Page:United States Statutes at Large Volume 110 Part 4.djvu/890

 110 STAT. 3009 -727 PUBLIC LAW 104-208—SEPT. 30, 1996 "(B) PILOT PROGRAM DEFINED.— In this paragraph, the term 'pilot program' means any lending program initiative, project, innovation, or other activity not specifically authorized by law. "(C) Low DOCUMENTATION LOAN PROGRAM. — The Administrator may carry out the low documentation loan program for loans of $100,000 or less only through lenders with significant experience in making small business loans. Not later than 90 days after the date of enactment of this subsection, the Administrator shall promulgate regulations defining the experience necessary for participation as a lender in the low documentation loan program.". (d) CALCULATION OF SUBSIDY RATE.— Section 7(a) (15 U.S.C. 636(a)) is amended by adding at the end the following new paragraph: "(26) CALCULATION OF SUBSIDY RATE.— Al l fees, interest, and profits received and retained by the Administration under this subsection shall be included in the calculations made by the Director of the Office of Management and Budget to offset the cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990) to the Administration of purchasing and guaranteeing loans under this Act.". (e) SALE OF UNGUARANTEED PORTIONS OF SBA LOANS. —Section 5(f)(3) (15 U.S.C. 634(f)(3)) is amended by adding at the end the following: "Beginning on March 31, 1997, the sale of the unguaranteed portion of any loan made under section 7(a) shall not be permitted until a final regulation that applies uniformly to both depository institutions and other lenders is promulgated by the Administration setting forth the terms and conditions under which such sales can be permitted, including maintenance of appropriate reserve requirements and other safeguards to protect the safety and soundness of the program.". (f) CONDITIONS ON PURCHASE OF LOANS. —Section 7(a)(4) (15 U.S.C. 636(a)(4)) is amended— (1) by striking "(4) Notwithstanding" and inserting the following: " (4) INTEREST RATES AND FEES.— "(A) INTEREST RATES. — Notwithstanding"; and (2) by adding at the end the following new subparagraph: " (B) PAYMENT OF ACCRUED INTEREST.— "(i) IN GENERAL.— Any bank or other lending institution making a claim for payment on the guaranteed portion of a loan made under this subsection shall be paid the accrued interest due on the loan from the earliest date of default to the date of payment of the claim at a rate not to exceed the rate of interest on the loan on the date of default, minus one percent. "(ii) LOANS SOLD ON SECONDARY MARKET.— I f a loan described in clause (i) is sold on the secondary market, the amount of interest paid to a bank or other lending institution described in that clause from the earliest date of default to the date of payment of the claim shall be no more than the agreed upon rate, minus one percent.". (g) PLAN FOR TRANSFER OF LOAN SERVICING FUNCTIONS TO CENTRALIZED CENTERS. —

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