I 
112TH CONGRESS 
2D SESSION 
H. R. 4308 
To authorize the Secretary of the Treasury to provide growth and stability 
funding for the city of Detroit. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2012 
Mr. CLARKE of Michigan (for himself, Mr. CONYERS, Mr. CLEAVER, Ms. 
HANABUSA, and Ms. NORTON) introduced the following bill; which was 
referred to the Committee on Oversight and Government Reform 
A BILL 
To authorize the Secretary of the Treasury to provide growth 
and stability funding for the city of Detroit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Detroit Growth and 
Stability Act of 2012’’. 
SEC. 2. FINDINGS. 
The Congress makes the following findings: 
(1) The City of Detroit is an essential part of 
the Nation’s economy and, in particular, the Na-
tion’s manufacturing sector. 
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(2) Absent decisive action from the Federal 
Government, the City of Detroit risks bankruptcy 
and loan default. 
(3) A bankruptcy or default of the City of De-
troit would have broad negative economic con-
sequences on the State of Michigan and the Nation. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) The term ‘‘city’’ means the city of Detroit, 
Michigan. 
(2) The term ‘‘State’’ means the State of 
Michigan. 
(3) The term ‘‘financing agent’’ means any 
agency duly authorized by State law, and approved 
by the city, to act on behalf or in the interest of the 
city with respect to the city’s financial affairs. 
(4) The term ‘‘Secretary’’ means the Secretary 
of the Treasury. 
SEC. 4. LOANS. 
(a) IN GENERAL.—Upon written request of a financ-
ing agent, the Secretary may make loans to such agent 
subject to the provisions of this Act and the city and such 
agent shall be jointly and severally liable thereon. 
(b) MATURITY.—Each such loan shall mature not 
later than 30 years after the last day of the city’s fiscal 
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year in which it was made, and shall bear interest at an 
annual rate equal to the current average market yield on 
outstanding marketable obligations of the United States 
with remaining periods to maturity comparable to the ma-
turities of such loan, as determined by the Secretary at 
the time of the loan. 
(c) PREPAYMENT.—The Secretary may not charge 
any prepayment penalties with respect to any loan made 
under this Act. 
SEC. 5. SECURITY FOR LOANS. 
In connection with any loan made under this Act, the 
Secretary may require the city and a financing agent and, 
where the Secretary deems necessary, the State, to provide 
such security as the Secretary deems appropriate. The 
Secretary may take such steps as such Secretary deems 
necessary to realize upon any collateral in which the 
United States has a security interest pursuant to this sec-
tion to enforce any claim the United States may have 
against the city or any financing agent pursuant to this 
Act. Notwithstanding any other provision of law, Acts 
making appropriations may provide for the withholding of 
any payments from the United States to the city, either 
directly or through the State, which may be or may be-
come due pursuant to any law and offset the amount of 
such withheld payments against any claim the Secretary 
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may have against the city or any financing agent pursuant 
to this Act. With respect to debts incurred pursuant to 
this Act, for the purposes of section 3466 of the Revised 
statutes (31 U.S.C. 181) the term ‘‘person’’ includes any 
financing agent. 
SEC. 6. LIMITATIONS. 
At no time shall the amount of loans outstanding 
under this Act exceed in the aggregate $500,000,000. 
SEC. 7. REMEDIES. 
The remedies of the Secretary prescribed in this Act 
shall be cumulative and not in limitation of or substitution 
for any other remedies available to the Secretary or the 
United States. 
SEC. 8. FUNDING. 
(a) ESTABLISHMENT OF FUND.—There is hereby es-
tablished in the Treasury a fund to be known as the ‘‘City 
of Detroit Growth and Stability Fund’’, which shall be ad-
ministered by the Secretary. The fund shall be used for 
the purpose of making loans pursuant to this Act. There 
is authorized to be appropriated to such fund the sum of 
$500,000,000. 
(b) ADMINISTRATIVE COSTS.—There are authorized 
to be appropriated such sums as may be necessary to pay 
the expenses of administration of this Act. 
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SEC. 9. INSPECTION OF DOCUMENTS. 
At any time a request for a loan is pending or a loan 
is outstanding under this Act, the Secretary is authorized 
to inspect and copy all accounts, books, records, memoran-
dums, correspondence, and other documents of the city or 
any financing agent relating to its financial affairs. 
SEC. 10. AUDITS. 
No loan may be made under this Act for the benefit 
of any State or city unless the General Accounting Office 
is authorized to make such audits as may be deemed ap-
propriate by either the Secretary or the General Account-
ing Office of all accounts, books, records, and transactions 
of the State, the political subdivision, if any, involved, and 
any agency or instrumentality of such State or political 
subdivision. The General Accounting Office shall report 
the results of any such audit to the Secretary and to the 
Congress. 
SEC. 11. TERMINATION. 
The authority of the Secretary to make any loan 
under this Act terminates on January 1, 2016. Such ter-
mination does not affect the carrying out of any trans-
action entered into pursuant to this Act prior to that date, 
or the taking of any action necessary to preserve or protect 
the interests of the United States arising out of any loan 
under this Act. 
Æ 
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