Page:United States Statutes at Large Volume 102 Part 3.djvu/1044

 102 STAT. 2996

PUBLIC LAW 100-590—NOV. 3. 1988 "POOUNG OP DEBENTURES".

(3) The table of contents for title V of such Act is amended by adding after the item relating to section 504 the following new item: "Sec. 505. Pooling of debentures.". SEC. 112. DEVELOPMENT COMPANY LOAN PROGRAM. (a) PERMANENT EXTENSION OF PILOT PROGRAM.—Section 504 of the

Small Business Investment Act of 1958 (15 U.S.C. 697a) is amended to read as foUov^: "PRIVATE DEBENTURE SALES

"SEC. 504. (a) Notwithstanding any other law, rule, or regulation, the Administration shall sell to investors, either publicly or by private placement, debentures pursuant to section 503 of this title as follows: "(1) Of the program levels otherwise authorized by law for fiscal year 1986, an amount not to exceed $200,000,000. "(2) Of the program levels otherwise authorized by law for each of fiscal years 1987 and 1988, an amount not to exceed $425,000,000. "(3) All of the program levels authorized for fiscal year 1989 and subsequent fiscal years. "(b) Nothing in any provision of law shall be construed to authorize the Federal Financing Bank to acquire— "(1) any obligation the payment of principal or interest on which at any time has been guaranteed in whole or in part under section 503 of this title and which is being sold pursuant to the provisions of the program authorized in this section; "(2) any obligation which is an interest in any obligation described in paragraph (1); or "(3) any obligation which is secured by, or substantially all of the value of which is attributable to, any obligation described in paragraph (1) or (2).". (b) The table of contents for title V of such Act is amended by adding after the item relating to section 503 the following new item: "Sec. 504. Private debenture sales.". (c) (Ik)MMERClAL LOAN INTEREST R A T E. —

(1) IN GENERAL.—Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 697) is amended— (A) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and (B) by inserting after subsection (b) the following new subsection: "(c)(1) The purpose of this subsection is to facilitate the orderly and necessary flow of long-term loans from certified development companies to small business concerns. "(2) Notwithstanding the provisions of the constitution or laws of any State limiting the rate or amount of interest which may be charged, taken, received, or reserved, the maximum legal rate of interest on any commercial loan which funds any portion of the cost of the project financed pursuant to this section or section 504 which is not funded by a debenture guaranteed under this section shall be a rate which is established by the Administrator of the Small Business Administration under the authority of this section. "(3) The Administrator is authorized and directed to establish and publish quarterly a maximum legal interest rate for any commercial

