Sec. 905. Further modifications to capital assistance program of the Office of Strategic Capital
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Section 149 of title 10, United States Code, as amended by section 904, is further amended— in subsection (d), by inserting or equity investment after direct loan ; in subsection (e)— in paragraph (3)— in subparagraph (A)(ii)(I), by amending item
(bb)to read as follows: The Director may waive the requirement under item
(aa)with respect to an investment if— the investment is determined by the Secretary of Defense, acting through the Director, to be vital to the national security of the United States; or in the case of a convertible debt instrument, the Director believes the total return on investment of such convertible debt instrument will exceed the total return on investment of a loan with an interest rate at the yield on marketable securities of a similar maturity to the maturity of the loan on the date of execution of the loan agreement. ; and by adding at the end the following new subparagraph: The Director may, as a minority investor, support an eligible investment selected pursuant to subsection
(d)with funds or use other mechanisms for the purpose of purchasing, and may make and fund commitments to purchase, invest in, make pledges in respect of, or otherwise acquire, financial interests (including equity and quasi-equity securities (such as warrants)) of the eligible entity receiving support for the eligible investment, including as a limited partner or other investor in investment funds, upon such terms and conditions as the Secretary may determine. The Director may seek to sell and liquidate any support for an eligible investment provided under subparagraph (A)(i) commensurate with other similar investors in the eligible investment and taking into consideration the national security interests of the United States. ; by redesignating paragraphs
(7)through
(10)as paragraphs
(8)through (11), respectively; by inserting after paragraph
(6)the following new paragraph: There is established in the Treasury of the United States a Department of Defense Equity Program Account to hold equity instruments obtained under this subsection. In addition to equity instruments described in subparagraph (A), the Equity Program Account shall consist of amounts appropriated to carry out this subsection. ; and by amending paragraph (10), as so redesignated, to read as follows: The Director shall notify the congressional defense committees not later than 30 days after any capital assistance is provided under this subsection. ; and in paragraph (11), as so redesignated, by adding at the end the following new subparagraph: The authority of the Director to make equity investments under this subsection shall expire on October 1, 2028. Any equity investments made under this subsection that are outstanding as of such date shall continue to be subject to the terms, conditions, and other requirements of this subsection. . in subsection (f), by amending paragraph
(1)to read as follows: The term capital assistance means a loan, loan guarantee, convertible debt instrument, equity security, quasi-equity security (such as a warrant), or technical assistance. .