Small Business Credit Availability Act

Bill: 112-hr-3336
Sponsor: Rep. Hartzler, Vicky [R-MO-4]
Introduced: 2011-11-03 in the House
Policy area: Agriculture and Food
Subjects: Agricultural prices, subsidies, credit
Bank accounts, deposits, capital
Banking and financial institutions regulation
Commodities markets
Securities
Small business

Summary:
action_date: 2011-11-03
text: 
Small Business Credit Availability Act - Amends the Commodity Exchange Act (as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act) with respect to the exclusion of an insured depository institution from regulation as a &quot;swap dealer.&quot; Eliminates the criterion for such exclusion as to the extent to which the institution offers to enter into a swap with a customer in connection with originating a loan with that customer.
 
Adds as new criteria for such exclusion the extent to which the institution enters into a swap: (I) with a customer that is seeking to manage risk in connection with an extension of credit by the institution to, on behalf of, or for the benefit of, the customer; or (2) to offset the risks arising from a swap that meets such requirement.
 
Excludes from regulation as a swap dealer, under the same criteria, an institution chartered and operating under the Farm Credit Act of 1971. 
 
Revises the criteria for exemption of a swap from the requirement that it be submitted for clearing to a derivatives clearing organization either registered under this Act or exempt from registration. Revises in particular the exemption from this requirement of a swap one of whose counterparties is not a financial institution. Modifies the definition of &quot;financial entity&quot; with respect to a small bank, savings association, farm credit system institution, or credit union which the Commodity Futures Trading Commission (CFTC) may consider whether to exempt from such definition. Repeals the CFTC's discretion to make such an exemption. Excludes outright from the meaning of financial entity any small bank, savings association, farm credit system institution, or credit union if: (1) its total assets are $30 billion or less, or (2) its aggregate uncollateralized outward exposure plus aggregate potential outward exposure with respect to its swaps does not exceed $1 billion. (Thus exempts such a small bank, savings association, farm credit system institution, or credit union from the clearing requirement.)

action_date: 2012-02-08
text: 
Small Business Credit Availability Act - Amends the Commodity Exchange Act (as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act [Dodd-Frank]) with respect to the exclusion of an insured depository institution from regulation as a "swap dealer." Eliminates the criterion for such exclusion as to the extent to which the institution offers to enter into a swap with a customer in connection with originating a loan with that customer.
 
Adds as new criteria for such exclusion the extent to which the institution enters into a swap: (I) with a customer that is seeking to manage risk in connection with an extension of credit by the institution to, on behalf of, or for the benefit of, the customer; or (2) to offset the risks arising from a swap that meets such requirement.
 
Excludes from regulation as a swap dealer, under the same criteria, an institution chartered and operating under the Farm Credit Act of 1971. 
 
Revises the criteria for exemption of a swap from the requirement that it be submitted for clearing to a derivatives clearing organization either registered under this Act or exempt from registration. Revises in particular the exemption from this requirement of a swap one of whose counterparties is not a financial institution. Modifies the definition of "financial entity" with respect to a small bank, savings association, farm credit system institution, non-profit cooperative lender controlled by electric cooperatives, or credit union which the Commodity Futures Trading Commission (CFTC) may consider whether to exempt from such definition. Repeals the CFTC's discretion to make such an exemption. Excludes outright from the meaning of financial entity any small bank, savings association, farm credit system institution, non-profit cooperative lender controlled by electric cooperatives, or credit union if its aggregate uncollateralized outward exposure plus aggregate potential outward exposure with respect to its swaps does not exceed $1 billion. (Thus exempts such a small bank, savings association, farm credit system institution, non-profit cooperative lender controlled by electric cooperatives, or credit union from the clearing requirement.)
 
Declares such amendments effective as of the enactment of the Wall Street Transparency and Accountability Act of 2010 (title VII of Dodd-Frank).
 
