A bill to amend the Emergency Loan Guarantee Act to permit the Emergency Loan Guarantee Board to guarantee the bonds of States and municipalities.

[AI summary unavailable — showing source text] Provides, under the Emergency Loan Guarantee Act, for the Emergency Loan Guarantee Board to guarantee loans where the borrower is a State or political subdivision and where the State certifies that it could not lend the political subdivision sufficient funds or guarantee debt instruments in order for the subdivision to meet its needs without jeopardizing the financial stability of the State. Exempts State and political subdivision borrowers from the requirement that a loan be payable in not more than five years, renewable for not more than an additional three years. Provides that the State or political subdivision loan shall be payable in whatever period of time the Board, by rule, determines is appropriate. Exempts State and political subdivision loans from the negotiating requirement that the Board make every effort to arrange that principal and interest payments be secured by sufficient property to collateralize fully the amount of the loan guarantee. Directs that the Board, in granting a loan guarantee to a debt issue of a State or its political subdivision: (1) shall require that the debt instruments be subject to Federal taxation; (2) shall require that the State or agency gr…