Page:United States Statutes at Large Volume 108 Part 3.djvu/454

 108 STAT. 2206 PUBLIC LAW 103-325—SEPT. 23, 1994 take action at a later time that results in the termination of its obligation to enroll loans and make contributions to reserve funds; (4) the State has prescribed a form of participation agreement to be entered into between it and each participating financial institution that is consistent with the requirements and purposes of this subtitle; and (5) the State and the Fund have executed a reimbursement agreement that conforms to the requirements of this subtitle. (c) EXISTING STATE PROGRAMS.— (1) IN GENERAL.—^A State that is not a participating State, but that has its own capital access program providing portfolio insurance for business loans (based on a separate loss reserve fund for each financial institution), may apply at any time to the Fund to be approved to be a participating State. The Fund shall approve such State to be a participating State, and to be eligible for reimbursements by the Fund pursuant to section 257, if the State— (A) satisfies the requirements of subsections (a) and (b); and (B) certifies that each affected financial institution has satisfied the requirements of section 254. (2) APPLICABLE TERMS OF PARTICIPATION. — (A) STATUS OF INSTITUTIONS. — If a State is approved for participation under paragraph (1), each financial institution with a participation agreement in effect with the participating State shall immediately be considered a participating financial institution. Reimbursements may be made under section 237 in connection with all contributions made to the reserve fund by the State in connection with lending that occurs on or after the date on which the Fund approves the State for participation, (B) EFFECTIVE DATE OF PARTICIPATION.— If an amended participation agreement that conforms with section 255 is required in order to secure participation approval by the Fund, contributions subject to reimbursement under section 257 shall include only those contributions made to a reserve fund with respect to loans enrolled on or after the date that an amended participation agreement between the participating State and the participating financial institution becomes effective. (C) USE OF ACCUMULATED RESERVE FUNDS. —^A State that is approved for participation in accordance with this subsection may continue to implement the program utilizing the reserve funds accumulated under the State program. (d) PRIOR APPROPRIATIONS REQUIREMENT. — The Fund shall not approve a State for participation in the Program until at least $50,000,000 has been appropriated to the Fund (subject to an appropriations Act), without fiscal year limitation, for the purpose of making reimbursements pursuant to section 257 and otherwise carrying out this subtitle. (e) AMENDMENTS TO AGREEMENTS.— If a State that has been approved to be a participating State wishes to amend its form of participation agreement and continue to be a participating State, such State shall submit such amendment for review by the Fund

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