I 
110TH CONGRESS 
2D SESSION 
H. R. 5723 
To amend the Federal Home Loan Bank Act to allow Federal home loan 
banks to invest surplus funds in student loan securities and make ad-
vances for student loan financing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 8, 2008 
Mr. KANJORSKI introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Federal Home Loan Bank Act to allow Fed-
eral home loan banks to invest surplus funds in student 
loan securities and make advances for student loan fi-
nancing, 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 ‘‘Emergency Student 
Loan Market Liquidity Act’’. 
SEC. 2. EMERGENCY STUDENT LOAN MARKET LIQUIDITY. 
The Federal Home Loan Bank Act (12 U.S.C. 1421 
et seq.) is amended— 
VerDate Aug 31 2005 
04:46 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5723.IH
H5723
wwoods2 on PRODPC68 with BILLS
(1) by redesignating section 30 as section 31; 
and 
(2) by inserting after section 29, the following 
new section: 
‘‘SEC. 30. EMERGENCY AUTHORITY. 
‘‘(a) INVESTMENT OF SURPLUS.—Such part of the 
assets of each Federal home loan bank (except reserves 
and amounts provided for in subsection (g) of section 11) 
as are not required for advances to members, may be in-
vested in student loan-related securities in addition to the 
other investments described in subsection (h) of such sec-
tion. 
‘‘(b) 
COLLATERAL.—For 
purposes 
of 
section 
10(a)(3), the following shall be considered eligible collat-
eral in addition to the other categories of eligible collateral 
described in such section: 
‘‘(1) Student loan-related securities. 
‘‘(2) Student loans. 
‘‘(c) LONG-TERM ADVANCES.—Notwithstanding sec-
tion 10(a)(2), any Federal home loan bank may make se-
cured long-term advances upon sufficient collateral for 
purposes of providing funds to any member for financing 
the origination of student loans or the purchase or financ-
ing of student loan-related securities. 
VerDate Aug 31 2005 
02:15 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5723.IH
H5723
wwoods2 on PRODPC68 with BILLS
‘‘(d) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) STUDENT LOAN-RELATED SECURITY.—The 
term ‘student loan-related security’ means a security 
that— 
‘‘(A) is rated in 1 of the 3 highest rating 
categories (without regard to any refinement or 
gradation of such rating category by a numer-
ical modifier or otherwise) by at least one na-
tionally recognized statistical rating organiza-
tion; and 
‘‘(B) is described in at least 1 of the 
clauses: 
‘‘(i) Represents an interest in student 
loans. 
‘‘(ii) Is a bond, note or other obliga-
tion payable from and secured by an inter-
est in student loans. 
‘‘(iii) Is a bond, note or other obliga-
tion that— 
‘‘(I) is part of an issue of securi-
ties issued for the purpose of pro-
viding funds to purchase or originate 
student loans; and 
VerDate Aug 31 2005 
02:15 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5723.IH
H5723
wwoods2 on PRODPC68 with BILLS
‘‘(II) will be payable from and se-
cured by an interest in such student 
loans. 
‘‘(2) INTEREST IN STUDENT LOANS.—The term 
‘interest in student loans’ includes ownership rights 
in, or certificates of interest or participation inter-
ests in, such student loans or the promissory notes 
evidencing such student loans and rights designated 
to assure servicing of such promissory notes, or the 
receipt or timely receipt of amounts payable and 
under such promissory notes or the timely distribu-
tion thereof to the holders of such interest. 
‘‘(3) STUDENT LOAN.—The term ‘student loan’ 
means any loan made under subtitle B of title IV of 
the Higher Education Act of 1965 (whether to a 
student, the parents of a student, or a consolidating 
borrower). 
‘‘(e) TEMPORARY NATURE OF RELIEF.— 
‘‘(1) EFFECTIVE PERIOD.—Except as provided 
in paragraph (2), this section shall be effective for 
investments and advances made between February 
1, 2008, and the end of the 2-year period beginning 
on the date of the enactment of the Emergency Stu-
dent Loan Market Liquidity Act. 
VerDate Aug 31 2005 
02:15 Apr 12, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5723.IH
H5723
wwoods2 on PRODPC68 with BILLS