Page:United States Statutes at Large Volume 111 Part 3.djvu/515

 PUBLIC LAW 105-135—DEC. 2, 1997 111 STAT. 2603 (c) TAX DISTRIBUTIONS. —Section 303(g)(8) of the Small Business Investment Act of 1958 (15 U.S.C. 683(g)(8)) is amended by adding at the end the following: "A company may also elect to make a distribution under this paragraph at the end of any calendar quarter based on a quarterly estimate of the maximum tax liability. If a company makes 1 or more quarterly distributions for a calendar year, and the aggregate amount of those distributions exceeds the maximum amount that the company could have distributed based on a single annual computation, any subsequent distribution by the company under this paragraph shall be reduced by an amount equal to the excess amount distributed.". (d) LEVERAGE FEE.—Section 303(i) of the Small Business Investment Act of 1958 (15 U.S.C. 683(i)) is amended by striking ", payable upon" and all that follows before the period and inserting the following: "in the following manner: 1 percent upon the date on which the Administration enters into any commitment for such leverage with the licensee, and the balance of 2 percent (or 3 percent if no commitment has been entered into by the Administration) on the date on which the leverage is drawn by the licensee". (e) PERIODIC ISSUANCE OF GUARANTEES AND TRUST CERTIFI- CATES.—Section 320 of the Small Business Investment Act of 1958 (15 U.S.C. 687m) is amended by striking "three months" and inserting "6 months". SEC. 216. EXAMINATION FEES. Section 310(b) of the Small Business Investment Act of 1958 (15 U.S.C. 687b(b)) is amended by inserting after the first sentence the following: "Fees collected under this subsection shall be deposited in the account for salaries and expenses of the Administration, and are authorized to be appropriated solely to cover the costs of examinations and other program oversight activities.". Subtitle C—Certified Development Company Program SEC. 221. LOANS FOR PLANT ACQUISITION, CONSTRUCTION, CONVER- SION, AND EXPANSION. Section 502 of the SmsQl Business Investment Act of 1958 (15 U.S.C. 696) is amended— (1) by striking paragraph (1) and inserting the following: "(1) USE OF PROCEEDS.—The proceeds of any such loan shall be used solely by the borrower to assist 1 or more identifiable small business concerns and for a sound business purpose approved by the Administration."; (2) in paragraph (3), by adding at the end the following: "(D) SELLER FINANCING. —Seller-provided financing may be used to meet the requirements of subparagraph (B), if the seller subordinates the interest of the seller in the property to the debenture guaranteed by the Administration. " (E) COLLATERALIZATION. —The collateral provided by the small business concern shall generally include a subordinate lien position on the property being financed under this title, and is only 1 of the factors to be evaluated in the credit determination. Additional collateral shall be required only if the Administration determines, on a case-

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