Page:United States Statutes at Large Volume 98 Part 1.djvu/377

 PUBLIC LAW 98-352—JULY 10, 1984

98 STAT. 329

Public Law 98-352 98th Congress An Act To amend the Small Business Act to improve the operation of the secondary market for loans guaranteed by the Small Business Administration.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. This Act may be cited as the "Small Business Secondary Market Improvements Act of 1984". SEC. 2. Section 5 of the Small Business Act is amended by adding at the end thereof the following new subsections: "(f)(1) The guaranteed portion of any loan made pursuant to this Act may be sold by the lender, and by any subsequent holder, consistent with regulations on such sales as the Administration shall establish, subject to the following limitations: "(A) prior to the Administration's approval of the sale, or upon any subsequent resale, of any loan guaranteed by the Administration, if the lender certifies that such loan has been properly closed and that the lender has substantially complied with the provisions of the guarantee agreement and the regulations of the Administration, the Administration shall review and approve only materials not previously approved; "(B) all fees due the Administration on a guaranteed loan shall have been paid in full prior to any sale; and "(C) each loan shall have been fully disbursed to the borrower prior to any sale. "(2) After a loan is sold in the secondary market, the lender shall remain obligated under its guarantee agreement with the Administration, and shall continue to service the loan in a manner consistent with the terms and conditions of such agreement. "(3) The Administration shall develop such procedures as are necessary for the facilitation, administration, and promotion of secondary market operations, and for assessing the increase of small business access to capital at reasonable rates and terms as a result of secondary market operations. "(4) Nothing in this subsection or subsection (g) of this section shall be interpreted to impede or extinguish the right of the borrower or the successor in interest to such borrower to prepay (in whole or in part) any loan made pursuant to section 7(a) of this Act, the guaranteed portion of which may be included in such trust or pool, or to impede or extinguish the rights of any party pursuant to section 5(e), 7(a)(6), or 7(a)(8). "(g)(1) The Administration is authorized to issue trust certificates representing ownership of all or a fractional part of the guaranteed portion of one or more loans which have been guaranteed by the Administration under this Act, except those under section 7(a)(13): Provided, That such trust certificates shall be based on and backed by a trust or pool approved by the Administration and composed solely of the entire guaranteed portion of such loans.

July 10, 1984 [S. 2375] Small Business Secondary Market Improvements Act of 1984. 15 USC 631 note. 15 USC 634. Regulations.

15 USC 636.

15 USC 634, 636.

15 USC 636.

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