[Congressional Record (Bound Edition), Volume 157 (2011), Part 5]
[Senate]
[Page 7457]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         SUBMITTED RESOLUTIONS

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     SENATE RESOLUTION 188--OPPOSING STATE BAILOUTS BY THE FEDERAL 
                               GOVERNMENT

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

                              S. Res. 188

       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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