113TH CONGRESS 

2D SESSION H. R. 4167 

AN ACT 

To amend section 13 of the Bank Holding Company Act 

of 1956, known as the Volcker Rule, to exclude certain 

debt securities of collateralized loan obligations from the 

prohibition against acquiring or retaining an ownership 

interest in a hedge fund or private equity fund. 
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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 ‘‘Restoring Proven Fi5 nancing for American Employers Act’’. 

6 SEC. 2. RULES OF CONSTRUCTION RELATING TO 

7 COLLATERALIZED LOAN OBLIGATIONS. 

8 Section 13(g) of the Bank Holding Company Act of 

9 1956 (12 U.S.C. 1851(g)) is amended by adding at the 

10 end the following new paragraphs: 

11 ‘‘(4) COLLATERALIZED LOAN OBLIGATIONS.— 

12 ‘‘(A) INAPPLICABILITY TO CERTAIN

13 COLLATERALIZED LOAN OBLIGATIONS.—Noth14 ing in this section shall be construed to require 

15 the divestiture, prior to July 21, 2017, of any 

16 debt securities of collateralized loan obligations, 

17 if such debt securities were issued before Janu18 ary 31, 2014. 

19 ‘‘(B) OWNERSHIP INTEREST WITH RE20 SPECT TO COLLATERALIZED LOAN OBLIGA21 TIONS.—A banking entity shall not be consid22 ered to have an ownership interest in a 

23 collateralized loan obligation because it ac24 quires, has acquired, or retains a debt security 

25 in such collateralized loan obligation if the debt 
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1 security has no indicia of ownership other than 

2 the right of the banking entity to participate in 

3 the removal for cause, or in the selection of a 

4 replacement after removal for cause or resigna5 tion, of an investment manager or investment 

6 adviser of the collateralized loan obligation. 

7 ‘‘(C) DEFINITIONS.—For purposes of this 

8 paragraph: 

9 ‘‘(i) COLLATERALIZED LOAN OBLIGA10 TION.—The term ‘collateralized loan obli11 gation’ means any issuing entity of an 

12 asset-backed security, as defined in section 

13 3(a)(77) of the Securities Exchange Act of 

14 1934 (15 U.S.C. 78c(a)(77)), that is com15 prised primarily of commercial loans. 

16 ‘‘(ii) REMOVAL FOR CAUSE.—An in17 vestment manager or investment adviser 

18 shall be deemed to be removed ‘for cause’ 

19 if the investment manager or investment 

20 adviser is removed as a result of— 

21 ‘‘(I) a breach of a material term 

22 of the applicable management or advi23 sory agreement or the agreement gov24 erning the collateralized loan obliga25 tion; 
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1 ‘‘(II) the inability of the invest2 ment manager or investment adviser 

3 to continue to perform its obligations 

4 under any such agreement; 

5 ‘‘(III) any other action or inac6 tion by the investment manager or in7 vestment adviser that has or could 

8 reasonably be expected to have a ma9 terially adverse effect on the 

10 collateralized loan obligation, if the in11 vestment manager or investment ad12 viser fails to cure or take reasonable 

13 steps to cure such effect within a rea14 sonable time; or 

15 ‘‘(IV) a comparable event or cir16 cumstance that threatens, or could 

17 reasonably be expected to threaten, 

18 the interests of holders of the debt se19 curities.’’. 

Passed the House of Representatives April 29, 2014. 

Attest: 

Clerk. 

113TH CONGRESS 

2D SESSION H. R. 4167 

AN ACT 

To amend section 13 of the Bank Holding Comhedge fund or private equity fund. quiring or retaining an ownership interest in a loan obligations from the prohibition against ac- exclude certain debt securities of collateralized pany Act of 1956, known as the Volcker Rule, to