,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #ghji  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #bi1 #bjbj,mr4  
,taylor 7= himself1 ,mr4 ,lawson (      
,florida1 & ,mr4 ,b>r7 introduc$ !      
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to require ! ,secret>y ( !     
,treasury to e/abli% a ,,hope ,pref]r$  
,equity ,facility to gu>antee c]ta9     
f9ancial inve/m5ts ( comm]cial borr[]s  
affect$ by ,,covid-#ai1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,help+ ,op5 ,prop]ties     
,endeavor ,act ( #bjbj or ! ,,hope ,act 
( #bjbj4  #b4 ,,hope ,pref]r$ ,equity   
,facility  7a7 ,e/abli%m5t ,! ,secret>y 
( ! ,treasury %all e/abli% a ,,hope     
,pref]r$ ,equity ,facility to provide   
f9ancial assi/ance to borr[]s (         
comm]cial mortgages 9 ! =m ( a gu>antee 
( a pur*ase by a f9ancial in/itution ( a
 pref]r$ equity in/rum5t issu$ by a     
borr[]4 ,! ,secret>y %all gu>antee #ajj 
p]c5t ( any su* pur*ase made "u ?is     

section4  7b7 ,eligibility ( borr[]s ,a 
borr[] is eligible to receive f9ancial  
assi/ance "u ?is section if1 z det]m9$  
by ! f9ancial in/itution-- 7#a7 !       
borr[]'s rev5ue dur+ any consecutive    
#c-mon? p]iod betwe5 ,m>* #a1 #bjbj1 &  
,febru>y #bh1 #bjba1 f ! prop]ty secur+ 
! comm]cial mortgage is at lea/ #be     
p]c5t less ?an ! rev5ue f su* prop]ty   
dur+ ! same consecutive #c-mon? p]iod 9 
! previ\s ye>2  7#b7 ! borr[] _h n      
receiv$ writt5 notice ( monet>y default 
on ! comm]cial mortgage )9 ! previ\s ye>
 & fail$ to cure su* notice z ( ,m>* #a1
 #bjbj2  7#c7 ei!r-- 7,a7 ! debt s]vice 
cov]age ratio ) respect to ! comm]cial  
mortgage 0 at lea/ #a4c times on an     
annual basis dur+ #bjai2 or  7,b7 ! debt
 s]vice cov]age ratio ) respect to !    
comm]cial mortgage 0 at lea/ #a4c times 
on an annual basis dur+ bo? #bjag &     
#bjah2  7#d7 ! prop]ty secur+ !         
comm]cial mortgage is n own]-occupi$1   
except to manage ! prop]ty or de m9imis 
occupancy z o!rwise provid$ by !        

,secret>y2  7#e7 ! borr[] or a p>5t     
company ( ! borr[] has n acquir$ !      
subject prop]ty aft] ,m>* #a1 #bjbj1    
?r\gh a =eclosure process2 &  7#f7 !    
borr[] has n already receiv$ f9ancial   
assi/ance "u ?is section ) respect to ! 
applicable prop]ty secur+ ! comm]cial   
mortgage4  7c7 ,requirem5ts on pref]r$  
equity in/rum5ts  7#a7 ,9 g5]al ,)      
respect to a pref]r$ equity in/rum5t    
pur*as$ by a f9ancial in/itution f a    
borr[]1 ! pur*ase ( :i* is gu>ante$ "u  
?is section-- 7,a7 ! in/rum5t %all be   
subord9ate to p]fect$ loans & unsecur$  
debt2  7,b7 ! am\nt paid = su* in/rum5t 
%all be 9 an am\nt1 z det]m9$ by !      
f9ancial in/itution1 t does n exce$ #aj 
p]c5t ( ! out/&+ am\nt ow$ on !         
comm]cial mortgage2  7,c7 ! pur*ase     
am\nt ( ! in/rum5t %all be made         
available by ! f9ancial in/itution to ! 
borr[] 9 an acc\nt t ! borr[] may draw  
d[n1 9 am\nts & at times to be det]m9$  
by ! borr[] = any purpose ! borr[]      
det]m9es may help ! prop]ty1 dur+ !     

