Page:United States Statutes at Large Volume 104 Part 5.djvu/671

 PUBLIC LAW 101-624—NOV. 28, 1990 104 STAT. 3993 (C) PROCEDURES. — In implementing this paragraph the Board shall develop procedures to establish, impute, or determine the amount of Federal funds that shall be considered available in the revolving funds created by approved eligible entities. (2) INELIGIBILITY. —Any local business that employs 100 or more employees shall not be eligible to receive assistance from a local revolving fund that receives assistance under this chapter. (f) SUBORDINATED INTEREST OF LOCAL REVOLVING FUND.— I f a depository institution (as defined in section 3(c)(l) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(l)) or a community development credit union described in section 2312(a) of this Act has made an investment or loan in a local business in conjunction with an investment or loan made out of the revolving fund of an approved eligible entity, the amount invested or loaned by such revolving fund in such local business may be subordinated to any degree and in any manner. (g) OTHER INVESTORS. —A depository institution (as defined in section 3(c)(l) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(l)), community development credit union described in section 2312(a) of this Act, similar Federally regulated financial institution. State owned bank, local or State government, private philanthrophic foundation, or other entity that contributes capital to an eligible entity that receives Federal assistance under this chapter may establish contractual arrangements with such eligible entity concerning the return of such investments in the local revolving fund consistent with subsection (b)(3). (h) ADDITIONAL CAPITAL.— The Board shall promulgate regulations Regulations. that provide each participating eligible entity with a sufficient amount of time to obtain additional capital, lines of credit, or letters of intent, if any investor, pursuant to the contract with the eligible entity under subsection (g), withdraws some or all of its investment. (i) CONTINUATION OF LINE OF CREDIT. — A line of credit provided to an approved eligible entity under section 2313 for use in a local revolving fund shall be available to be drawn upon until the Investment Board is terminated or until the line of credit is canceled, revoked, or suspended by the Board or the Secretary as described in section 2315 or subsection (1) of this section. (j) CONTINUATION OF BUSINESS PROMOTION ACTIVITIES. —The Federal assistance provided to any eligible entity under this chapter shall become the property of such entity on the termination of the Investment Board if— (1) the Board determines that the eligible entity that administers the local revolving fund has operated the fund in a manner that is consistent with this chapter; and (2) the eligible entity contracts with the Secretary to continue to provide lending, investment, and guarantee assistance consistent with this chapter. (k) DEVELOPMENT OF MONITORING PROCEDURES. — On and after the date on which the Investment Board is terminated, the Secretary shall act in place of the Board and shall monitor the operations of eligible entities that receive Federal assistance under this chapter which continue to exist on such date. (1) REFUND OF FUNDS. —Notwithstanding subsection (j), and in addition to any actions taken under section 2315, if the Secretary finds that the purpose of any eligible entity is no longer to promote business development in a manner consistent with this chapter, the

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