Page:United States Statutes at Large Volume 108 Part 3.djvu/459

 PUBLIC LAW 103-325—SEPT. 23, 1994 108 STAT. 2211 the participating financial institution may file the loan for enrollment, with the amount to be covered under the Program not to exceed the amount of any additional or new financing; and (D) may include additional restrictions on the eligibility of loans or borrowers that are not inconsistent with the provisions and purposes of this subtitle. (2) DEFINITIONS. —For purposes of this subsection, the terms "executive officer", "director", "principal shareholder", "immediate family", and "related interest" refer to the same relationship to a participating financial institution as the relationship described in part 215 of title 12 of the Code of Federal Regulations, or any successor to such part. (q) TERMINATION CLAUSE. —In each participation agreement, the participating State shall reserve for itself the ability to terminate its obligation to enroll loans under the Program. Any such termination shall be prospective only, and shall not apply to amounts of loans enrolled under the Program prior to such termination. (r) ALLOWABLE WITHDRAWALS FROM FUND.— The participation agreement may provide that, if, for any consecutive period of not less than 24 months, the aggregate outstanding balance of all enrolled loans for a participating financial institution is continually less than the outstanding balance in the reserve fund for that participating financial institution, the participating State, in its discretion, may withdraw an amount from the reserve fund to bring the balance in the reserve fund down to the outstanding balance of all such enrolled loans. (s) GRANDFATHERED PROVISION.— (1) SPECIAL TREATMENT OF PREMIUM CHARGES.— Notwithstanding subsection (b) or (d), the participation agreement, if explicitly authorized by a statute enacted by the State before the date of enactment of this Act, may allow a participating financial institution to treat the premium charges paid by the participating financial institution and the borrower into the reserve fund, and interest or income earned on funds in the reserve fund that are deemed to be attributable to such premium charges, as assets of the participating financial institution for accounting purposes, subject to withdrawal by the participating financial institution only— (A) for the payment of claims approved by the participating State in accordance with this section; and (B) upon the participating financial institution's withdrawal from authority to make new loans under the Program. (2) PAYMENT OF POST-WITHDRAWAL CLAIMS.— After any withdrawal of assets from the reserve fund pursuant to paragraph (1)(B), any future claims filed by the participating financial institution on loans remaining in its capital access program portfolio shall only be paid from funds remaining in the reserve fund to the extent that, in the aggregate, such claims exceed the sum of the amount of such withdrawn assets, and interest on that amount, imputed at the same rate as income would have accrued had the amount not been withdrawn. (3) CONDITIONS FOR TERMINATING SPECIAL AUTHORITY. — If the Fund determines that the inclusion in a participation agreement of the provisions authorized by this subsection is

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