HOUSE BILL NO. 663
AS AMENDED BY
HOUSE AMENDMENTS NO. 1, 4, 9, 10, 11, 12 AND 15
AND SENATE AMENDMENT NO. 1
AN ACT ESTABLISHING AN EMERGENCY LOAN COMMITTEE, MAKING A SUPPLEMENTAL APPROPRIATION THERETO, AND AUTHORIZING THE COMMITTEE TO MAKE LOANS TO THE CHRYSLER CORPORATION.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE
(Three-quarters of all members elected to each House thereof concurring therein):
Section 1. Purpose
ft is the purpose of this Act to prevent the severe impact on the economy of the State of Delaware which would result from the financial collapse of the Chrysler Corporation, and to facilitate the return of the Chrysler Corporation to a position of financial viability through a program of limited State financial assistance. It is the intent of the General Assembly that the appropriation contained in Section 5 of this Act be identified as available from the surplus General Fund monies over and above those required to fully fund the Budget Reserve Account.
Section 2. Establishment of Committee
There is hereby established an Emergency Loan Committee composed of the State Treasurer, who shall be the Chairman of the Committee; the Secretary of Finance; the Secretary of State; one member appointed by the President Pro Tern of the Senate; and one member appointed by the Speaker of the House.
Section 3. Authority
The Committee may, on behalf of the State, lend monies belonging to the State to the Chrysler Corporation; said loan or loans being made pursuant to the limitations and conditions set forth hereinafter and pursuant to such other terms and conditions as the Committee, in its sole and absolute discretion, shall deem necessary.
The affirmative vote of a majority of the members appointed to the Committee shall be required for approval of any loan or loans.
Section 4. Limitations and Conditions
(a) The committee may make a loan under this Act only if -
(I) The Committee finds that the loan is needed to enable the Chrysler Corporation to meet the conditions for the receipt of Federal- financial assistance imposed under the "Chrysler Corporation Emergency Loan Guarantee Act of 1979" enacted by the Federal Government.
(2) Such loan is continuously and fully secured by property the value of which is sufficient, in the judgment of the Committee, to protect any and all rights granted to the State of Delaware under any loan agreement made pursuant to this Act.
(a) In addition to such other default provisions to which the Committee may agree, any loan agreement between the Committee on behalf of the State of Delaware,
and the Chrysler Corporation shall provide that any outstanding loan or loans shall be callable and no other loan or )(gins shall be made if the Chrysler Assembly Plant in Newark, Delaware ceases its manufacturing operations under circumstances wherein the Committee has not been provided with adequate assurances that manufacturing operations will be resumed.
(c) Without limitation to the Committee's discretionary authority to impose such terms and conditions as it shall deem necessary, the Committee is authorized to enter Into a loan agreement or agreements with Chrysler Corporation that provide that any interest due upon a loan or loans extended by the State of Delaware may be paid in money or in kind; provided, however, that nny loan to the Chrysler Corporation shall carry a rate of interest of at Mast 10% (ten percent). To the extent that the Committee elects to receive such interest in the form of products manufactured by Chrysler Corporation, the Committee shall determine, in its absolute discretion, the value of such products and, with respect to the acquisition of such products, the requirements of Chapter 69 of Title 29 shall not apply.
(d) It is deemed appropriate that the burden created by the need to provide the Chrysler Corporation with financial assistance be shared, to the extent possible, by the City of Newark and New Castle County. The Committee is authorized to condition its entry into any loan agreement with the Chrysler Corporation upon participation in such agreement, in n form acceptable to the Committee, by the City of Newark and New Castle County,
Section 5, Appropriation
There is hereby appropriated to the Committee the sum of five million dollars (65,000,000.00) to be used in making such loan or loans to the Chrysler Corporation as ore described more fully by this Act.
Section 6. Reversion to the General Fund
This Act is a supplemental appropriation and the monies appropriated shall be paid by the State Treasurer out of the monies in the General Fund not otherwise appropriated. Any funds remaining unexpended, uncommitted or unencumbered by December 31, 1982 shall revert to the General Fund.
Section 7. Inconsistencies with Federal Legislation
Notwithstanding any other provisions of this Act, the Committee may enter into a loan agreement with the Chrysler Corporation which agreement includes terms or conditions inconsistent with any of the provisions of Section 4 of this Act upon receipt of an opinion rendered by the Attorney General to the Committee that such provision of Section 4 interfere with Chrysler's ability to meet any requirements of the "Chrysler Corporation Emergency Loan Guarantee Act of 1979."
Section 8. In the event that it shall be determined by a court of competent jurisdiction that any member of the Committee is not eligible to serve, any acts taken by the Committee during such member's tenure may be ratified by a majority of those members of the Committee properly serving, and such ratification shall relate back to the date of such act.
Section 9. Any loans, whether made directly by the Committee or guaranteed by the State of Delaware must be for the purpose of providing for capital improvements to property or facilities located within the State of Delaware or for items commonly referred to as overhead, inventory or equipment located within this State or payroll for persons employed in this State.
Approved February 12, 1980.