I 

115TH CONGRESS 

1ST SESSION H. R. 4302 

To amend the Federal Reserve Act to create congressional accountability 

for emergency lending programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 8, 2017 

Mr. TIPTON introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committee on Rules, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Federal Reserve Act to create congressional 

accountability for emergency lending programs, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Congressional Ac5 countability for Emergency Lending Programs Act of 

6 2017’’. 


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1 SEC. 2. CONGRESSIONAL ACCOUNTABILITY FOR EMER2 GENCY LENDING PROGRAMS. 

3 Section 13(3) of the Federal Reserve Act (12 U.S.C. 

4 343(3)) is amended— 

5 (1) in subparagraph (A)— 

6 (A) by inserting ‘‘that pose a threat to the 

7 financial stability of the United States’’ after 

8 ‘‘unusual and exigent circumstances’’; and 

9 (B) by striking ‘‘the affirmative vote of not 

10 less than five members’’ and inserting ‘‘the 

11 prior approval of the Secretary of the Treasury 

and not less than 2 12 ⁄3 of the members of the 

13 Federal Open Market Committee’’; 

14 (2) in subparagraph (B)— 

15 (A) in clause (i), by inserting at the end 

16 the following: ‘‘Federal reserve banks may not 

17 accept equity securities issued by the recipient 

18 of any loan or other financial assistance under 

19 this paragraph as collateral. Not later than 6 

20 months after the date of the enactment of this 

21 sentence, the Board shall, by rule, establish— 

22 ‘‘(I) a method for determining 

23 the sufficiency of the collateral re24 quired under this paragraph; 

25 ‘‘(II) acceptable classes of collat26 eral; 


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1 ‘‘(III) the amount of any dis2 count on the value of the collateral 

3 that the Federal reserve banks will 

4 apply for purposes of calculating the 

5 sufficiency of collateral under this 

6 paragraph; and 

7 ‘‘(IV) a method for obtaining 

8 independent appraisals of the value of 

9 collateral the Federal reserve banks 

10 receive.’’; 

11 (B) in clause (ii)— 

12 (i) by striking the second sentence; 

13 and 

14 (ii) by inserting after the first sen15 tence the following: ‘‘A borrower shall not 

16 be eligible to borrow from any emergency 

17 lending program or facility unless the 

18 Board and all Federal banking regulators 

19 with jurisdiction over the borrower certify 

20 that, at the time the borrower initially bor21 rows under the program or facility, the 

22 borrower is not insolvent.’’; and 

23 (C) by striking clause (iv); 

24 (3) by inserting ‘‘financial institution’’ before 

25 ‘‘participant’’ each place such term appears; 


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1 (4) in subparagraph (D)(i), by inserting ‘‘finan2 cial institution’’ before ‘‘participants’’; and 

3 (5) by adding at the end the following new sub4 paragraphs: 

5 ‘‘(G) JOINT RESOLUTION OF APPROVAL.— 

6 ‘‘(i) IN GENERAL.—A program or fa7 cility created under subparagraph (A) shall 

8 terminate on the date that is 30 calendar 

9 days after the date on which Congress re10 ceives a report described in subparagraph 

11 (C) unless there is enacted into law a joint 

12 resolution approving the program or facil13 ity not later than 30 calendar days after 

14 the date on which the report is received. 

15 Any loan offered through the program or 

16 facility that is outstanding as of the date 

17 on which the program or facility is termi18 nated shall be repaid in full not later than 

19 30 calendar days after the date on which 

20 the program or facility is terminated. 

21 ‘‘(ii) CONTENTS OF JOINT RESOLU22 TION.—For the purpose of this subpara23 graph, the term ‘joint resolution’ means 

24 only a joint resolution— 


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1 ‘‘(I) that is introduced not later 

2 than 3 calendar days after the date on 

3 which the report described in subpara4 graph (C) is received by Congress; 

5 ‘‘(II) that does not have a pre6 amble; 

7 ‘‘(III) the title of which is as fol8 lows: ‘Joint resolution relating to the 

9 approval of a program or facility cre10 ated by the Board of Governors of the 

11 Federal Reserve System’; and 

12 ‘‘(IV) the matter after the resolv13 ing clause of which is as follows: 

14 ‘That Congress approves the program 

15 or facility created by the Board of 

16 Governors of the Federal Reserve Sys17 tem on llllllllll.’ (The 

18 blank space being appropriately filled 

19 in). 

20 ‘‘(iii) FAST TRACK CONSIDERATION IN

21 HOUSE OF REPRESENTATIVES.— 

22 ‘‘(I) RECONVENING.—Upon re23 ceipt of a report under subparagraph 

24 (C), the Speaker, if the House would 

25 otherwise be adjourned, shall notify 


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1 the Members of the House that, pur2 suant to this subparagraph, the 

3 House shall convene not later than 

4 the second calendar day after receipt 

5 of such report. 

