ments, and create new opportunities for growth and
employment.
(5) The creation of a secondary market for
business, commercial, and community development
debt and equity investments can greatly increase the
likelihood that businesses seeking to develop emerg-
ing technologies or processes will be able to obtain
the funding necessary to permit them to become
growth industries to enhance the economic future of
the Nation.
(6) The development of a secondary market for
business, commercial, and community development
debt and equity investments can facilitate the
spreading of risk associated with new business, com-
mercial, and community development lending and
allow more venture capital investments to be made.
(7) The development of a secondary market for
business, commercial, and community development
debt and equity investments would facilitate invest-
ments by pension and insurance funds in business,
commercial, and community development enter-
prises.
(8) The development of a secondary market for
business, commercial, and community development
debt and equity investments, should significantly in-
crease the availability of credit for new and expand-
ing minority- and women-owned businesses and for
efforts to revitalize the economies of disadvantaged
communities.
(9) A secondary market for business, commer-
cial, and community development debt and equity in-
vestments can help stabilize and absorb cyclical
downturns in business and real estate cycles.
(10) A secondary market for business, commer-
cial, and community development debt and equity in-
vestments would be a highly effective tool to multiply
Federal and State government funds dedicated to
community and economic development debt and
equity investments.
(11) The development of a secondary market
for business, commercial, and community develop-
ment debt and equity investments can play a critical
role in securing the amount of capital necessary for
community development financial institutions to re-
alize their full potential.
(12) The development of a secondary market
for business, commercial, and community develop-
ment debt and equity investments can play an im-
portant role in stabilizing commercial real estate
markets and enhance the value of real estate-backed
collateral frequently used by businesses to secure
necessary credit from financial institutions.
(13) Active and efficient secondary markets
currently exist for nearly all types of investments ex-
cept for business, commercial, and community devel-
opment debt and equity investments. This puts busi-
ness, commercial, and community development bor-
rowers at a competitive disadvantage in securing
necessary funds.
(b) PURPOSES.—The purposes of this Act are as
follows:
(1) To facilitate the development of an efficient
secondary market for business, commercial, and
community development debt and equity investments
in the private sector of the economy.
(2) To further develop the loan-originating and
loan-servicing capabilities of, and enhance the
amount of credit available through, the banking
system.
(3) To afford financial institutions in the
United States greater liquidity to enhance the long-
term stability of the financial system and facilitate
the potential inherent in the origination and servic-
ing of business, commercial, and community develop-
ment debt and equity investments for additional fee
income.
(4) To provide additional sources of credit to
business, commercial, and community development
enterprises to revitalize the Nation’s economy and
foster additional employment opportunities.
(5) To provide additional sources of capital to
Federal and State governments for reinvestment in
business, commercial, and community development
enterprises.
(c) DEFINITIONS.—For purposes of this Act—
(1) SECONDARY MARKET FACILITATING ORGA-
NIZATION.—The term ‘‘secondary market facilitating
organization’’ means any person or governmental
unit which is authorized by the Secretary to engage
in secondary market operations with respect to busi-
ness, commercial, and community development debt
and equity investments in accordance with this Act.
(2) SECONDARY
MARKET
OPERATIONS.—The
term ‘‘secondary market operations’’ means any of
the following activities:
(A) Underwriting, dealing in, or acting as
a principal in the placement of securities that
are backed by or represent interests in debt or
equity.
(B) Guaranteeing the timely payment of
the principal of or interest on any security de-
scribed in subparagraph (A).
(C) Selling or purchasing business, com-
mercial, and community development debt and
equity assets or participations in such assets.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
SEC. 3. CERTIFICATION OF SECONDARY MARKET FACILI-
TATING ORGANIZATIONS TO ENGAGE IN SEC-
ONDARY MARKET OPERATIONS FOR BUSI-
NESS, COMMERCIAL, AND COMMUNITY DE-
VELOPMENT 
DEBT 
AND 
EQUITY 
INVEST-
MENTS.
