Title: Congressional Accountability for Emergency Lending Act of 2017
Policy area: Finance and Financial Sector

Summary:
Congressional Accountability for Emergency Lending Programs Act of 2017
This bill limits the Federal Reserve Board's emergency-lending authority and otherwise revises provisions related to emergency-lending programs.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4302 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4302

To amend the Federal Reserve Act to create congressional accountability 
        for emergency lending programs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 2017

  Mr. Tipton introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
 Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Reserve Act to create congressional accountability 
        for emergency lending programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Accountability for 
Emergency Lending Programs Act of 2017''.

SEC. 2. CONGRESSIONAL ACCOUNTABILITY FOR EMERGENCY LENDING PROGRAMS.

    Section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``that pose a threat to the 
                financial stability of the United States'' after 
                ``unusual and exigent circumstances''; and
                    (B) by striking ``the affirmative vote of not less 
                than five members'' and inserting ``the prior approval 
                of the Secretary of the Treasury and not less than \2/
                3\ of the members of the Federal Open Market 
                Committee'';
            (2) in subparagraph (B)--
                    (A) in clause (i), by inserting at the end the 
                following: ``Federal reserve banks may not accept 
                equity securities issued by the recipient of any loan 
                or other financial assistance under this paragraph as 
                collateral. Not later than 6 months after the date of 
                the enactment of this sentence, the Board shall, by 
                rule, establish--
                                    ``(I) a method for determining the 
                                sufficiency of the collateral required 
                                under this paragraph;
                                    ``(II) acceptable classes of 
                                collateral;
                                    ``(III) the amount of any discount 
                                on the value of the collateral that the 
                                Federal reserve banks will apply for 
                                purposes of calculating the sufficiency 
                                of collateral under this paragraph; and
                                    ``(IV) a method for obtaining 
                                independent appraisals of the value of 
                                collateral the Federal reserve banks 
                                receive.'';
                    (B) in clause (ii)--
                            (i) by striking the second sentence; and
                            (ii) by inserting after the first sentence 
                        the following: ``A borrower shall not be 
                        eligible to borrow from any emergency lending 
                        program or facility unless the Board and all 
                        Federal banking regulators with jurisdiction 
                        over the borrower certify that, at the time the 
                        borrower initially borrows under the program or 
                        facility, the borrower is not insolvent.''; and
                    (C) by striking clause (iv);
            (3) by inserting ``financial institution'' before 
        ``participant'' each place such term appears;
            (4) in subparagraph (D)(i), by inserting ``financial 
        institution'' before ``participants''; and
            (5) by adding at the end the following new subparagraphs:
                    ``(G) Joint resolution of approval.--
                            ``(i) In general.--A program or facility 
                        created under subparagraph (A) shall terminate 
                        on the date that is 30 calendar days after the 
                        date on which Congress receives a report 
                        described in subparagraph (C) unless there is 
                        enacted into law a joint resolution approving 
                        the program or facility not later than 30 
                        calendar days after the date on which the 
                        report is received. Any loan offered through 
                        the program or facility that is outstanding as 
                        of the date on which the program or facility is 
                        terminated shall be repaid in full not later 
                        than 30 calendar days after the date on which 
                        the program or facility is terminated.
                            ``(ii) Contents of joint resolution.--For 
                        the purpose of this subparagraph, the term 
                        `joint resolution' means only a joint 
                        resolution--
                                    ``(I) that is introduced not later 
                                than 3 calendar days after the date on 
                                which the report described in 
                                subparagraph (C) is received by 
                                Congress;
                                    ``(II) that does not have a 
                                preamble;
                                    ``(III) the title of which is as 
                                follows: `Joint resolution relating to 
                                the approval of a program or facility 
                                created by the Board of Governors of 
                                the Federal Reserve System'; and
                                    ``(IV) the matter after the 
                                resolving clause of which is as 
                                follows: `That Congress approves the 
                                program or facility created by the 
                                Board of Governors of the Federal 
                                Reserve System on __________.' (The 
                                blank space being appropriately filled 
                                in).
                            ``(iii) Fast track consideration in house 
                        of representatives.--
                                    ``(I) Reconvening.--Upon receipt of 
                                a report under subparagraph (C), the 
                                Speaker, if the House would otherwise 
                                be adjourned, shall notify the Members 
                                of the House that, pursuant to this 
                                subparagraph, the House shall convene 
                                not later than the second calendar day 
                                after receipt of such report.
                                    ``(II) Reporting and discharge.--
                                Any committee of the House of 
                                Representatives to which a joint 
                                resolution is referred shall report it 
                                to the House not later than 5 calendar 
                                days after the date of receipt of the 
                                report described in subparagraph (C). 
                                If a committee fails to report the 
                                joint resolution within that period, 
                                the committee shall be discharged from 
                                further consideration of the joint 
                                resolution and the joint resolution 
                                shall be referred to the appropriate 
                                calendar.
                                    ``(III) Proceeding to 
                                consideration.--After each committee 
                                authorized to consider a joint 
                                resolution reports it to the House or 
                                has been discharged from its 
                                consideration, it shall be in order, 
                                not later than the sixth day after 
                                Congress receives the report described 