#a-ye> p]iod foll[+ ! date su* pur*ase  
is made2  7,d7 ! in/rum5t %all be       
unsecur$ by ! subject prop]ty secur+ !  
comm]cial mortgage2  7,e7 ! in/rum5t    
%all provide no "r ( =eclosure & no     
approval rights2  7,f7 ! in/rum5t %all1 
except z provid$ "u p>agraph 7#b71 h an 
annual int]e/ rate ( #c p]c5t calculat$ 
on a mon?ly basis on all am\nts t h be5 
drawn f ! acc\nt describ$ 9 subp>agraph 
7,b71 ( :i* #j4e p]c5t %all be transf]r$
 to ! ,secret>y ( ! ,treasury = purposes
 "u subsection 7g77#d72  7,g7 any       
portion ( ! in/rum5t may be r$eem$ by ! 
borr[] at any "t ) ! f9ancial           
in/itution1 )\t p5alty2  7,h7 ! in/rum5t
 %all require paym5ts to fir/ be due    
aft] ! end ( ! #b-ye> p]iod beg9n+ on ! 
e>li] (-- 7i7 ! date on :i* all funds 9 
! acc\nt describ$ "u subp>agraph 7,b7 h 
be5 drawn d[n by ! borr[]2 or  7ii7 !   
end ( ! #a-ye> p]iod beg9n+ on ! date ! 
pur*ase is made2  7,i7 ! in/rum5t %all  
fully amortize ov] ! #g-ye> p]iod beg9n+
 on ! date paym5ts are fir/ due2  7,j7 !

 in/rum5t %all require imm$iate         
r$emption if !re is m ?an a #ej p]c5t   
*ange 9 ! own]%ip ( ! borr[]1 except via
 dea?1 comp>$ to ! date on :i* !        
in/rum5t is pur*as$2  7,k7 ! in/rum5t   
%all be approv$ 9 advance by !          
,secret>y2 &  7,l7 ! proce$s f su*      
pur*ase may be us$ =-- 7i7 exp5ses ( !  
p>5t company relat$ to ! adm9i/ration ( 
ov]sight ( su* borr[]1 own]%ip or       
op]ation ( su* borr[]1 or to a subsidi>y
 entity ( ! p>5t company = same or      
simil> exp5ses2  7ii7 ! b5efit &        
op]ation ( ! prop]ty secur+ ! comm]cial 
mortgage2  7iii7 paym5ts ( ! pref]r$    
equity int]e/1 includ+ paym5ts =        
pr9cipal1 int]e/1 insurance1 taxes1     
utilities1 fees1 op]at+ exp5ses1 &      
payroll exp5ses2 &  7iv7 l5d]-requir$   
res]ves su* z capital exp5diture        
res]ves4  7#b7 ,failure to make paym5ts 
7,a7 ,9 g5]al ,if a borr[] fails to make
 paym5ts due on a pref]r$ equity        
in/rum5t1 ! pur*ase ( :i* is gu>ante$ "u
 ?is section-- 7i7 dur+ ! fir/ ye> 9 :i*

 paym5ts are due1 ! int]e/ rate on !    
in/rum5t %all increase to #c4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
fir/ ye>2  7ii7 dur+ ! second ye> 9 :i* 
paym5ts are due1 ! int]e/ rate on !     
in/rum5t %all increase to #d4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
second ye>2  7iii7 dur+ ! ?ird ye> 9 :i*
 paym5ts are due1 ! int]e/ rate on !    
in/rum5t %all increase to #e4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
?ird ye>2  7iv7 dur+ ! f\r? ye> 9 :i*   
paym5ts are due1 ! int]e/ rate on !     
in/rum5t %all increase to #f4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
f\r? ye>2  7v7 dur+ ! fif? ye> 9 :i*    
paym5ts are due1 ! int]e/ rate on !     
in/rum5t %all increase to #g4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
fif? ye>2  7vi7 dur+ ! six? ye> 9 :i*   
paym5ts are due1 ! int]e/ rate on !     
in/rum5t %all increase to #h4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
six? ye>2  7vii7 dur+ ! sev5? ye> 9 :i* 
paym5ts are due1 ! int]e/ rate on !     

