[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4308 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4308

   To authorize the Secretary of the Treasury to provide growth and 
               stability funding for the city of Detroit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2012

  Mr. Clarke of Michigan (for himself, Mr. Conyers, Mr. Cleaver, Ms. 
  Hanabusa, and Ms. Norton) introduced the following bill; which was 
      referred to the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 A BILL


 
   To authorize the Secretary of the Treasury to provide growth and 
               stability funding for the city of Detroit.

    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 ``Detroit Growth and Stability Act of 
2012''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The City of Detroit is an essential part of the 
        Nation's economy and, in particular, the Nation's manufacturing 
        sector.
            (2) Absent decisive action from the Federal Government, the 
        City of Detroit risks bankruptcy and loan default.
            (3) A bankruptcy or default of the City of Detroit would 
        have broad negative economic consequences on the State of 
        Michigan and the Nation.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) The term ``city'' means the city of Detroit, Michigan.
            (2) The term ``State'' means the State of Michigan.
            (3) The term ``financing agent'' means any agency duly 
        authorized by State law, and approved by the city, to act on 
        behalf or in the interest of the city with respect to the 
        city's financial affairs.
            (4) The term ``Secretary'' means the Secretary of the 
        Treasury.

SEC. 4. LOANS.

    (a) In General.--Upon written request of a financing agent, the 
Secretary may make loans to such agent subject to the provisions of 
this Act and the city and such agent shall be jointly and severally 
liable thereon.
    (b) Maturity.--Each such loan shall mature not later than 30 years 
after the last day of the city's fiscal year in which it was made, and 
shall bear interest at an annual rate equal to the current average 
market yield on outstanding marketable obligations of the United States 
with remaining periods to maturity comparable to the maturities of such 
loan, as determined by the Secretary at the time of the loan.
    (c) Prepayment.--The Secretary may not charge any prepayment 
penalties with respect to any loan made under this Act.

SEC. 5. SECURITY FOR LOANS.

    In connection with any loan made under this Act, the Secretary may 
require the city and a financing agent and, where the Secretary deems 
necessary, the State, to provide such security as the Secretary deems 
appropriate. The Secretary may take such steps as such Secretary deems 
necessary to realize upon any collateral in which the United States has 
a security interest pursuant to this section to enforce any claim the 
United States may have against the city or any financing agent pursuant 
to this Act. Notwithstanding any other provision of law, Acts making 
appropriations may provide for the withholding of any payments from the 
United States to the city, either directly or through the State, which 
may be or may become due pursuant to any law and offset the amount of 
such withheld payments against any claim the Secretary may have against 
the city or any financing agent pursuant to this Act. With respect to 
debts incurred pursuant to this Act, for the purposes of section 3466 
of the Revised statutes (31 U.S.C. 181) the term ``person'' includes 
any financing agent.

SEC. 6. LIMITATIONS.

    At no time shall the amount of loans outstanding under this Act 
exceed in the aggregate $500,000,000.

SEC. 7. REMEDIES.

    The remedies of the Secretary prescribed in this Act shall be 
cumulative and not in limitation of or substitution for any other 
remedies available to the Secretary or the United States.

SEC. 8. FUNDING.

    (a) Establishment of Fund.--There is hereby established in the 
Treasury a fund to be known as the ``City of Detroit Growth and 
Stability Fund'', which shall be administered by the Secretary. The 
fund shall be used for the purpose of making loans pursuant to this 
Act. There is authorized to be appropriated to such fund the sum of 
$500,000,000.
    (b) Administrative Costs.--There are authorized to be appropriated 
such sums as may be necessary to pay the expenses of administration of 
this Act.

SEC. 9. INSPECTION OF DOCUMENTS.

    At any time a request for a loan is pending or a loan is 
outstanding under this Act, the Secretary is authorized to inspect and 
copy all accounts, books, records, memorandums, correspondence, and 
other documents of the city or any financing agent relating to its 
financial affairs.

SEC. 10. AUDITS.

    No loan may be made under this Act for the benefit of any State or 
city unless the General Accounting Office is authorized to make such 
audits as may be deemed appropriate by either the Secretary or the 
General Accounting Office of all accounts, books, records, and 
transactions of the State, the political subdivision, if any, involved, 
and any agency or instrumentality of such State or political 
subdivision. The General Accounting Office shall report the results of 
any such audit to the Secretary and to the Congress.

SEC. 11. TERMINATION.

    The authority of the Secretary to make any loan under this Act 
terminates on January 1, 2016. Such termination does not affect the 
carrying out of any transaction entered into pursuant to this Act prior 
to that date, or the taking of any action necessary to preserve or 
protect the interests of the United States arising out of any loan 
under this Act.
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