Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Commercial Mortgage Capital
Availability Act of 1993''.

SEC. 2. INSURED DEPOSITORY INSTITUTION CAPITAL REQUIREMENTS FOR
TRANSFERS OF MORTGAGE LOANS.

(a) Accounting Principles.--The accounting principles applicable to
the transfer of a mortgage loan with recourse contained in reports or
statements required to be filed with Federal banking agencies by a
qualified insured depository institution shall be consistent with
generally accepted accounting principles.
(b) Capital and Reserve Requirements.--With respect to the transfer
of a mortgage loan with recourse that is a sale under generally
accepted accounting principles, each qualified insured depository
institution shall--
(1) establish and maintain a reserve equal to an amount
sufficient to meet the reasonable estimated liability of the
institution under the recourse arrangement; and
(2) treat as an asset (for purposes of applicable capital
standards and other capital measures, including risk-based
capital requirements) only the maximum amount at risk under the
recourse arrangement.
(c) Qualified Institutions Defined.--An insured depository
institution is a qualified insured depository institution for purposes
of this section if, without regard to the accounting principles or
capital requirements referred to in subsections (a) and (b), the
institution is--
(1) well capitalized; or
(2) with the approval, by regulation or order, of the
appropriate Federal banking agency, adequately capitalized.
(d) Aggregate Amount of Recourse.--The total outstanding amount at
risk with respect to transfers of mortgage loans under subsections (a)
and (b) (together with the amount at risk under any provisions of law
substantially similar to subsections (a) and (b)) shall not exceed--
(1) the amount which is equal to 15 percent of the risk-
based capital of the institution; or
(2) such greater amount, as established by the appropriate
Federal banking agency by regulation or order.
(e) Institutions That Cease To Be Qualified or Exceed Aggregate
Limits.--If an insured depository institution ceases to be a qualified
insured depository institution or exceeds the limits under subsection
(d), this section shall remain applicable to any transfer of mortgage
loans that occurred at a time when the institution was qualified and
had not exceeded such limit.
(f) Prompt Corrective Action not Affected.--The capital of an
insured depository institution shall be computed without regard to this
section in determining whether the institution is less than well
capitalized.
(g) Regulations Required.--Before the end of the 180-day period
beginning on the date of the enactment of this Act, each appropriate
Federal banking agency shall prescribe final regulations implementing
this section.
(h) Alternative System Permitted.--
(1) In general.--At the discretion of the appropriate
Federal banking agency, this section shall not apply if the
regulations of the agency provide that the aggregate amount of
capital and reserves required with respect to the transfer of
mortgage loans with recourse does not exceed the aggregate
amount of capital and reserves that would be required under
subsection (b).
(2) Existing transactions not affected.--Notwithstanding
paragraph (1), this section shall remain in effect with respect
to transfers of mortgage loans with recourse by qualified
insured depository institutions occurring before the effective
date of regulations referred to in paragraph (1).
(i) Definitions.--The following definitions apply for purposes of
this section:
(1) Adequately capitalized.--The term ''adequately
capitalized'' has the same meaning as in section 38(b) of the
Federal Deposit Insurance Act.
(2) Appropriate federal banking agency.--The term
''appropriate Federal banking agency'' has the same meaning as
in section 3 of the Federal Deposit Insurance Act.
(3) Capital standards.--The term ''capital standards'' has
the same meaning as in section 38(c) of the Federal Deposit
Insurance Act.
(4) Federal banking agencies.--The term ''Federal banking
agencies'' has the same meaning as in section 3 of the Federal
Deposit Insurance Act.
(5) Insured depository institution.--The term ''insured
depository institution'' has the same meaning as in section 3
of the Federal Deposit Insurance Act.
(6) Other capital measures.--The term ''other capital
measures'' has the same meaning as in section 38(c) of the
Federal Deposit Insurance Act.
(7) Recourse.--The term ''recourse'' has the meaning given
to such term under generally accepted accounting principles.
(8) Mortgage loan.--The term ''mortgage loan'' means any--
(A) note or certificate of interest or
participation in a note (including any rights designed
to assure servicing of, or the timeliness of receipt by
the holders of such notes, certificates, or
participation of amounts payable under such notes,
certificates or participation) that is principally
secured by an interest in real property; or
(B) any security (within the meaning of section 8
of the Securities Exchange Act of 1934) that is secured
by one or more notes described in subparagraph (A) or
certificates of interest or participation in such notes
(with or without recourse to issuers thereof) and that,
by its terms, provides for payments of principal in
relation to payments, or reasonable projections of
payments, on notes described in subparagraph (A) or
certificates of interest or participation in such
notes.
(9) Well capitalized.--The term ''well capitalized'' has
the same meaning as in section 38(b) of the Federal Deposit
Insurance Act.