Requires the amendments made by this Act to be implemented through promulgation of an interim final rule, without regard to: (1) specified federal law on coordination of federal information policy, and (2) administrative notice and comment requirements.

action_date: 2012-04-25
text: 
Small Business Credit Availability Act - (Sec. 2) Amends the Commodity Exchange Act (as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act [Dodd-Frank]) to exclude from regulation as a swap dealer an insured depository institution, or a U.S. uninsured branch or agency of a foreign bank that has a prudential regulator. 
 
Permits designation of a person as a swap dealer for a single type, class, or category of swap or activity, and yet considered not to be a swap dealer for other types, classes, or categories of swaps or activities.
 
Excludes from the definition of &quot;swap dealer&quot; a person that enters into swaps for such person's own account: (1) either individually or in a fiduciary capacity, but not as part of specified business activities; (2) in order to either hedge or mitigate commercial risk; or (3) to comply with state or local governmental regulations.
 
Excludes also from factors determinative of &quot;swap dealer&quot; a swap entered into for a person's own account and that involves a capacity contract, a renewable energy credit, an emissions allowance, or an emissions offset if such instrument is used to meet obligations under state or local governmental regulations.
 
(Sec. 3) Excludes outright from the meaning of financial entity any small bank, savings association, farm credit system institution, non-profit cooperative lender controlled by electric cooperatives, or credit union if the aggregate uncollateralized outward exposure plus aggregate potential outward exposure with respect to its swaps does not exceed $1 billion. (Thus exempts such entities from the clearing requirement.)
 
(Sec. 4) Redefines &quot;major swap participant&quot; to exclude an entity whose primary business is providing financing that facilitates the sale or lease of products by or on behalf of the parent company or its subsidiary, and uses derivatives only for the purpose of hedging underlying commercial risks in a consolidated financing and leasing portfolio at least 90% of which, as of the end of its preceding fiscal year, is qualifying financing (including loans, notes, installment sales contracts, receivables, and operating and financing leases).
 
Excludes certain captive finance entities from the swap clearing requirement.
 
(Sec. 5) Declares amendments made by this Act effective as of the enactment of the Wall Street Transparency and Accountability Act of 2010 (title VII of Dodd-Frank).
 
(Sec. 6) Requires the amendments made by this Act to be implemented: (1) through promulgation of an interim final rule, pursuant to which public comment will be sought before a final rule is issued; and (2) without regard to specified federal law on coordination of federal information policy, or certain administrative notice and comment requirements.


Legislative actions:
action_date: 2012-04-26
text: Received in the Senate and Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
action_date: 2012-04-25
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2012-04-25
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 312 - 111 (Roll no. 180). (text: CR H2095-2096)
action_date: 2012-04-25
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 312 - 111 (Roll no. 180).(text: CR H2095-2096)
action_date: 2012-04-25
text: Considered as unfinished business. (consideration: CR H2107)
action_date: 2012-04-25
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2012-04-25
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 3336.
action_date: 2012-04-25
text: Considered under suspension of the rules. (consideration: CR H2095-2099)
action_date: 2012-04-25
text: Mr. Lucas moved to suspend the rules and pass the bill, as amended.
action_date: 2012-02-08
text: Placed on the Union Calendar, Calendar No. 269.
action_date: 2012-02-08
text: Reported (Amended) by the Committee on Agriculture. H. Rept. 112-390.
action_date: 2012-02-08
text: Reported (Amended) by the Committee on Agriculture. H. Rept. 112-390.
action_date: 2012-01-25
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2012-01-25
text: Committee Consideration and Mark-up Session Held.
action_date: 2012-01-25
text: Subcommittee on General Farm Commodities and Risk Management Discharged.
action_date: 2011-11-29
text: Referred to the Subcommittee on General Farm Commodities and Risk Management.
action_date: 2011-11-03
text: Referred to the House Committee on Agriculture.
action_date: 2011-11-03
text: Introduced in House
action_date: 2011-11-03
text: Introduced in House