#aacth ,,congress #ast ,session ,h4 ,r4 #iib ,,an ,,act ,to amend provisions in section #gaf of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act relating to ,federal assistance for swaps entities4 #a4 ,short title ,this ,act may be cited as the ,swaps ,regulatory ,improvement ,act4 #b4 ,reform of prohibition on swap activity assistance ,section #gaf of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ae ,u4,s4,c4 #hcje7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#b77;,b71 by striking insured depository institution and inserting covered depository institution2 and 7,b7 by adding at the end the following3 7#c7 ,covered depository institution ,the term covered depository institution means-- 7,a7 an insured depository institution1 as that term is defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 a ,united ,states uninsured branch or agency of a foreign bank4 2 7#b7 in subsection 7c7-- 7,a7 in the heading for such subsection1 by striking insured and inserting covered2 7,b7 by striking an insured and inserting a covered2 7,c7 by striking such insured and inserting such covered2 and 7,d7 by striking or savings and loan holding company and inserting savings and loan holding company1 or foreign banking organization 7as such term is defined under ,regulation ,k of the ,board of ,governors of the ,federal ,reserve ,system 7#ab ,c4,f4,r4 #baa4ba7o7772 7#c7 by amending subsection 7d7 to read as follows3 7d7 ,only bona fide hedging and traditional bank activities permitted 7#a7 ,in general ,the prohibition in subsection 7a7 shall not apply to any covered depository institution that limits its swap and security-based swap activities to the following3 7,a7 ,hedging and other similar risk mitigation activities ,hedging and other similar risk mitigating activities directly related to the covered depository institution's activities4 7,b7 ,non-structured finance swap activities ,acting as a swaps entity for swaps or security-based swaps other than a structured finance swap4 7,c7 ,certain structured finance swap activities ,acting as a swaps entity for swaps or security-based swaps that are structured finance swaps1 if-- 7i7 such structured finance swaps are undertaken for hedging or risk management purposes2 or 7ii7 each asset-backed security underlying such structured finance swaps is of a credit quality and of a type or category with respect to which the prudential regulators have jointly adopted rules authorizing swap or security-based swap activity by covered depository institutions4 7#b7 ,definitions ,for purposes of this subsection3 7,a7 ,structured finance swap ,the term structured finance swap means a swap or security-based swap based on an asset-backed security 7or group or index primarily comprised of asset-backed securities74 7,b7 ,asset-backed security ,the term asset-backed security has the meaning given such term under section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a774 2 7#d7 in subsection 7e71 by striking an insured and inserting a covered2 and 7#e7 in subsection 7f7-- 7,a7 by striking an insured depository and inserting a covered depository2 and 7,b7 by striking the insured depository each place such term appears and inserting the covered depository4 ,passed the ,house of ,representatives ,october #cj1 #bjac4;,clerk4