S.Amdt. 4531

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.''.
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