6 ‘‘(II) REPORTING AND DIS7 CHARGE.—Any committee of the 

8 House of Representatives to which a 

9 joint resolution is referred shall report 

10 it to the House not later than 5 cal11 endar days after the date of receipt of 

12 the report described in subparagraph 

13 (C). If a committee fails to report the 

14 joint resolution within that period, the 

15 committee shall be discharged from 

16 further consideration of the joint reso17 lution and the joint resolution shall be 

18 referred to the appropriate calendar. 

19 ‘‘(III) PROCEEDING TO CONSID20 ERATION.—After each committee au21 thorized to consider a joint resolution 

22 reports it to the House or has been 

23 discharged from its consideration, it 

24 shall be in order, not later than the 

25 sixth day after Congress receives the 


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1 report described in subparagraph (C), 

2 to move to proceed to consider the 

3 joint resolution in the House. All 

4 points of order against the motion are 

5 waived. Such a motion shall not be in 

6 order after the House has disposed of 

7 a motion to proceed on the joint reso8 lution. The previous question shall be 

9 considered as ordered on the motion 

10 to its adoption without intervening 

11 motion. The motion shall not be de12 batable. A motion to reconsider the 

13 vote by which the motion is disposed 

14 of shall not be in order. 

15 ‘‘(IV) CONSIDERATION.—The 

16 joint resolution shall be considered as 

17 read. All points of order against the 

18 joint resolution and against its consid19 eration are waived. The previous ques20 tion shall be considered as ordered on 

21 the joint resolution to its passage 

22 without intervening motion except 2 

23 hours of debate equally divided and 

24 controlled by the proponent and an 

25 opponent. A motion to reconsider the 


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1 vote on passage of the joint resolution 

2 shall not be in order. 

3 ‘‘(iv) FAST TRACK CONSIDERATION IN

4 SENATE.— 

5 ‘‘(I) RECONVENING.—Upon re6 ceipt of a report under subparagraph 

7 (C), if the Senate has adjourned or 

8 recessed for more than 2 days, the 

9 majority leader of the Senate, after 

10 consultation with the minority leader 

11 of the Senate, shall notify the Mem12 bers of the Senate that, pursuant to 

13 this subparagraph, the Senate shall 

14 convene not later than the second cal15 endar day after receipt of such report. 

16 ‘‘(II) PLACEMENT ON CAL17 ENDAR.—Upon introduction in the 

18 Senate, the joint resolution shall be 

19 placed immediately on the calendar. 

20 ‘‘(III) FLOOR CONSIDERATION.— 

21 ‘‘(aa) IN GENERAL.—Not22 withstanding Rule XXII of the 

23 Standing Rules of the Senate, it 

24 is in order at any time during the 

25 period beginning on the fourth 


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1 day after the date on which Con2 gress receives a report described 

3 in subparagraph (C) and ending 

4 on the sixth day after the date on 

5 which Congress receives the re6 port (even though a previous mo7 tion to the same effect has been 

8 disagreed to) to move to proceed 

9 to the consideration of the joint 

10 resolution, and all points of order 

11 against the joint resolution (and 

12 against consideration of the joint 

13 resolution) are waived. The mo14 tion to proceed is not debatable. 

15 The motion is not subject to a 

16 motion to postpone. A motion to 

17 reconsider the vote by which the 

18 motion is agreed to or disagreed 

19 to shall not be in order. If a mo20 tion to proceed to the consider21 ation of the resolution is agreed 

22 to, the joint resolution shall re23 main the unfinished business 

24 until disposed of. 


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1 ‘‘(bb) DEBATE.—Debate on 

2 the joint resolution, and on all 

3 debatable motions and appeals in 

4 connection therewith, shall be 

5 limited to not more than 10 

6 hours, which shall be divided 

7 equally between the majority and 

8 minority leaders or their des9 ignees. A motion further to limit 

10 debate is in order and not debat11 able. An amendment to, or a mo12 tion to postpone, or a motion to 

13 proceed to the consideration of 

14 other business, or a motion to re15 commit the joint resolution is not 

16 in order. 

17 ‘‘(cc) VOTE ON PASSAGE.— 

18 The vote on passage shall occur 

19 immediately following the conclu20 sion of the debate on a joint reso21 lution, and a single quorum call 

22 at the conclusion of the debate if 

23 requested in accordance with the 

24 rules of the Senate. 


