Loan guarantees

§ 104. Loan guarantees Section 301 of the Defense Production Act of 1950 (50 U S.C. App. 2091) is amended by adding at the end thereof a new subsection as follows: “(e) (1) Except with the approval of the Congress, the maximum obligation of any guaranteeing agency under any loan, discount, advance, or commitment in connection therewith, entered into under this section shall not exceed $20,000,000. “(2) The authority conferred by this section shall not be used primarily to prevent the financial insolvency or bankruptcy of any person, unless “(A) the President certifies that the insolvency or bankruptcy would have a direct and substantially adverse effect upon defense, production; and “(B) a copy of such certification, together with a detailed justification thereof, is transmitted to the Congress and to the Committees on Banking and Currency of the respective Houses at least ten days prior to the exercise of that authority for such use.”