I
104TH CONGRESS
1ST SESSION
H. R. 722
To authorize the Secretary of the Treasury to issue guarantee commitments
for debt securities issued by the Community Development Financial Insti-
tutions Fund, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 27, 1995
Ms. WATERS introduced the following bill; which was referred to the
Committee on Banking and Financial Service
A BILL
To authorize the Secretary of the Treasury to issue guaran-
tee commitments for debt securities issued by the Com-
munity Development Financial Institutions Fund, 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 ‘‘Community Develop-
ment Financial Institutions Fund Securities Guarantee
Act of 1995’’.
SEC. 2. DEBT SECURITIES GUARANTEES AUTHORIZED.
(a) IN GENERAL.—Section 104 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4703(h)) is amended—
(1) by redesignating subsections (i), (j), and (k)
as subsections (j), (k), and (l), respectively; and
(2) by inserting after subsection (h) the follow-
ing new subsection:
‘‘(i) GUARANTEES FOR DEBT SECURITIES ISSUED BY
FUND.—
‘‘(1) IN GENERAL.—Subject to paragraph (2)
and under such terms and conditions as the Sec-
retary of the Treasury may determine to be appro-
priate, the Secretary may issue, in fiscal years 1996,
1997, and 1998, guarantees assuring against losses
of principal, interest, or principal and interest in-
curred in connection with debt securities issued by
the Fund in support of the financial assistance pro-
vided by the Fund pursuant to section 108.
‘‘(2) MAXIMUM
AMOUNT
LIMITATIONS.—The
total amount of principal of debt securities for which
guarantees may be issued under paragraph (1) shall
not exceed the following amount with respect to each
of the following fiscal years:
Maximum
‘‘Fiscal year:
amount:
1996 ..........................................................................
$2,000,000,000
1997 ..........................................................................
$2,000,000,000
(b) EXCEPTION TO PROHIBITION ON ISSUANCE OF
DEBT SECURITIES FOR GUARANTEED SECURITIES.—Sub-
section (h) of section 104 of the Community Development
Banking and Financial Institutions Act of 1994 (12
U.S.C. 4703(h)) is amended to read as follows:
‘‘(h) PROHIBITION ON ISSUANCE OF SECURITIES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Fund may not issue stocks, bonds,
debentures, notes or other securities.
‘‘(2) EXCEPTION FOR GUARANTEED DEBT IN-
STRUMENTS.—Paragraph (1) shall not apply with
respect to any debt instrument issued by the
Fund—
‘‘(A) for which a guarantee has been is-
sued by the Secretary of the Treasury in ac-
cordance with subsection (i) so long as such
guarantee remains in effect for such debt in-
strument; and
‘‘(B) the period to maturity of which does
not exceed the effective period of such guaran-
tee.’’.
(c) LIMITATION ON USES OF PROCEEDS OF GUARAN-
TEED DEBT SECURITIES.—Section 108(a) of the Commu-
nity Development Banking and Financial Institutions Act
of 1994 (12 U.S.C. 4707(a)) is amended by adding at the
end the following new paragraph:
‘‘(5) LIMITATION ON USES OF PROCEEDS OF
GUARANTEED
DEBT
SECURITIES.—In the case of
any debt security issued by the Fund for which a
guarantee has been issued by the Secretary of the
Treasury under section 104(i), the proceeds from
the issuance of such security may not be used by the
Fund to provide financial assistance under this sec-
tion, including equity investment, with respect to
any community development financial institution
which has total assets of more than $50,000,000.’’.
Æ