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1 ‘‘(dd) RULINGS OF THE

2 CHAIR ON PROCEDURE.—Appeals 

3 from the decisions of the Chair 

4 relating to the application of the 

5 rules of the Senate, as the case 

6 may be, to the procedure relating 

7 to a joint resolution shall be de8 cided without debate. 

9 ‘‘(v) COORDINATION WITH ACTION BY

10 OTHER HOUSE.— 

11 ‘‘(I) IN GENERAL.—If, before the 

12 passage by one House of a joint reso13 lution of that House, that House re14 ceives from the other House a joint 

15 resolution, then the following proce16 dures shall apply: 

17 ‘‘(aa) The joint resolution of 

18 the other House shall not be re19 ferred to a committee. 

20 ‘‘(bb) With respect to a joint 

21 resolution of the House receiving 

22 the resolution— 

23 ‘‘(AA) the procedure in 

24 that House shall be the 

25 same as if no joint resoluVerDate Sep 11 2014 19:51 Nov 13, 2017 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4302.IH H4302

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1 tion had been received from 

2 the other House; but 

3 ‘‘(BB) the vote on pas4 sage shall be on the joint 

5 resolution of the other 

6 House. 

7 ‘‘(II) TREATMENT OF JOINT RES8 OLUTION OF OTHER HOUSE.—If one 

9 House fails to introduce or consider a 

10 joint resolution under this section, the 

11 joint resolution of the other House 

12 shall be entitled to expedited floor 

13 procedures under this section. 

14 ‘‘(III) CONSIDERATION AFTER

15 PASSAGE.—If, following passage of 

16 the joint resolution in the Senate, the 

17 Senate then receives the companion 

18 measure from the House of Rep19 resentatives, the companion measure 

20 shall not be debatable. 

21 ‘‘(IV) VETOES.—If the President 

22 vetoes the joint resolution, the period 

23 beginning on the date the President 

24 vetoes the joint resolution and ending 

25 on the date the Congress receives the 


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1 veto message with respect to the joint 

2 resolution shall be disregarded in com3 puting the 30-calendar day period de4 scribed in clause (i) and debate on a 

5 veto message in the Senate under this 

6 section shall be 1 hour equally divided 

7 between the majority and minority 

8 leaders or their designees. 

9 ‘‘(V) RULES OF HOUSE OF REP10 RESENTATIVES AND SENATE.—This 

11 subparagraph is enacted by Con12 gress— 

13 ‘‘(aa) as an exercise of the 

14 rulemaking power of the Senate 

15 and House of Representatives, 

16 respectively, and as such it is 

17 deemed a part of the rules of 

18 each House, respectively, but ap19 plicable only with respect to the 

20 procedure to be followed in that 

21 House in the case of a joint reso22 lution, and it supersedes other 

23 rules only to the extent that it is 

24 inconsistent with such rules; and 


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1 ‘‘(bb) with full recognition of 

2 the constitutional right of either 

3 House to change the rules (so far 

4 as relating to the procedure of 

5 that House) at any time, in the 

6 same manner, and to the same 

7 extent as in the case of any other 

8 rule of that House. 

9 ‘‘(H) PENALTY RATE.— 

10 ‘‘(i) IN GENERAL.—Not later than 6 

11 months after the date of enactment of this 

12 subparagraph, the Board shall, with re13 spect to a recipient of any loan or other fi14 nancial assistance under this paragraph, 

15 establish by rule a minimum interest rate 

16 on the principal amount of any loan or 

17 other financial assistance. 

18 ‘‘(ii) MINIMUM INTEREST RATE DE19 FINED.—In this subparagraph, the term 

20 ‘minimum interest rate’ shall mean the 

21 sum of— 

22 ‘‘(I) the average of the secondary 

23 discount rate of all Federal reserve 

24 banks over the most recent 90-day pe25 riod; and 


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1 ‘‘(II) the average of the dif2 ference between a distressed corporate 

3 bond yield index (as defined by rule of 

4 the Board) and a bond yield index of 

5 debt issued by the United States (as 

6 defined by rule of the Board) over the 

7 most recent 90-day period. 

8 ‘‘(I) FINANCIAL INSTITUTION PARTICIPANT

9 DEFINED.—For purposes of this paragraph, the 

10 term ‘financial institution participant’— 

11 ‘‘(i) means a company that is pre12 dominantly engaged in financial activities 

13 (as defined in section 102(a) of the Finan14 cial Stability Act of 2010 (12 U.S.C. 

15 5311(a))); and 

16 ‘‘(ii) does not include an agency de17 scribed in subparagraph (W) of section 

18 5312(a)(2) of title 31, United States Code, 

19 or an entity controlled or sponsored by 

20 such an agency.’’. 

Æ 


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