A bill to reestablish the Reconstruction Finance Corporation, to authorize such Corporation to perform its traditional lending functions, and for other purposes.

Summary

Establishes the Reconstruction Finance Corporation as a wholly owned Government corporation. Sets Forth the general powers of the Corporation and the make-up of its board of directors. States that the Corporation shall have a capital stock of $5,000,000,000 subscribed by the Treasury from appropriated funds. Grants the Corporation the power to issue obligations, within the authorized indebtedness prescribed by this Act. Prohibits any Federal entity from purchasing any of the loans made, guaranteed, or committed to be guaranteed under this Act. Permits the Corporation to request the Secretary of the Treasury to guarantee its obligations with the full faith and credit of the United States. Exempts the Corporation, its franchise, capital, reserves, surplus, income, tangible and intangible property, and obligations from all taxation, with specified exceptions. Permits the Corporation, under specified conditions and requirements, to provide financial assistance to an eligible business enterprise for: (1) general assistance in cases of financial distress; or (2) modernization or expansion that would have a significant beneficial impact on employment opportunities and productivity, domestic industries competing with certain foreign industries, or domestic firms which have substantial problems meeting government imposed costs. Specifies business eligibility criteria. Sets forth the terms and conditions under which the Corporation is authorized to make loans and private loan guarantees to business enterprises. Authorizes the Corporation's board of directors to inspect all documents relating to the financial affairs of an applicant for, or recipient of, financial assistance under this Act. Terminates the Corporation 30 years after the effective date of this Act. Prohibits the Corporation from making any commitment to provide new or increased financial assistance to any applicant more than six years after the effective date of this Act unless such date is extended by Congress. Sets forth conflict of interest and financial disclosure provisions applicable to Corporation officers, board members, and employees. Authorizes appropriations.

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1 official file

• Introduced in House

  summary · EN · 6 January 1987

  Open at official source

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