Page:United States Statutes at Large Volume 94 Part 1.djvu/888

 94 STAT. 838

15 USC 696.

15 USC 683.

Administrative expenses, additional charge. "Qualified State or local development company."

PUBLIC LAW 96-302—JULY 2, 1980 subsection, may be subordinated by the Administration to any other debenture, promissory note, or other debt or obligation of such company. "(b) No guarantee may be made with respect to any debenture under subsection (a) unless— "(1) such debenture is issued for the purpose of making one or more loans to small business concerns, the proceeds of which shall be used by such concern for the purposes set forth in section 502; "(2) necessary funds for making such loans are not available to such company from private sources on reasonable terms; "(3) the interest rate on such debenture is not less than the rate of interest determined by the Secretary of the Treasury for purposes of section 303(b); "(4) the aggregate amount of such debenture does not exceed the amount of loans to be made from the proceeds of such debenture (other than any excess attributable to the administrative costs of such loans); "(5) the amount of any loan to be made from such proceeds does not exceed an amount equal to 50 percent of the cost of the project with respect to which such loan is made; and "(6) the Administration approves each loan to be made from such proceeds. "(c) The Administration may impose an additional charge for administrative expenses with respect to each debenture for which payment of principal and interest is guaranteed under subsection (a). "(d) For purposes of this section, the term 'qualified State or local development company' means any State or local development company which, as determined by the Administration, has— "(1) a full-time professional staff; "(2) professional management ability (including adequate accounting, legal, and business-servicing abilities); and "(3) a board of directors, or membership, which meets on a regular basis to make management decisions for such company, including decisions relating to the making and servicing of loans by such company.". (b) The table of contents of the Small Business Investment Act of 1958 is amended by inserting after the item relating to section 502 the following new item: "Sec. 503. Development company debentures.". REGULAR BUSINESS LOAN REFORM

15 USC 634.

SEC. 114. Section 5(b)(7) of the Small Business Act is amended to read as follows: "(7) in addition to any powers, functions, privileges and immunities otherwise vested in him, take any and all actions (including the procurement of the services of attorneys by contract in any office where an attorney or attorneys are not or cannot be economically employed full time to render such services) when he determines such actions are necessary or desirable in making, servicing, compromising, modifying, liquidating, or otherwise dealing with or realizing on loans made under the provisions of this Act: Provided, That nothing herein shall be construed as authorizing the Administrator to contract or otherwise delegate his responsibility for loan servicing to other than Administration personnel, but with respect to deferred participation loans he

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