1.This Act may be cited as the
Detroit Growth and Stability Act of
2012
.
2.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.
3.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.
4.
(a)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)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)The Secretary may not charge any prepayment
penalties with respect to any loan made under this Act.
5.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.
6.At no time shall the amount of loans
outstanding under this Act exceed in the aggregate $500,000,000.
7.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.
8.
(a)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)There are authorized to
be appropriated such sums as may be necessary to pay the expenses of
administration of this Act.
9.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.
10.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.
11.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.