Page:United States Statutes at Large Volume 116 Part 1.djvu/415

 PUBLIC LAW 107-171—MAY 13, 2002 116 STAT. 389 under section 384D(e), that requires the rural business investment company to make investments in smaller enterprises in rural areas. "(11) PRIVATE CAPITAL.— "(A) IN GENERAL.— The term 'private capital' means the total of— "(i)(I) the paid-in capital and paid-in surplus of a corporate rural business investment company; "(II) the contributed capital of the partners of a partnership rural business investment company; or "(III) the equity investment of the members of a limited liability company rural business investment company; and "(ii) unfunded binding commitments from investors that meet criteria established by the Secretary to contribute capital to the rural business investment company, except that— "(I) unfunded commitments may be counted as private capital for purposes of approval by the Secretary of any request for leverage; but "(II) leverage shall not be funded based on the commitments. "(B) EXCLUSIONS.— The term 'private capital' does not include— "(i) any funds borrowed by a rural business investment company from any source; "(ii) any funds obtained through the issuance of leverage; or "(iii) any funds obtained directly or indirectly from the Federal Government or any State (including by a political subdivision, agency, or instrumentality of the Federal Government or a State), except for— "(I) funds obtained from the business revenues (excluding any governmental appropriation) of any federally chartered or government-sponsored enterprise established prior to the date of enactment of this subtitle; "(II) funds invested by an employee welfare benefit plan or pension plan; and "(III) any qualified nonprivate funds (if the investors of the qualified nonprivate funds do not control, directly or indirectly, the management, board of directors, general partners, or members of the rural business investment company). "(12) QUALIFIED NONPRIVATE FUNDS. —The term 'qualified nonprivate funds' means any— "(A) funds directly or indirectly invested in any applicant or rural business investment company on or before the date of enactment of this subtitle, by any Federal agency, other than the Department of Agriculture, under a provision of law explicitly mandating the inclusion of those funds in the definition of the term 'private capital'; and "(B) funds invested in any applicant or rural business investment company by 1 or more entities of any State (including by a political subdivision, agency, or instrumentality of the State and including any guarantee extended

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