in/rum5t %all increase to #i4e p]c5t = !
 rema9d] ( ! loan1 beg9n+ at ! end ( !  
sev5? ye>2 &  7viii7 aft] ! la/ ye> 9   
:i* paym5ts are due "u ! amortization   
s*$ule1 ! int]e/ rate on ! in/rum5t %all
 increase to #ac p]c5t p]man5tly1 beg9n+
 at ! end ( su* ye>4  7,b7 ,cure p]iod  
,be=e any int]e/ rate increase requir$  
"u subp>agraph 7,a71 ! f9ancial         
in/itution %all provide notice to !     
borr[] )9 five cal5d> days4 ,! borr[]   
%all h a #cj-;day cure p]iod be=e su*   
increase takes effect1 beg9n+ on ! date 
( su* notice4  7,c7 ,increas$ int]e/ ow$
 to ,treasury ,) respect to any int]e/  
ow$ on a pref]r$ equity in/rum5t "u     
subp>agraph 7,a7 above #b4e p]c5t1 su*  
int]e/ %all be ow$ to ! ,dep>tm5t ( !   
,treasury4  7,d7 ,treatm5t ( f9ancial   
in/itution failure to assess int]e/ ,if 
! f9ancial in/itution fails to assess   
int]e/ requir$ "u ?is p>agraph on !     
borr[]1 or fails to notify ! borr[] (   
su* requir$ int]e/ = a p]iod ( #c mon?s 
or m1 ! f9ancial in/itution %all only be

 eligible to receive half ( ! s]vice fee
 describ$ "u subsection 7d77#a7 = !     
p]iod ( su* failure4  7d7 ,paym5ts to   
f9ancial in/itutions  7#a7 ,s]vic+ fee  
,! ,secret>y %all pay ea* f9ancial      
in/itution t pur*ases a pref]r$ equity  
in/rum5t1 ! pur*ase ( :i* is gu>ante$ "u
 ?is section1 an annual s]vic+ fee 9 an 
am\nt equal to #a p]c5t ( ! out/&+ am\nt
 on su* in/rum5t1 paid annually4  7#b7  
,pay = orig9ation  7,a7 ,9 g5]al ,!     
,secret>y %all pay a f9ancial in/itution
 describ$ "u p>agraph 7#a7 at a rate1   
bas$ on ! cov]$ am\nt1 (-- 7i7 #e p]c5t 
= a cov]$ am\nt ( n m ?an #cej1jjj2     
7ii7 #c p]c5t = a cov]$ am\nt ( m ?an   
#cej1jjj & less ?an #b1jjj1jjj2 &  7iii7
 #a p]c5t = a cov]$ am\nt ( n less ?an  
#b1jjj1jjj4  7,b7 ,exception 9 cases (  
loss ,if ! borr[] defaults on #ij p]c5t 
or m ( ! am\nt drawn d[n1 ! f9ancial    
in/itution %all repay any reimbursem5t  
am\nt paid pursuant to subp>agraph 7,a74
  7,c7 ,cov]$ am\nt def9$ ,9 ?is        
p>agraph1 ) respect to a pref]r$ equity 

in/rum5t1 ! t]m cov]$ am\nt means ! full
 am\nt made available to ! borr[] at !  
"t ! in/rum5t is pur*as$1 reg>dless (   
:e!r ! borr[] has drawn d[n ! entire    
am\nt4  7e7 ,protection ( ,gov]nm5t     
int]e/s ,) respect to a borr[] :o issues
 a pref]r$ equity in/rum5t1 ! pur*ase ( 
:i* is gu>ante$ "u ?is section1 until   
su* "t z ! in/rum5t is r$eem$1 ! p>5t   
company ( ! borr[] may n remove value f 
! borr[]1 includ+-- 7#a7 by pay+ any    
divid5d2  7#b7 ) respect to any         
affiliat$ prop]ty ( ! borr[] = :i* !re  
is a manag]1 if ! manag] & ! borr[] are 
relat$1 by increas+ any fee paid to !   
manag] comp>$ to ! am\nt ( su* fee be=e 
su* in/rum5t is pur*as$2  7#c7 ) respect
 to an affiliate ( ! own] prop]ty1 by   
procur+ ! p]=mance ( s]vices or sell+   
goods t are n ord9>y1 necess>y1 & at    
m>ket rates2 or  7#d7 by l5d+ money to  
any own] ( ! borr[] or to any relat$    
p]son4  7f7 ,treasury au?ority & duties 
7#a7 ,approval deadl9e ,! ,secret>y %all
 approve or d5y any pref]r$ equity      

