“CHAPTER 1 -
Title 15 > “CHAPTER 1
Sections (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— 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 since 1998, caused by the world financial crisis; this surge in imports resulted in the loss of more than 10,000 steel worker jobs since 1998, and was the imminent cause of three bankruptcies by medium-sized steel companies, Acme Steel, Laclede Steel, and Geneva Steel; the crisis also forced almost all United States steel companies into— reduced volume, lower prices, and financial losses; and an inability to obtain credit for continued operations and reinvestment in facilities; 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; 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 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: The term ‘Board’ means the Loan Guarantee Board established under subsection (e). The term ‘Program’ means the Emergency Steel Guarantee Loan Program established under subsection (d). The term ‘qualified steel company’ means any company that— is incorporated under the laws of any State; 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 has experienced layoffs, production losses, or financial losses since the beginning of the steel import crisis in 1998, and thereafter, 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— the Secretary of Commerce; 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 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.— 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. The aggregate amount of loans guaranteed and outstanding at any one time under this section may not exceed 250,000,000. The Board shall approve or deny each application for a guarantee under this section as soon as possible after receipt of such application. 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— 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; 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; 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; the company has agreed to an audit by the Government Accountability Office prior to the issuance of the loan guarantee and annually thereafter while any such guaranteed loan is outstanding; and 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.— 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. 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. 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. 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. 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— the aggregate amount of loans guaranteed at such percentage and outstanding under this section at any one time does not exceed 50,000,000. 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— the aggregate amount of loans guaranteed at such percentage and outstanding under this section at any one time 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, 2011 .
(“(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.— 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. 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.