,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dehe  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bj1 #bjbf,mr4    
,w>n] 7= himself & ,mr4 ,k5n$y7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,f$]al ,res]ve ,act  
to m&ate disc\nt w9d[ te/+1 & = o!r     
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,disc\nt ,w9d[ ,prep>$ness 
,act4  #b4 ,demon/ration ( ability to   
use ! disc\nt w9d[  7a7 ,9 g5]al        
,section #aj;,b ( ! ,f$]al ,res]ve ,act 
7#ab ,u4,s4,c4 #cdg;b7 is am5d$ by add+ 
at ! end ! foll[+3  7c7 ,requirem5t =   
depository in/itutions ,to demon/rate   
ability ,to seek advances  7#a7         
,def9itions ,9 ?is subsection3  7,a7    
,appropriate congressional committees   
,! t]m appropriate congressional        
committees means ! ,committee on ,bank+1
 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & !
 ,committee on ,f9ancial ,s]vices ( !   
,h\se ( ,repres5tatives4  7,b7          

,depository in/itution  ,! t]m          
depository in/itution means-- 7i7 any   
in/itution ! deposits ( :i* are insur$  
"u ! ,f$]al ,deposit ,insurance ,act    
7#ab ,u4,s4,c4 #ahaa et seq472 or  7ii7 
an insur$ cr$it union1 z def9$ 9 section
 #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab
 ,u4,s4,c4 #ageb74  7#b7  ,requirem5ts  
,n lat] ?an #a ye> aft] ! date (        
enactm5t ( ?is subsection1 any          
depository in/itution op]at+ 9 ! ,unit$ 
,/ates t is eligible to seek advances "u
 ?is section %all1 pursuant to          
regulations promulgat$ "u ?is           
subsection1 conduct te/+ ( su* advances 
& demon/rate1 to ! satisfaction ( !     
,f$]al res]ve bank at :i* ! depository  
in/itution ma9ta9s an acc\nt1 or at :i* 
ano!r depository in/itution ma9ta9s an  
acc\nt on its behalf1 & to ! prim>y     
,f$]al regulator ( ! depository         
in/itution1 t--  7,a7 ! depository      
in/itution has1 & ma9ta9s on an ongo+   
basis1 all op]ational & te*nical        
capacities necess>y to borr[ advances 9 

a timely & effici5t mann]2 z demon/rat$ 
by su* requir$ te/+2 &  7,b7 !          
depository in/itution ma9ta9s collat]al 
) ! ,f$]al res]ve bank ( :i* x is a     
memb] to support borr[+ 9 accordance ) !
 requirem5ts ( ?is subsection4  7#c7    
,regulations  ,n lat] ?an #ahj days aft]
 ! date ( enactm5t ( ?is subsection1 !  
,bo>d1 ! ,f$]al ,deposit ,insurance     
,corporation1 ! ,(fice ( ! ,comptroll] (
 ! ,curr5cy1 & ! ,national ,cr$it ,union
 ,adm9i/ration %all promulgate f9al     
regulations implem5t+ ! requirem5ts "u  
p>agraph 7#b71 includ+3  7,a7  ,asset   
?re%olds = te/+ requirem5ts  7i7  ,l>g] 
in/itutions  ,= depository in/itutions  
hav+ assets great] ?an #ajj1jjj1jjj1jjj1
 m&atory te/+ %all be requir$ n less    
frequ5tly ?an qu>t]ly1 on a s*$ule      
det]m9$ by ! ,bo>d4  7ii7  ,small]      
in/itutions  ,= depository in/itutions  
hav+ assets n less ?an #aj1jjj1jjj1jjj &
 n great] ?an #ajj1jjj1jjj1jjj1 m&atory 
te/+ %all be requir$ n less frequ5tly   
?an semiannually4  7,b7  ,v>iation ( !  

s*$ule1 size1 & t5or ( advances  ,!     
regulations promulgat$ "u ?is p>agraph  
may provide = ,f$]al res]ve banks to v>y
 ! size1 t5or1 & tim+ ( advances requir$
 "u ?is section if ! ,bo>d det]m9es t-- 
7i7 su* v>iations w\ld be effective1    
p>ticul>ly ) respect to r$uc+ /igma     
associat$ ) advances "u ?is section2 &  
7ii7 aft] consultation ) affect$        
depository in/itutions1 su* v>iations   
w\ld n result 9 undue add$ op]ational   
burd5s or co/s4  7,c7  ,incorporation ( 
m&atory te/+ into sup]vision  ,!        
regulations promulgat$ "u ?is p>agraph  
%all require t ea* ( ! ,bo>d1 ! ,f$]al  
,deposit ,insurance ,corporation1 !     
,(fice ( ! ,comptroll] ( ! ,curr5cy1 & !
 ,national ,cr$it ,union ,adm9i/ration--
  7i7 incorporate an assessm5t ( !      
read9ess ( ea* depository in/itution to 
seek advances "u ?is section into !     
exam9ation activities ( ! ag5cy ) reg>d 
to liquidity risk managem5t ( !         
depository in/itution2  7ii7 provide t !
 regulations & sup]visory /&>ds ( !     

