S. 4670, Preserving Equity on Main Street Act of 2020
Summary
S. 4670, the Preserving Equity on Main Street Act of 2020, was introduced September 23, 2020 by Mr. Moran (for himself, Mrs. Shaheen, Mr. Rounds, Mr. Blunt, and Mr. Tillis) and referred to the Committee on Banking, Housing, and Urban Affairs. It is a bill to amend the CARES Act to permit the Secretary of the Treasury to purchase, or to enable the purchase of, preferred equity positions in commercial real estate entities. Section 2 amends section 4003(b)(4) of the CARES Act. A position under a partial guarantee would receive a risk weight of zero percent for purposes of that requirement.
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“S. 4670, Preserving Equity on Main Street Act of 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s4670is-bills-116s4670is/
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II
116TH CONGRESS
2D SESSION
S. 4670
To amend the CARES Act to permit the Secretary of the Treasury to
purchase, or to enable the purchase of, preferred equity positions in
commercial real estate entities, and for other purposes.
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 23, 2020
Mr. MORAN (for himself, Mrs. SHAHEEN, Mr. ROUNDS, Mr. BLUNT, and Mr.
TILLIS) 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 permit the Secretary of the
Treasury to purchase, or to enable the purchase of, pre-
ferred equity positions in commercial real estate entities,
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 ‘‘Preserving Equity on
5 Main Street Act of 2020’’.
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1 SEC. 2. COMMERCIAL REAL ESTATE PREFERRED EQUITY
2 INVESTMENTS.
3 Section 4003(b)(4) of the CARES Act (15 U.S.C.
4 9042(b)(4)) is amended—
5 (1) by redesignating subparagraphs (A), (B),
6 and (C) as clauses (i), (ii), and (iii), respectively;
7 (2) by inserting ‘‘(A)’’ after ‘‘(4)’’;
8 (3) in subparagraph (A), as so redesignated—
9 (A) in clause (ii), as so redesignated, by
10 striking ‘‘or’’ at the end;
11 (B) in clause (iii), as so redesignated, by
12 striking the period at the end and inserting ‘‘;
13 or’’; and
14 (C) by adding at the end the following:
15 ‘‘(iv) purchasing preferred equity positions
16 in commercial real estate companies that re-
17 quire capital to satisfy outstanding debt obliga-
18 tions, which the Secretary, acting alone or in
19 concert with the Board of Governors of the
20 Federal Reserve System, may achieve by—
21 ‘‘(I) directly purchasing those posi-
22 tions; or
23 ‘‘(II) providing full or partial guaran-
24 tees of those positions to financial institu-
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25 tions to enable the financial institutions to
26 purchase those positions.’’; and
•S 4670 IS
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1 (4) by adding at the end the following:
2 ‘‘(B) If the appropriate Federal banking agency
3 (as that term is defined in section 3 of the Federal
4 Deposit Insurance Act (12 U.S.C. 1813)) or the Na-
5 tional Credit Union Administration Board applies a
6 risk-based capital requirement of the applicable
7 agency to a preferred equity position for which there
8 is a full or partial guarantee provided under sub-
9 paragraph (A)(iv)(II), that position shall receive a
10 risk weight of zero percent for the purposes of the
11 application of that requirement.’’.
Æ
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