I 
113TH CONGRESS 
2D SESSION 
H. R. 4167 
To amend section 13 of the Bank Holding Company Act of 1956, known 
as the Volcker Rule, to exclude certain debt securities of collateralized 
loan obligations from the prohibition against acquiring or retaining an 
ownership interest in a hedge fund or private equity fund. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2014 
Mr. BARR introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To amend section 13 of the Bank Holding Company Act 
of 1956, known as the Volcker Rule, to exclude certain 
debt securities of collateralized loan obligations from the 
prohibition against acquiring or retaining an ownership 
interest in a hedge fund or private equity 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 ‘‘Restoring Proven Fi-
nancing for American Employers Act’’. 
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SEC. 
2. 
RULES 
OF 
CONSTRUCTION 
RELATING 
TO 
COLLATERALIZED LOAN OBLIGATIONS. 
Section 13(g) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1851(g)) is amended by adding at the 
end the following new paragraphs: 
‘‘(4) COLLATERALIZED LOAN OBLIGATIONS.— 
‘‘(A) 
INAPPLICABILITY
TO
CERTAIN 
COLLATERALIZED
LOAN
OBLIGATIONS.—Noth-
ing in this section shall be construed to require 
the divestiture of any debt securities of 
collateralized 
loan 
obligations, 
if 
such 
collateralized loan obligations were issued be-
fore January 31, 2014. 
‘‘(B) OWNERSHIP
INTEREST
WITH
RE-
SPECT
TO
COLLATERALIZED
LOAN
OBLIGA-
TIONS.—A banking entity shall not be consid-
ered to have an ownership interest in a 
collateralized loan obligation because it acquires 
or retains a debt security in such collateralized 
loan obligation if the debt security has no indi-
cia of ownership other than the right of the 
banking entity to participate in the removal for 
cause, or in the selection of a replacement after 
removal for cause or resignation, of an invest-
ment manager or investment adviser of the 
collateralized loan obligation. 
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‘‘(C) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) COLLATERALIZED LOAN OBLIGA-
TION.—The term ‘collateralized loan obli-
gation’ means any issuing entity of an 
asset-backed security, as defined in section 
3(a)(77) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a)(77)), that is com-
prised primarily of commercial loans. 
‘‘(ii) REMOVAL FOR CAUSE.—An in-
vestment manager or investment adviser 
shall be deemed to be removed ‘for cause’ 
if the investment manager or investment 
adviser is removed as a result of— 
‘‘(I) a breach of a material term 
of the applicable management or advi-
sory agreement or the agreement gov-
erning the collateralized loan obliga-
tion; 
‘‘(II) the inability of the invest-
ment manager or investment adviser 
to continue to perform its obligations 
under any such agreement; or 
‘‘(III) any other action or inac-
tion by the investment manager or in-
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vestment adviser that has or could 
reasonably be expected to have a ma-
terially 
adverse 
effect 
on 
the 
collateralized loan obligation, if the in-
vestment manager or investment ad-
viser fails to cure or take reasonable 
steps to cure such effect within a rea-
sonable time.’’. 
Æ 
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