ag5cy ) reg>d to liquidity provision+   
%all give appropriate1 positive         
consid]ation to--  7,i7 ! ability ( a   
depository in/itution to meet !         
requirem5ts ( ! regulations promulgat$  
"u ?is p>agraph2 &  7,,ii7 ! ability ( !
 depository in/itution to access        
liquidity ?r\gh advances "u ?is section1
 includ+ ! pre-pl$g$ collat]al ( !      
depository in/itution4  7,d7  ,report+  
requirem5ts = depository in/itutions  ,!
 regulations promulgat$ "u ?is p>agraph 
%all require t-- 7i7 ! managem5t ( ea*  
depository in/itution eligible to seek  
an advance "u ?is section %all e/abli%1 
& ! risk committee or equival5t body ( !
 bo>d ( directors ( ! depository        
in/itution %all review & approve1 n less
 frequ5tly ?an annually1 ! liquidity    
risk managem5t plans & op]ational       
read9ess ( ! depository in/itution to   
execute su* plans1 includ+ detail$      
policies & proc$ures = seek+ advances "u
 ?is section2 &  7ii7 once approv$1 !   
managem5t describ$ 9 p>agraph 7,a7 %all 

submit to ! ,bo>d1 ! ,f$]al res]ve bank 
( :i* ! depository in/itution is a      
memb]1 & ! prim>y ,f$]al sup]visor ( !  
depository in/itution1 a report detail+ 
! f9d+s ( ! reviews requir$ "u t        
subp>agraph4  7#d7  ,m&atory improvem5ts
 to op]ations  ,n lat] ?an #ahj days    
aft] ! date ( enactm5t ( ?is subsection1
 ! ,bo>d & ! ,f$]al res]ve banks %all   
implem5t improvem5ts to advances "u ?is 
section to ensure t depository          
in/itutions are able to access advances 
rapidly z ne$$1 includ+--  7,a7 *anges  
to op]ations = advances "u ?is section &
 ,f$]al ,res]ve paym5t s]vices to ensure
 t a depository in/itution eligible to  
obta9 advances "u ?is section is able to
 obta9 su* advances until at lea/ #h    
p4m4 ea* day 9 ea* relevant ,unit$      
,/ates "t zone2  7,b7 implem5t+ a       
secure1 comput]-bas$ onl9e access plat=m
 t depository in/itutions may use to    
obta9 su* advances1 includ+ automat+ !  
process ( prim>y cr$it approval if      
appropriate collat]al is pl$g$2  7,c7   

/&>diz+ te*nical specifications &       
op]ational proc$ures = su* advances     
across all ,f$]al res]ve banks2  7,d7   
implem5t+ proc$ures = ! consi/5t &      
effici5t id5tification1 assignm5t1 &    
transf] ( security int]e/s 9 collat]al t
 is pl$g$ to secure borr[+ betwe5 any   
,f$]al ,home ,loan ,bank & any ,f$]al   
res]ve bank2  7,e7 implem5t+ simplifi$  
proc$ures = depository in/itutions to   
pl$ge small bus9ess loans z collat]al = 
advances "u ?is section1 ) emphasis on  
simplifi$ docum5tation = small]         
in/itutions2 &  7,f7 creat+ & fund+ an  
outrea* program to provide in=mation &  
te*nical assi/ance to small] in/itutions
 ) reg>d to access+ advances "u ?is     
section4  7#e7  ,h>monization  ,n lat]  
?an #bgj days aft] ! date ( enactm5t (  
?is subsection1 ! ,bo>d1 9 consultation 
) ! ,f$]al ,h\s+ ,f9ance ,adm9i/ration &
 ! ,f$]al ,home ,loan ,banks1 %all      
promulgate regulations or guidance      
simplify+ & h>moniz+1 to ! greate/ ext5t
 practicable1 policies & proc$ures = !  

pl$g+ ( collat]al = advances "u ?is     
section1 includ+ = ! timely & effici5t  
transf] ( collat]al betwe5 ,f$]al ,home 
,loan ,banks & ,f$]al res]ve banks4     
7#f7  ,f$]al res]ve report+  7,a7       
,review  ,n lat] ?an #bgj days aft] !   
date ( enactm5t ( ?is subsection1 !     
,bo>d %all compreh5sively review !      
weekly report+ ( its balance %eet1      
includ+ advances "u ?is section1 &      
consid] *anges to r$uce ! risk ( m>ket  
di/ortions caus$ by speculative activity
 reg>d+ su* advances1 giv+ p>ticul>     
consid]ation to--  7i7 ! breakd[n (     
balance %eet data by di/rict & ! mann] 9
 :i* su* report+ may contribute to      
speculative activity t ?reat5s !        
/ability ( individual depository        
in/itutions2 &  7ii7 ! effects (        
disclosure requirem5ts describ$ 9       
section #aa7s74  7,b7 ,revis$ report+   
me?odology ,n lat] ?an #ij days aft] !  
date on :i* ! review requir$ "u         
subp>agraph 7,a7 is complet$1 ! ,bo>d   
%all revise report+ policies z          

appropriate to address ! f9d+s ( su*    
review1 & if necess>y make              
recomm5dations to ! appropriate         
congressional committees reg>d+ pot5tial
 /atutory *anges4  7#g7  ,/udy  ,n lat] 
?an #a ye> aft] ! date ( enactm5t ( ?is 
subsection1 ! ,bo>d1 9 consultation ) ! 
,comptroll] ( ! ,curr5cy1 ! ,f$]al      
,deposit ,insurance ,corporation1 & !   
,national ,cr$it ,union ,adm9i/ration1  
%all complete a /udy & submit to !      
appropriate congressional committees a  
report on additional measures t c\ld be 
und]tak5 to r$uce ! /igma & o!rwise     
improve ! process = advances "u ?is     
section1 includ+--  7,a7 ! pric+ & o!r  
t]ms ( su* advances1 especially z !y    
comp>e to alt]native liquidity s\rces2  
7,b7 ! co/s & b5efits ( any o!r relevant
 op]ational or policy *anges2 &  7,c7   
recomm5dations to ! appropriate         
congressional committees reg>d+ any     
/atutory *anges necess>y to r$uce !     
/igma associat$ )1 & o!rwise improve !  
process =1 su* advances4  4