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

Page 629 TITLE 19—CUSTOMS DUTIES § 2344 lating to the assistance furnished and allowed the giv- ing of assistance to firms in the preparation of their pe- titions for certification of eligibility under section 2341 of this title. Subsec. (b). Pub. L. 97–35 amended subsec. (b) gen- erally, incorporating in pars. (1) and (2) provisions for- merly contained in subsec. (c), inserted reference to grants to intermediary organizations (including Trade Adjustment Assistance Centers) in par. (1), and added par. (3). Provisions formerly contained in subsec. (b) were transferred to subsec. (a). Subsec. (c). Pub. L. 97–35 struck out subsec. (c) and transferred the provisions to subsec. (b)(1) and (2). Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES OF 2015 REVIVAL For revival and applicability, beginning on June 29, 2015, of the provisions of this section as in effect on Dec. 31, 2013, see section 402(b), (c) of Pub. L. 114–27, set out as a note preceding section 2271 of this title. For reversion, beginning on July 1, 2021, to the provi- sions of this section as in effect on Jan. 1, 2014, with certain exceptions and subject to section 406(b) of Pub. L. 114–27, see section 406 of Pub. L. 114–27, set out as a note preceding section 2271 of this title. EFFECTIVE AND TERMINATION DATES OF 2011 REVIVAL For revival and applicability, beginning on Oct. 21, 2011, of the provisions of this section as in effect on Feb. 12, 2011, see section 201(b), (c) of Pub. L. 112–40, set out as a note preceding section 2271 of this title. Section 233 of Pub. L. 112–40, formerly set out as a note preceding section 2271 of this title, which provided for the reversion, beginning on Jan. 1, 2014, of the provi- sions of this section to those in effect on Feb. 13, 2011, subject to certain exceptions, was repealed by Pub. L. 114–27, title IV, § 402(a), June 29, 2015, 129 Stat. 374, effec- tive June 29, 2015. See Codification note above. EFFECTIVE AND TERMINATION DATES OF 2009 AMENDMENT Except as otherwise provided and subject to certain applicability provisions, amendment by Pub. L. 111–5 effective upon the expiration of the 90-day period begin- ning on Feb. 17, 2009, see section 1891 of Pub. L. 111–5, set out as a note under section 2271 of this title. Section 1893 of Pub. L. 111–5, formerly set out as a Termination Date of 2009 Amendment note preceding section 2271 of this title, which provided that, except as otherwise provided, amendment by Pub. L. 111–5 not ap- plicable on or after Feb. 13, 2011, and that this section be applied and administered beginning Feb. 13, 2011, as if amendment by Pub. L. 111–5 had never been enacted, was repealed by Pub. L. 112–40, title II, § 201(a), Oct. 21, 2011, 125 Stat. 403, effective Oct. 21, 2011. See Codifica- tion note above. EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–35, title XXV, § 2529, Aug. 13, 1981, 95 Stat. 893, provided that: ‘‘(a) Subject to subsection (b), the amendments made by this subtitle [subtitle B (§§ 2521–2529) of title XXV of Pub. L. 97–35, enacting section 2355 of this title, amend- ing this section and sections 2344 to 2347 of this title, and repealing section 2353 of this title] shall take effect on the date of the enactment of this Act [Aug. 13, 1981]. ‘‘(b) Applications for adjustment assistance under chapter 3 of title II of the Trade Act of 1974 [this part] which the Secretary of Commerce accepted for proc- essing before the date of the enactment of this Act [Aug. 13, 1981] shall continue to be processed in accord- ance with the requirements of such chapter as in effect before such date of enactment.’’ TERMINATION DATE Except as otherwise provided, technical assistance and grants may not be provided under this part after June 30, 2022, see section 285 of Pub. L. 93–618, as modi- fied by section 406(a)(7) of Pub. L. 114–27, set out as notes preceding section 2271 of this title. § 2344. Financial assistance (a) Direct loans and guarantees of loans The Secretary may provide to a firm, on such terms and conditions as he determines to be ap- propriate, such financial assistance in the form of direct loans or guarantees of loans as in his judgment will materially contribute to the eco- nomic 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 sec- tion. (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, installa- tion, modernization, development, conversion, or expansion of land, plant, buildings, equip- ment, facilities, or machinery, or (2) to supply such working capital as may be necessary to enable the firm to implement its adjustment proposal. (c) Limitation on direct loans 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 guar- antee) at a rate no higher than the maximum in- terest 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. (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.) TERMINATION OF ASSISTANCE For termination of assistance under this part after June 30, 2022, see Termination Date note below. Editorial Notes CODIFICATION Section reflects the July 1, 2021, reversion to provi- sions in effect on Jan. 1, 2014. See Effective and Termi- nation Dates note below. PRIOR PROVISIONS A prior section 2344, Pub. L. 93–618, title II, § 254, as added Pub. L. 111–5, div. B, title I, § 1864(a)(3), Feb. 17, 2009, 123 Stat. 397, and Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403, and Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374, ceased to be effective after the reversion, effective July 1, 2021, of this section to provisions in effect on Jan. 1, 2014, pur- suant to section 406 of Pub. L. 114–27, set out as a note preceding section 2271 of this title. Prior to reversion, section 2344 read as follows: ‘‘§ 2344. Oversight and administration ‘‘(a) IN GENERAL.