‘(a) Requirement for Advance Approval by Treasury- An enterprise shall not, after the date of the enactment of the GSE Debt Issuance Approval Act of 2011, newly issue any note, bill, bond, debenture, or any other debt security, obligation, or instrument of any form or in any amount unless the issuance of such debt security, obligation, or instrument was approved in advance in accordance with this section by the Secretary of the Treasury (in this section referred to as the ‘Secretary’).
‘(b) Written Request- The Secretary may not approve the issuance of any debt security, obligation, or instrument under this section by an enterprise unless the enterprise has submitted to the Secretary of the Treasury and to the Director, in such form as the Secretary shall require, a written request identifying and describing the debt securities, obligations, and instruments proposed to be issued, including the par values, terms to maturity, interest rates, forms, timing of issuance, and all other terms regarding issuance of such securities, obligations, and instruments.
‘(c) Determination and Justification- Upon receiving a written request pursuant to subsection (b) for approval of the issuance of debt by an enterprise, the Secretary shall promptly review the request, make a determination of whether to approve or deny the request, taking into consideration any information or comments of the Director regarding such request, and submit to the enterprise, the Congress, and the Director written notice of approval or denial of the request, which shall include an explanation and justification for the approval or denial of the issuance of the new debt.
‘(d) Conditional Approval- In approving a request under this section by an enterprise to issue any debt security, obligation, or instrument, the Secretary may, in the written notice of approval of such request pursuant to subsection (c), limit or change the terms of the issuance of the debt securities, obligations, or instruments approved for issuance from the terms of the proposed issuance of securities, obligations, or instruments described in the request for such approval submitted by the enterprise pursuant to subsection (b).
‘(e) Effective Date- Notwithstanding approval under this section of the issuance of debt by an enterprise or submission of the notice of such approval as required under subsection (c), the enterprise may not issue any debt security, obligation, or instrument pursuant to such approval before the expiration of the 7-day period beginning upon submission of such notice of approval to the Congress.’.
U.S. Congress - Text of H.R.1225 as Introduced in House GSE Debt Issuance Approval Act of 2011
