§ 1841. — Emergency Loan Guarantee Board; establishment; membership; voting.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1841]
TITLE 15--COMMERCE AND TRADE
CHAPTER 45--EMERGENCY LOAN GUARANTEES TO BUSINESS ENTERPRISES
Sec. 1841. Emergency Loan Guarantee Board; establishment;
membership; voting
There is created an Emergency Loan Guarantee Board (referred to in
this chapter as the ``Board'') composed of the Secretary of the
Treasury, as Chairman, the Chairman of the Board of Governors of the
Federal Reserve System, and the Chairman of the Securities and Exchange
Commission. Decisions of the Board shall be made by majority vote.
(Pub. L. 92-70, Sec. 2, Aug. 9, 1971, 85 Stat. 178.)
Short Title
Section 1 of Pub. L. 92-70 provided that: ``This Act [enacting this
chapter] may be cited as the `Emergency Loan Guarantee Act'.''
Emergency Steel Loan Guarantees and Emergency Oil and Gas Guaranteed
Loans
Pub. L. 106-51, Aug. 17, 1999, 113 Stat. 252, as amended by Pub. L.
106-102, title VII, Sec. 734, Nov. 12, 1999, 113 Stat. 1478; Pub. L.
107-63, title III, Sec. 336(a), Nov. 5, 2001, 115 Stat. 472, provided
that:
``CHAPTER 1
``Sec. 101. Emergency Steel Loan Guarantee Program. (a) Short
Title.--This chapter may be cited as the `Emergency Steel Loan Guarantee
Act of 1999'.
``(b) Congressional Findings.--Congress finds that--
``(1) the United States steel industry has been severely harmed
by a record surge of more than 40,000,000 tons of steel imports into
the United States in 1998, caused by the world financial crisis;
``(2) this surge in imports resulted in the loss of more than
10,000 steel worker jobs in 1998, and was the imminent cause of
three bankruptcies by medium-sized steel companies, Acme Steel,
Laclede Steel, and Geneva Steel;
``(3) the crisis also forced almost all United States steel
companies into--
``(A) reduced volume, lower prices, and financial losses;
and
``(B) an inability to obtain credit for continued operations
and reinvestment in facilities;
``(4) the crisis also has affected the willingness of private
banks and investment institutions to make loans to the United States
steel industry for continued operation and reinvestment in
facilities;
``(5) these steel bankruptcies, job losses, and financial losses
are also having serious negative effects on the tax base of cities,
counties, and States, and on the essential health, education, and
municipal services that these government entities provide to their
citizens; and
``(6) a strong steel industry is necessary to the adequate
defense preparedness of the United States in order to have
sufficient steel available to build the ships, tanks, planes, and
armaments necessary for the national defense.
``(c) Definitions.--For purposes of this section:
``(1) Board.--The term `Board' means the Loan Guarantee Board
established under subsection (e).
``(2) Program.--The term `Program' means the Emergency Steel
Guarantee Loan Program established under subsection (d).
``(3) Qualified steel company.--The term `qualified steel
company' means any company that--
``(A) is incorporated under the laws of any State;
``(B) is engaged in the production and manufacture of a
product defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and billets,
plates, flat-rolled steel, sections and structural products,
bars, rail type products, pipe and tube, and wire rod; and
``(C) has experienced layoffs, production losses, or
financial losses since the beginning of the steel import crisis,
in January 1998 or that operates substantial assets of a company
that meets these qualifications.
``(d) Establishment of Emergency Steel Guarantee Loan Program.--
There is established the Emergency Steel Guarantee Loan Program, to be
administered by the Board, the purpose of which is to provide loan
guarantees to qualified steel companies in accordance with this section.
``(e) Loan Guarantee Board Membership.--There is established a Loan
Guarantee Board, which shall be composed of--
``(1) the Secretary of Commerce;
``(2) the Chairman of the Board of Governors of the Federal
Reserve System, or a member of the Board of Governors of the Federal
Reserve System designated by the Chairman, who shall serve as
Chairman of the Board; and
``(3) the Chairman of the Securities and Exchange Commission, or
a commissioner of the Securities and Exchange Commission designated
by the Chairman.
``(f) Loan Guarantee Program.--
``(1) Authority.--The Program may guarantee loans provided to
qualified steel companies by private banking and investment
institutions in accordance with the procedures, rules, and
regulations established by the Board.
``(2) Total guarantee limit.--The aggregate amount of loans
guaranteed and outstanding at any one time under this section may
not exceed $1,000,000,000.
