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Sec. 2. Definitions.
For purposes of this act, the term:
(1) "Chief Financial Officer" means the Chief Financial Officer of the District of Columbia.
(2) "District" means the District of Columbia.
(3) "Guaranteed loan" means a loan or other debt obligation incurred by a qualified company and funded by a lender pursuant to the terms of section 4, all or part of the principal of which and interest thereon are guaranteed by the District pursuant to this act.
(4) "Lender" means any non-Federal qualified institutional buyer, as defined in SEC Rule 144A, 17 C.F.R. § 230.144A, or any other commercial lending institution located in the District designated by the Chief Financial Officer with which the District has entered into an agreement pursuant to section 4(a).
(5) "Obligor" means a party primarily liable for payment of the principal of, or interest on, a loan or other debt obligation funded by a lender.(6) "Qualified company" means a business entity which meets the criteria of section 3(a).
Sec. 3. Qualified companies.
(a) To be eligible to receive guaranteed loans under this act, a company shall meet the following criteria:
(b) It shall be the responsibility of the lender to:
(1) Review the applications of companies that apply for guaranteed loans under this act to ensure that they meet the requirements set forth in subsection (a) of this section;
(c) The Chief Financial Officer shall report to the Council and the Mayor 15 days after the end of every quarter identifying the guaranteed loans that have been issued in the previous quarter.Sec. 4. Guaranteed loans for qualified companies.
(a) The District shall enter into agreements with one or more lenders, on such terms and conditions as the Chief Financial Officer, in his or her discretion, shall consider to be appropriate, pursuant to which the District shall guarantee guaranteed loans to be issued by the lender to qualified companies.
(b) The total amount of obligations guaranteed by the District under this act shall not exceed $100 million.
(c) Lenders may enter into agreements with qualified companies to issue guaranteed loans pursuant to this act on such terms and conditions as the lenders, in consultation with the Chief Financial Officer, shall determine; provided, that:
(1) The guaranteed loan is initially made after September 11, 2001 and before April 1. 2002;
(c) Nothing in this act shall be construed to create an entitlement to a guaranteed loan.Sec. 5. Criteria for issuance of guaranteed loans.
(a) Lenders shall solicit applications for guaranteed loans and shall issue guaranteed loans to qualified companies based on the merits of the company's application within 15 days after receipt of the application. In making a decision whether to issue a guaranteed loan. the lender shall consider:
(b) Qualified companies seeking guaranteed loans shall submit to the lender sworn financial statements or other appropriate data demonstrating profits, creditworthiness, and losses incurred since September 11, 2001, and during the 12 months preceding September 11, 2001. The Chief Financial Officer may audit the statements and may request any information that he or she considers necessary to conduct the audit.
Sec. 6. Funding of guaranteed loan program.The Chief Financial Officer may use such sums as may be necessary to fulfill the District's obligations with respect to the guaranteed loans issued pursuant to this act, subject to the Chief Financial Officer's determination of the availability of such funds.
Sec. 7. Fiscal impact statement.The Council adopts the attached fiscal impact statement as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)).
Sec. 8. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), and remain in effect for no longer than 90 days, as provided for emergency acts of the Council of the District of Columbia in section 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; D.C. Official Code § 1-204.12(a)), and publication in the District of Columbia Register.
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