[Congressional Record Volume 167, Number 194 (Thursday, November 4, 2021)]
[Senate]
[Page S8048]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4531. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 3867 submitted by Mr. Reed and intended to be proposed to 
the bill H.R. 4350, to authorize appropriations for fiscal year 2022 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. _____. TAXPAYER PROTECTIONS.

       Section 9902(a) of the William M. (Mac) Thornberry National 
     Defense Authorization Act for Fiscal Year 2021 (Public Law 
     116-283) is amended by adding at the end the following:
       ``(6) Taxpayer protections.--
       ``(A) In general.--The Secretary, in consultation with the 
     Secretary of the Treasury, as appropriate, may receive from a 
     covered entity that receives a financial assistance award 
     under this subsection a nonvoting warrant or nonvoting equity 
     interest in the covered entity, or a senior debt instrument 
     issued by the covered entity that, in the sole determination 
     of the Secretary, provides appropriate compensation to the 
     Federal Government for the provision of the financial 
     assistance award. The Secretary shall not exercise voting 
     power with respect to any warrant, equity interest, or senior 
     debt instrument received from a covered entity, including 
     common stock and preferred stock.
       ``(B) Terms and conditions.--The terms and conditions of 
     any warrant, equity interest, or senior debt instrument 
     received under subparagraph (A) shall be set by the Secretary 
     and shall meet the following requirements:
       ``(i) Purposes.--Such terms and conditions shall be 
     designed to provide for a reasonable participation by the 
     Secretary, for the benefit of taxpayers, in equity 
     appreciation in the case of a warrant or other equity 
     interest, or a reasonable interest rate premium, in the case 
     of a debt instrument.
       ``(ii) Authority to sell, exercise, or surrender.--For the 
     primary benefit of taxpayers, the Secretary may sell, 
     exercise, or surrender a warrant, equity interest, or any 
     senior debt instrument received from a covered entity. The 
     Secretary shall not exercise voting power with respect to any 
     warrant, equity interest, or senior debt instrument received 
     from a covered entity.
       ``(C) Transfer to treasury.--Dividend, interest, and 
     principal payments from a warrant, equity interest, or senior 
     debt instrument received from a covered entity, and proceeds 
     from the sale, exercise, or surrender of such a warrant, 
     equity interest, or senior debt instrument shall be paid into 
     the general fund of the Treasury for reduction of the public 
     debt.''.
                                 ______