Page:United States Statutes at Large Volume 92 Part 2.djvu/478

 92 STAT. 1758

Repeal.

15 USC 687i. 15 USC 681. Capital requirements for small business investment companies.

15 USC 682.

PUBLIC LAW 95-507—OCT. 24, 1978 panies are authorized to invest funds not reasonably needed for their operations in direct obligations of, or obligations ^aranteed as to principal and interest by, the United States, or in certificates of deposit maturing within one year or less, issued by any institution the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or in savings accounts of such institutions.". SEC. 103. The last sentence of section 317 of the Small Business Investment Act of 1958 is repealed. SEC. 104. Section 301(d) of the Small Business Investment Act of 1958 is amended by inserting "or formed as a limited partnership," immediately after "statutes,". SEC. 105. Section 302(a) of the Small Business Investment Act of 1958 is amended to read as follows: "SEC. 302(a). The combined private paid-in capital and paid-in surplus of any company licensed pursuant to sections 301(c) and (d) of this Act shall not be less than $150,000: Provided, however, That the combined private paid-in capital and paid-in surplus of any company licensed on or after October 1, 1979 pursuant to sections 301(c) and (d) of this Act shall be not less than $500,000. In all cases, such capital and surplus shall be adequate to assure a reasonable prospect that the company will be operated soundly and profitably, and managed actively and prudently in accordance with its articles.". CHAPTER 2

15 USC 694a.

Surety bond guarantees.

15 USC 694b.

SEC. 110. Section 410(4) of the Small Business Investment Act of 1958 is amended by— (1) deleting the word "or" after the phrase "conditions of the contract,"; and (2) deleting the period after the phrase "fails to make prompt payment" and inserting in lieu thereof ", or (D) is an agent, independent agent, underwriter, or any other company or individual empowered to act on behalf of such person.". SEC. 111. Section 411 of the Small Business Investment Act of 1968 is amended to read as follows: "SEC. 411. (a) The Administration may, upon such terms and conditions as it may prescribe, guarantee and enter into commitments to guarantee any surety (the terms and conditions of said guarantees and commitments may vary from surety to surety on the basis of the Administration's experience with the particular surety) against loss, as hereinafter provided, as the result of a breach of the terms of a bid bond, payment bond, performance bond, or bonds ancillary and coterminous therewith, by a principal on any contract up to $1,000,000, subject to the following conditions: "(1) the person who would be the principal of the bond is a small business concern; "(2) the bond is required in order for such person to bid on a contract, or to serve as a prime contractor or subcontractor thereon; "(3) such person is not able to obtain such bond on reasonable terms and conditions without a guarantee under this section; " (4) the Administration determines that there is a reasonable expectation that such person will perform the covenants and conditions of the contract with respect to which the bond is required; " (5) the contract meets requirements established by the Administration for feasibility of successful completion and reasonableness of cost; and

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