Section 1 Short title
This Act may be cited as the “Municipal Finance Support Act of 2017”.
Municipal Finance Support Act of 2017
AN ACT
To require the appropriate Federal banking agencies to treat certain municipal obligations as no lower than level 2B liquid assets, and for other purposes.
Sec. 2 Treatment of certain municipal obligations
by moving subsection (z) so that it appears after subsection (y); and
by adding at the end the following:
“(aa) Treatment of certain municipal obligations
“(1) In general—For purposes of the final rule titled “Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule” (79 Fed. Reg. 61439; published October 10, 2014) (the “Final Rule”) and any other regulation which incorporates a definition of the term “high-quality liquid asset”, the appropriate Federal banking agencies shall treat a municipal obligation that is both liquid and readily marketable (as defined in the Final Rule) and investment grade as of the calculation date as a high-quality liquid asset that is no lower than a level 2B liquid asset.
“(2) Definitions—For purposes of this subsection:
“(A) Investment grade—With respect to an obligation, the term “investment grade” has the meaning given that term under part 1 of title 12, Code of Federal Regulations.
“(B) Municipal obligation—The term “municipal obligation” means an obligation of a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof.”
Amendment to liquidity coverage ratio regulations— Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency shall amend the final rule titled “Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule” (79 Fed. Reg. 61439; published October 10, 2014) to implement the amendments made by this Act.