Page:United States Statutes at Large Volume 103 Part 1.djvu/1053

 PUBLIC LAW 101-162—NOV. 21, 1989 103 STAT. 1025 Administration, and (II) authority to service and liquidate such loans.". (2) Section 7(a)(19) of the Small Business Act (15 U.S.C. 636(a)(19)) is amended to read as follows: "(19XA) In addition to the Preferred Lenders Program authorized by the proviso in section 5(b)(7), the Administration is authorized to establish a Certified Lenders Program for lenders who establish their knowledge of Administration laws and regulations concerning the guaranteed loan program and their proficiency in program requirements. The designation of a lender as a certified lender shall be suspended or revoked at any time that the Administration determines that the lender is not adhering to its rules and regula- tions or that the loss experience of the lender is excessive as compared to other lenders, but such suspension or revocation shall not affect any outstanding guarantee. "(B) In order to encourage all lending institutions and other entities making loans authorized under this subsection to provide loans of $50,000 or less in guarantees to eligible small business loan applicants, during fiscal years 1989, 1990, and 1991, the Administra- tion shall (i) develop and allow participating lenders to solely utilize a uniform and simplified loan form for such loans, and (ii) allow such lenders to retain one-half of the fee collected pursuant to section (7)(a)(18) on such loans. A participating lender may not retain any fee pursuant to this paragraph if the amount committed and outstanding to the applicant would exceed $50,000 unless the amount in excess of $50,000 is an amount not approved under the provisions of this paragraph.". (3) The last sentence of subparagraph (A) of section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(l)) is amended to read as follows: "In the case of cosponsored activities which include the participation of a Federal, State, or local public official or agency, the Administration shall take such actions as it deems necessary to ensure that the cooperation does not constitute or imply an endorse- ment by the Administration of or give undue recognition to the public official or agency, and the Administration shall ensure that it receives appropriate recognition in all cosponsored printed mate- rials, whether the participant is a profit msiking concern or a governmental agency or public official.. (4) Section 303 of the Small Business Investment Act of 1958 is 15 USC 683. amended by striking subsection (c) and inserting in lieu thereof the following new subsections: "(c) Subject to the following conditions, the Administration is authorized to purchase preferred securities, and to purchase, or to guarantee the timely payment of all principal and interest pay- ments as scheduled, on debentures issued by small business invest- ment companies operating under the authority of section 301(d) of this Act. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guarantee under this subsection. "(1) The Administration may purchase shares of nonvoting stock (or other corporate securities having similar characteristics): Pro- vided, That— "(A) dividends are preferred and cumulative to the extent of 3 per centum of par value per annum, except as provided in paragraph (5); "(B) on liquidation or redemption the Administration is enti- tled to the preferred payment of the par value of such securities;

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