Page:United States Statutes at Large Volume 123.djvu/2030

 123STA T . 2 0 10 PUBLIC LA W 111 –67— S E PT. 30 , 200 9SEC.7 .E XPAN S IO NO F P R O DU C T I V E CAPACIT Y AND SUPP L Y. TitleI II of t h e D efe ns e Pr o duc tion A ct of 1950( 50 U.S . C . A p p. 2 091 et se q . ) is am ended to read as follo w s

‘ TI T LE III — E XPANS I O NO F P R O DUC TI V E CAPACIT Y AND SUPPLY ‘ ‘SEC. 301 . PRESIDENTIAL AUT H ORI Z ATION FOR THE NATIONAL DEFENSE. ‘ ‘(a) EXPEDIT I NG P RO D UC TION A ND DE L I V ERIE S OR SERVICES. — ‘‘(1) AUT H ORI Z ED ACTIVITIES.—To reduce current or pro -j ected shortfalls of industrial resources , critical technolo gy items, or essential materials needed for national defense pur- poses, su b ject to such regulations as the President may pre- scribe, the President may authori z e a guaranteeing agency to pro v ide guarantees of loans by private institutions for the purpose of financing any contractor, subcontractor, provider of critical infrastructure, or other person in support of produc- tion capabilities or supplies that are deemed by the guaran- teeing agency to be necessary to create, maintain, e x pedite, expand, protect, or restore production and deliveries or services essential to the national defense. ‘‘(2) PRESIDENTIAL DETER M INATIONS RE Q UIRED.—Except during a period of national emergency declared by Congress or the President, a loan guarantee may be entered into under this section only if the President determines that— ‘‘(A) the loan guarantee is for an activity that supports the production or supply of an industrial resource, critical technology item, or material that is essential for national defense purposes ‘‘( B ) without a loan guarantee, credit is not available to the loan applicant under reasonable terms or conditions sufficient to finance the activity; ‘‘(C) the loan guarantee is the most cost effective, expe- dient, and practical alternative for meeting the needs of the F ederal G overnment; ‘‘(D) the prospective earning power of the loan applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed; ‘‘(E) the loan to be guaranteed bears interest at a rate determined by the Secretary of the Treasury to be reasonable, ta k ing into account the then-current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan; ‘‘(F) the loan agreement for the loan to be guaranteed provides that no provision of the loan agreement may be amended or waived without the consent of the fiscal agent of the United States for the guarantee; and ‘‘(G) the loan applicant has provided or will provide— ‘‘(i) an assurance of repayment, as determined by the President; and ‘‘(ii) security— 50USCap p .2 0 91.