IB 

Union Calendar No. 310 

114TH CONGRESS 

2D SESSION H. R. 2209 

[Report No. 114–407] 

To require the appropriate Federal banking agencies to treat certain 

municipal obligations as level 2A liquid assets, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 1, 2015 

Mr. MESSER (for himself, Mr. KING of New York, Ms. SEWELL of Alabama, 

Mr. STIVERS, Mr. HULTGREN, Mrs. CAROLYN B. MALONEY of New York, 

Mr. CAPUANO, Mr. CLEAVER, Ms. MOORE, and Mr. NEUGEBAUER) introduced the following bill; which was referred to the Committee on Financial Services 

FEBRUARY 1, 2016 

Additional sponsors: Ms. SINEMA, Mr. VEASEY, Mr. POLIQUIN, Ms. NORTON, 

Mr. MEEKS, Mr. ISRAEL, Mr. VARGAS, Mr. PITTENGER, Mr. SHERMAN, 

Mr. BARR, Mr. ROSS, Mr. BROOKS of Alabama, Ms. KELLY of Illinois, 

Mr. HUDSON, Mrs. ELLMERS of North Carolina, Mr. SMITH of Texas, 

Mr. ROUZER, Mr. KIND, Mr. LATTA, and Mr. KILDEE

FEBRUARY 1, 2016 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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•HR 2209 RH

A BILL 

To require the appropriate Federal banking agencies to treat 

certain municipal obligations as level 2A liquid assets, 

and for other purposes. 


tkelley on DSK3SPTVN1PROD with BILLS
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•HR 2209 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. TREATMENT OF CERTAIN MUNICIPAL OBLIGA4 TIONS. 

5 (a) IN GENERAL.—Section 18 of the Federal Deposit 

6 Insurance Act (12 U.S.C. 1828) is amended— 

7 (1) by moving subsection (z) so that it appears 

8 after subsection (y); and 

9 (2) by adding at the end the following: 

10 ‘‘(aa) TREATMENT OF CERTAIN MUNICIPAL OBLIGA11 TIONS.— 

12 ‘‘(1) IN GENERAL.—For purposes of the final 

13 rule titled ‘Liquidity Coverage Ratio: Liquidity Risk 

14 Measurement Standards; Final Rule’ (79 Fed. Reg. 

15 61439; published October 10, 2014) (the ‘Final 

16 Rule’) and any other regulation which incorporates 

17 a definition of the term ‘high-quality liquid asset’, 

18 the appropriate Federal banking agencies shall treat 

19 a municipal obligation that is both liquid and readily 

20 marketable (as defined in the Final Rule) and in21 vestment grade as of the calculation date as a high22 quality liquid asset that is a level 2A liquid asset. 

23 ‘‘(2) DEFINITIONS.—For purposes of this sub24 section: 


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•HR 2209 RH

1 ‘‘(A) INVESTMENT GRADE.—With respect 

2 to an obligation, the term ‘investment grade’ 

3 has the meaning given that term under part 1 

4 of title 12, Code of Federal Regulations. 

5 ‘‘(B) MUNICIPAL OBLIGATION.—The term 

6 ‘municipal obligation’ means an obligation of a 

7 State or any political subdivision thereof, or any 

8 agency or instrumentality of a State or any po9 litical subdivision thereof.’’. 

10 (b) AMENDMENT TO LIQUIDITY COVERAGE RATIO

11 REGULATIONS.—Not later than the end of the 3-month 

12 period beginning on the date of the enactment of this Act, 

13 the Federal Deposit Insurance Corporation, the Board of 

14 Governors of the Federal Reserve System, and the Comp15 troller of the Currency shall amend the final rule titled 

16 ‘‘Liquidity Coverage Ratio: Liquidity Risk Measurement 

17 Standards; Final Rule’’ (79 Fed. Reg. 61439; published 

18 October 10, 2014) to implement the amendments made 

19 by this Act. 


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Union Calendar No. 310 

114TH CONGRESS 

2D SESSION H. R. 2209 

[Report No. 114–407] 

A BILL 

To require the appropriate Federal banking agen2A liquid assets, and for other purposes. cies to treat certain municipal obligations as level 

FEBRUARY 1, 2016 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


tkelley on DSK3SPTVN1PROD with BILLS