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Section 101 of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5211) is amended
by inserting after subsection (g) (as added by section 110 of
this Act) the following new subsection:
`(h) Clarification of Authority Regarding Municipal Securities-
`(1) CLARIFICATION- The authority
of the Secretary to take any action under this title includes
the authority to provide support to State and local governments,
and other issuers of municipal securities, which are having
difficulty accessing appropriate financing in the capital
markets. Such support includes the direct purchase of municipal
securities and providing credit enhancement in connection with
municipal securities whose purchase is financed under any
facility provided by the Board or any Federal reserve bank.
`(2) DEFINITION- For purposes of
this subsection, the term `municipal security' has the meaning
given the term `State or local bond' in section 103(c) of the
Internal Revenue Code of 1986 (26 U.S.C. 103(c)) and the
regulations issued thereunder or any other entity eligible to
issue bonds the interest on which is excludable from gross
income for Federal income tax purposes.'.
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