I 
111TH CONGRESS 
1ST SESSION H. R. 2896 
To amend the Federal Deposit Insurance Act to provide the same treatment 
for covered bonds as for other qualified financial contracts to which 
a depository institution is a party when such institution is in receivership 
or conservatorship, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2009 
Mr. GARRETT of New Jersey (for himself, Mr. KANJORSKI, and Mr. BACHUS) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To amend the Federal Deposit Insurance Act to provide 
the same treatment for covered bonds as for other quali-
fied financial contracts to which a depository institution 
is a party when such institution is in receivership or 
conservatorship, 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 ‘‘Equal Treatment of 
Covered Bonds Act of 2009’’. 
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SEC. 2. COVERED BONDS TREATMENT. 
(a) IN GENERAL.—Section 11(e)(8)(D)(i) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(i)) 
is amended by inserting ‘‘covered bond,’’ after ‘‘forward 
contract,’’. 
(b) DEFINITIONS.—Section 11(e)(8)(D) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) is 
amended— 
(1) by redesignating clauses (vii), (viii), and (ix) 
as clauses (viii), (ix), and (x), respectively; and 
(2) by inserting after clause (vi) the end the fol-
lowing new clause: 
‘‘(vii) COVERED
BOND.—The term 
‘covered bond’ means a nondeposit re-
course debt obligation of an insured depos-
itory institution, with a term to maturity 
of at least 1 year, which is secured by spe-
cifically identified assets which are per-
forming in accordance with the terms of 
the contracts which created the assets.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 8(e)(3)(C) of the Federal Deposit Insurance Act 
(U.S.C. 1818(e)(3)(C)) is amended— 
(1) by striking ‘‘and’’ at the end of clause (i); 
(2) by striking the period at the end of clause 
(ii) and inserting ‘‘; and’’; and 
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(3) by adding at the end the following new 
clause: 
‘‘(iii) with respect to a covered bond, 
actual direct compensatory damages deter-
mined as of the date of the appointment of 
the conservator or receiver equal to the 
sum of— 
‘‘(I) the outstanding principal 
amount of the covered bond on that 
date; 
‘‘(II) all interest that had ac-
crued on the covered bond through 
that date but that had not been paid; 
‘‘(III) the cost on that date of a 
guaranteed investment contract, de-
posit agreement, or other instrument 
that would provide for scheduled pay-
ments to be made on the covered bond 
until its originally scheduled maturity 
date; and 
‘‘(IV) the costs (including reason-
able 
fees 
of 
attorneys) 
incurred 
through that date that arise from or 
relate to the exercise of any right, 
power, or remedy under the covered 
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