to a State.
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