Bills recently introduced by key members in the House and Senate would set up a major deterrent to banks and other equity investors seeking to force issuers to fork over termination payments for lease-back deals. The prospect of such deal terminations threatened to jeopardize the fiscal conditions of transit agencies and electrical utilities last year after credit rating downgradings of insurers on the deals.

The identical "Close the SILO/LILO Loophole Act of 2009" bills were introduced in the House by Rep. John Lewis, D-Ga., chairman of the House Ways and Means Committee's oversight panel, and in the Senate by Sen. Robert Menendez, D-N.J., chairman of the Senate Banking Committee's housing, transportation, and community development subcommittee.

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