Clifford Chance

US Covered Bonds – Senate Introduces Legislation to Encourage Market Development

15 November 2011

On November 9, 2011, Senator Kay Hagan (D-NC) and Senator Bob Corker (R-TN) and co-sponsors Chuck Schumer (D-NY) and Mike Crapo (R-ID) introduced the "The United States Covered Bond Act" to the United States Senate. The bi-partisan Senate bill is intended to promote the development of a covered bond market in order to diversify the sources of financing available in the United States, thereby increasing both retail and commercial lending. This bill is the Senate's response to H.R. 940, which passed the Financial Services Committee of the House of Representatives in June of this year and is currently pending before the House Ways and Means Committee.

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