I 

111TH CONGRESS 

1ST SESSION H. R. 467 

To put State and local governments and other public entity or instrumentality 

established under State law in the same position they would have been 

in had the Secretary of the Treasury and the Board of Governors 

of the Federal Reserve System provided emergency financial assistance 

to Lehman Brothers Holdings Inc. by requiring the Secretary of the 

Treasury to purchase bonds issued by such financial institution, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2009 

Ms. SPEIER (for herself and Ms. ESHOO) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To put State and local governments and other public entity 

or instrumentality established under State law in the 

same position they would have been in had the Secretary 

of the Treasury and the Board of Governors of the 

Federal Reserve System provided emergency financial assistance to Lehman Brothers Holdings Inc. by requiring 

the Secretary of the Treasury to purchase bonds issued 

by such financial institution, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Equitable Treatment 

3 of State and Local Governments Act of 2009’’. 

4 SEC. 2. PURCHASE OF CERTAIN BONDS AND OTHER DEBT 

5 INSTRUMENTS FROM STATE AND LOCAL GOV6 ERNMENTS AND CERTAIN OTHER PUBLIC EN7 TITIES AND INSTRUMENTALITIES REQUIRED. 

8 Section 101 of the Emergency Economic Stabilization 

9 Act of 2008 (12 U.S.C. 5211) is amended by adding at 

10 the end the following new subsection: 

11 ‘‘(f) ACQUISITION OF LEHMAN BROTHERS BONDS.— 

12 ‘‘(1) IN GENERAL.—Notwithstanding any other 

13 provision of law, the Secretary shall purchase at face 

14 value, under subsection (a), bonds and other debt in15 struments issued by Lehman Brothers Holdings Inc. 

16 which— 

17 ‘‘(A) were held as of September 15, 2008, 

18 by any State government, any political subdivi19 sion of any State, or other public entity or in20 strumentality established under State law 

21 (whether such bonds or other debt instruments 

22 are held individually or pooled); 

23 ‘‘(B) have been held by such State, polit24 ical subdivision, or other public entity or instru25 mentality continuously since such date; and 


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1 ‘‘(C) are subject to the proceedings under 

2 title 11, United States Code, pursuant to the 

3 petition filed on September 15, 2008, by Leh4 man Brothers Holdings Inc. 

5 ‘‘(2) SUBSTITUTION OF SECRETARY.—Notwith6 standing any other provision of this title, the Sec7 retary shall be substituted for any State government, 

8 any political subdivision of any State, or other public 

9 entity or instrumentality established under State law 

10 from which it purchases any bond or other instru11 ment pursuant to paragraph (1) as a creditor in any 

12 proceeding under title 11, United States Code, pur13 suant to the petition filed on September 15, 2008, 

14 by Lehman Brothers Holdings Inc., and shall have 

15 the same standing in such proceedings with respect 

16 to other creditors as the government or subdivision 

17 for which the Secretary is substituted.’’. 

Æ 


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