IIB 

113TH CONGRESS 

1ST SESSION H. R. 992 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 31, 2013 

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

Urban Affairs 

AN ACT 

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

Street Reform and Consumer Protection Act relating 

to Federal assistance for swaps entities. 

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


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HR 992 RFS 

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Swaps Regulatory Im3 provement Act’’. 

4 SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY AS5 SISTANCE. 

6 Section 716 of the Dodd-Frank Wall Street Reform 

7 and Consumer Protection Act (15 U.S.C. 8305) is amend8 ed— 

9 (1) in subsection (b)— 

10 (A) in paragraph (2)(B), by striking ‘‘in11 sured depository institution’’ and inserting 

12 ‘‘covered depository institution’’; and 

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

14 ‘‘(3) COVERED DEPOSITORY INSTITUTION.— 

15 The term ‘covered depository institution’ means— 

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

17 that term is defined in section 3 of the Federal 

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

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

20 agency of a foreign bank.’’; 

21 (2) in subsection (c)— 

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

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

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

25 ‘‘a covered’’; 


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HR 992 RFS 

1 (C) by striking ‘‘such insured’’ and insert2 ing ‘‘such covered’’; and 

3 (D) by striking ‘‘or savings and loan hold4 ing company’’ and inserting ‘‘savings and loan 

5 holding company, or foreign banking organiza6 tion (as such term is defined under Regulation 

7 K of the Board of Governors of the Federal Re8 serve System (12 C.F.R. 211.21(o)))’’; 

9 (3) by amending subsection (d) to read as fol10 lows: 

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

12 BANK ACTIVITIES PERMITTED.— 

13 ‘‘(1) IN GENERAL.—The prohibition in sub14 section (a) shall not apply to any covered depository 

15 institution that limits its swap and security-based 

16 swap activities to the following: 

17 ‘‘(A) HEDGING AND OTHER SIMILAR RISK

18 MITIGATION ACTIVITIES.—Hedging and other 

19 similar risk mitigating activities directly related 

20 to the covered depository institution’s activities. 

21 ‘‘(B) NON-STRUCTURED FINANCE SWAP

22 ACTIVITIES.—Acting as a swaps entity for 

23 swaps or security-based swaps other than a 

24 structured finance swap. 


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HR 992 RFS 

1 ‘‘(C) CERTAIN STRUCTURED FINANCE

2 SWAP ACTIVITIES.—Acting as a swaps entity for 

3 swaps or security-based swaps that are struc4 tured finance swaps, if— 

5 ‘‘(i) such structured finance swaps are 

6 undertaken for hedging or risk manage7 ment purposes; or 

8 ‘‘(ii) each asset-backed security under9 lying such structured finance swaps is of a 

10 credit quality and of a type or category 

11 with respect to which the prudential regu12 lators have jointly adopted rules author13 izing swap or security-based swap activity 

14 by covered depository institutions. 

15 ‘‘(2) DEFINITIONS.—For purposes of this sub16 section: 

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

18 term ‘structured finance swap’ means a swap or 

19 security-based swap based on an asset-backed 

20 security (or group or index primarily comprised 

21 of asset-backed securities). 

22 ‘‘(B) ASSET-BACKED SECURITY.—The 

23 term ‘asset-backed security’ has the meaning 

24 given such term under section 3(a) of the SecuVerDate Mar 15 2010 23:57 Oct 31, 2013 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H992.RFS H992

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HR 992 RFS 

1 rities Exchange Act of 1934 (15 U.S.C. 

2 78c(a)).’’; 

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

4 and inserting ‘‘a covered’’; and 

5 (5) in subsection (f)— 

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

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

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

9 each place such term appears and inserting 

10 ‘‘the covered depository’’. 

Passed the House of Representatives October 30, 

2013. 

Attest: KAREN L. HAAS, 

Clerk. 


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