S.1253 - Automobile Dealers Assistance Act of 2009111th Congress (2009-2010)
|Sponsor:||Sen. Corker, Bob [R-TN] (Introduced 06/11/2009)|
|Committees:||Senate - Judiciary|
|Latest Action:||06/11/2009 Read twice and referred to the Committee on the Judiciary.|
This bill has the status Introduced
Here are the steps for Status of Legislation:
Subject — Policy Area:
- Finance and Financial Sector
- View subjects
Summary: S.1253 — 111th Congress (2009-2010)All Bill Information (Except Text)
Introduced in Senate (06/11/2009)
Automobile Dealers Assistance Act of 2009 - Conditions the provision of federal funds to automobile manufacturers or distributors in connection with a bankruptcy proceeding on their use of such funds to fully reimburse their dealers for certain costs the dealers incurred over the nine months preceding the commencement of such bankruptcy.
Counts as reimbursable costs over that period: (1) the costs of acquiring all parts and inventory in the dealer's possession on the same basis as if the dealer were terminating pursuant to an existing franchise or dealer agreement; and (2) all other obligations owed by the automobile manufacturer or its distributor pursuant to an agreement with the dealer.
Requires such dealer reimbursement terms to be included in the wording of agreements between such manufacturers or their distributors and the federal government, and in the terms of credit agreements approved by bankruptcy courts.
Prohibits the rejection of franchise or dealer agreements by automobile manufacturers or their distributors that are debtors in a bankruptcy proceeding from becoming effective until at least 180 days after approval by a bankruptcy court.