15 U.S.C. § 9063: Termination of authority

Summary

On December 31, 2020, the authority to make new loans, loan guarantees, or other investments under this part ends, unless the law says otherwise. Any loans or guarantees already in place on that date can be changed or reworked but cannot be forgiven. If a certain kind of loan is changed, its length cannot be extended beyond five years from the loan’s original start date. After December 31, 2020, the Federal Reserve may not make new loans or buy assets through programs where the Treasury made investments under the law, except for loans sent to the Main Street Lending Program’s lender portal on or before December 14, 2020 that the program buys by January 8, 2021 under the same terms as when submitted. The Fed also must not change those program rules or move the funds to a new program, though it may modify or restructure individual eligible loans or assets for a single eligible borrower if that change is needed to reduce taxpayer losses. The Treasury may use the fund in 31 U.S.C. 5302 for allowed purposes, but that fund cannot be used for programs that are the same as ones it already invested in, except the Term Asset-Backed Securities Loan Facility.

Title 15, §9063

Commerce and Trade, Source: USLM XML via OLRC

(a)In general

Except as provided in subsection (b), on December 31, 2020, the authority provided under this part to make loans, loan guarantees, or other investments shall terminate.

(b)Outstanding

(1)In general

Except as provided in paragraph (2), any loan or loan guarantee made under paragraph (1), (2), or (3) of section 9042(b) of this title outstanding on the date described in subsection (a)—

(A)may be modified, restructured, or otherwise amended; and

(B)may not be forgiven.

(2)Duration

The duration of any loan or loan guarantee made under section 9042(b)(1) of this title that is modified, restructured, or otherwise amended under paragraph (1) shall not be extended beyond 5 years from the initial origination date of the loan or loan guarantee.

(c)Federal Reserve programs or facilities

(1)In general

After December 31, 2020, the Board of Governors of the Federal Reserve System and the Federal Reserve banks shall not make any loan, purchase any obligation, asset, security, or other interest, or make any extension of credit through any program or facility established under section 343(3) of title 12 in which the Secretary made a loan, loan guarantee, or other investment pursuant to section 9042(b)(4) of this title, other than a loan submitted, on or before December 14, 2020, to the Main Street Lending Program’s lender portal for the sale of a participation interest in such loan, provided that the Main Street Lending Program purchases a participation interest in such loan on or before January 8, 2021 and under the terms and conditions of the Main Street Lending Program as in effect on the date the loan was submitted to the Main Street Lending Program’s lender portal for the sale of a participation interest in such loan.

(2)No modification

After December 31, 2020, the Board of Governors of the Federal Reserve System and the Federal Reserve banks—

(A)shall not modify the terms and conditions of any program or facility established under section 343(3) of title 12 in which the Secretary made a loan, loan guarantee, or other investment pursuant to section 9042(b)(4) of this title, including by authorizing transfer of such funds to a new program or facility established under section 343(3) of title 12; and

(B)may modify or restructure a loan, obligation, asset, security, other interest, or extension of credit made or purchased through any such program or facility provided that—

(i)the loan, obligation, asset, security, other interest, or extension of credit is an eligible asset or for an eligible business, including an eligible nonprofit organization, each as defined by such program or facility; and

(ii)the modification or restructuring relates to an eligible asset or single and specific eligible business, including an eligible nonprofit organization, each as defined by such program or facility; and

(iii)the modification or restructuring is necessary to minimize costs to taxpayers that could arise from a default on the loan, obligation, asset, security, other interest, or extension of credit.

(3)Use of funds

(A)In general

Except as provided in subparagraph (B), the Secretary is permitted to use the fund established under section 5302 of title 31 for any purpose permitted under that section.

(B)Exception

The fund established under section 5302 of title 31 shall not be available for any program or facility established under section 343(3) of title 12 that is the same as any such program or facility in which the Secretary made an investment pursuant to section 9042(b)(4) of this title, except the Term Asset-Backed Securities Loan Facility.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This part, referred to in subsec. (a), was in the original “this subtitle”, meaning subtitle A (§§ 4001–4029) of title IV of div. A of Pub. L. 116–136, known as the Coronavirus Economic Stabilization Act of 2020, which is classified principally to this part. For complete classification of subtitle A to the Code, see section 4001 of Pub. L. 116–136, set out as a

Short Title

note under section 9001 of this title, and Tables.

Amendments

2020—Subsec. (a). Pub. L. 116–260, § 1005(1), struck out “new” after “make”. Subsec. (b)(1). Pub. L. 116–260, § 1005(2), substituted “or loan guarantee made under paragraph (1), (2), or (3) of section 9042(b) of this title” for “, loan guarantee, or other investment” in introductory provisions. Subsec. (c). Pub. L. 116–260, § 1005(3), added subsec. (c).

§9063 Termination of Authority