I
106TH CONGRESS
1ST SESSION
H. R. 1540
To reform the Exchange Stabilization Fund.
IN THE HOUSE OF REPRESENTATIVES
APRIL 22, 1999
Mr. SAXTON introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To reform the Exchange Stabilization Fund.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘ESF Transparency
and Accountability Act’’.
SEC. 2. REFORMS TO THE EXCHANGE STABILIZATION
FUND.
(a) TRANSPARENCY.—Section 5302(c) of title 31,
United States Code, is amended—
(1) in paragraph (1)—
(A) by striking ‘‘all agreements made or
renewed’’ and inserting ‘‘the terms and condi-
tions of all outstanding loans and guarantees
and other actions taken, directly or indirectly,
with respect to the assets or liabilities of the
fund, a detailed description of all agreements
made or renewed, directly or indirectly, during
the month with respect to such assets or liabil-
ities,’’; and
(B) by inserting ‘‘, a statement that con-
tains a detailed accounting of any change in the
balance in the fund or in any component of the
fund since the giving of the most recent prior
statement under this subsection, and an expla-
nation of any such change, and a description of
any material that will be redacted in the public
report of such statements under paragraph (2)’’
before the period; and
(2) in paragraph (2), by inserting ‘‘, and shall
take such steps as may be necessary to make the
contents of such report (with redactions of any ma-
terial the disclosure of which would disrupt markets
or damage national security interests of the United
States) readily available to the public’’ before the pe-
riod.
(b) PRESIDENTIAL CERTIFICATION REQUIRED FOR
USE OF $1 BILLION OR MORE; WAIVER AUTHORITY.—
Section 5302 of such title is amended by adding at the
end the following:
‘‘(e)(1) Notwithstanding any other provision of this
section, the Secretary of the Treasury may not make any
expenditure or loan, incur any other obligation, or make
any guarantee through the stabilization fund involving
$1,000,000,000 or more, unless the Congress has, by joint
resolution, approved the expenditure, loan, obligation, or
guarantee.
‘‘(2)(A) Paragraph (1) shall not apply to an expendi-
ture, loan, obligation, or guarantee if there is in effect a
certification under subparagraph (B) with respect to the
expenditure, loan, obligation, or guarantee.
‘‘(B) A certification under this subparagraph with re-
spect to an expenditure, a loan, an obligation, or a guar-
antee is a written certification by the President to the
Committee on Banking and Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate that the making
of the expenditure or loan, the incurring of the obligation,
or the making of the guarantee is necessary to address
a financial crisis that poses a serious threat to the inter-
national financial system.
‘‘(C) A certification under subparagraph (B) shall
take effect 30 days after it is made, unless there is earlier
enacted a joint resolution which provides that the certifi-
cation shall have no force or effect.’’.
(c) ELIMINATION OF AUTHORITY TO MONETIZE SPE-
CIAL DRAWING RIGHTS.—Section 4 of the Special Draw-
ing Rights Act (22 U.S.C. 286p) is amended by striking
‘‘(a)’’ and all that follows through ‘‘(b)’’.
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