WASHINGTON The legislation that House Financial Services Committee chairman Barney Frank, D-Mass., is planning to introduce within the next week or so to require credit agencies to rate municipal securities on the same scale as other types of bonds may also include two provisions to help banks and corporations buy more munis, a knowledgeable source said this week.

The provisions would loosen restrictions in the 1986 Tax Reform Act that decreased the amount of tax-exempt income that banks and corporations could report, but also had unintended adverse consequences on governments and nonprofit issuers, according to market sources. Frank could not be reached for comment. A spokesman would only confirm that the congressman plans to introduce the legislation soon.

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