I 
113TH CONGRESS 
1ST SESSION 
H. R. 992 
To amend provisions in section 716 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act relating to Federal assistance for swaps entities. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2013 
Mr. HULTGREN (for himself, Mr. HIMES, Mr. HUDSON, and Mr. SEAN PAT-
RICK MALONEY of New York) introduced the following bill; which was re-
ferred to the Committee on Financial Services, and in addition to the 
Committee on Agriculture, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend provisions in section 716 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act relating 
to Federal assistance for swaps entities. 
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 ‘‘Swaps Regulatory Im-
provement Act’’. 
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SEC. 2. REFORM OF PROHIBITION ON SWAP ACTIVITY AS-
SISTANCE. 
Section 716 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 U.S.C. 8305) is amend-
ed— 
(1) in subsection (b)— 
(A) in paragraph (2)(B), by striking ‘‘in-
sured depository institution’’ and inserting 
‘‘covered depository institution’’; and 
(B) by adding at the end the following: 
‘‘(3) COVERED
DEPOSITORY
INSTITUTION.— 
The term ‘covered depository institution’ means— 
‘‘(A) an insured depository institution, as 
that term is defined in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813); and 
‘‘(B) a United States uninsured branch or 
agency of a foreign bank.’’; 
(2) in subsection (c)— 
(A) in the heading for such subsection, by 
striking ‘‘INSURED’’ and inserting ‘‘COVERED’’; 
(B) by striking ‘‘an insured’’ and inserting 
‘‘a covered’’; 
(C) by striking ‘‘such insured’’ and insert-
ing ‘‘such covered’’; and 
(D) by striking ‘‘or savings and loan hold-
ing company’’ and inserting ‘‘savings and loan 
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holding company, or foreign banking organiza-
tion (as such term is defined under Regulation 
K of the Board of Governors of the Federal Re-
serve System (12 C.F.R. 211.21(o)))’’; 
(3) by amending subsection (d) to read as fol-
lows: 
‘‘(d) ONLY BONA FIDE HEDGING AND TRADITIONAL 
BANK ACTIVITIES PERMITTED.— 
‘‘(1) IN
GENERAL.—The prohibition in sub-
section (a) shall not apply to any covered depository 
institution that limits its swap and security-based 
swap activities to the following: 
‘‘(A) HEDGING AND OTHER SIMILAR RISK 
MITIGATION
ACTIVITIES.—Hedging and other 
similar risk mitigating activities directly related 
to the covered depository institution’s activities. 
‘‘(B) NON-STRUCTURED
FINANCE
SWAP 
ACTIVITIES.—Acting as a swaps entity for 
swaps or security-based swaps other than a 
structured finance swap. 
‘‘(C) 
CERTAIN
STRUCTURED
FINANCE 
SWAP ACTIVITIES.—Acting as a swaps entity for 
swaps or security-based swaps that are struc-
tured finance swaps, if— 
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‘‘(i) such structured finance swaps are 
undertaken for hedging or risk manage-
ment purposes; or 
‘‘(ii) each asset-backed security under-
lying such structured finance swaps is of a 
credit quality and of a type or category 
with respect to which the prudential regu-
lators have jointly adopted rules author-
izing swap or security-based swap activity 
by covered depository institutions. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) STRUCTURED FINANCE SWAP.—The 
term ‘structured finance swap’ means a swap or 
security-based swap based on an asset-backed 
security (or group or index primarily comprised 
of asset-backed securities). 
‘‘(B) 
ASSET-BACKED
SECURITY.—The 
term ‘asset-backed security’ has the meaning 
given such term under section 3(a) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 
78c(a)).’’; 
(4) in subsection (e), by striking ‘‘an insured’’ 
and inserting ‘‘a covered’’; and 
(5) in subsection (f)— 
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(A) by striking ‘‘an insured depository’’ 
and inserting ‘‘a covered depository’’; and 
(B) by striking ‘‘the insured depository’’ 
each place such term appears and inserting 
‘‘the covered depository’’. 
Æ 
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