,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #babj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ae1 #bjai,mr4   
,"y 7= himself1 ,mr4 ,toomey1 & ,mr4    
,cotton7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to prohibit ! provision (      
,f$]al funds to ,/ate & local gov]nm5ts 
= paym5t ( obligations1 to prohibit !   
,f$]al ,res]ve ,banks1 ! ,dep>tm5t ( !  
,treasury1 & o!r ,f$]al ag5cies f       
f9ancially assi/+ ,/ate & local         
gov]nm5ts t h default$ on _!            
obligations1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,gov]nm5t ,bail\t ,prev5tion ,act4  #b4 
,def9ition ,9 ?is ,act1 ! t]m ,/ate     
means--  7#a7 any ( ! sev]al ,/ates2    
7#b7 ! ,di/rict ( ,columbia2 &  7#c7 any
 t]ritory or possession ( ! ,unit$      
,/ates4  #c4 ,prohibition on ! use (    
,f$]al funds to pay or gu>antee ,/ate & 
local obligations  7a7 ,9 g5]al ,not)/&+
 any o!r provision ( law1 no ,f$]al     

funds may be us$ to pur*ase or gu>antee 
obligations (1 issue l9es ( cr$it to1 or
 provide direct or indirect grants-&-aid
 to1 any ,/ate gov]nm5t1 municipal      
gov]nm5t1 local gov]nm5t1 or c\nty      
gov]nm5t :i*1 on or aft] ,janu>y #a1    
#bjai1 has fil$ = bankruptcy1 has       
default$ on its obligations1 is at risk 
( default+1 or is likely to default1    
abs5t su* assi/ance f ! ,unit$ ,/ates   
,gov]nm5t4  7b7 ,limit on ,use ( ,borr[$
 ,funds ,! ,secret>y ( ! ,treasury %all 
n1 directly or indirectly1 use g5]al    
fund rev5ues or funds borr[$ pursuant to
 title #ca1 ,unit$ ,/ates ,code1 to     
pur*ase or gu>antee any asset or        
obligation ( any ,/ate gov]nm5t1        
municipal gov]nm5t1 local gov]nm5t1 or  
c\nty gov]nm5t1 or o!rwise to assi/ su* 
gov]nm5t entity1 if1 on or aft] ,janu>y 
#a1 #bjai1 t ,/ate gov]nm5t1 municipal  
gov]nm5t1 or c\nty gov]nm5t has default$
 on its obligations1 has fil$ =         
bankruptcy1 is at risk ( default+1 or is
 likely to default1 abs5t su* assi/ance 

f ! ,unit$ ,/ates ,gov]nm5t4  7c7       
,prohibition on ,f$]al ,res]ve assi/ance
 ,not)/&+ any o!r provision ( law1 no   
,f$]al ,res]ve ,bank may provide or     
ext5d to1 or au?orize ) respect to1 any 
,/ate gov]nm5t1 municipal gov]nm5t1     
local gov]nm5t1 c\nty gov]nm5t1 or o!r  
entity t has tax+ au?ority or bond+     
au?ority1 any funds1 loan gu>antees1    
cr$its1 or any o!r f9ancial in/rum5t1   
includ+ ! pur*as+ ( ! bonds ( su* ,/ate1
 municipality1 locality1 c\nty1 or o!r  
bond+ au?ority1 or to o!rwise assi/ su* 
gov]nm5t entity "u any au?ority ( any   
,f$]al ,res]ve ,bank4  7d7 ,limitation  
,subsections 7a7 ?r\gh 7c7 %all n apply 
to ,f$]al assi/ance provid$ 9 response  
to a decl>$ disa/]4  #d4 ,applicability 
,! prohibition "u section #c-- 7#a7     
includes debt re/ructur+ or any o!r     
relat$ activity2 &  7#b7 does n         
include-- 7,a7 any discretion>y         
appropriations or direct sp5d+1 z ^?    
t]ms are def9$ 9 section #bej7;c7 ( !   
,balanc$ ,budget & ,em]g5cy ,deficit    

,control ,act ( #aihe 7#b ,u4,s4,c4     
#ijj7;c772 &  7,b7 any grant aw>d$ by ! 
,unit$ ,/ates to ! ,/ate gov]nm5t1      
municipal gov]nm5t1 local gov]nm5t1 or  
c\nty gov]nm5t4