—The Secretary shall, to such extent and in such amounts as are provided in appropriations Page 630 TITLE 19—CUSTOMS DUTIES § 2345 Acts, provide grants to intermediary organizations (re- ferred to in section 2343(b)(1) of this title) throughout the United States pursuant to agreements with such intermediary organizations. Each such agreement shall require the intermediary organization to provide bene- fits to firms certified under section 2341 of this title. The Secretary shall, to the maximum extent prac- ticable, provide by October 1, 2010, that contracts en- tered into with intermediary organizations be for a 12- month period and that all such contracts have the same beginning date and the same ending date. ‘‘(b) DISTRIBUTION OF FUNDS.— ‘‘(1) IN GENERAL.—Not later than 90 days after Feb- ruary 17, 2009, the Secretary shall develop a method- ology for the distribution of funds among the inter- mediary organizations described in subsection (a). ‘‘(2) PROMPT INITIAL DISTRIBUTION.—The method- ology described in paragraph (1) shall ensure the prompt initial distribution of funds and establish ad- ditional criteria governing the apportionment and distribution of the remainder of such funds among the intermediary organizations. ‘‘(3) CRITERIA.—The methodology described in para- graph (1) shall include criteria based on the data in the annual report on the trade adjustment assistance for firms program described in section 2356 of this title. ‘‘(c) REQUIREMENTS FOR CONTRACTS.—An agreement with an intermediary organization described in sub- section (a) shall require the intermediary organization to contract for the supply of services to carry out grants under this part in accordance with terms and conditions that are consistent with guidelines estab- lished by the Secretary. ‘‘(d) CONSULTATIONS.— ‘‘(1) CONSULTATIONS REGARDING METHODOLOGY.—The Secretary shall consult with the Committee on Fi- nance of the Senate and the Committee on Ways and Means of the House of Representatives— ‘‘(A) not less than 30 days before finalizing the methodology described in subsection (b); and ‘‘(B) not less than 60 days before adopting any changes to such methodology. ‘‘(2) CONSULTATIONS REGARDING GUIDELINES.—The Secretary shall consult with the Committee on Fi- nance of the Senate and the Committee on Ways and Means of the House of Representatives not less than 60 days before finalizing the guidelines described in subsection (c) or adopting any subsequent changes to such guidelines.’’ AMENDMENTS 1986—Subsec. (d). Pub. L. 99–272 added subsec. (d). 1981—Subsec. (c). Pub. L. 97–35 substituted provisions relating to limitation on direct loans on the basis of in- terest rates on loans under section 636(a) of title 15 for provisions relating to limitation on direct loans on the basis of interest rates under section 2345(b) of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Aug. 13, 1981, except as otherwise provided with respect to applica- tions for adjustment assistance, see section 2529 of Pub. L. 97–35, set out as a note under section 2343 of this title. TERMINATION DATE Except as otherwise provided, technical assistance and grants may not be provided under this part after June 30, 2022, see section 285 of Pub. L. 93–618, as modi- fied by section 406(a)(7) of Pub. L. 114–27, set out as notes preceding section 2271 of this title. RESIDUAL AUTHORITY Pub. L. 111–5, div. B, title I, § 1864(b), Feb. 17, 2009, 123 Stat. 398, provided that: ‘‘The Secretary of Commerce shall have the authority to modify, terminate, resolve, liquidate, or take any other action with respect to a loan, guarantee, contract, or any other financial assist- ance that was extended under section 254, 255, 256, or 257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as in effect on the day before the effective date set forth in section 1891 [set out as an Effective and Termination Dates of 2009 Amendment note under sec- tion 2271 of this title].’’ § 2345. Conditions for financial assistance (a) Unavailability of firm’s resources; reasonable assurance of repayment No financial assistance shall be provided under this part unless the Secretary determines— (1) that the funds required are not available from the firm’s own resources; and (2) that there is reasonable assurance of re- payment of the loan. (b) Interest rates (1) The rate of interest on direct loans made under this part shall be— (A) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods of maturity that are comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 percent, plus (B) an amount adequate in the judgment of the Secretary of Commerce to cover adminis- trative costs and probable losses under the program. (2) The Secretary may not guarantee any loan under this part if— (A) the rate of interest on either the portion to be guaranteed, or the portion not to be guaranteed, is determined by the Secretary to be excessive when compared with other loans bearing Federal guarantees and subject to similar terms and conditions, and (B) the interest on the loan is exempt from Federal income taxation under section 103 of title 26. (c) Maturity of loans The Secretary shall make no loan or guar- antee of a loan under section 2344(b)(1) of this title having a maturity in excess of 25 years or the useful life of the fixed assets (whichever pe- riod is shorter), including renewals and exten- sions; and shall make no loan or guarantee of a loan under section 2344(b)(2) of this title having a maturity in excess of 10 years, including ex- tensions and renewals. Such limitations on ma- turities shall not, however, apply— (1) to securities or obligations received by the Secretary as claimant in bankruptcy or equitable reorganization, or as creditor in other proceedings attendant upon insolvency of the obligor, or (2) to an extension or renewal for an addi- tional period not exceeding 10 years, if the Secretary determines that such extension or renewal is reasonably necessary for the or- derly liquidation or servicing of the loan. (d) Priority for small firms; servicing of loans (1) In making guarantees of loans, and in mak- ing direct loans, the Secretary shall give pri- ority to firms which are small within the mean-