II 111th CONGRESS 1st Session S. 1253 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 A BILL To address reimbursement of certain costs to automobile dealers.

1.

Short title

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

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.