Detailed Summary

Catastrophe Obligation Guarantee Act - Authorizes the Secretary of the Treasury to guarantee holders of debt against loss of principal or interest, or both, on debt issued by eligible state programs designed to: (1) promote the availability of private capital to provide liquidity and capacity to state catastrophe insurance (specifically, residential property insurance and reinsurance) programs; and (2) expedite the payment of claims under such programs and better assist financial recovery from significant natural catastrophes.

Limits the total principal amount of debt obligations guaranteed by the Secretary to: (1) $5 billion for eligible state programs that cover earthquake peril; and (2) $20 billion for eligible state programs that cover all other perils.

Makes appropriations to satisfy debt guarantee commitments.<br>

Requires the Secretary, upon request of an eligible state program, to provide such debt guarantees.

Requires an eligible state program to show to the Secretary's satisfaction that covered insured losses in the state are likely to exceed the program's available cash resources, as calculated on the date of the event.

Prescribes requirements for eligible state programs.

Pledges the full faith and credit of the United States to the payment of all guarantees issued under this Act.

Status of the Legislation

Latest Major Action: 4/23/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Points in Favor

(Log in to edit the wiki and be the first to show why the bill should pass!)

Points Against

(Log in to edit the wiki and be the first to show why the bill should not pass!)