Page:United States Statutes at Large Volume 92 Part 2.djvu/477

 PUBLIC LAW 95-507—OCT. 24, 1978

92 STAT. 1757

Public Law 95-507 95th Congress An Act To amend the Small Business Act and the Small Business Investment Act of 1958.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I—AMENDMENTS TO THE SMALL BUSINESS INVESTMENT ACT O F 1958

Oct. 24, 1978 [H.R. 11318] Small Business Act and Small Business Investment Act of 1958, amendment.

CHAPTER 1

SEC. 101. Section 303(c)(1) of the Small Business Investment Act Purchase and guarantee of 1958 is amended to read as follows: "(1) shares of nonvoting stock (or other corporate securities operations. 15 USC 683. 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 of 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 shall be paid any amounts as may be due pursuant to subparagraph (i) of this paragraph; "(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 licensed on or before October 13, 1971, 200 per centum of the combined private \ paid-in capital and paid-in surplus of such company, or '' "(B) from any such company licensed after October 13, 1971, and having a combined paid-in capital and paid-in surplus of less than $500,000, 100 per centum of such capital and surplus, or "(C) from any such company licensed after October 13, 1971, and having a combined private paid-in capital and paid-in surplus of $500,000 or more, 200 per centum of such capital and surplus. "The amount of such securities purchased by the Administration in excess of 100 per centum of such capital and surplus from any company described in clause (A) or (C) may not exceed an amount equal to the amount of its funds invested in or legally committed to be invested in equity securities. For the purposes of "Equity the subsection, the term 'equity securities' means stock of any securities." class (including preferred stock) or limited partnership interests, or shares in a syndicate, business trust, joint stock company or association, mutual corporation, cooperative or other joint ventures for profit, or unsecured debt instruments which are subordinated by their terms to all other borrowings of the issuer.". SEC. 102. The last sentence of section 308(b) of the Small Business Investment Act of 1958 is amended to read as follows: "Such com- 15 USC 687

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