Sec. 403. TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS
415 words·~2 min read·
/statute-compilations/comps-15539/sec-403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 403 TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS ###
(a)In General Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended— ####
(1)by moving subsection
(z)so that it appears after subsection (y); and ####
(2)by adding at the end the following: > > ### “(aa) Treatment of Certain Municipal Obligations > > > #### “(1) Definitions > > In this subsection— > > > ##### “(A) > > the term ‘investment grade’, with respect to an obligation, has the meaning given the term in section 1.2 of title 12, Code of Federal Regulations, or any successor thereto; > > > ##### “(B) > > the term ‘liquid and readily-marketable’ has the meaning given the term in section 249.3 of title 12, Code of Federal Regulations, or any successor thereto; and > > > ##### “(C) > > the term ‘municipal obligation’ means an obligation of— > > > ###### “(i) > > a State or any political subdivision thereof; or > > > ###### “(ii) > > any agency or instrumentality of a State or any political subdivision thereof. > > > #### “(2) Municipal obligations > > For purposes of the final rule entitled ‘Liquidity Coverage Ratio: Liquidity Risk Measurement Standards’ (79 Fed. Reg. 61439 (October 10, 2014)), the final rule entitled ‘Liquidity Coverage Ratio: Treatment of U.S. Municipal Securities as High-Quality Liquid Assets’ (81 Fed. Reg. 21223 (April 11, 2016)), and any other regulation that incorporates a definition of the term ‘high-quality liquid asset’ or another substantially similar term, the appropriate Federal banking agencies shall treat a municipal obligation as a high-quality liquid asset that is a level 2B liquid asset if that obligation is, as of the date of calculation— > > > ##### “(A) > > liquid and readily-marketable; and > > > ##### “(B) > > investment grade.” > . ###
(b)Amendment to Liquidity Coverage Ratio Regulations **[**[12 U.S.C. 1828 note](/us/usc/t12/s1828)**]** Not later than 90 days after the date of 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 entitled “Liquidity Coverage Ratio: Liquidity Risk Measurement Standards” (79 Fed. Reg. 61439 (October 10, 2014)) and the final rule entitled “Liquidity Coverage Ratio: Treatment of U.S. Municipal Securities as High-Quality Liquid Assets” (81 Fed. Reg. 21223 (April 11, 2016)) to implement the amendments made by this section. # TITLE V ENCOURAGING CAPITAL FORMATION
Connectionstraces to 1
Traces to 1 document
2 references not yet in our index
- 79 FR 61439
- 81 FR 21223
Citation graph
cites case law
Sec. 403
TREATMENT OF CERTAIN MUNICIPAL OBLIGATIONS
Fed. Reg.79 FR 61439
Fed. Reg.81 FR 21223
Cites 3Cited by 0 across 0 sources