``(3) Individual guarantee limit.--The aggregate amount of loans
guaranteed under this section with respect to a single qualified
steel company may not exceed $250,000,000.
``(4) Timelines.--The Board shall approve or deny each
application for a guarantee under this section as soon as possible
after receipt of such application.
``(5) Additional costs.--For the additional cost of the loans
guaranteed under this subsection, including the costs of modifying
the loans as defined in section 502 of the Congressional Budget Act
of 1974 (2 U.S.C. 661a), there is appropriated $140,000,000 to
remain available until expended.
``(g) Requirements for Loan Guarantees.--A loan guarantee may be
issued under this section upon application to the Board by a qualified
steel company pursuant to an agreement to provide a loan to that
qualified steel company by a private bank or investment company, if the
Board determines that--
``(1) credit is not otherwise available to that company under
reasonable terms or conditions sufficient to meet its financing
needs, as reflected in the financial and business plans of that
company;
``(2) the prospective earning power of that company, together
with the character and value of the security pledged, furnish
reasonable assurance of repayment of the loan to be guaranteed in
accordance with its terms;
``(3) the loan to be guaranteed bears interest at a rate
determined by the Board to be reasonable, taking into account the
current average yield on outstanding obligations of the United
States with remaining periods of maturity comparable to the maturity
of such loan;
``(4) the company has agreed to an audit by the General
Accounting Office prior to the issuance of the loan guarantee and
annually thereafter while any such guaranteed loan is outstanding;
and
``(5) in the case of a purchaser of substantial assets of a
qualified steel company, the qualified steel company establishes
that it is unable to reorganize itself.
``(h) Terms and Conditions of Loan Guarantees.--
``(1) Loan duration.--All loans guaranteed under this section
shall be payable in full not later than December 31, 2015, and the
terms and conditions of each such loan shall provide that the loan
may not be amended, or any provision thereof waived, without the
consent of the Board.
``(2) Loan security.--Any commitment to issue a loan guarantee
under this section shall contain such affirmative and negative
covenants and other protective provisions that the Board determines
are appropriate. The Board shall require security for the loans to
be guaranteed under this section at the time at which the commitment
is made.
``(3) Fees.--A qualified steel company receiving a guarantee
under this section shall pay a fee to the Department of the Treasury
to cover costs of the program, but in no event shall such fee exceed
an amount equal to 0.5 percent of the outstanding principal balance
of the guaranteed loan.
``(4) Guarantee level.--
``(A) In general.--Except as provided in subparagraphs (B)
and (C), any loan guarantee provided under this section shall
not exceed 85 percent of the amount of principal of the loan.
``(B) Increased level one.--A loan guarantee may be provided
under this section in excess of 85 percent, but not more than 90
percent, of the amount of principal of the loan, if--
``(i) the aggregate amount of loans guaranteed at such
percentage and outstanding under this section at any one
time does not exceed $100,000,000; and
``(ii) the aggregate amount of loans guaranteed at such
percentage under this section with respect to a single
qualified steel company does not exceed $50,000,000.
``(C) Increased level two.--A loan guarantee may be provided
under this section in excess of 85 percent, but not more than 95
percent, of the amount of principal of the loan, if--
``(i) the aggregate amount of loans guaranteed at such
percentage and outstanding under this section at any one
time does not exceed $100,000,000; and
``(ii) the aggregate amount of loans guaranteed at such
percentage under this section with respect to a single
qualified steel company does not exceed $50,000,000.
``(i) Reports to Congress.--The Secretary of Commerce shall submit
to Congress a full report of the activities of the Board under this
section during each of fiscal years 1999 and 2000, and annually
thereafter, during such period as any loan guaranteed under this section
is outstanding.
``(j) Salaries and Administrative Expenses.--For necessary expenses
to administer the Program, $5,000,000 is appropriated to the Department
of Commerce, to remain available until expended, which may be
transferred to the Office of the Assistant Secretary for Trade
Development of the International Trade Administration.
``(k) Termination of Guarantee Authority.--The authority of the
Board to make commitments to guarantee any loan under this section shall
terminate on December 31, 2003.
``(l) Regulatory Action.--The Board shall issue such final
procedures, rules, and regulations as may be necessary to carry out this
section not later than 60 days after the date of the enactment of this
Act [Aug. 17, 1999].
``(m) Iron Ore Companies.--
``(1) In general.--Subject to the requirements of this
subsection, an iron ore company incorporated under the laws of any
State shall be treated as a qualified steel company for purposes of
the Program.
