Page:United States Statutes at Large Volume 86.djvu/1357

 86 STAT. ]

PUBLIC LAW 92-595-OCT. 27, 1972

"The Administration may purchase— "(1) shares of nonvoting stock (or other securities having similar characteristics), provided— " (i) dividends are preferred and cumulative to the extent of 3 per centum of par value per annum; "(ii) on liquidation or redemption, the Administration is entitled to the preferred payment of the par value of such securities; and prior to any distribution (other than to the Administration) the Administration may require the preferred payment of the difference between dividends paid thereon and cumulative dividends payable at a late equal to the interest rate determined pursuant to section 303(b) for debentures with a term of fifteen years, without interest on such difference; "(iii) the purchase price shall be at par value and, in any one sale, $50,000 or more; and "(iv) the amount of such securities purchased and outstanding at any one time shall not exceed (A) from a company having combined private paid-in capital and paid-in surplus of less than $300,000 and licensed on or before October 13, 1971, the amount of combined private paid-in capital and paid-in surplus invested after such date, nor (B) from any company having combined private paid-in capital and paid-in surplus of $300,000 or more but less than $500,000, the amount of its combined private paid-in capital and paid-in surplus in excess of $300,000, nor (C) from any company having combined private paid-in capital and paid-in surplus of $500,000 or more, the amount of its combined private paid-in capital and paid-in surplus. "The Administration may purchase or guarantee— "(2) debentures subordinated pursuant to subsection (b) of this section (other than securities purchased under paragraph (1) of this subsection (c)), provided— "(i) such debentures are issued for a term of not to exceed fifteen years; "(ii) the interest rate is determined pursuant to sections 303(b) and 317; and "(iii) the amount of debentures purchased or guaranteed and outstanding at any one time pursuant to this paragraph (2) from a company having combined private paid-in capital and paid-in surplus of less than $500,000 shall not exceed 200 per centum of its combined private paid-in capital and paid-in surplus less the amount of preferred securities outstanding under paragraph (1) of this subsection, nor from a company having combined private paid-in capital and paid-in surplus of $500,000 or more, 300 per centum of its combined private paid-in capital and paid-in surplus less the amount of such preferred securities. "(3) debentures purchased and outstanding pursuant to section 303(b) of this section may be retired simultaneously with the issuance of preferred securities to meet the requirements of subparagraph (2) (iii) of this subsection (c). "(4) the Administration may require, as a condition of the purchase or guarantee of any securities in excess of- 200 per centum of the combined private paid-in capital and paid-in surplus of a company, that the company maintains a percentage of its total funds available for investment in small business concerns invested or legally committed in venture capital (as defined in subsection (b) of this section) determined by the Administration to be reasonable and appropriate."

1315 NonvotingprepurThase!^""'^^'

subordinated chase*orgua^an". tee.

Ante, p. i3i4. ^°sf, p. laie. '' *

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