S. 4586, Access to Emergency Credit Facilities Act of 2020
Summary
S. 4586, the Access to Emergency Credit Facilities Act of 2020, was introduced September 16, 2020 by Mr. Scott of South Carolina (for himself and Ms. Sinema) and referred to the Committee on Banking, Housing, and Urban Affairs. It is a bill to amend the CARES Act to require the uniform treatment of nationally recognized statistical rating organizations under certain programs carried out in response to the COVID–19 emergency. Section 2 adds a subsection (i) to section 4003 of the CARES Act on uniform treatment of NRSROs. It also provides for a study and a report to Congress.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Bills Bills 116S4586Is Bills 116S4586Is
- Case
- Bills Bills 116S4586Is Bills 116S4586Is
Cite this document
“S. 4586, Access to Emergency Credit Facilities Act of 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s4586is-bills-116s4586is/
, SHA-256 945cd1b71d0bdd64ae024c5c4bd9d165de285ab448183703098d0616d471a9b5.Full text
II
116TH CONGRESS
2D SESSION
S. 4586
To amend the CARES Act to require the uniform treatment of nationally
recognized statistical rating organizations under certain programs carried
out in response to the COVID–19 emergency, and for other purposes.
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 16, 2020
Mr. SCOTT of South Carolina (for himself and Ms. SINEMA) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
A BILL
To amend the CARES Act to require the uniform treatment
of nationally recognized statistical rating organizations
under certain programs carried out in response to the
COVID–19 emergency, and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Access to Emergency
5 Credit Facilities Act of 2020’’.
pamtmann on DSKBC07HB2PROD with BILLS
VerDate Sep 11 2014 18:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4586.IS S4586
2
1 SEC. 2. UNIFORM TREATMENT OF NRSROS.
2 (a) IN GENERAL.—Section 4003 of the CARES Act
3 (15 U.S.C. 9042) is amended by adding at the end the
4 following:
5 ‘‘(i) UNIFORM TREATMENT OF NRSROS.—
6 ‘‘(1) DEFINITION.—In this subsection, the term
7 ‘nationally recognized statistical rating organization’
8 has the meaning given the term in section 3(a) of
9 the Securities Exchange Act of 1934 (15 U.S.C.
10 78c(a)).
11 ‘‘(2) TREATMENT.—Subject to paragraph (3),
12 if, in carrying out this section or any other program
13 making use of a facility established under section
14 13(3) of the Federal Reserve Act (12 U.S.C. 343(3))
15 in response to COVID–19, the Secretary or the
16 Board of Governors of the Federal Reserve System
17 establishes a requirement for an entity, security, or
18 other instrument to carry a minimum credit rating,
19 the Secretary or the Board of Governors—
20 ‘‘(A) may not require that the credit rating
21 with respect to that entity, security, or other in-
22 strument be issued by any specific—
23 ‘‘(i) nationally recognized statistical
24 rating organization; or
pamtmann on DSKBC07HB2PROD with BILLS
•S 4586 IS
VerDate Sep 11 2014 18:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4586.IS S4586
3
1 ‘‘(ii) category or class of nationally
2 recognized statistical rating organizations;
3 and
4 ‘‘(B) shall accept a credit rating that is
5 issued, before or during the operation of a pro-
6 gram authorized under this section or section
7 13(3) of the Federal Reserve Act (12 U.S.C.
8 343(3)) in response to COVID–19, by any na-
9 tionally recognized statistical rating organiza-
10 tion that the Securities and Exchange Commis-
11 sion has approved to issue a rating for that en-
12 tity, security, or other instrument.
13 ‘‘(3) EXCLUSION.—
14 ‘‘(A) IN GENERAL.—The Secretary or the
15 Board of Governors may exclude a nationally
16 recognized statistical rating organization from
17 the application of paragraph (2) if, in consulta-
18 tion with the Securities and Exchange Commis-
19 sion, the Secretary or Board of Governors, as
20 applicable, determines that—
21 ‘‘(i) the nationally recognized statis-
22 tical rating organization is unable to pro-
23 vide reliable and accurate ratings with re-
pamtmann on DSKBC07HB2PROD with BILLS
24 spect to a particular asset class; and
•S 4586 IS
VerDate Sep 11 2014 18:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4586.IS S4586
4
1 ‘‘(ii) the exclusion is in the public in-
2 terest.
3 ‘‘(B) REPORT.—If the Secretary or the
4 Board of Governors excludes a nationally recog-
5 nized statistical rating organization from the
6 application of paragraph (2) under subpara-
7 graph (A) of this paragraph, the Secretary or
8 Board of Governors, as applicable, shall, as
9 soon as practicable after that exclusion, disclose
10 to the public the reasoning for that exclusion.
11 ‘‘(4) EFFECTIVE DATE.—The amendments
12 made by this subsection shall take effect as if en-
13 acted on March 15, 2020.’’.
14 (b) GAO STUDY AND REPORT.—
15 (1) STUDY.—The Comptroller General of the
16 United States shall carry out a study regarding—
17 (A) the quality of credit ratings issued by
18 nationally recognized statistical ratings organi-
19 zations, as that term is defined in section 3(a)
20 of the Securities Exchange Act of 1934 (15
21 U.S.C. 78c(a)), including during the 2008 eco-
22 nomic crisis;
23 (B) the effect of competition on the quality
pamtmann on DSKBC07HB2PROD with BILLS
24 of credit ratings and on the ability of small-
•S 4586 IS
VerDate Sep 11 2014 18:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4586.IS S4586
5
1 and mid-size companies and financial institu-
2 tions to access the capital markets; and
3 (C) the implementation of the amendment
4 made by subsection (a).
5 (2) REPORT.—Not later than 1 year after the
6 date of enactment of this Act, the Comptroller Gen-
7 eral of the United States shall submit to Congress
8 a report containing all findings and determinations
9 made in carrying out the study required under para-
10 graph (1).
Æ
pamtmann on DSKBC07HB2PROD with BILLS
•S 4586 IS
VerDate Sep 11 2014 18:12 Sep 23, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S4586.IS S4586
File and source
- File
- BILLS_bills-116s4586is_bills-116s4586is.pdf
- Size
- 235,109 bytes
- SHA-256
- 945cd1b71d0bdd64ae024c5c4bd9d165de285ab448183703098d0616d471a9b5
- Original
- www.govinfo.gov