Allows certain municipal bonds to be treated as level 2A liquid (high-quality) assets.
Municipal Finance Support Act of 2017
This bill amends the Federal Deposit Insurance Act to require certain municipal obligations to be treated as level 2A liquid assets if they are investment grade, liquid, and readily marketable. Under current law, only certain securities issued or guaranteed by a U.S. government-sponsored enterprise, a sovereign entity, or a multilateral development bank may be treated as level 2A liquid assets (which are considered to be high-quality assets).
Amended in committee.
Original sponsor: Rep. Messer, Luke [R-IN-6]
Passed House by voice vote.
Related bill: S828 (Related bill; has not passed Senate)