Reconstruction Finance Corporation Act of 1987

Summary

Reconstruction Finance Corporation Act of 1987 - Establishes the Reconstruction Finance Corporation. Authorizes the appropriation of $5,000,000,000 as the capital stock of such Corporation. Authorizes the Corporation, in order to aid in financing agriculture, commerce, and industry, to make loans to businesses for: (1) plant construction, conversion, or expansion or acquisitions; (2) working capital; or (3) the payment of current debts or obligations. Prohibits a loan to any business unless it is otherwise unable to obtain one on reasonable terms. Allows a term for such a loan of up to ten years, extendable to 12 years. States that each loan shall bear interest at a rate equal to the current average yield on all outstanding obligations of the United States as of the last day of the month immediately preceding the month in which the loan is made. Prohibits the payment of fees or commissions by any applicant for a loan or loan guarantee under this Act. Requires priority in awarding financial assistance to manufacturers or processors of goods or services in short supply. Authorizes the Corporation to guarantee the payment of a loan made by a non-Federal lender under certain circumstances. Limits loan guarantees to a period not exceeding ten years. Limits the aggregate principal amounts of guaranteed loans outstanding at any time. Permits the Corporation to subscribe for common or preferred stock in specified businesses or to purchase their capital notes or debentures and to sell such stock or notes in the open market. Authorizes the Corporation to have outstanding obligations in an aggregate amount not exceeding three times its subscribed capital. Exempts all obligations issued by the Corporation from all taxation (except surtaxes, estate, inheritance, and gift taxes). Exempts the Corporation from all taxation except real property taxation. Requires quarterly reports to the Congress on the Corporation's operations and annual audits of the Corporation's accounts. Establishes criminal sanctions for false statements or fraudulent acts in connection with transactions with the Corporation. Authorizes appropriations.

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1 official file

• Introduced in House

  summary · EN · 3 December 1987

  Open at official source

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