SECTION 1. SHORT TITLE; DEFINITIONS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Municipal Bond Marketing Support and 
Securitization Act of 2009’’. 
(b) DEFINITIONS.—For purposes of this Act the fol-
lowing definitions shall apply: 
(1) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System. 
(2) GUARANTEE.—The term ‘‘guarantee’’ has 
the same meaning as in section 3 of the Federal Fi-
nancing Bank Act of 1978. 
(3) MUNICIPAL SECURITY DEFINED.—The term 
‘‘municipal security’’ has the same meaning as in 
section 3(a)(30) of the Securities Exchange Act of 
1934 and includes pooled investment funds under 
trusts established by State or local governmental en-
tities and higher education savings plan trusts estab-
lished by States to the extent any such trust is not 
excluded by the Secretary and does not consist of 
funds invested by persons other than States or mu-
nicipalities the investment of which is subject to the 
direction of such person. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
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SEC. 2. COOPERATION TO ADDRESS LIMITATIONS ON AC-
CESS TO MARKETS FOR MUNICIPAL SECURI-
TIES. 
Upon the enactment of this Act, the Secretary of the 
Treasury and the Board of Governors of the Federal Re-
serve System shall consult with each other extensively for 
the purpose of— 
(1) finding solutions for the grave effects of the 
current financial crisis on the markets for municipal 
securities; and 
(2) cooperating in the activities authorized 
under this Act to alleviate to the extent practicable 
such effects on the municipal securities markets. 
SEC. 
3. 
PURCHASE, 
SALE, 
GUARANTEE, 
AND 
SECURITIZATION OF MUNICIPAL SECURITIES 
BY SECRETARY AND FEDERAL FINANCING 
BANK AUTHORIZED. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall establish a program, directly or through the Federal 
Financing Bank, to— 
(1) purchase municipal securities; 
(2) issue securities backed by pools of such mu-
nicipal securities; and 
(3) provide credit enhancement or guarantees 
for municipal securities. 
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(b) SPECIFIC AUTHORITY.—In addition to the au-
thority conferred under section 6 of the Federal Financing 
Bank Act of 1973 and subject to subsections (b) and (c) 
of such section, the Federal Financing Bank may— 
(1) make commitments to purchase and sell, 
and to purchase and sell on terms and conditions de-
termined by the Bank, any municipal security issued 
under a plan approved by the Secretary under sub-
section (c); 
(2) may guarantee the repayment of principal 
and interest on any municipal security issued under 
a plan approved by the Secretary under subsection 
(c); and 
(3) may issue and sell instruments representing 
interests in a pool consisting of municipal securities 
purchased by the Federal Financing Bank under 
this section. 
(c) AUTHORITY
OF SECRETARY OVER METHOD, 
SOURCE, TIMING, TERMS, AND CONDITIONS OF MUNIC-
IPAL SECURITIES ISSUED FOR PURCHASE UNDER THIS 
SECTION.—To insure the orderly and coordinated mar-
keting of municipal securities for purchase or guarantee 
as to principal and interest under this section, and to en-
sure that appropriate financing planning has been made 
with respect to such municipal securities, no municipal se-
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curity may be purchased or guaranteed under this section 
unless the Secretary has approved, prior to the issuance 
of any such security — 
(1) the method of financing; 
(2) the source of financing; 
(3) the timing of financing in relation to mar-
ket conditions and financing by Federal agencies; 
and 
(4) the financing terms and conditions, includ-
ing rates of interest and maturities, of the municipal 
securities. 
(d) STATUS OF INSURANCE AND INSTRUMENTS.— 
Municipal securities sold by the Secretary, or by the Fed-
eral Financing Bank under subsection (b)(1), and instru-
ments issued by the Secretary, or by the Bank under sub-
section (b)(3), that represent pools consisting of municipal 
securities— 
(1) may be insured by the Secretary or the 
Bank, respectively, as to the payment of principal or 
interest by the issuer of the municipal security; and 
(2) shall not, other than in connection with a 
guarantee referred to in paragraph (1), be treated 
for any purpose as an instrument which has the full 
faith and credit of the United States. 
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SEC. 4. FEDERAL RESERVE BOARD CREDIT FACILITY. 
(a) ESTABLISHMENT AUTHORIZED.—The Board of 
Governors of the Federal Reserve System may establish 
a credit facility, using resources and authority available 
under the Federal Reserve Act, including section 10B and 
the third undesignated paragraph of section 13 of such 
Act, to provide financial resources for the purchase of mu-
nicipal securities by Federal reserve banks or member 
banks or other persons. 
(b) FUNDING FOR SECRETARY AND FEDERAL FI-
NANCING BANK.—Subject to the conditions described in 
the third undesignated paragraph of section 13, the Board 
may establish a credit facility, or use any credit facility 
established under subsection (a), to provide funds to the 
Secretary or the Federal Financing Bank to carry out any 
authority under section 3. 
SEC. 5. BUDGET AUTHORITY. 
Any authority of the Secretary or the Federal Fi-
nancing Bank under this Act to purchase or guarantee 
municipal securities shall be effective for any fiscal year 
only to the extent or in amounts provided in advance in 
appropriation Acts. 
Æ 
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