Home > 106th Congressional Bills > H.R. 5668 (ih) To repeal provisions of Federal law requiring labeling on saccharin containing foods. [Introduced in House] ...H.R. 5668 (ih) To repeal provisions of Federal law requiring labeling on saccharin containing foods. [Introduced in House] ...
Administration implementing this section;
``(ii) is participating in the Premier
Certified Lenders Program under section 508; or
``(iii) during the 3 fiscal years
immediately prior to seeking such a delegation,
has made an average of not less than 10 loans
per year that are funded with the proceeds of
debentures guaranteed under section 503; and
``(B) the company--
``(i) has one or more employees--
``(I) with not less than 2 years of
substantive, decision-making experience
in administering the liquidation and
workout of problem loans secured in a
manner substantially similar to loans
funded with the proceeds of debentures
guaranteed under section 503; and
``(II) who have completed a
training program on loan liquidation
developed by the Administration in
conjunction with qualified State and
local development companies that meet
the requirements of this paragraph; or
``(ii) submits to the Administration
documentation demonstrating that the company
has contracted with a qualified third-party to
perform any liquidation activities and secures
the approval of the contract by the
Administration with respect to the
qualifications of the contractor and the terms
and conditions of liquidation activities.
``(2) Confirmation.--On request the Administration shall
examine the qualifications of any company described in
subsection (a) to determine if such company is eligible for the
delegation of authority under this section. If the
Administration determines that a company is not eligible, the
Administration shall provide the company with the reasons for
such ineligibility.
``(c) Scope of Delegated Authority.--
``(1) In general.--Each qualified State or local
development company to which the Administration delegates
authority under section (a) may with respect to any loan
described in subsection (a)--
``(A) perform all liquidation and foreclosure
functions, including the purchase in accordance with
this subsection of any other indebtedness secured by
the property securing the loan, in a reasonable and
sound manner according to commercially accepted
practices, pursuant to a liquidation plan approved in
advance by the Administration under paragraph (2)(A);
``(B) litigate any matter relating to the
performance of the functions described in subparagraph
(A), except that the Administration may--
``(i) defend or bring any claim if--
``(I) the outcome of the litigation
may adversely affect the
Administration's management of the loan
program established under section 502;
or
``(II) the Administration is
entitled to legal remedies not
available to a qualified State or local
development company and such remedies
will benefit either the Administration
or the qualified State or local
development company; or
``(ii) oversee the conduct of any such
litigation; and
``(C) take other appropriate actions to mitigate
loan losses in lieu of total liquidation or
foreclosures, including the restructuring of a loan in
accordance with prudent loan servicing practices and
pursuant to a workout plan approved in advance by the
Administration under paragraph (2)(C).
``(2) Administration approval.--
``(A) Liquidation plan.--
``(i) In general.--Before carrying out
functions described in paragraph (1)(A), a
qualified State or local development company
shall submit to the Administration a proposed
liquidation plan.
``(ii) Administration action on plan.--
``(I) Timing.--Not later than 15
business days after a liquidation plan
is received by the Administration under
clause (i), the Administration shall
approve or reject the plan.
``(II) Notice of no decision.--With
respect to any plan that cannot be
approved or denied within the 15-day
period required by subclause (I), the
Administration shall within such period
provide in accordance with subparagraph
(E) notice to the company that
submitted the plan.
``(iii) Routine actions.--In carrying out
functions described in paragraph (1)(A), a
qualified State or local development company
may undertake routine actions not addressed in
a liquidation plan without obtaining additional
approval from the Administration.
``(B) Purchase of indebtedness.--
``(i) In general.--In carrying out
functions described in paragraph (1)(A), a
qualified State or local development company
shall submit to the Administration a request
for written approval before committing the
Administration to the purchase of any other
indebtedness secured by the property securing a
defaulted loan.
``(ii) Administration action on request.--
``(I) Timing.--Not later than 15
business days after receiving a request
under clause (i), the Administration
shall approve or deny the request.
``(II) Notice of no decision.--With
respect to any request that cannot be
approved or denied within the 15-day
period required by subclause (I), the
Administration shall within such period
provide in accordance with subparagraph
(E) notice to the company that
submitted the request.
``(C) Workout plan.--
``(i) In general.--In carrying out
functions described in paragraph (1)(C), a
qualified State or local development company
shall submit to the Administration a proposed
workout plan.
``(ii) Administration action on plan.--
``(I) Timing.--Not later than 15
business days after a workout plan is
received by the Administration under
clause (i), the Administration shall
approve or reject the plan.
``(II) Notice of no decision.--With
respect to any workout plan that cannot
be approved or denied within the 15-day
period required by subclause (I), the
Administration shall within such period
provide in accordance with subparagraph
(E) notice to the company that
submitted the plan.
``(D) Compromise of indebtedness.--In carrying out
functions described in paragraph (1)(A), a qualified
State or local development company may--
``(i) consider an offer made by an obligor
to compromise the debt for less than the full
amount owing; and
``(ii) pursuant to such an offer, release
any obligor or other party contingently liable,
if the company secures the written approval of
the Administration.
