II 

111TH CONGRESS 

1ST SESSION S. 1253 

To address reimbursement of certain costs to automobile dealers. 

IN THE SENATE OF THE UNITED STATES 

JUNE 11, 2009 

Mr. CORKER (for himself, Mr. NELSON of Florida, Mrs. SHAHEEN, Ms. 

SNOWE, Mr. ISAKSON, and Mr. WICKER) introduced the following bill; 

which was read twice and referred to the Committee on the Judiciary 

A BILL 

To address reimbursement of certain costs to automobile 

dealers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Automobile Dealers 

5 Assistance Act of 2009’’. 

6 SEC. 2. REIMBURSEMENT OF AUTOMOBILE DISTRIBUTORS. 

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law, any funds provided by the United States Gov9 ernment, or any agency, department, or subdivision there10 of, to an automobile manufacturer or a distributor thereof 


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•S 1253 IS

1 as credit, loans, financing, advances, or by any other 

2 agreement in connection with such automobile manufac3 turer’s or distributor’s proceeding as a debtor under title 

4 11, United States Code, shall be conditioned upon use of 

5 such funds to fully reimburse all dealers of such auto6 mobile manufacturer or manufacturer’s distributor for— 

7 (1) the cost incurred by such dealers during the 

8 9-month period preceding the date on which the pro9 ceeding under title 11, United States Code, by or 

10 against the automobile manufacturer or manufactur11 er’s distributor is commenced, in acquisition of all 

12 parts and inventory in the dealer’s possession on on 

13 the same basis as if the dealers were terminating 

14 pursuant to existing franchise agreements or dealer 

15 agreements; and 

16 (2) all other obligations owed by such auto17 mobile manufacturer or manufacturer’s distributor 

18 under any other agreement between the dealers and 

19 the automobile manufacturer or manufacturer’s dis20 tributor arising during that 9-month period, includ21 ing, without limitation, franchise agreement or deal22 er agreements. 

23 (b) INCLUSION IN TERMS.—Any note, security agree24 ment, loan agreement, or other agreement between an 

25 automobile manufacturer or manufacturer’s distributor 


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1 and the Government (or any agency, department, or sub2 division thereof) shall expressly provide for the use of such 

3 funds as required by this section. A bankruptcy court may 

4 not authorize the automobile manufacturer or manufac5 turer’s distributor to obtain credit under section 364 of 

6 title 11, United States Code, unless the credit agreement 

7 or agreements expressly provided for the use of funds as 

8 required by this section. 

9 (c) EFFECTIVENESS OF REJECTION.—Notwith10 standing any other provision of law, any rejection by an 

11 automobile manufacturer or manufacturer’s distributor 

12 that is a debtor in a proceeding under title 11, United 

13 States Code, of a franchise agreement or dealer agreement 

14 pursuant to section 365 of that title, shall not be effective 

15 until at least 180 days after the date on which such rejec16 tion is otherwise approved by a bankruptcy court. 

Æ 


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