1484 
[DOCID: f:s1884is.txt]






107th CONGRESS
  1st Session
                                S. 1884

   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 SENATE OF THE UNITED STATES

            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

_______________________________________________________________________

                                 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.''.
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