Federal Municipal Credit Corporation Act

Summary

Federal Municipal Credit Corporation Act - Declares it to be the finding of Congress that the financial health of the Nation's municipalities has suffered because of a decline in investor confidence in the municipal bond markets and that the Federal Government has a responsibility to attempt to remedy this situation. Declares it to be the purpose of this Act to establish the Federal Municipal Credit Corporation in order to restore public confidence in public markets for municipal bonds. Defines terms used in this Act. Establishes the Federal Municipal Bond Corporation, with its principal office in the District of Columbia. States that the President shall, with the advice and consent of the Senate, appoint the incorporators of the Corporation. States that the incorporators shall arrange for an initial stock offering and shall serve as the initial board of directors. Authorizes the Corporation to issue common and preferred stock. States that each class of stock shall be eligible for dividends with only the common stock having voting rights. Authorizes the Corporation to sell its bonds, notes, and other evidences of indebtedness in any amount. Authorizes the Secretary of the Treasury to purchase any bonds issued under this Act to a limit of $2,000,000,000. Authorizes the Secretary to use the proceeds from the sale of any securities issued under the Second Liberty Bond Act to purchase the Corporation's bonds. Exempts from taxation any dividends paid on Corporation stock, interest paid on Corporation bonds, and any gain recognized on the disposition of any such bonds. Exempts Corporation income from Federal, State, and local income taxes. Authorizes the Corporation to deal in general obligation municipal bonds. Limits dealing in such bonds to bonds selling below par in order to permit the Corporation to negotiate with the issuing municipalities to exchange the purchased debt for refinancing bonds in order to reduce the debt of such municipalities. Sets forth guidelines on secondary bond market transactions to assure sound Corporation operations. Authorizes the Corporation to enter into contingent purchase agreements with investment bankers for the purchase of a portion of an offering of municipal bonds offered by such bankers in the event the investment banker has not marketed the specified amount after a good faith effort. Requires an annual audit of the Corporation's accounts to be included in the annual report. Requires the Corporation to submit an annual report of its operations to the President and Congress. Requires the Corporation to periodically publish such information which will enable interested persons to understand the Corporation. Authorizes to be appropriated $975,000 to the Corporation for fiscal year 1976.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in House

  summary · EN · 10 June 1975

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.