Page:United States Statutes at Large Volume 110 Part 4.djvu/908

 110 STAT. 3009-745 PUBLIC LAW 104-208—SEPT. 30, 1996 (e) LIABILITY OF THE UNITED STATES. —Section 308(e) (15 U.S.C. 687(e)) is amended by striking "Nothing" and inserting "Except as expressly provided otherwise in this Act, nothing". (f) EXAMINATIONS; VALUATIONS.— (1) EXAMINATIONS. —Section 310(b) (15 U.S.C. 687b(b)) is amended in the first sentence by inserting "which may be conducted with the assistance of a private sector entity that has both the quaUfications to conduct and expertise in conducting such examinations," after "Investment Division of the Administration,". (2) VALUATIONS.— Section 310(d) (15 U.S.C. 687b(d)) is amended to read as follows: "(d) VALUATIONS.— "(1) FREQUENCY OF VALUATIONS.— "(A) IN GENERAL.— Each licensee shall submit to the Administrator a written valuation of the loans and investments of the licensee not less often than semiannually or otherwise upon the request of the Administrator, except that any licensee with no leverage outstanding shall submit such valuations annually, unless the Administrator determines otherwise. "(B) MATERIAL ADVERSE CHANGES. — Not later than 30 days after the end of a fiscal quarter of a licensee during which a material adverse change in the aggregate valuation of the loans and investments or operations of the licensee occurs, the licensee shall notify the Administrator in writing of the nature and extent of that change. "(C) INDEPENDENT CERTIFICATION.— "(i) IN GENERAL.— Not less than once during each fiscal year, each licensee shall submit to the Administrator the financial statements of the licensee, audited by an independent certified public accountant approved by the Administrator. "(ii) AUDIT REQUIREMENTS.— Each audit conducted under clause (i) shall include— "(I) a review of the procedures and documentation used by the licensee in preparing the valuations required by this section; and "(II) a statement by the independent certified public accountant that such valuations were prepared in conformity with the valuation criteria applicable to the licensee established in accordance with paragraph (2). "(2) VALUATION CRITERIA.— Each valuation submitted under this subsection shall be prepared by the licensee in accordance with valuation criteria, which shall— "(A) be established or approved by the Administrator; and "(B) include appropriate safeguards to ensure that the noncash assets of a licensee are not overvalued.". (g) TRUSTEE OR RECEIVERSHIP OVER LICENSEES. — (1) FINDING. —It is the finding of the Congress that increased recoveries on assets in liquidation under the Small Business Investment Act of 1958 are in the best interests of the Federal Government. (2) DEFINITIONS.— For purposes of this subsection—

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