(a) IN GENERAL.—The Secretary of the Treasury
may certify any person or government unit which meets
the requirements established by the Secretary under this
section as a secondary market facilitating organization for
business, commercial, and community development debt
and equity investments.
(b) ELIGIBILITY STANDARDS.—
(1) ESTABLISHMENT
REQUIRED.—The Sec-
retary shall establish, by regulation, standards for
the certification of any secondary market facilitating
organization for business, commercial, or community
development debt and equity investments, including
eligibility standards in accordance with paragraph
(2).
(2) MINIMUM REQUIREMENTS.—To be eligible
to be certified under the standards referred to in
paragraph (1), a secondary market facilitating orga-
nization shall—
(A) meet or exceed minimum capital stand-
ards established by the Secretary;
(B) meet or exceed minimum reserves for
losses requirements established by the Sec-
retary;
(C) meet or exceed the business, commer-
cial, and community development debt and eq-
uity investment portfolio requirements estab-
lished by the Secretary under subsection (c);
(D) demonstrate that directors, officers,
and employees of the organization and persons
who control the organization meet the stand-
ards for competence, experience, integrity, and
financial ability established by the Secretary,
including managerial ability with respect to—
(i) business, commercial, and commu-
nity development debt and equity invest-
ment underwriting, servicing, and market-
ing; and
(ii) secondary market operations for
business, commercial, and community de-
velopment debt and equity investments;
(E) adopt appropriate business, commer-
cial, or community development debt and equity
investment underwriting, appraisal, and servic-
ing standards and procedures that meet or ex-
ceed minimum standards required by the Sec-
retary;
(F) for purposes of enabling the Secretary
to examine the organization, agree to allow the
Secretary to have access to all books, accounts,
financial records, reports, and all property of,
or used by, the organization that are necessary
to facilitate examinations by the Secretary, or
the agency designated by the Secretary, under
section 5;
(G) adopt appropriate minimum standards
and procedures relating to loan administration
and disclosures to business, commercial, and
community development debt and equity bor-
rowers that meet or exceed uniform standards
established by the Secretary;
(H) comply with the uniform reporting
standards established under section 8; and
(I) comply with all regulations prescribed
by the Secretary under this Act.
(c) PORTFOLIO AND BULK SALE STANDARDS.—
(1) IN GENERAL.—The Secretary shall establish
such requirements relating to the manner in which
business, commercial, and community development
debt and equity investments are held or sold by cer-
tified secondary market facilitating organizations in
connection with secondary market operations, includ-
ing portfolio standards and requirements for diver-
sity of the assets which are subject to a multiasset
sales initiative, as the Secretary determines to be ap-
propriate for the achievement of essential economic
objectives in the public interest, such as employment
enhancement, community development, investments
in low- and moderate-income areas, investment di-
versity, and equal opportunity in accordance with
paragraph (2).
(2) GOALS.—In establishing the requirements
referred to in paragraph (1), the Secretary, in con-
sultation with certified secondary market facilitating
organizations and other interested parties, shall es-
tablish goals for the intermediation of debt and
equity investments by secondary market facilitating
organizations which—
(A) enhance employment opportunities;
(B) promote community development;
(C) are directed to business and commer-
cial enterprises in low- and moderate-income
areas;
(D) promote investment diversity; and
(E) promote equal opportunity.
(3) FACTORS TO BE CONSIDERED.—In estab-
lishing the goals referred to in paragraph (2), the
Secretary shall consider—
(A) the need to maintain the sound finan-
cial condition of, and a reasonable economic re-
turn to, the secondary market facilitating orga-
nizations;
(B) economic conditions;
(C) the past performance and efforts of
secondary market facilitating organizations to
meet or exceed the goals referred to in para-
graph (2);
(D) the availability of debt and equity in-
vestments necessary to meet or exceed the goals
referred to in paragraph (2); and
(E) such other factors as the Secretary de-
termines to be appropriate in meeting the re-
quirements of this section.
