1. Short title This Act may be cited as the Bailout Prevention Act of 2017 . 2. Discounts for individuals, partnerships, and corporations Section 13(3)(B) of the Federal Reserve Act ( 12 U.S.C. 343(3)(B) ) is amended by striking clauses (ii) and (iii) and inserting the following: (ii) (I) The Board shall establish procedures to prohibit borrowing from programs and facilities by borrowers that are insolvent. A borrower shall not be eligible to borrow from any emergency lending program or facility unless the Board and all Federal banking regulators with jurisdiction over the borrower certify that, at the time the borrower initially borrows under the program or facility, the borrower is not insolvent. Solvency shall be assessed by examining the last 4 months of relevant financial data and determining whether the fair value of the borrower’s assets exceeds the fair value of the borrower’s liabilities, with appropriate adjustment for temporary illiquidity in relevant markets. (II) A borrower shall be considered insolvent for purposes of this subparagraph if the borrower is— (aa) in bankruptcy, resolution under title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5381 et seq.), or any other Federal or State insolvency proceeding; or (bb) a bridge financial company (as defined in section 201(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5381(a) )) or a bridge depository institution (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )). (III) If the Board or any other banking regulator makes a certification of solvency, the Board or banking regulator, as applicable, shall issue a contemporaneous public statement providing a detailed explanation of the certification decision. (iii) A program or facility shall be considered a program or facility with broad-based eligibility only if not fewer than 5 companies are eligible to participate in the program or facility in a significant manner. . 3. Penalty rate requirement