Municipal Market Liquidity Enhancement Act of 2009
Latest action · May 21, 2009 Referred to House Ways and Means
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedMay 21, 2009
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Municipal Market Liquidity Enhancement Act of 2009 - Amends the Federal Reserve Act to authorize the Federal Reserve Board, in unusual and exigent circumstances, by an affirmative vote of at least five members, to authorize any federal reserve bank to make advances to a special purpose vehicle or a designated corporate entity on the vehicle's or corporate entity's promissory notes that are secured to the bank's satisfaction by securities specified in this Act or by other forms of security.
Restricts the use of such advances solely to financing the purchase by such a special purpose vehicle or designated corporate entity of variable rate demand obligations issued: (1) before enactment of this Act by a municipal securities issuer with the ability to issue a bond treated as a tax-exempt "state or local bond" under the Internal Revenue Code; (2) to refund variable rate demand obligations issued before enactment of this Act; or (3) to refinance auction rate securities. Allows the use of such advances also, in the alternative, to purchase short-term notes used for cash-management and other short-term borrowing needs issued by a municipal securities issuer.
Requires any such purchase to be made under an agreement between the special purpose vehicle or designated corporate entity and the obligation or note issuer whereby the vehicle or corporate entity agrees to purchase obligations or notes that are made publicly available for purchase but are not otherwise purchased.
Requires such advances also to bear interest at rates fixed from time to time by the federal reserve bank, subject to the review and determination of the Board.
Amends the Emergency Economic Stabilization Act of 2008 (EESA) to state that the authority of the Secretary of the Treasury to take any action under such Act includes the authority to provide enhancement in connection with municipal securities whose purchase is financed under any facility designed to enhance the liquidity in the municipal market that is provided by the Board or any federal reserve bank.
Amends the Internal Revenue Code to declare that any advances made by a federal reserve bank under this Act shall not be treated as a federal guarantee subject to federal tax (thus making them tax exempt).
Cosponsors 10
Members who signed on, in the order they did. Signatures ran from May 21, 2009 to Jun 18, 2009, with 8 there on the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-MA | Barney Frank | Original | May 21, 2009 |
| D-MO | Emanuel Cleaver | Original | May 21, 2009 |
| D-VA | Gerald E. Connolly | Original | May 21, 2009 |
| D-VA | James P. Moran | Original | May 21, 2009 |
| D-CA | Joe Baca | Original | May 21, 2009 |
| D-CA | Maxine Waters | Original | May 21, 2009 |
| D-PA | Paul E. Kanjorski | Original | May 21, 2009 |
| D-NJ | Robert E. Andrews | Original | May 21, 2009 |
| D-NH | Paul W. Hodes | Jun 11, 2009 | |
| D-NH | Carol Shea-Porter | Jun 18, 2009 |
Actions 4
Everything that happened, newest first.
- May 21, 2009Introduced in House
- May 21, 2009Referred to House Financial Services
- May 21, 2009Referred to House Ways and Means
- May 21, 2009Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, 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.
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
Text 1
Each version as it was printed, newest first.
- May 21, 2009Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.
