Chrysler Corporation Loan Guarantee Act of 1979

Chrysler Corporation Loan Guarantee Act of 1979 - Establishes a Chrysler Review Board composed of the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Labor, one member of the Board of Governors of the Federal Reserve System, and three individuals with business experience in the automobile industry appointed by the President. Designates the Secretary of the Treasury as Chairperson of the Board. Authorizes the Board to enter commitments to guarantee loans made to Chrysler, its affiliates, or other entities borrowing funds for the use of Chrysler. Requires the Board, before issuing a commitment, to determine that: (1) such a commitment is needed to enable Chrysler to continue to operate and the failure to meet this need would adversely and seriously affect the employment or economic situation in the United States or any of its regions, or the degree of competition in the automobile industry; (2) Chrysler has submitted a feasible operating plan for its 1980 fiscal year and the next three fiscal years demonstrating its ability to continue as a going concern in the automobile business without additional Federal assistance after December 31, 1983; (3) Chrysler has submitted a satisfactory financial plan which includes at least $1,650,000,000 in funds not guaranteed by the Federal Government, obtained through commitments and concessions contributed by persons with an existing economic stake in Chrysler and capital and cash acquired by merger, the sale of securities (including $50,000,000 to its employees), and otherwise after October 17, 1979; (4) Chrysler's existing creditors will continue to waive their rights under prior credit commitments in default unless the Board determines that the exercise of such rights will not adversely affect the operating and financial plans; and (5) all financing obtained will contribute to Chrysler's domestic economic viability. Stipulates that the Board may issue guarantees only pursuant to commitments. Requires such commitments to provide that guarantees will only be issued if the Board determines that: (1) Chrysler would otherwise be unable to obtain credit upon reasonable terms sufficient to meet the needs of its operating plan; (2) there is a reasonable prospect of repayment; (3) the loan bears interest at a reasonable rate determined by the Board; (4) Chrysler continues to comply with an operating and financial plan or a revision which is feasible and satisfactory to the Secretary; (5) Chrysler has agreed to deliver rolling four-year operating and financial plans to the Secretary and an annual analysis of deviations in performance from the targets set forth in such plans; and (6) Chrysler has complied with the requirements set forth in the terms of any commitment. Renders any determination made by the Board under this Act conclusive upon the issuance of a loan guarantee. States that the validity of any guarantee shall be incontestable except for fraud or material misrepresentation on the part of the holder thereof. Authorizes the Board to determine the form of all guarantees issued under this Act. Directs the Board to collect, at least once a year, a guarantee fee of at least one percent per annum on the outstanding guaranteed loan principal computed daily. Requires the Board to ensure that the Government is compensated for the risk it assumes in issuing guarantees through the collection of additional guarantee fees, contracts which allow the Government to share in Chrysler's profits, or other methods deemed appropriate by the Board. Prohibits the issuance of any loan guarantee if Chrysler enters into a collective bargaining agreement with its union employees before September 13, 1982, which increases wages and benefits beyond the levels in effect on September 13, 1979, excluding specified increases in contributions to medical and pension plans. Prohibits increases which would accrue as a result of a cost-of-living allowance, an annual improvement factor, or an incentive job classification. Prohibits the payment of any wage or benefit increase on a deferred basis. Prohibits the aggregate wages and benefits of Chrysler's non-union employees for any fiscal year beginning before December 31, 1982, from exceeding the total annual cost of such wages and benefits for the fiscal year ending December 31, 1979. States that such limitations on wages and benefits shall not apply to increases required by law. Stipulates that a job reclassification or promotion effected to evade the provisions of this Act shall be considered an indirect form of compensation. Prohibits the amount of outstanding guarantees of principal from ever exceeding $1,000,000,000. Sets forth limitations on the authority to issue guarantees based on the amount of nonfederally guaranteed financing obtained by Chrysler. Requires that all guaranteed loans be payable in full no later than December 31, 1990. Prohibits waiver or amendment of the terms of any guaranteed loan without the Board's consent. Requires each commitment to contain appropriate protective provisions. Directs the Board to require security for loans under this Act, subordination of existing and future creditors, and that Chrysler pay no dividends on its common or preferred stock. Authorizes the Board to inspect the records of Chrysler or any other borrower if a request for a loan guarantee is pending or outstanding. Empowers the General Accounting Office to conduct audits of Chrysler and other borrowers deemed appropriate by the Comptroller General. Directs the Office to report the results of such audits to the Congress and the Board. Directs the Board to enforce the rights of the United States as a guarantor under this Act. Entitles the Board to recover any payments made pursuant to a guarantee from Chrysler, its affiliates, or any other liable person. Empowers the Board to utilize all available remedies in enforcing the rights of the United States and to bring actions in the United States district court or any other appropriate court to enforce compliance with this Act or the terms of any agreement. Grants jurisdiction to such courts to hear such actions and to fashion appropriate remedies. Prohibits the Board from guaranteeing any tax-exempt security either directly or indirectly if the guarantee provides significant collateral for other tax-exempt obligations. Renders any provision of this Act severable from the other provisions if held invalid by a court of competent jurisdiction. Permits the Board to use any Federal Reserve bank as its fiscal agent provided the bank is reimbursed for any expenses or losses incurred acting in such capacity.

Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in Senate" stage on November 27, 1979. It describes the bill, it is not the legal text.

Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.