``(2) Total guarantee limit for iron ore company.--Of the
aggregate amount of loans authorized to be guaranteed and
outstanding at any one time under subsection (f)(2), an amount not
to exceed $30,000,000 shall be loans with respect to iron ore
companies.
``federal administrative and travel expenses
``(rescissions)
``Sec. 102. (a) Of the funds available in the nondefense category to
the agencies of the Federal Government, $145,000,000 are hereby
rescinded: Provided, That rescissions pursuant to this subsection shall
be taken only from administrative and travel accounts: Provided further,
That rescissions shall be taken on a pro rata basis from funds available
to every Federal agency, department, and office in the executive branch,
including the Office of the President.
``(b) Within 30 days after the date of the enactment of this Act
[Aug. 17, 1999], the Director of the Office of Management and Budget
shall submit to the Committees on Appropriations of the House of
Representatives and the Senate a listing of the amounts by account of
the reductions made pursuant to the provisions of subsection (a) of this
section.
``CHAPTER 2
``Sec. 201. Petroleum Development Management. (a) Short Title.--This
chapter may be cited as the `Emergency Oil and Gas Guaranteed Loan
Program Act'.
``(b) Findings.--Congress finds that--
``(1) consumption of foreign oil in the United States is
estimated to equal 56 percent of all oil consumed, and that
percentage could reach 68 percent by 2010 if current prices prevail;
``(2) the number of oil and gas rigs operating in the United
States is at its lowest since 1944, when records of this tally
began;
``(3) if prices do not increase soon, the United States could
lose at least half its marginal wells, which in aggregate produce as
much oil as the United States imports from Saudi Arabia;
``(4) oil and gas prices are unlikely to increase for at least
several years;
``(5) declining production, well abandonment, and greatly
reduced exploration and development are shrinking the domestic oil
and gas industry;
``(6) the world's richest oil producing regions in the Middle
East are experiencing increasingly greater political instability;
``(7) United Nations policy may make Iraq the swing oil
producing nation, thereby granting Saddam Hussein tremendous power;
``(8) reliance on foreign oil for more than 60 percent of our
daily oil and gas consumption is a national security threat;
``(9) the level of United States oil security is directly
related to the level of domestic production of oil, natural gas
liquids, and natural gas; and
``(10) a national security policy should be developed that
ensures that adequate supplies of oil are available at all times
free of the threat of embargo or other foreign hostile acts.
``(c) Definitions.--In this section:
``(1) Board.--The term `Board' means the Loan Guarantee Board
established by subsection (e).
``(2) Program.--The term `Program' means the Emergency Oil and
Gas Guaranteed Loan Program established by subsection (d).
``(3) Qualified oil and gas company.--The term `qualified oil
and gas company' means a company that--
``(A) is--
``(i) an independent oil and gas company (within the
meaning of section 57(a)(2)(B)(i) of the Internal Revenue
Code of 1986 [26 U.S.C. 57(a)(2)(B)(i)]); or
``(ii) a small business concern under section 3 of the
Small Business Act (15 U.S.C. 632) (or a company based in
Alaska, including an Alaska Native Corporation created
pursuant to the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.)) that is an oil field service company
whose main business is providing tools, products, personnel,
and technical solutions on a contractual basis to
exploration and production operators that drill, complete
wells, and produce, transport, refine, and sell hydrocarbons
and their byproducts as the main commercial business of the
concern or company; and
``(B) has experienced layoffs, production losses, or
financial losses since the beginning of the oil import crisis,
after January 1, 1997.
``(d) Emergency Oil and Gas Guaranteed Loan Program.--
``(1) In general.--There is established the Emergency Oil and
Gas Guaranteed Loan Program, the purpose of which shall be to
provide loan guarantees to qualified oil and gas companies in
accordance with this section.
``(2) Loan guarantee board.--There is established to administer
the Program a Loan Guarantee Board, to be composed of--
``(A) the Secretary of Commerce;
``(B) the Chairman of the Board of Governors of the Federal
Reserve System, or a member of the Board of Governors of the
Federal Reserve System designated by the Chairman, who shall
serve as Chairman of the Board; and
``(C) the Chairman of the Securities and Exchange
Commission, or a commissioner of the Securities and Exchange
Commission designated by the Chairman.
``(e) Authority.--
``(1) In general.--The Program may guarantee loans provided to
qualified oil and gas companies by private banking and investment
institutions in accordance with procedures, rules, and regulations
established by the Board.
``(2) Total guarantee limit.--The aggregate amount of loans
guaranteed and outstanding at any one time under this section shall
not exceed $500,000,000.
