Page:United States Statutes at Large Volume 110 Part 4.djvu/900

 110 STAT. 3009-737 PUBLIC LAW 104-208—SEPT. 30, 1996 (B) have made, during the 6 most recent fiscal years, an average of not less than 10 loans per year through the program established by such title V of the Small Business Investment Act of 1958; (C) have not less than 2 years of experience in liquidating loans under the authority of a Federal, State, or other lending program; and (D) meet such other requirements as the Administration may establish. (c) AUTHORITY OF DEVELOPMENT COMPANIES.— The development companies selected under subsection (b) shall, for loans in their portfolio of loans made through debentures guaranteed under title V of the Small Business Investment Act of 1958 that are in default after the date of enactment of this Act, be authorized to— (1) perform all liquidation and foreclosure functions, including the acceleration or purchase of community injection funds, subject to such company obtaining prior written approval from the Administrator before committing the agency to purchase any other indebtedness secured by the property: Provided, That the Administrator shall approve or deny a request for such purchase within a period of 10 business days; and (2) liquidate such loans in a reasonable and sound manner and according to commercially accepted practices pursuant to a liquidation plan approved by the administrator in advance of its implementation. If the administrator does not approve or deny a request for approval of a liquidation plan within 10 business days of the date on which the request is made (or with respect to any routine liquidation activity under such a plan, within 5 business days) such request shall be deemed to be approved. (d) AUTHORITY OF THE ADMINISTRATOR. —In carrying out the pilot program, the Administrator shall— (1) have full authority to rescind the authority granted any development company under this section upon a 10-day written notice stating the reasons for the rescission; and (2) not later than 90 days after the admission of the development companies specified in subsection (b), implement the pilot program. (e) REPORT. — (1) IN GENERAL.— The Administrator shall issue a report on the results of the pilot program to the Committees on Small Business of the House of Representatives and the Senate. The report shall include information relating to— (A) the total dollar amount of each loan and project liquidated; (B) the total dollar amount guaranteed by the Administration; (C) total dollar losses; (D) total recoveries both as percentage of the amount guaranteed and the total cost of the project; and (E) a comparison of the pilot program information with the same information for liquidation conducted outside the pilot program over the period of time. (2) REPORTING PERIOD.—The report shall be based on data from, and issued not later than 90 days after the close of, the first eight 8 fiscal quarters of the pilot program's operation after the date of implementation.

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