Chrysler Corporation Emergency Credit Assistance Act

Chrysler Corporation Emergency Credit Assistance Act - Establishes an Emergency Credit Assistance Board composed of the Secretary of the Treasury, the Secretary of Labor, and the Secretary of Transportation to guarantee and make loans for the benefit of Chrysler Corporation. Designates the Secretary of the Treasury as Chairman of the Board. Requires all decisions of the Board to be made by majority vote.

Imposes the following conditions on any loan guaranteed by the Board: (1) the loan must be needed to enable Chrysler to continue operations which if curtailed would seriously and adversely affect the economic or employment situation in the United States or any of its regions; (2) Chrysler must be unable to obtain credit upon reasonable terms without such a guarantee; (3) Chrysler's prospective earning power, together with any security it pledges, must furnish reasonable assurance that the loan will be repaid; (4) the lender must certify that it would not make the loan without such a guarantee; (5) the loan must be payable in not more than five years and any renewal option must not exceed an additional five years; and (6) the loan must bear interest at a rate determined by the Board taking into account the reduced risk afforded by the guarantee.

Directs the Board to collect guarantee fees to cover the administrative expenses and risk taken by the Federal Government in making loan guarantees. Requires such fees to be of an amount which when added to the interest payable to the lender on a loan produces a total charge appropriate for loans of comparable risk in the normal capital markets. Directs the Board to deposit such fees in the emergency loan guarantee fund established by this Act.

Directs the Board to make every effort to assure that guaranteed loans to Chrysler are secured by sufficient property to fully collateralize the amount of the loan guarantee.

Prohibits Chrysler, while any guaranteed loan remains unpaid, from declaring any dividend on its common stock or from making payments on any other indebtedness. Permits the Board to waive such prohibitions if such action is consistent with the interests of the United States.

Directs the Board to require Chrysler to make changes in its management and fiscal operations and to develop a long-range management and fiscal plan if the Board determines that the inability of Chrysler to obtain credit in the normal capital markets is a result of a failure on the part of management to excercise reasonable business prudence.

Prohibits the Board from guaranteeing any loan until it has received Chrysler's audited financial statement and has been afforded access to Chrysler's records.

Requires a lender to exhaust all of its remedies under a guarantee agreement before any payment under the guarantee of the United States becomes due. Directs the Board to assure that any loan agreement guaranteed under this Act contains the usual provisions to protect the guarantor including strictures against waiver or amendment without the consent of the Board.

States that the guarantee of the United States shall be in force with respect to advances under a loan agreement only if: (1) the Board receives ten days notice in writing of the advance; (2) the lender certifies that Chrysler is not in default, except that in cases where the lender reports the circumstances of a default the Board may guarantee an advance if it is consistent with the interests of the United States; and (3) Chrysler provides the Board with a plan concerning the expenditures which will be made with the advance. Requires Chrysler to report all instances in which advances were not expended in accordance with such plan.

Requires that all guarantee agreements give the Board priority interest over the lender in any collateral securing the loan and any outstanding earlier loans. States that any sums that Chrysler has on deposit with the lender which are subject to offset under the bankruptcy laws shall be considered collateral in which the Board has priority over the lender.

Authorizes the Board to extend loans directly to Chrysler.

Grants the Board access to Chrysler's records after Chrysler accepts a loan or loan guarantee. Directs the General Accounting Office to conduct an audit of Chrysler when it applies for assistance and to report the results of such audit to the Board and the Congress.

Sets forth the maximum obligation of the Board under all outstanding loans and loan guarantees made under this Act. States that such assistance may be only in such amounts as provided in advance in appropriation Acts.

Establishes an emergency loan guarantee fund in the Treasury to cover the expenses and obligations of the Board. Permits the Board to use any Federal Reserve bank as its fiscal agent provided the bank is reimbursed for any expenses or losses incurred acting in such capacity.

Directs the Attorney General to protect the rights of the United States under the loans and loan guarantees authorized by this Act. Requires all sums recovered by the Attorney General to be deposited in the emergency loan guarantee fund. Entitles the Board to recover from Chrysler or any other liable person the amount of any payments made pursuant to a guarantee agreement or loan entered into under this Act.

Directs the Board to submit an annual report to the Congress on its operations. Requires the Board to submit a report to Congress within six months of the enactment of this Act which contains recommendations on the guarantee program beyond the termination date of this Act.

Terminates the authority of the Board to enter new guarantee agreements and the making of direct loans on December 31, 1983.