``(3) Individual guarantee limit.--The aggregate amount of loans
guaranteed under this section with respect to a single qualified oil
and gas company shall not exceed $10,000,000.
``(4) Expeditious action on applications.--The Board shall
approve or deny an application for a guarantee under this section as
soon as practicable after receipt of an application.
``(5) Additional costs.--For the additional cost of the loans
guaranteed under this subsection, including the costs of modifying
the loans as defined in section 502 of the Congressional Budget Act
of 1974 (2 U.S.C. 661a), there is appropriated $122,500,000 to
remain available until expended.
``(f) Requirements for Loan Guarantees.--The Board may issue a loan
guarantee on application by a qualified oil and gas company under an
agreement by a private bank or investment company to provide a loan to
the qualified oil and gas company, if the Board determines that--
``(1) credit is not otherwise available to the company under
reasonable terms or conditions sufficient to meet its financing
needs, as reflected in the financial and business plans of the
company;
``(2) the prospective earning power of the company, together
with the character and value of the security pledged, provide a
reasonable assurance of repayment of the loan to be guaranteed in
accordance with its terms;
``(3) the loan to be guaranteed bears interest at a rate
determined by the Board to be reasonable, taking into account the
current average yield on outstanding obligations of the United
States with remaining periods of maturity comparable to the maturity
of the loan; and
``(4) the company has agreed to an audit by the General
Accounting Office before issuance of the loan guarantee and annually
while the guaranteed loan is outstanding.
``(g) Terms and Conditions of Loan Guarantees.--
``(1) Loan duration.--All loans guaranteed under this section
shall be repayable in full not later than December 31, 2010, and the
terms and conditions of each such loan shall provide that the loan
agreement may not be amended, or any provision of the loan agreement
waived, without the consent of the Board.
``(2) Loan security.--A commitment to issue a loan guarantee
under this section shall contain such affirmative and negative
covenants and other protective provisions as the Board determines
are appropriate. The Board shall require security for the loans to
be guaranteed under this section at the time at which the commitment
is made.
``(3) Fees.--A qualified oil and gas company receiving a loan
guarantee under this section shall pay a fee to the Department of
the Treasury to cover costs of the program, but in no event shall
such fee exceed an amount equal to 0.5 percent of the outstanding
principal balance of the guaranteed loan.
``(4) Guarantee level.--No loan guarantee may be provided under
this section if the guarantee exceeds 85 percent of the amount of
principal of the loan.
``(h) Reports.--During fiscal year 1999 and each fiscal year
thereafter until each guaranteed loan has been repaid in full, the
Secretary of Commerce shall submit to Congress a report on the
activities of the Board.
``(i) Salaries and Administrative Expenses.--For necessary expenses
to administer the Program, $2,500,000 is appropriated to the Department
of Commerce, to remain available until expended, which may be
transferred to the Office of the Assistant Secretary for Trade
Development of the International Trade Administration.
``(j) Termination of Guarantee Authority.--The authority of the
Board to make commitments to guarantee any loan under this section shall
terminate on December 31, 2001.
``(k) Regulatory Action.--Not later than 60 days after the date of
the enactment of this Act [Aug. 17, 1999], the Board shall issue such
final procedures, rules, and regulations as are necessary to carry out
this section.
``federal administrative and travel expenses
``(rescissions)
``Sec. 202. (a) Of the funds available in the nondefense category to
the agencies of the Federal Government, $125,000,000 are hereby
rescinded: Provided, That rescissions pursuant to this subsection shall
be taken only from administrative and travel accounts: Provided further,
That rescissions shall be taken on a pro rata basis from funds available
to every Federal agency, department, and office in the executive branch,
including the Office of the President.
``(b) Within 30 days after the date of the enactment of this Act
[Aug. 17, 1999], the Director of the Office of Management and Budget
shall submit to the Committees on Appropriations of the House of
Representatives and the Senate a listing of the amounts by account of
the reductions made pursuant to the provisions of subsection (a) of this
section.
``CHAPTER 3
``GENERAL PROVISIONS
``Sec. 301. No part of any appropriation contained in the Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
``This Act may be cited as the `Emergency Steel Loan Guarantee and
Emergency Oil and Gas Guaranteed Loan Act of 1999'.''
[Pub. L. 107-63, title III, Sec. 336(b), Nov. 5, 2001, 115 Stat.
472, provided that: ``The amendments made by this section [amending
section 101 of Pub. L. 106-51, set out above] shall apply only with
respect to any guarantee issued on or after the date of the enactment of
this Act [Nov. 5, 2001].'']