in/rum5t submitt$ "u ?is section to !   
,secret>y )9 #cj cal5d> days ( su*      
submission4  7#b7 ,pur*ase & sale       
au?ority ,) respect to a pref]r$ equity 
in/rum5t1 ! pur*ase ( :i* is gu>ante$ "u
 ?is section1 ! ,secret>y may1 at !     
,secret>y's discretion-- 7,a7 pur*ase ! 
pref]r$ equity in/rum5t f ! applicable  
f9ancial in/itution any "t aft] ! end ( 
#g-ye> p]iod beg9n+ on ! date paym5ts   
are fir/ due ) respect to ! in/rum5t2   
7,b7 sell any pref]r$ equity in/rum5t   
pur*as$ by ! ,secret>y "u subp>agraph   
7,a72 &  7,c7 contract ) a private      
s]vic] to s]vice any pref]r$ equity     
in/rum5t pur*as$ by ! ,secret>y "u      
subp>agraph 7,a74  7#c7 ,transf] ( notes
 & pap]s ,:5 ! pref]r$ equity in/rum5t  
is r$eem$ by ! ,secret>y1 a digital copy
 ( all notes & pap]s %all be provid$ to 
! ,secret>y ^u reque/ ( ! ,secret>y4 ,^u
 reque/ ( ! ,secret>y1 an orig9al       
docum5t %all be provid$4  7#d7          
,adm9i/rative co/s ,! ,secret>y %all use
 am\nts describ$ "u subsection          

7c77#a77;,e7 = adm9i/rative co/s ( c>ry+
 out ?is section4  7#e7 ,rulemak+ ,n    
lat] ?an #cj days aft] ! date ( !       
enactm5t ( ?is ,act1 ! ,secret>y %all   
issue su* rules or guidance z !         
,secret>y det]m9es necess>y to c>ry out 
?is section4  7g7 ,f9ancial in/itution  
requirem5ts & au?orities  7#a7 ,deadl9e 
= mak+ funds available ,a f9ancial      
in/itution submitt+ a pref]r$ equity    
in/rum5t to ! ,secret>y "u ?is section  
%all1 if ! ,secret>y approves su*       
in/rum5t1 make funds available to !     
borr[] 9 connection ) su* in/rum5t n    
lat] ?an #ad cal5d> days aft] su*       
approval4  7#b7 ,sale ( in/rum5t to     
,treasury ,a f9ancial in/itution may    
sell a pref]r$ equity in/rum5t to !     
,secret>y aft] ! end ( ! #aj-ye> p]iod  
beg9n+ on ! date on :i* ! f9ancial      
in/itution pur*as$ ! in/rum5t at p> plus
 int]e/ less orig9ation fees4  7#c7     
,=eclosure ,9 ! ev5t ( a =eclosure on ! 
subject prop]ty secur+ a comm]cial      
mortgage relat+ to a pref]r$ equity     

in/rum5t1 a f9ancial in/itution %all    
sell ! pref]r$ equity in/rum5t to !     
,secret>y )9 #ij days aft] ! date (     
=eclosure at p> plus int]e/ & orig9ation
 fees4  7#d7 ,additional collat]al ,a   
f9ancial in/itution may require         
additional collat]al f a borr[]1 includ+
 p]sonal rec\rse1 corporate rec\rse1 a  
fir/ li5 on ano!r encumb]$ prop]ty1 or a
 claim on bus9ess assets4 ,! f9ancial   
in/itution may n receive a li5 on !     
subject prop]ty4  7h7 ,o!r requirem5ts  
7#a7 ,public report+ ,a borr[] t        
receives f9ancial assi/ance "u ?is ,act 
%all issue a public /atem5t ann\nc+ su* 
receipt imm$iately aft] su* receipt4 ,! 
,secret>y p]iodically %all make publicly
 available a li/ ( su* borr[]s1 along ) 
! am\nt ea* su* borr[] receiv$4  7#b7   
,indemnification ,a pref]r$ equity      
in/rum5t issu$ "u ?is section %all      
require t an approv$ gu>antor 7z det]m9$
 by ! f9ancial in/itution7 provide a    
gu>antee to ! f9ancial in/itution & to !
 ,secret>y t provides = indemnification 

