[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4167 Referred in Senate (RFS)]
113th CONGRESS
2d Session
H. R. 4167
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 30, 2014
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To amend section 13 of the Bank Holding Company Act of 1956, known as
the Volcker Rule, to exclude certain debt securities of collateralized
loan obligations from the prohibition against acquiring or retaining an
ownership interest in a hedge fund or private equity fund.
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 ``Restoring Proven Financing for
American Employers Act''.
SEC. 2. RULES OF CONSTRUCTION RELATING TO COLLATERALIZED LOAN
OBLIGATIONS.
Section 13(g) of the Bank Holding Company Act of 1956 (12 U.S.C.
1851(g)) is amended by adding at the end the following new paragraphs:
``(4) Collateralized loan obligations.--
``(A) Inapplicability to certain collateralized
loan obligations.--Nothing in this section shall be
construed to require the divestiture, prior to July 21,
2017, of any debt securities of collateralized loan
obligations, if such debt securities were issued before
January 31, 2014.
``(B) Ownership interest with respect to
collateralized loan obligations.--A banking entity
shall not be considered to have an ownership interest
in a collateralized loan obligation because it
acquires, has acquired, or retains a debt security in
such collateralized loan obligation if the debt
security has no indicia of ownership other than the
right of the banking entity to participate in the
removal for cause, or in the selection of a replacement
after removal for cause or resignation, of an
investment manager or investment adviser of the
collateralized loan obligation.
``(C) Definitions.--For purposes of this paragraph:
``(i) Collateralized loan obligation.--The
term `collateralized loan obligation' means any
issuing entity of an asset-backed security, as
defined in section 3(a)(77) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(77)),
that is comprised primarily of commercial
loans.
``(ii) Removal for cause.--An investment
manager or investment adviser shall be deemed
to be removed `for cause' if the investment
manager or investment adviser is removed as a
result of--
``(I) a breach of a material term
of the applicable management or
advisory agreement or the agreement
governing the collateralized loan
obligation;
``(II) the inability of the
investment manager or investment
adviser to continue to perform its
obligations under any such agreement;
``(III) any other action or
inaction by the investment manager or
investment adviser that has or could
reasonably be expected to have a
materially adverse effect on the
collateralized loan obligation, if the
investment manager or investment
adviser fails to cure or take
reasonable steps to cure such effect
within a reasonable time; or
``(IV) a comparable event or
circumstance that threatens, or could
reasonably be expected to threaten, the
interests of holders of the debt
securities.''.
Passed the House of Representatives April 29, 2014.
Attest:
KAREN L. HAAS,
Clerk.