``(E) Contents of notice of no decision.--Any
notice provided by the Administration under
subparagraph (A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)--
``(i) shall be in writing;
``(ii) shall state the specific reason for
the Administration's inability to act on a plan
or request;
``(iii) shall include an estimate of the
additional time required by the Administration
to act on the plan or request; and
``(iv) if the Administration cannot act
because insufficient information or
documentation was provided by the company
submitting the plan or request, shall specify
the nature of such additional information or
documentation.
``(3) Conflict of interest.--In carrying out functions
described in paragraph (1), a qualified State or local
development company shall take no action that would result in
an actual or apparent conflict of interest between the company
(or any employee of the company) and any third party lender,
associate of a third party lender, or any other person
participating in a liquidation, foreclosure, or loss mitigation
action.
``(d) Suspension or Revocation of Authority.--The Administration
may revoke or suspend a delegation of authority under this section to
any qualified State or local development company, if the Administration
determines that the company--
``(1) does not meet the requirements of subsection (b)(1);
``(2) has violated any applicable rule or regulation of the
Administration or any other applicable law; or
``(3) fails to comply with any reporting requirement that
may be established by the Administration relating to carrying
out of functions described in paragraph (1).
``(e) Report.--
``(1) In general.--Based on information provided by
qualified State and local development companies and the
Administration, the Administration shall annually submit to the
Committees on Small Business of the House of Representatives
and of the Senate a report on the results of delegation of
authority under this section.
``(2) Contents.--Each report submitted under paragraph (1)
shall include the following information:
``(A) With respect to each loan foreclosed or
liquidated by a qualified State or local development
company under this section, or for which losses were
otherwise mitigated by the company pursuant to a
workout plan under this section--
``(i) the total cost of the project
financed with the loan;
``(ii) the total original dollar amount
guaranteed by the Administration;
``(iii) the total dollar amount of the loan
at the time of liquidation, foreclosure, or
mitigation of loss;
``(iv) the total dollar losses resulting
from the liquidation, foreclosure, or
mitigation of loss; and
``(v) the total recoveries resulting from
the liquidation, foreclosure, or mitigation of
loss, both as a percentage of the amount
guaranteed and the total cost of the project
financed.
``(B) With respect to each qualified State or local
development company to which authority is delegated
under this section, the totals of each of the amounts
described in clauses (i) through (v) of subparagraph
(A).
``(C) With respect to all loans subject to
foreclosure, liquidation, or mitigation under this
section, the totals of each of the amounts described in
clauses (i) through (v) of subparagraph (A).
``(D) A comparison between--
``(i) the information provided under
subparagraph (C) with respect to the 12-month
period preceding the date on which the report
is submitted; and
``(ii) the same information with respect to
loans foreclosed and liquidated, or otherwise
treated, by the Administration during the same
period.
``(E) The number of times that the Administration
has failed to approve or reject a liquidation plan in
accordance with subparagraph (A)(i), a workout plan in
accordance with subparagraph (C)(i), or to approve or
deny a request for purchase of indebtedness under
subparagraph (B)(i), including specific information
regarding the reasons for the Administration's failure
and any delays that resulted.''.
(b) Regulations.--
(1) In general.--Not later than 150 days after the date of
the enactment of this Act, the Administrator shall issue such
regulations as may be necessary to carry out section 510 of the
Small Business Investment Act of 1958, as added by subsection
(a) of this section.
(2) Termination of pilot program.--Beginning on the date on
which final regulations are issued under paragraph (1), section
204 of the Small Business Programs Improvement Act of 1996 (15
U.S.C. 695 note) shall cease to have effect.
TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958
SEC. 401. SHORT TITLE.
This title may be cited as the ``Small Business Investment
Corrections Act of 2000''.
SEC. 402. DEFINITIONS.
(a) Small Business Concern.--Section 103(5)(A)(i) of the Small
Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i)) is amended by
inserting before the semicolon at the end the following: ``regardless
of the allocation of control during the investment period under any
investment agreement between the business concern and the entity making
the investment''.
(b) Long Term.--Section 103 of the Small Business Investment Act of
1958 (15 U.S.C. 662) is amended--
(1) in paragraph (15), by striking ``and'' at the end;
(2) in paragraph (16), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(17) the term `long term', when used in connection with
equity capital or loan funds invested in any small business
concern or smaller enterprise, means any period of time not
less than 1 year.''.
SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.
Section 302(b) of the Small Business Investment Act of 1958 (15
U.S.C. 682(b)) is amended--
(1) by striking ``(b) Notwithstanding'' and inserting the
following:
``(b) Financial Institution Investments.--
``(1) Certain banks.--Notwithstanding''; and
(2) by adding at the end the following:
``(2) Certain savings associations.--Notwithstanding any
other provision of law, any Federal savings association may
invest in any one or more small business investment companies,
or in any entity established to invest solely in small business
investment companies, except that in no event may the total
amount of such investments by any such Federal savings
association exceed 5 percent of the capital and surplus of the
Federal savings association.''.
SEC. 404. SUBSIDY FEES.
(a) Debentures.--Section 303(b) of the Small Business Investment
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