19 U.S.C. § 2344 — Financial assistance

submitted 51 years ago by Pub. L. 93-618 to r/title-19-CUSTOMS-DUTIES · 236 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Secretary may give firms direct loans or loan guarantees for specified economic-adjustment purposes, but direct loans are barred when private financing is available at the stated rate and all loans and guarantees were barred after April 7, 1986.

(a) The Secretary may give a firm direct loans or loan guarantees on appropriate terms if, in the Secretary’s judgment, they will substantially help the firm adjust economically. Taking over an existing firm debt, with or without recourse, counts as making a loan. (b) Loans and guarantees may be used only to make funds available for (1) acquiring, building, installing, modernizing, developing, converting, or expanding land, plants, buildings, equipment, facilities, or machinery, or (2) working capital needed to carry out the firm’s adjustment proposal. (c) The Secretary may not make a direct loan if the firm can obtain private loan funds, with or without a guarantee, at a rate no higher than the maximum annual rate a participating financial institution may set for guaranteed loans under section 636(a) of title 15. (d) Regardless of other provisions of this part, no direct loan or loan guarantee could be made under this part after April 7, 1986.

the actual law source: uscode.house.gov ↗public domain

(a) Direct loans and guarantees of loans

The Secretary may provide to a firm, on such terms and conditions as he determines to be appropriate, such financial assistance in the form of direct loans or guarantees of loans as in his judgment will materially contribute to the economic adjustment of the firm. The assumption of an outstanding indebtedness of the firm, with or without recourse, shall be considered to be the making of a loan for purposes of this section.

(b) Allowable purposes

Loans or guarantees of loans shall be made under this part only for the purpose of making funds available to the firm—

(1)

for acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery, or

(2)

to supply such working capital as may be necessary to enable the firm to implement its adjustment proposal.

No direct loan may be provided to a firm under this part if the firm can obtain loan funds from private sources (with or without a guarantee) at a rate no higher than the maximum interest per annum that a participating financial institution may establish on guaranteed loans made pursuant to section 636(a) of title 15.

(d) Limitations on loans and guarantees

Notwithstanding any other provision of this part, no direct loans or guarantees of loans may be made under this part after April 7, 1986.

Source credit: (Pub. L. 93–618, title II, § 254, Jan. 3, 1975, 88 Stat. 2031; Pub. L. 97–35, title XXV, § 2522, Aug. 13, 1981, 95 Stat. 891; Pub. L. 99–272, title XIII, § 13006(b), Apr. 7, 1986, 100 Stat. 304.)

history & why it existsrecord from the source credit

1975Enacted · Pub. L. 93-618 · 88 Stat. 2031
1981Amended · Pub. L. 97-35 · 95 Stat. 891
1986Amended · Pub. L. 99-272 · 100 Stat. 304

A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-618 on 1975-01-03.

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