HR 3559 IH
107th CONGRESS
1st Session
H. R. 3559
To amend the Emergency Steel Loan Guarantee Act of 1999 to revise
eligibility and other requirements for loan guarantees under that Act, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
December 20, 2001
Mr. VISCLOSKY (for himself and Mr. QUINN) introduced the following bill;
which was referred to the Committee on Financial Services
A BILL
To amend the Emergency Steel Loan Guarantee Act of 1999 to revise
eligibility and other requirements for loan guarantees under that Act, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. FINDINGS.
Congress finds the following:
(1) The steel import crisis in the United States continues, affecting
negatively the financial position of steel companies engaged in the
manufacture or production of basic steel products.
(2) United States steel companies are finding it necessary to reduce
production and place steel mills on `hot idle status' while such companies
await remedies under United States trade laws.
(3) Preservation of United States steel making capacity is essential to
our national security.
SEC. 2. AMENDMENT TO DEFINITION OF QUALIFIED STEEL COMPANY.
Section 101(c)(3)(B) of the Emergency Steel Loan Guarantee Act of 1999
(Public Law 106-51) is amended by inserting after `is engaged in' the
following: `, or has placed on `hot idle status' steel mill facilities used
in,'.
SEC. 3. AMENDMENTS TO EMERGENCY STEEL LOAN GUARANTEE ACT OF 1999.
(a) INDIVIDUAL GUARANTEE LIMIT- Section 101(f) of the Emergency Steel Loan
Guarantee Act of 1999 (Public Law 106-51) is amended--
(1) in paragraph (3), by striking `$250,000,000' and inserting
`$350,000,000';
(2) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6),
respectively; and
(3) by inserting after paragraph (3) the following:
`(4) FORM OF GUARANTEE- The Board will utilize a form of unconditional
and unqualified guarantee that United States commercial banks would
typically require from a nongovernmental guarantor in a commercial loan
transaction of similar size and nature. Such guarantee must not impose any
substantive obligations on the lender and must not grant greater rights to
the guarantor, including rights to avoid such guarantee or seek recourse
against the lender, than would typically be provided for in such a
commercial loan transaction.'.
(b) REQUIREMENTS FOR LOAN GUARANTEES- Section 101(g) of the Emergency
Steel Loan Guarantee Act of 1999 is amended--
(1) in the matter preceding paragraph (1), by striking `a private bank
or investment company' and inserting `a public or private institution,
including a company's existing lender';
(2) in paragraph (2), by striking `that company, together with the
character and value of the security pledged, furnish reasonable assurance'
and inserting `the company, based on forecasts which assume vigorous and
timely enforcement of our trade laws and general prosperity in the economy,
provides a fair likelihood';
(3) in paragraph (4), by striking `; and' and inserting `;';
(4) in paragraph (5), by striking the end period and inserting `; and';
and
(5) by inserting at the end the following:
`(6) the company's business plan maximizes the retention of jobs and
capacity consistent with the long-term economic viability of the
company.'.
(c) GUARANTEE LEVEL- Section 101(h) of the Emergency Steel Loan Guarantee
Act of 1999 is amended--
(1) in paragraph (2), by striking the second sentence and inserting the
following: `The Board may, where such security is available and not used to
secure other financing, require security in either existing or
after-acquired assets for the guaranteed portion of the loan and may provide
the unguaranteed portion of the loan different payment preference or
different terms than those provided to the guaranteed portion of the loan.';
and
(2) by striking paragraph (4) and inserting the following:
`(4) GUARANTEE LEVEL- Any loan issued under this section may not exceed
95 percent of the amount of the principal of the loan, plus the amount of
any unpaid interest on the loan.'.
END