                                in subparagraph (C), to move to proceed 
                                to consider the joint resolution in the 
                                House. All points of order against the 
                                motion are waived. Such a motion shall 
                                not be in order after the House has 
                                disposed of a motion to proceed on the 
                                joint resolution. The previous question 
                                shall be considered as ordered on the 
                                motion to its adoption without 
                                intervening motion. The motion shall 
                                not be debatable. A motion to 
                                reconsider the vote by which the motion 
                                is disposed of shall not be in order.
                                    ``(IV) Consideration.--The joint 
                                resolution shall be considered as read. 
                                All points of order against the joint 
                                resolution and against its 
                                consideration are waived. The previous 
                                question shall be considered as ordered 
                                on the joint resolution to its passage 
                                without intervening motion except 2 
                                hours of debate equally divided and 
                                controlled by the proponent and an 
                                opponent. A motion to reconsider the 
                                vote on passage of the joint resolution 
                                shall not be in order.
                            ``(iv) Fast track consideration in 
                        senate.--
                                    ``(I) Reconvening.--Upon receipt of 
                                a report under subparagraph (C), if the 
                                Senate has adjourned or recessed for 
                                more than 2 days, the majority leader 
                                of the Senate, after consultation with 
                                the minority leader of the Senate, 
                                shall notify the Members of the Senate 
                                that, pursuant to this subparagraph, 
                                the Senate shall convene not later than 
                                the second calendar day after receipt 
                                of such report.
                                    ``(II) Placement on calendar.--Upon 
                                introduction in the Senate, the joint 
                                resolution shall be placed immediately 
                                on the calendar.
                                    ``(III) Floor consideration.--
                                            ``(aa) In general.--
                                        Notwithstanding Rule XXII of 
                                        the Standing Rules of the 
                                        Senate, it is in order at any 
                                        time during the period 
                                        beginning on the fourth day 
                                        after the date on which 
                                        Congress receives a report 
                                        described in subparagraph (C) 
                                        and ending on the sixth day 
                                        after the date on which 
                                        Congress receives the report 
                                        (even though a previous motion 
                                        to the same effect has been 
                                        disagreed to) to move to 
                                        proceed to the consideration of 
                                        the joint resolution, and all 
                                        points of order against the 
                                        joint resolution (and against 
                                        consideration of the joint 
                                        resolution) are waived. The 
                                        motion to proceed is not 
                                        debatable. The motion is not 
                                        subject to a motion to 
                                        postpone. A motion to 
                                        reconsider the vote by which 
                                        the motion is agreed to or 
                                        disagreed to shall not be in 
                                        order. If a motion to proceed 
                                        to the consideration of the 
                                        resolution is agreed to, the 
                                        joint resolution shall remain 
                                        the unfinished business until 
                                        disposed of.
                                            ``(bb) Debate.--Debate on 
                                        the joint resolution, and on 
                                        all debatable motions and 
                                        appeals in connection 
                                        therewith, shall be limited to 
                                        not more than 10 hours, which 
                                        shall be divided equally 
                                        between the majority and 
                                        minority leaders or their 
                                        designees. A motion further to 
                                        limit debate is in order and 
                                        not debatable. An amendment to, 
                                        or a motion to postpone, or a 
                                        motion to proceed to the 
                                        consideration of other 
                                        business, or a motion to 
                                        recommit the joint resolution 
                                        is not in order.
                                            ``(cc) Vote on passage.--
                                        The vote on passage shall occur 
                                        immediately following the 
                                        conclusion of the debate on a 
                                        joint resolution, and a single 
                                        quorum call at the conclusion 
                                        of the debate if requested in 
                                        accordance with the rules of 
                                        the Senate.
                                            ``(dd) Rulings of the chair 
                                        on procedure.--Appeals from the 
                                        decisions of the Chair relating 
                                        to the application of the rules 
                                        of the Senate, as the case may 
                                        be, to the procedure relating 
                                        to a joint resolution shall be 
                                        decided without debate.
                            ``(v) Coordination with action by other 
                        house.--
                                    ``(I) In general.--If, before the 
                                passage by one House of a joint 
                                resolution of that House, that House 
                                receives from the other House a joint 
                                resolution, then the following 
                                procedures shall apply:
                                            ``(aa) The joint resolution 
                                        of the other House shall not be 
                                        referred to a committee.
                                            ``(bb) With respect to a 
                                        joint resolution of the House 
                                        receiving the resolution--

