Page:United States Statutes at Large Volume 81.djvu/305

 81 STAT.]

PUBLIC LAW 90-104-OCT. 11, 1967

271

appropriate maintenance by the company receiving such assistance of the described ratio during the period in which debentures under this paragraph are outstanding. "(3) Outstanding amounts of financial assistance provided to a company by the Administration prior to the effective date of the Small Business Investment Act Amendments of 1967 shall be Post, p. 272. deducted from the maximum amount of debentures which the Administration would otherwise be authorized to purchase under this subsection. "Venture cap* For purposes of this subsection, the term 'venture capital' includes ital.»» such common stock, preferred stock, or other financing with subordination or nonamortization characteristics as the Administration determines to be substantially similar to equity financing." SEC. 206. Section 304(c) of the Small Business Investment Act of Repeal, 74 Stat. 196. 1958 is repealed. 15 USC 684. SEC. 207. Section 306 of the Small Business Investment Act of 1958 Obligations and commitments, is amended to read as follows: limitations. "SEC. 306. (a) Without the approval of the Administration, the 78 Stat. 146. aggregate amount of obligations and securities acquired and for which 15 USC 686. commitments may be issued by any small business investment company under the provisions of this Act for any single enterprise shall not exceed 20 percent of the combined paid-in capital and paid-in surplus of such company. "(b) For the purpose of this section, the combined paid-in capital and paid-in surplus of any company licensed prior to January 1, 1968, shall consist of (1) the paid-in capital and paid-in surplus of such company and (2) the following portions of the funds outstanding from the Administration through the issuance of subordinated debentures as of the effective date of the Small Business Investment Act Amendments of 1967, or on January 1 of each of the following calendar years, Post, p. 272. whichever is less: (A) 100 percent, during 1968; (B) 75 percent, during 1969; (C) 50 percent, during 1970; (D) 25 percent, during 1971; and (E) zero, during 1972 and thereafter. "(c) With respect to obligations or securities acquired prior to the effective date of the Small Business Investment Act Amendments of 1967, and with respect to legally binding commitments issued prior to such date, the provisions of this section as in effect immediately prior to such effective date shall continue to apply." SEC. 208. Section 310(b) of the Small Business Investment Act of Examinations. 1360. 1958 is amended by adding after the first sentence thereof the following 80 Stat. 687b. 15 USC new sentence: "Each such company shall be examined at least once each year, except that the Administrator may waive examination in the case of a company whose operations have been suspended by reason of the fact that the company is involved in litigation or is in receivership." Lease guaranSEC. 209. The first sentence of section 401(a) of the Small Business tees. Investment Act of 1958 is amended by striking out "that are (1) eligi- 79 Stat. 482. 15 USC 692. ble for loans under section 7(b)(3) of the Small Business Act, or (2) 15 USC 636. eligible for loans under title IV of the Economic Opportunity Act of 42 USC 29011964,". 2907. SEC. 210. Section 308(g) of the Small Business Investment Act of Annual report, 1958 is amended (1) by inserting the paragraph designation " (1) " contents. 1359. 80 Stat. 15 USC 687. after " (g) "; and (2) by adding the following new subparagraph: "(2) I n its annual report for the year ending December 31, 1967, and in each succeeding annual report made pursuant to section 10(a) of the Small Business Act, the Administration shall include full and detailed accounts relative to the following matters: " (A) The Administration's recommendations with respect to the feasibility and organization of a small business capital bank 85-622 0-68—20

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