(4) ADJUSTMENT
OF
GOALS.—The Secretary
may adjust any goal for the intermediation of debt
and equity investments by secondary market facili-
tating organizations established under paragraph
(2).
(5) NONDISCRIMINATION.—The Secretary shall,
by regulation, prohibit each secondary market facili-
tating organization from discriminating in any man-
ner in the purchase of any debt or equity investment
because of race, color, religion, sex, handicap, famil-
ial status, age, or national origin, including any con-
sideration of the neighborhood or census tract in
which the business, commercial, or community devel-
opment debt and equity investment is located in a
manner that has a discriminatory effect.
(d) REVOCATION.—After notice and opportunity for
hearing, the Secretary may revoke the certification of a
secondary market facilitating organization if the Secretary
determines that the organization fails to meet any eligi-
bility requirement under subsection (b) or (c).
(e) PUBLIC DISCLOSURE.—
(1) IN GENERAL.—The Secretary shall, by reg-
ulation, provide for periodic public disclosure of the
standards established under this subsection and the
performance of secondary market facilitating organi-
zations in the fulfillment of the goals established
under subsection (c).
(2) NONDISCLOSURE OF PROPRIETARY INFOR-
MATION.—Paragraph (1) shall not be construed as
authorizing the Secretary to publicly disclose any
proprietary information of a secondary market facili-
tating organization.
SEC. 4. WAIVERS TO MEET ESSENTIAL ECONOMIC OBJEC-
TIVES IN THE PUBLIC INTEREST.
(a) WAIVERS AUTHORIZED.—
(1) IN GENERAL.—For purposes of this Act,
the Secretary may, by regulation, waive the applica-
tion of any provision of Federal or State law, includ-
ing any provision of any regulation prescribed under
any Federal or State law, to a certified secondary
market facilitating organization, or the activities or
products of a certified secondary market facilitating
organization, which meets the minimum portfolio re-
quirements established under section 3(c) and is in
full compliance with all other standards applicable
for certification under this Act if the Secretary de-
termines that such waiver is appropriate in order to
meet the essential economic objectives in the public
interest described in this Act.
(2) SPECIFICITY
OF
WAIVER.—Any waiver
granted by the Secretary under paragraph (1) shall
specify in detail each provision of law or regulation
which is the subject of the waiver.
(b) EXCEPTIONS.—
(1) IN GENERAL.—No waiver may be granted
under this section of any law or regulation respect-
ing public or individual health or safety, civil rights
and nondiscrimination, environmental protection,
labor relations, labor standards, occupational health
or safety, pensions, or any other law or regulation
that the Attorney General determines, by regulation,
to be inappropriate.
(2) SAFETY AND SOUNDNESS.—No waiver of a
law or regulation may be granted under this section
with respect to a secondary market facilitating orga-
nization if the appropriate Federal regulatory agency
of the organization notifies the Secretary that the
agency has determined that there is a reasonable
basis to believe that the waiver of such law or regu-
lation would have an adverse effect on the safety
and soundness of the organization.
(3) EXCEPTION TO PREVENT INCREASE IN DI-
RECT SPENDING.—No waiver may be granted under
this section that would have the effect of increasing
direct Federal spending above levels that would have
occurred in the absence of the waivers.
(c) CONSULTATION.—Before granting any waiver
under subsection (a), the Secretary shall consult with the
head of the agency or department of the Federal or State
government responsible for carrying out and enforcing the
provision of law or regulation which would be affected by
the waiver.
(d) SUSPENSION, REVOCATION, MODIFICATION, OR
LIMITATION.—
(1) IN GENERAL.—The Secretary may suspend,
revoke, modify, or limit the scope of any waiver
granted under subsection (a)(1) with respect to a
secondary market facilitating organization if the
Secretary determines that—
(A) the organization fails to meet any eligi-
bility standard under subsection (b) or (c) of
section 3 or any regulation prescribed by the
Secretary under this Act; or
(B) the waiver is no longer appropriate in
order to meet essential economic objectives in
the public interest.