Page:United States Statutes at Large Volume 108 Part 5.djvu/709

 PUBLIC LAW 103-403—OCT. 22, 1994 108 STAT. 4199 (2) allow any borrower or issuer to participate in the program at a percentage rate other than the rate finally determined to be applicable to all other borrowers or issuers with similar terms of years. SEC. 503. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES. Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), as amended by section 217, is amended by adding at the end the following new section: -SEC. 509. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES. 15 USC 697f. "(a) IN GENERAL.— "(1) PREPAYMENT AUTHORIZED.— Subject to the requirements set forth in subsection (b), an issuer of a debenture purchased by the Federal Financing Bank and guaranteed by the Administration under this Act may, at the election of the borrower (in the case of a loan under section 503) or the issuer (in the case of a small business investment company) and with the approval of the Administration, prepay such debenture in accordance with the provisions of this section. A small business investment company operating under the authority of section 301(d) that has issued a debenture that was purchased by and is held by the Administration, may, under the same terms and conditions, prepay such debenture, and the penalty as provided in this section, and shall thereafter be immediately eligible to apply for additional assistance from the Administration. "(2) PROCEDURE. — "(A) IN GENERAL. —In making a prepayment under paragraph (1)— "(i) the borrower (in the case of a loan under section 503) or the issuer (in the case of a small business investment company) shall pay to the Federal Financing Bank an amount that is equal to the sum of the unpaid principal balance due on the debenture as of the date of the prepayment (plus accrued interest at the coupon rate on the debenture) and the amount of the repurchase premium described in subparagraph (B);and "(ii) the Administration shall pay to the Federal Financing Bank the difference between the repurchase premium paid by the borrower under this subsection and the repurchase premium that the Federal Financing Bank would otherwise have received. "(B) REPURCHASE PREMIUM.— "(i) IN GENERAL.— For purposes of subparagraph (A)(i), the repurchase premium is the amount equal to the product of— "(I) the unpaid principal balance due on the debenture on the date of prepayment; and "(II) the applicable percentage rate, as determined in accordance with clauses (ii) and (iii). "(ii) APPLICABLE PERCENTAGE RATE. —For purposes of clause (i)(II), the applicable percentage rate means— "(I) with respect to a 10-year term loan, 8.5 percent; "(II) with respect to a 15-year term loan, 9.5 • percent;

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