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Full Text of this Amendment

SA 5691. Ms. CANTWELL submitted an amendment intended to be proposed by her to the bill H.R. 1424, of 1974, section 2705 of the Public Health Service Act, section 9812 of the Internal Revenue Code of 1986 to require equity in the provision of mental health and substance-related disorder benefits under group health plans, to prohibit discrimination on the basis of genetic information with respect to health insurance and employment, and for other purposes; which was ordered to lie on the table;
as follows:

At the end of title I in division A, add the following:
SEC. 137. EQUITY AUTHORITY.
(a) In General.--If the Secretary establishes a program under this division, the Secretary shall use not less than $350,000,000,000 of the purchase authority provided under section 101 for the purchase of nonvoting preferred stock meeting the criteria in subsection (b).
(b) Eligible Financial Institutions.--The authority under this section may be exercised only with respect to financial institutions that--
(1) are deemed by the appropriate regulatory authorities to be adequately capitalized, in relation to their current balance sheets;
(2) raises such additional capital from private sources or from the Secretary under this Act as is determined sufficient by the appropriate regulatory authority for such financial institution; and
(3) is not deemed to be insolvent by the appropriate regulatory authority.
(c) Equity Criteria.--Nonvoting preferred stock authorized for purchase under this section shall--
(1) have a low-interest-rate coupon (not to exceed 5 percent), with warrants attached;
(2) provide that shareholders will have rights to invest on terms that are equivalent to those of the Secretary, and such rights shall be tradeable;
(3) set terms to give such rights a positive value; and
(4) give private investors preference over the Secretary in the allocation of the new issues.
(d) Limits.--Financial institutions recapitalized in accordance with this section shall be permitted to increase their leverage until such time as the economy recovers subject to limitations established by the Board when such conditions return to normal.
(As printed in the Congressional Record for the Senate on Oct 1, 2008.)