( su* f9ancial in/itution if ! borr[]1 a
 p>5t company ( ! borr[]1 or any        
affiliate ( ! borr[]1 ) respect to !    
prop]ty secur+ ! comm]cial mortgage1    
does ! foll[+3 7,a7 ,commits fraud1 or  
misappropriates or misapplies any am\nts
 receiv$ f ! pur*ase ( su* in/rum5t4    
7,b7 ,fails to apply su* am\nts 9       
accordance ) ! requirem5ts ( subsection 
7c77#a77,k74  7,c7 ,fails to comply ) ! 
requirem5ts ( subsection 7f74  7,d7     
,int5tionally wa/es ! prop]ty4  7#c7    
,additional fee ,a f9ancial in/itution  
may *>ge additional fees to a borr[] f  
:i* ! f9ancial in/itution pur*ases a    
pref]r$ equity in/rum5t4  7i7 ,treatm5t 
( in/rum5ts by regulators ,= purposes ( 
calculat+ any capital requirem5t1 !     
appropriate ,f$]al bank+ ag5cies %all   
treat pref]r$ equity in/rum5ts1 !       
pur*ase ( :i* are gu>ante$ "u ?is       
section1 9 ! same mann] z loans gu>ante$
 "u ! ,pay*eck ,protection ,program "u  
section #g7;a77#cf7 ( ! ,small ,bus9ess 
,act4  7j7 ,limitation on f9ancial      

assi/ance go+ to entities controll$ by  
s5ior memb]s ( ! ,executive ,bran* or   
,memb]s ( ,congress  7#a7 ,prohibition  
,a cov]$ entity may n receive f9ancial  
assi/ance "u ?is section4  7#b7         
,def9ition ,9 ?is subsection1 ! t]m     
cov]$ entity has ! mean+ giv5 t t]m "u  
section #djai7;a7 ( ! ,,c>es ,act 7#ae  
,u4,s4,c4 #ijed7;a774  7k7 ,fund+ ,!    
,secret>y %all1 )\t fur!r appropriation1
 use am\nts made available "u section   
#djjc7;b77#d7 ( ! ,,c>es ,act 7#ae      
,u4,s4,c4 #ijdb7;b77#d77 to c>ry out ?is
 section4  7l7 ,def9itions ,9 ?is       
section3 7#a7 ,appropriate ,f$]al bank+ 
ag5cy ,! t]m appropriate ,f$]al bank+   
ag5cy-- 7,a7 has ! mean+ giv5 t t]m "u  
section #c ( ! ,f$]al ,deposit          
,insurance ,act 7#ab ,u4,s4,c4 #ahac72 &
  7,b7 means ! ,national ,cr$it ,union  
,adm9i/ration1 9 ! case ( an insur$     
cr$it union 7z def9$ "u section #aja ( !
 ,f$]al ,cr$it ,union ,act 7#ab         
,u4,s4,c4 #ageb774  7#b7 ,borr[] ,! t]m 
borr[] means a borr[] ( a comm]cial     

mortgage loan4  7#c7 ,comm]cial mortgage
 ,! t]m comm]cial mortgage means a      
mortgage loan secur$ by an int]e/ 9 real
 prop]ty own$ = r5tal income4  7#d7     
,f9ancial in/itution ,! t]m f9ancial    
in/itution means-- 7,a7 a p]son au?oriz$
 to make & approve loans "u section     
#g7;a77#cf7 ( ! ,small ,bus9ess ,act    
7#ae ,u4,s4,c4 #fcf7;a77#cf77 or section
 #aaji ( ! ,,c>es ,act 7,public ,law    
#aaf-acf72  7,b7 a national bank+       
association2 &  7,c7 su* o!r p]sons z ! 
,secret>y det]m9es appropriate4  7#e7   
,p>5t company ,! t]m p>5t company means 
any entity t has control ov] a borr[]4  
7#f7 ,secret>y ,! t]m ,secret>y means ! 
,secret>y ( ! ,treasury4