Intergovernmental Emergency Assistance Act

Intergovernmental Emergency Assistance Act - Title I: Intergovernmental Emergency Assistance - Establishes an Intergovernmental Emergency Assistance Board. Authorizes the Board to make loans to States and to guarantee the payment, in whole or in part, of interest, principal, or both, of obligations of States. States that the Board shall be composed of the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the Securities and Exchange Commission.

Limits to $7,000,000,000 the total amount of loans and loan guarantes which may be outstanding at any one time.

Provides that financial assistance may be extended only for the purpose of (1) enabling a State or political subdivision thereof to continue to provide essential public services, or (2) preventing or mitigating the effects of default in the payment of obligations.

Sets forth conditions governing the eligibility of political subdivisions for assistance under this Act. States that no loan made under authority of this Act may be used directly or indirectly for debt service.

Permits the Board to impose such terms and conditions as it deems appropriate with respect to financial assistance extended under this Act.

Authorizes appropriations of such sums as may be necessary, up to $7,000,000,000, to carry out the purposes of this Act.

States that any Federal reserve bank which is requested to do so shall act as fiscal agent for the Board. Directs the Board to submit an annual report to the Congress. Terminates the authority of the Board to make loans and guarantees on July 1, 1983.

Title II: Amendment to the Internal Revenue Code - Makes taxable under the Internal Revenue Code interest on governmental obligations which are secured by a guarantee under this Act.