S 1884 IS

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.

December 20 (legislative day, DECEMBER 18), 2001

Mr. WELLSTONE (for himself, Mr. DEWINE, Mr. DAYTON, Mr. SPECTER, Mr. BAYH, Ms. MIKULSKI, and Mr. VOINOVICH) introduced the following bill; which was read twice and referred to the Committee on Appropriations

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