[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1253 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1253

    To address reimbursement of certain costs to automobile dealers.


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                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2009

   Mr. Corker (for himself, Mr. Nelson of Florida, Mrs. Shaheen, Ms. 
  Snowe, Mr. Isakson, and Mr. Wicker) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

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                                 A BILL


 
    To address reimbursement of certain costs to automobile dealers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Automobile Dealers Assistance Act of 
2009''.

SEC. 2. REIMBURSEMENT OF AUTOMOBILE DISTRIBUTORS.

    (a) In General.--Notwithstanding any other provision of law, any 
funds provided by the United States Government, or any agency, 
department, or subdivision thereof, to an automobile manufacturer or a 
distributor thereof as credit, loans, financing, advances, or by any 
other agreement in connection with such automobile manufacturer's or 
distributor's proceeding as a debtor under title 11, United States 
Code, shall be conditioned upon use of such funds to fully reimburse 
all dealers of such automobile manufacturer or manufacturer's 
distributor for--
            (1) the cost incurred by such dealers during the 9-month 
        period preceding the date on which the proceeding under title 
        11, United States Code, by or against the automobile 
        manufacturer or manufacturer's distributor is commenced, in 
        acquisition of all parts and inventory in the dealer's 
        possession on on the same basis as if the dealers were 
        terminating pursuant to existing franchise agreements or dealer 
        agreements; and
            (2) all other obligations owed by such automobile 
        manufacturer or manufacturer's distributor under any other 
        agreement between the dealers and the automobile manufacturer 
        or manufacturer's distributor arising during that 9-month 
        period, including, without limitation, franchise agreement or 
        dealer agreements.
    (b) Inclusion in Terms.--Any note, security agreement, loan 
agreement, or other agreement between an automobile manufacturer or 
manufacturer's distributor and the Government (or any agency, 
department, or subdivision thereof) shall expressly provide for the use 
of such funds as required by this section. A bankruptcy court may not 
authorize the automobile manufacturer or manufacturer's distributor to 
obtain credit under section 364 of title 11, United States Code, unless 
the credit agreement or agreements expressly provided for the use of 
funds as required by this section.
    (c) Effectiveness of Rejection.--Notwithstanding any other 
provision of law, any rejection by an automobile manufacturer or 
manufacturer's distributor that is a debtor in a proceeding under title 
11, United States Code, of a franchise agreement or dealer agreement 
pursuant to section 365 of that title, shall not be effective until at 
least 180 days after the date on which such rejection is otherwise 
approved by a bankruptcy court.
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