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clauses (i) and (ii) of subparagraph (A) are 
met. 
‘‘(C) BONDS DESCRIBED.—A bond is de-
scribed in this subparagraph if such bond was 
outstanding on August 28, 2005, and is issued 
by the State of Alabama, Louisiana, or Mis-
sissippi, or a political subdivision thereof. 
‘‘(D) AGGREGATE LIMIT.—The maximum 
aggregate face amount of bonds which may be 
designated under this paragraph by the Gov-
ernor of a State shall not exceed— 
‘‘(i) $4,500,000,000 in the case of the 
State of Louisiana, 
‘‘(ii) $2,250,000,000 in the case of 
the State of Mississippi, and 
‘‘(iii) $1,125,000,000 in the case of 
the State of Alabama. 
‘‘(E) ADDITIONAL
REQUIREMENTS.—The 
requirements of this subparagraph are met with 
respect to any advance refunding of a bond de-
scribed in subparagraph (C) if— 
‘‘(i) no advance refundings of such 
bond would be allowed under this title on 
or after August 28, 2005,
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‘‘(ii) the advance refunding bond is 
the only other outstanding bond with re-
spect to the refunded bond, and 
‘‘(iii) the requirements of section 148 
are met with respect to all bonds issued 
under this paragraph.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to advance refundings after the 
date of the enactment of this Act. 
SEC. 4. FEDERAL GUARANTEE OF CERTAIN STATE BONDS. 
(a) STATE BONDS DESCRIBED.—This section shall 
apply to a bond issued as part of an issue if— 
(1) the issue of which such bond is part is an 
issue of the State of Alabama, Louisiana, or Mis-
sissippi, 
(2) the bond is a general obligation of the 
issuing State and is in registered form, 
(3) the proceeds of the bond are distributed to 
one or more political subdivisions of the issuing 
State, 
(4) the maturity of such bond does not exceed 
5 years, 
(5) the bond is issued after the date of the en-
actment of this Act and before January 1, 2008, 
and
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(6) the bond is designated by the Secretary of 
the Treasury for purposes of this section. 
(b) APPLICATION.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury may only designate a bond for purposes of this 
section pursuant to an application submitted to the 
Secretary by the State which demonstrates the need 
for such designation on the basis of the criteria 
specified in paragraph (2). 
(2) CRITERIA.—For purposes of paragraph (1), 
the criteria specified in this paragraph are— 
(A) the loss of revenue base of one or more 
political subdivisions of the State by reason of 
Hurricane Katrina, 
(B) the need for resources to fund infra-
structure within, or operating expenses of, any 
such political subdivision, 
(C) the lack of access of such political sub-
division to capital, and 
(D) any other criteria as may be deter-
mined by the Secretary. 
(3) GUIDANCE FOR SUBMISSION AND CONSID-
ERATION OF APPLICATIONS.—The Secretary of the 
Treasury shall prescribe regulations or other guid-
ance which provide for the time and manner for the
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submission and consideration of applications under 
this subsection. 
(c) FEDERAL GUARANTEE.—A bond described in 
subsection (a) is guaranteed by the United States in an 
amount equal to 50 percent of the outstanding principal 
with respect to such bond. 
(d) AGGREGATE LIMIT ON BOND DESIGNATIONS.— 
The maximum aggregate face amount of bonds which may 
be 
issued 
under 
this 
section 
shall 
not 
exceed 
$3,000,000,000. 
Passed the House of Representatives November 16, 
2005. 
Attest: 
JEFF TRANDAHL, 
Clerk.