[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1624 Referred in Senate (RFS)]

<DOC>
115th CONGRESS
  1st Session
                                H. R. 1624


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2017

Received; read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 AN ACT


 
 To require the appropriate Federal banking agencies to treat certain 
municipal obligations as no lower than level 2B liquid assets, 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 ``Municipal Finance Support Act of 
2017''.

SEC. 2. TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS.

    (a) In General.--Section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828) is amended--
            (1) by moving subsection (z) so that it appears after 
        subsection (y); and
            (2) by adding at the end the following:
    ``(aa) Treatment of Certain Municipal Obligations.--
            ``(1) In general.--For purposes of the final rule titled 
        `Liquidity Coverage Ratio: Liquidity Risk Measurement 
        Standards; Final Rule' (79 Fed. Reg. 61439; published October 
        10, 2014) (the `Final Rule') and any other regulation which 
        incorporates a definition of the term `high-quality liquid 
        asset', the appropriate Federal banking agencies shall treat a 
        municipal obligation that is both liquid and readily marketable 
        (as defined in the Final Rule) and investment grade as of the 
        calculation date as a high-quality liquid asset that is no 
        lower than a level 2B liquid asset.
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) Investment grade.--With respect to an 
                obligation, the term `investment grade' has the meaning 
                given that term under part 1 of title 12, Code of 
                Federal Regulations.
                    ``(B) Municipal obligation.--The term `municipal 
                obligation' means an obligation of a State or any 
                political subdivision thereof, or any agency or 
                instrumentality of a State or any political subdivision 
                thereof.''.
    (b) Amendment to Liquidity Coverage Ratio Regulations.--Not later 
than the end of the 3-month period beginning on the date of the 
enactment of this Act, the Federal Deposit Insurance Corporation, the 
Board of Governors of the Federal Reserve System, and the Comptroller 
of the Currency shall amend the final rule titled ``Liquidity Coverage 
Ratio: Liquidity Risk Measurement Standards; Final Rule'' (79 Fed. Reg. 
61439; published October 10, 2014) to implement the amendments made by 
this Act.

            Passed the House of Representatives October 3, 2017.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.