                                                    ``(AA) the 
                                                procedure in that House 
                                                shall be the same as if 
                                                no joint resolution had 
                                                been received from the 
                                                other House; but

                                                    ``(BB) the vote on 
                                                passage shall be on the 
                                                joint resolution of the 
                                                other House.

                                    ``(II) Treatment of joint 
                                resolution of other house.--If one 
                                House fails to introduce or consider a 
                                joint resolution under this section, 
                                the joint resolution of the other House 
                                shall be entitled to expedited floor 
                                procedures under this section.
                                    ``(III) Consideration after 
                                passage.--If, following passage of the 
                                joint resolution in the Senate, the 
                                Senate then receives the companion 
                                measure from the House of 
                                Representatives, the companion measure 
                                shall not be debatable.
                                    ``(IV) Vetoes.--If the President 
                                vetoes the joint resolution, the period 
                                beginning on the date the President 
                                vetoes the joint resolution and ending 
                                on the date the Congress receives the 
                                veto message with respect to the joint 
                                resolution shall be disregarded in 
                                computing the 30-calendar day period 
                                described in clause (i) and debate on a 
                                veto message in the Senate under this 
                                section shall be 1 hour equally divided 
                                between the majority and minority 
                                leaders or their designees.
                                    ``(V) Rules of house of 
                                representatives and senate.--This 
                                subparagraph is enacted by Congress--
                                            ``(aa) as an exercise of 
                                        the rulemaking power of the 
                                        Senate and House of 
                                        Representatives, respectively, 
                                        and as such it is deemed a part 
                                        of the rules of each House, 
                                        respectively, but applicable 
                                        only with respect to the 
                                        procedure to be followed in 
                                        that House in the case of a 
                                        joint resolution, and it 
                                        supersedes other rules only to 
                                        the extent that it is 
                                        inconsistent with such rules; 
                                        and
                                            ``(bb) with full 
                                        recognition of the 
                                        constitutional right of either 
                                        House to change the rules (so 
                                        far as relating to the 
                                        procedure of that House) at any 
                                        time, in the same manner, and 
                                        to the same extent as in the 
                                        case of any other rule of that 
                                        House.
                    ``(H) Penalty rate.--
                            ``(i) In general.--Not later than 6 months 
                        after the date of enactment of this 
                        subparagraph, the Board shall, with respect to 
                        a recipient of any loan or other financial 
                        assistance under this paragraph, establish by 
                        rule a minimum interest rate on the principal 
                        amount of any loan or other financial 
                        assistance.
                            ``(ii) Minimum interest rate defined.--In 
                        this subparagraph, the term `minimum interest 
                        rate' shall mean the sum of--
                                    ``(I) the average of the secondary 
                                discount rate of all Federal reserve 
                                banks over the most recent 90-day 
                                period; and
                                    ``(II) the average of the 
                                difference between a distressed 
                                corporate bond yield index (as defined 
                                by rule of the Board) and a bond yield 
                                index of debt issued by the United 
                                States (as defined by rule of the 
                                Board) over the most recent 90-day 
                                period.
                    ``(I) Financial institution participant defined.--
                For purposes of this paragraph, the term `financial 
                institution participant'--
                            ``(i) means a company that is predominantly 
                        engaged in financial activities (as defined in 
                        section 102(a) of the Financial Stability Act 
                        of 2010 (12 U.S.C. 5311(a))); and
                            ``(ii) does not include an agency described 
                        in subparagraph (W) of section 5312(a)(2) of 
                        title 31, United States Code, or an entity 
                        controlled or sponsored by such an agency.''.
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