Keep Repos to Maturity on Balance Sheet Act of 2013 - Directs the Securities and Exchange Commission (SEC), in establishing accounting principles or standards for purposes of the securities laws, to require that a repurchase-to-maturity transaction be treated as a secured borrowing in which the transferred asset serves as collateral.
Defines "repurchase-to-maturity transaction" as one in which: (1) a financial asset is transferred in exchange for cash, other financial assets, or letters of credit; and (2) concurrently the transferor and the transferee agree that, at the asset's maturity, the transferee may either return the transferred asset (or a substantially similar asset) to the transferor, or redeem the transferred asset from the issuer of the transferred asset.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3010 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3010
To direct the Securities and Exchange Commission to require that
repurchase-to-maturity transactions be treated as secured borrowings.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 2, 2013
Mr. Capuano introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To direct the Securities and Exchange Commission to require that
repurchase-to-maturity transactions be treated as secured borrowings.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Keep Repos to Maturity on Balance
Sheet Act of 2013''.
SEC. 2. ACCOUNTING TREATMENT OF RTM TRANSACTIONS.
(a) In General.--In establishing accounting principles or standards
for purposes of the securities laws, the Securities and Exchange
Commission shall require that a repurchase-to-maturity transaction be
treated as a secured borrowing in which the transferred asset serves as
collateral.
(b) Definitions.--In this section:
(1) Repurchase-to-maturity transaction.--The term
``repurchase-to-maturity transaction'' means a transaction in
which--
(A) a financial asset is transferred in exchange
for cash, other financial assets, or letters of credit;
and
(B) concurrently with the transfer, the transferor
and the transferee agree that, at the maturity of the
transferred asset, the transferee may either, at the
option of the transferee--
(i) return the transferred asset (or a
substantially similar asset) to the transferor,
thereby obligating the transferor to reacquire
the transferred asset (or to acquire the
substantially similar asset, as the case may
be) for an amount equal to the value of the
cash, other financial assets, or letters of
credit described in subparagraph (A), plus a
stipulated interest factor; or
(ii) redeem the transferred asset from the
issuer of the transferred asset.
(2) Securities laws.--The term ``securities laws'' has the
meaning given such term in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).
(3) Transferred asset.--The term ``transferred asset''
means a financial asset transferred in exchange for cash, other
financial assets, or letters of credit in a repurchase-to-
maturity transaction, as described in paragraph (1)(A).
(c) Effective Date.--The treatment required under subsection (a)
shall apply beginning on the date that is 90 days after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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