                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
     SUBCHAPTER II--RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION
 
                 Part 3--Adjustment Assistance for Firms
 
Sec. 2344. Financial assistance


(a) Direct loans and guarantees of loans

    The Secretary may provide to a firm, on such terms and conditions as 
he determines to be appropriate, such financial assistance in the form 
of direct loans or guarantees of loans as in his judgment will 
materially contribute to the economic adjustment of the firm. The 
assumption of an outstanding indebtedness of the firm, with or without 
recourse, shall be considered to be the making of a loan for purposes of 
this section.

(b) Allowable purposes

    Loans or guarantees of loans shall be made under this part only for 
the purpose of making funds available to the firm--
        (1) for acquisition, construction, installation, modernization, 
    development, conversion, or expansion of land, plant, buildings, 
    equipment, facilities, or machinery, or
        (2) to supply such working capital as may be necessary to enable 
    the firm to implement its adjustment proposal.

(c) Limitation on direct loans

    No direct loan may be provided to a firm under this part if the firm 
can obtain loan funds from private sources (with or without a guarantee) 
at a rate no higher than the maximum interest per annum that a 
participating financial institution may establish on guaranteed loans 
made pursuant to section 636(a) of title 15.

(d) Limitations on loans and guarantees

    Notwithstanding any other provision of this part, no direct loans or 
guarantees of loans may be made under this part after April 7, 1986.

(Pub. L. 93-618, title II, Sec. 254, Jan. 3, 1975, 88 Stat. 2031; Pub. 
L. 97-35, title XXV, Sec. 2522, Aug. 13, 1981, 95 Stat. 891; Pub. L. 99-
272, title XIII, Sec. 13006(b), Apr. 7, 1986, 100 Stat. 304.)


                               Amendments

    1986--Subsec. (d). Pub. L. 99-272 added subsec. (d).
    1981--Subsec. (c). Pub. L. 97-35 substituted provisions relating to 
limitation on direct loans on the basis of interest rates on loans under 
section 636(a) of title 15 for provisions relating to limitation on 
direct loans on the basis of interest rates under section 2345(b) of 
this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Aug. 13, 1981, except as 
otherwise provided with respect to applications for adjustment 
assistance, see section 2529 of Pub. L. 97-35, set out as a note under 
section 2343 of this title.


                            Termination Date

    No technical assistance to be provided under this part after Sept. 
30, 2001, see section 285 of Pub. L. 93-618, as amended, set out as a 
note preceding section 2271 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2345, 2347, 2350 of this 
title.
