Notifications with respect to debt and equity investments

(a) In general Section 149 of title 10, United States Code, as amended by sections 1051 and 1052 ROS26896 and ROS26897, is further amended— (1) by redesignating subsection (j) as subsection (k); (2) by inserting after subsection (i) the following new subsection (j): (j) Notifications with respect to debt and equity investments (1) Investments of less than $50,000,000 With respect to an equity investment or debt investment made by the Office in an amount that is less than $50,000,000, the Director— (A) not later than five days after signing a term sheet for the investment, shall— (i) notify the congressional defense committee of the investment; and (ii) brief the congressional defense committees on the terms of the investment; and (B) may only enter into a legally binding agreement to make the investment if 15 business days have elapsed after the briefing required by subparagraph (A)(ii) with respect to the investment. (2) Investments of $50,000,000 or more With respect to an equity investment or debt investment made by the Office in an amount that is equal to or more than $50,000,000, the Director— (A) not later than five days after signing a term sheet for the investment, shall— (i) notify the congressional defense committee of the investment; and (ii) brief the congressional defense committees on the terms of the investment; and (B) may only enter into a legally binding agreement to make the investment if 30 business days have elapsed after the briefing required by subparagraph (A)(ii) with respect to the investment. (3) Notification requirements Each notification required under paragraph (1) or (2) with respect to an equity investment or debt investment made by the Office— (A) shall include— (i) an unredacted copy of the term sheet for the investment; (ii) an articulation of the legal authorities supporting each part of the investment; (iii) a description of why the investment is— (I) necessary; and (II) determined to be in the long-term defense interests of the United States; and (iv) clear criteria for the Federal Government to sell, liquidate, or otherwise exit the investment; and (v) an accounting of the estimated costs to the Federal Government of the investment over the duration of the investment, disaggregated by the type of authority used and appropriation type; and (B) may be submitted in a format that contains classified or controlled unclassified information.; and (3) in subsection (k), as redesignated paragraph (1)— (A) by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively; and (B) by inserting after paragraph (2) the following new paragraph (3): (3) The term debt investment means any loan, note, bond, debenture, or other instrument representing an obligation of an entity to repay funds advanced by the Secretary— (A) including any such instrument that is convertible into or exchangeable for an equity investment; and (B) excluding any instrument that is an equity investment.. (b) Notifications for past investments Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall transmit to the congressional defense committees all unredacted term sheets for each equity investment or debt investment (as defined in section 149 of title 10, United States Code, as amended by subsection (a) and section 1051 ROS26896) made by the Department of Defense before such date of enactment.