[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6104 Introduced in House (IH)]
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115th CONGRESS
2d Session
H. R. 6104
To require the sale of distressed notes and other obligations, and for
other purposes.
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IN THE HOUSE OF REPRESENTATIVES
June 14, 2018
Mr. Kelly of Pennsylvania (for himself, Mr. Clay, and Mr. Budd)
introduced the following bill; which was referred to the Committee on
Agriculture, and in addition to the Committee on Transportation and
Infrastructure, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
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A BILL
To require the sale of distressed notes and other obligations, and for
other purposes.
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 ``Generating American Income and
Infrastructure Now Act''.
SEC. 2. REQUIRED SALE OF DISTRESSED NOTES AND OTHER OBLIGATIONS.
(a) In General.--
(1) Coordination of sale of distressed notes.--The
Secretary of Agriculture shall sell, under terms established by
the Secretary of the Treasury, distressed notes and other
obligations held by the Department of Agriculture.
(2) Deposit of proceeds.--Of the proceeds from the sale of
the notes and obligations pursuant to paragraph (1)--
(A) 50 percent shall be deposited in an account
specifically designated for purposes of carrying out
infrastructure projects in low-income communities (as
defined in section 45D(e) of the Internal Revenue Code
of 1986); and
(B) 50 percent shall be retained in the Treasury
for purposes of deficit reduction.
(b) Terms and Procedures of Sales.--
(1) Fair market valuation.--The Secretary of the Treasury
shall consult with the Secretary of Agriculture to establish a
fair market valuation for the sale of the distressed notes or
other obligations pursuant to this section.
(2) No recourse or liability.--The sale of distressed notes
or other obligations pursuant to this section shall be on a
nonrecourse basis. The Secretary of Agriculture and any
subsequent purchaser of such notes or other obligations sold on
a nonrecourse basis shall be relieved of any responsibilities
that might have been imposed had the borrower remained indebted
to the Secretary of Agriculture.
(3) Contract provisions.--The sale of distressed notes or
other obligations pursuant to this section shall not alter the
terms specified in the note or other obligation.
(4) Notification; notice and comment.--Not less than 60
days before the sale of a distressed note or other obligation
pursuant to this section, the Secretary of Agriculture shall
notify the borrower that the Department of Agriculture intends
to sell such note or other obligation.
(5) Notice and comment.--During the 60-day period before
the sale of a distressed note or other obligation under this
section, the Secretary of Agriculture shall provide an
opportunity for notice and public comment in a manner that
protects the personally identifiable information relating to
the borrower.
(6) Borrower opportunity to refinance.--A borrower may pay
off a distressed note or other obligation at a discount to par
value enabling the borrower to refinance the note or other
obligation through a private market loan within 30 days after
the borrower receives notification of the intent to sell such
note or other obligation pursuant to paragraph (4).
(7) Best price.--The Secretary of Agriculture shall obtain
the highest possible return from the sales of distressed notes
or other obligations under this section and may conduct sales
on a competitive bidding or negotiated process, in amounts
sufficiently large to assure market interest.
(8) Financial advisor.--In order to assure the highest
possible return, the Secretary of Agriculture may employ public
finance advisors from micro-, woman-, and minority-owned
businesses, as defined by the Small Business Administration.
(9) Loan servicing.--Before selling any distressed note or
other obligation under this section, the Secretary of
Agriculture shall require persons offering to purchase the note
or other obligation to demonstrate--
(A) an ability or resources to provide such
servicing, with respect to the distressed note or other
obligation, that the Secretary of the Treasury
determines to be necessary to ensure the continued
performance on the loan; and
(B) the ability to generate capital to provide the
borrowers of the distressed notes or other obligations
such additional credit as may be necessary in proper
servicing of such notes or other obligations.
(c) GAO Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to Congress a report on the sale of distressed notes or
other obligations of the Department of Agriculture under this section.
Such report shall include the recommendation of the Comptroller General
of the United States with respect to whether such a sale should be
undertaken by other Federal agencies.
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