AIR TRANSPORTATION STABILIZATION BOARD.

SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD. (a) Definitions.—In this section, the following definitions apply: (1) Board.—The term “Board” means the Air Transportation Stabilization Board established under subsection (b). (2) Financial obligation.—The term “financial obligation” means any note, bond, debenture, or other debt obligation issued by an obligor in connection with financing under this section and section 101(a)(1). (3) Lender.—The term “lender” means any non-Federal qualified institutional buyer (as defined by section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regulation) known as Rule 144A(a) of the Securities and Exchange Commission and issued under the Security Act of 1933, including— (A) a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986 (26 U.S.C. 4974(c)) that is a qualified institutional buyer; and (B) a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) that is a qualified institutional buyer. (4) Obligor.—The term “obligor” means a party primarily liable for payment of the principal of or interest on a Federal credit instrument, which party may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or instrumentality. (b) Air Transportation Stabilization Board.— (1) Establishment.—There is established a board (to be known as the “Air Transportation Stabilization Board”) to review and decide on applications for Federal credit instruments under section 101(a)(1). (2) Composition.—The Board shall consist of— (A) the Secretary of Transportation or the designee of the Secretary; (B) the Chairman of the Board of Governors of the Federal Reserve System, or the designee of the Chairman, who shall be the Chair of the Board; (C) the Secretary of the Treasury or the designee of the Secretary; and (D) the Comptroller General of the United States, or the designee of the Comptroller General, as a nonvoting member of the Board. (c) Federal Credit Instruments.— (1) In general.—The Board may enter into agreements with 1 or more obligors to issue Federal credit instruments under section 101(a)(1) if the Board determines, in its discretion, that— (A) the obligor is an air carrier for which credit is not reasonably available at the time of the transaction; (B) the intended obligation by the obligor is prudently incurred; and (C) such agreement is a necessary part of maintaining a safe, efficient, and viable commercial aviation system in the United States. (2) Terms and limitations.— (A) Forms; terms and conditions.—A Federal credit instrument shall be issued under section 101(a)(1) in such 115 STAT. 232form and on such terms and conditions and contain such covenants, representatives, warranties, and requirements (including requirements for audits) as the Board determines appropriate. (B) Procedures.—Not later than 14 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall issue regulations setting forth procedures for application and minimum requirements, which may be supplemented by the Board in its discretion, for the issuance of Federal credit instruments under section 101(a)(1). (d) Financial Protection of Government.— (1) In general.—To the extent feasible and practicable, the Board shall ensure that the Government is compensated for the risk assumed in making guarantees under this title. (2) Government participation in gains.—To the extent to which any participating corporation accepts financial assistance, in the form of accepting the proceeds of any loans guaranteed by the Government under this title, the Board is authorized to enter into contracts under which the Government, contingent on the financial success of the participating corporation, would participate in the gains of the participating corporation or its security holders through the use of such instruments as warrants, stock options, common or preferred stock, or other appropriate equity instruments. (3) Deposit in treasury.—All amounts collected by the Secretary of the Treasury under this subsection shall be deposited in the Treasury as miscellaneous receipts.