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Union Calendar No. 169 

113TH CONGRESS 

1ST SESSION H. R. 992 

[Report No. 113–229, Parts I and II] 

To amend provisions in section 716 of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act relating to Federal assistance for swaps entities. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 6, 2013 

Mr. HULTGREN (for himself, Mr. HIMES, Mr. HUDSON, and Mr. SEAN PATRICK MALONEY of New York) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the 

Committee on Agriculture, 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 

SEPTEMBER 25, 2013 

Additional sponsors: Mr. DAVID SCOTT of Georgia, Mr. CONAWAY, Mr. 

GARRETT, Mr. BACHUS, and Mr. SCHNEIDER

SEPTEMBER 25, 2013 

Reported from the Committee on Financial Services 

SEPTEMBER 25, 2013 

Reported from the Committee on Agriculture; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 


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A BILL 

To amend provisions in section 716 of the Dodd-Frank Wall 

Street Reform and Consumer Protection Act relating 

to Federal assistance for swaps entities. 


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•HR 992 RH

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 ‘‘Swaps Regulatory Im5 provement Act’’. 

6 SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY AS7 SISTANCE. 

8 Section 716 of the Dodd-Frank Wall Street Reform 

9 and Consumer Protection Act (15 U.S.C. 8305) is amend10 ed— 

11 (1) in subsection (b)— 

12 (A) in paragraph (2)(B), by striking ‘‘in13 sured depository institution’’ and inserting 

14 ‘‘covered depository institution’’; and 

15 (B) by adding at the end the following: 

16 ‘‘(3) COVERED DEPOSITORY INSTITUTION.— 

17 The term ‘covered depository institution’ means— 

18 ‘‘(A) an insured depository institution, as 

19 that term is defined in section 3 of the Federal 

20 Deposit Insurance Act (12 U.S.C. 1813); and 

21 ‘‘(B) a United States uninsured branch or 

22 agency of a foreign bank.’’; 

23 (2) in subsection (c)— 

24 (A) in the heading for such subsection, by 

25 striking ‘‘INSURED’’ and inserting ‘‘COVERED’’; 


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1 (B) by striking ‘‘an insured’’ and inserting 

2 ‘‘a covered’’; 

3 (C) by striking ‘‘such insured’’ and insert4 ing ‘‘such covered’’; and 

5 (D) by striking ‘‘or savings and loan hold6 ing company’’ and inserting ‘‘savings and loan 

7 holding company, or foreign banking organiza8 tion (as such term is defined under Regulation 

9 K of the Board of Governors of the Federal Re10 serve System (12 C.F.R. 211.21(o)))’’; 

11 (3) by amending subsection (d) to read as fol12 lows: 

13 ‘‘(d) ONLY BONA FIDE HEDGING AND TRADITIONAL

14 BANK ACTIVITIES PERMITTED.— 

15 ‘‘(1) IN GENERAL.—The prohibition in sub16 section (a) shall not apply to any covered depository 

17 institution that limits its swap and security-based 

18 swap activities to the following: 

19 ‘‘(A) HEDGING AND OTHER SIMILAR RISK

20 MITIGATION ACTIVITIES.—Hedging and other 

21 similar risk mitigating activities directly related 

22 to the covered depository institution’s activities. 

23 ‘‘(B) NON-STRUCTURED FINANCE SWAP

24 ACTIVITIES.—Acting as a swaps entity for 


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1 swaps or security-based swaps other than a 

2 structured finance swap. 

3 ‘‘(C) CERTAIN STRUCTURED FINANCE

4 SWAP ACTIVITIES.—Acting as a swaps entity for 

5 swaps or security-based swaps that are struc6 tured finance swaps, if— 

7 ‘‘(i) such structured finance swaps are 

8 undertaken for hedging or risk manage9 ment purposes; or 

10 ‘‘(ii) each asset-backed security under11 lying such structured finance swaps is of a 

12 credit quality and of a type or category 

13 with respect to which the prudential regu14 lators have jointly adopted rules author15 izing swap or security-based swap activity 

16 by covered depository institutions. 

17 ‘‘(2) DEFINITIONS.—For purposes of this sub18 section: 

19 ‘‘(A) STRUCTURED FINANCE SWAP.—The 

20 term ‘structured finance swap’ means a swap or 

21 security-based swap based on an asset-backed 

22 security (or group or index primarily comprised 

23 of asset-backed securities). 

24 ‘‘(B) ASSET-BACKED SECURITY.—The 

25 term ‘asset-backed security’ has the meaning 


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1 given such term under section 3(a) of the Secu2 rities Exchange Act of 1934 (15 U.S.C. 

3 78c(a)).’’; 

4 (4) in subsection (e), by striking ‘‘an insured’’ 

5 and inserting ‘‘a covered’’; and 

6 (5) in subsection (f)— 

7 (A) by striking ‘‘an insured depository’’ 

8 and inserting ‘‘a covered depository’’; and 

9 (B) by striking ‘‘the insured depository’’ 

10 each place such term appears and inserting 

11 ‘‘the covered depository’’. 


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Union Calendar No. 169 

113TH CONGRESS 

1ST SESSION H. R. 992 

[Report No. 113–229, Parts I and II] 

A BILL 

To amend provisions in section 716 of the Doddentities. tion Act relating to Federal assistance for swaps Frank Wall Street Reform and Consumer ProtecSEPTEMBER 25, 2013 

Reported from the Committee on Financial Services 

SEPTEMBER 25, 2013 

Reported from the Committee on Agriculture; committed 

the Union and ordered to be printed to the Committee of the Whole House on the State of 


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