I 
115TH CONGRESS 
1ST SESSION H. R. 1624 
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 
MARCH 20, 2017 
Mr. MESSER (for himself, Mrs. CAROLYN B. MALONEY of New York, Mr. 
HULTGREN, Mr. MEEKS, Ms. KELLY of Illinois, Ms. SEWELL of Ala-
bama, Ms. SINEMA, Mr. KING of New York, Ms. NORTON, Ms. MOORE, 
Mr. POLIQUIN, Mr. VEASEY, Mr. SHERMAN, and Mr. KIND) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices 
A BILL 
To require the appropriate Federal banking agencies to treat 
certain municipal obligations as level 2A liquid assets, 
and for other purposes. 
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 ‘‘Municipal Finance 
Support Act of 2017’’. 
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SEC. 2. TREATMENT OF CERTAIN MUNICIPAL OBLIGA-
TIONS. 
(a) IN GENERAL.—Section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828) is amended— 
(1) by moving subsection (z) so that it appears 
after subsection (y); and 
(2) by adding at the end the following: 
‘‘(aa) TREATMENT OF CERTAIN MUNICIPAL OBLIGA-
TIONS.— 
‘‘(1) IN GENERAL.—For purposes of the final 
rule titled ‘Liquidity Coverage Ratio: Liquidity Risk 
Measurement Standards; Final Rule’ (79 Fed. Reg. 
61439; published October 10, 2014) (the ‘Final 
Rule’) and any other regulation which incorporates 
a definition of the term ‘high-quality liquid asset’, 
the appropriate Federal banking agencies shall treat 
a municipal obligation that is both liquid and readily 
marketable (as defined in the Final Rule) and in-
vestment grade as of the calculation date as a high- 
quality liquid asset that is a level 2A liquid asset. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) INVESTMENT GRADE.—With respect 
to an obligation, the term ‘investment grade’ 
has the meaning given that term under part 1 
of title 12, Code of Federal Regulations. 
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‘‘(B) MUNICIPAL OBLIGATION.—The term 
‘municipal obligation’ means an obligation of a 
State or any political subdivision thereof, or any 
agency or instrumentality of a State or any po-
litical subdivision thereof.’’. 
(b) AMENDMENT TO LIQUIDITY COVERAGE RATIO 
REGULATIONS.—Not later than the end of the 3-month 
period beginning on the date of the enactment of this Act, 
the Federal Deposit Insurance Corporation, the Board of 
Governors of the Federal Reserve System, and the Comp-
troller of the Currency shall amend the final rule titled 
‘‘Liquidity Coverage Ratio: Liquidity Risk Measurement 
Standards; Final Rule’’ (79 Fed. Reg. 61439; published 
October 10, 2014) to implement the amendments made 
by this Act. 
Æ 
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