SEC. 3. AMENDMENT TO DEFINITION OF MORTGAGE RELATED SECURITY.

Section 3(a)(41)(A)(i) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(41)(A)(i)) is amended by inserting before the semicolon
'', or on 1 or more parcels of real estate upon which is located one or
more commercial structures''.

SEC. 4. AUTHORITY TO EXEMPT COMMERCIAL MORTGAGE RELATED SECURITIES
TRANSACTIONS FROM PROHIBITED TRANSACTION RULES.

The Secretary of Labor, in consultation with the Secretary of the
Treasury, shall exempt, either unconditionally or on stated terms and
conditions, transactions involving commercial mortgage related
securities (as such term is defined in section 3(a)(41) of the
Securities Exchange Act of 1934, as amended by section 3 of this Act)
from--
(1) the restrictions of sections 406(a) and 407(a) of the
Employee Retirement Income Security Act of 1974; and
(2) the taxes imposed under section 4975 of the Internal
Revenue Code of 1986.

SEC. 5. PROVISIONS TO SAFEGUARD THE INTEGRITY OF THE SECURITIZATION
PROCESS, AND THE SAFETY AND SOUNDNESS OF FEDERALLY
INSURED INSTITUTIONS.

(a) Compliance With Securities Regulations.--Any security relying
on the provisions of this Act shall comply with all rules and
regulations of Federal securities laws applicable thereto, as
determined taking into account the provisions of this Act, including
all provisions relating to required disclosure to investors,
registrations, reporting and compliance, and all anti-fraud provisions.
(b) Treatment of Bank Issued or Purchased Mortgage Backed
Securities for Purposes of Minimum Capital Requirements.--
(1) Mortgages held by bank to back securities.--If an issue
of securities backed by mortgage loans represents a liability
on the balance sheet of an insured depository institution and
the assets backing such obligation represent assets on the
balance sheet of such institution, the institution shall
maintain minimum adequate capital with regard to such assets as
prescribed by all applicable rules and regulations of the
banking agencies with supervisory and examination authority
over such institution, as determined taking into account the
provisions of this Act.
(2) Securities held by bank.--If an insured depository
institution purchases a mortgage-related security to which the
provisions of this Act apply, the institution shall maintain
minimum adequate capital with respect to such security and all
other assets as prescribed by all applicable rules and
regulations of the banking agencies with supervisory and
examination authority over such institution, as determined
taking into account the provisions of this Act.
Output:
Commercial Mortgage Capital Availability Act of 1993 - Sets forth a regulatory scheme under which qualified insured depository institutions meeting prescribed reserve and capital requirements may execute mortgage loan transfers with a recourse arrangement.
Amends the Securities Exchange Act of 1934 to modify the definition of "mortgage related security" to include notes directly secured by a first lien on real estate with commercial structures located upon it (thus bringing such securities within the purview of the Act).
Directs the Secretary of Labor to exempt commercial mortgage related securities transactions from: (1) certain restrictions of the Employee Retirement Income Security Act of 1974; and (2) certain taxes imposed under the Internal Revenue Code.
Mandates that securities relying on the provisions of this Act comply with all Federal securities laws relating to disclosure to investors, registrations, reporting and anti-fraud provisions.
Requires insured depository institutions to maintain the minimum adequate capital prescribed by regulatory banking agencies when executing mortgage backed securities transactions.