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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 estab-
lished 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 man-
ufacture 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
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operates substantial assets of a company that
meets these qualifications.
(d) ESTABLISHMENT OF EMERGENCY STEEL GUAR-
ANTEE LOAN PROGRAM.—There is established the Emer-
gency Steel Guarantee Loan Program, to be administered
by the Board, the purpose of which is to provide loan guar-
antees to qualified steel companies in accordance with this
section.
(e) LOAN GUARANTEE BOARD MEMBERSHIP.—There
is established a Loan Guarantee Board, which shall be com-
posed of—
(1) the Secretary of Commerce;
(2) the Chairman of the Board of Governors of
the Federal Reserve System, who shall serve as Chair-
man of the Board; and
(3) the Chairman of the Securities and Exchange
Commission.
(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
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one time under this section may not exceed
$1,000,000,000.
(3) INDIVIDUAL GUARANTEE LIMIT.—The aggre-
gate 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 sec-
tion as soon as possible after receipt of such applica-
tion.
(5) ADDITIONAL COSTS.—For the additional cost
of the loans guaranteed under this subsection, includ-
ing the costs of modifying the loans as defined in sec-
tion 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 applica-
tion 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 com-
pany under reasonable terms or conditions sufficient
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to meet its financing needs, as reflected in the finan-
cial and business plans of that company;
(2) the prospective earning power of that com-
pany, together with the character and value of the se-
curity pledged, furnish reasonable assurance of repay-
ment 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 peri-
ods 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 as-
sets of a qualified steel company, the qualified steel
company establishes that it is unable to reorganize
itself.
(h) TERMS
AND CONDITIONS
OF LOAN GUARAN-
TEES.—
(1) LOAN
DURATION.—All loans guaranteed
under this section shall be payable in full not later
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than December 31, 2005, and the terms and condi-
tions 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 protec-
tive provisions that the Board determines are appro-
priate. 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 pro-
gram, but in no event shall such fee exceed an amount
equal to 0.5 percent of the outstanding principal bal-
ance 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.
(i) REPORTS TO CONGRESS.—The Secretary of Com-
merce shall submit to Congress a full report of the activities
of the Board under this section during each of fiscal years
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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, 2001.
(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 enactment of this Act.
(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 author-
ized to be guaranteed and outstanding at any one
time under subsection (f)(2), an amount not to exceed