Page:United States Statutes at Large Volume 114 Part 5.djvu/703

 PUBLIC LAW 106-554—APPENDIX H 114 STAT. 2763A-663 "SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE. "(a) IN GENERAL.— With respect to any New Markets Venture Capital company that violates or fails to comply with any of the provisions of this Act, of any regulation issued under this Act, or of any participation agreement entered into under this Act, the Administrator may in accordance with this section— "(1) void the participation agreement between the Administrator and the company; and "(2) cause the company to forfeit all of the rights and privileges derived by the company from this Act. "(b) ADJUDICATION OF NONCOMPLIANCE.— "(1) IN GENERAL. —Before the Administrator may cause a New Markets Venture Capital company to forfeit rights or privileges under subsection (a), a court of the United States of competent jurisdiction must find that the company committed a violation, or failed to comply, in a cause of action brought for that purpose in the district, territory, or other place subject to the jurisdiction of the United States, in which the principal office of the company is located. "(2) PARTIES AUTHORIZED TO FILE CAUSES OF ACTION. — Each cause of action brought by the United States under this subsection shall be brought by the Administrator or by the Attorney General. "SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY. "(a) PARTIES DEEMED TO COMMIT A VIOLATION. — Whenever any New Markets Venture Capital company violates any provision of this Act, of a regulation issued under this Act, or of a participation agreement entered into under this Act, by reason of its failure to comply with its terms or by reason of its engaging in any act or practice that constitutes or will constitute a violation thereof, such violation shall also be deemed to be a violation and an unlawful act committed by any person who, directly or indirectly, authorizes, orders, participates in, causes, brings about, counsels, aids, or abets in the commission of any acts, practices, or transactions that constitute or will constitute, in whole or in part, such violation. "(b) FiDUCL^Y DUTIES. — It shall be unlawful for any officer, director, employee, agent, or other participant in the management or conduct of the affairs of a New Markets Venture Capital company to engage in any act or practice, or to omit any act or practice, in breach of the person's fiduciary duty as such officer, director, employee, agent, or participant if, as a result thereof, the company suffers or is in imminent danger of suffering fingmcial loss or other damage. "(c) UNLAWFUL ACTS.— Except with the written consent of the Administrator, it shall be unlawful— "(1) for any person to take office as an officer, director, or employee of any New Markets Venture Capital company, or to become an agent or participant in the conduct of the affairs or management of such a company, if the person— "(A) has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust; or "(B) has been found civilly liable in damages, or has been permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction,

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