15 U.S.C. § 689d

Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)

Section 689d - Debentures

(a) In general

The Administrator may guarantee the timely payment of principal and interest, as scheduled, on debentures issued by any New Markets Venture Capital company.

(b) Terms and conditions

The Administrator may make guarantees under this section on such terms and conditions as it deems appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.

(c) Full faith and credit of the United States

The full faith and credit of the United States is pledged to pay all amounts that may be required to be paid under any guarantee under this part.

(d) Maximum guarantee

(1) In general

Under this section, the Administrator may guarantee the debentures issued by a New Markets Venture Capital company only to be¹ extent that the total face amount of outstanding guaranteed debentures of such company does not exceed 150 percent of the private capital of the company, as determined by the Administrator.

(2) Treatment of certain Federal funds

For the purposes of paragraph (1), private capital shall include capital that is considered to be Federal funds, if such capital is contributed by an investor other than an agency or department of the Federal Government.

(e) Investment limitations

(1) Definition

In this subsection, the term "covered New Markets Venture Capital company" means a New Markets Venture Capital company-

(A) granted final approval by the Administrator under section 689c(e) of this title on or after March 1, 2002; and

(B) that has obtained a financing from the Administrator.

(2) Limitation

Except to the extent approved by the Administrator, a covered New Markets Venture Capital company may not acquire or issue commitments for securities under this subchapter for any single enterprise in an aggregate amount equal to more than 10 percent of the sum of-

(A) the regulatory capital of the covered New Markets Venture Capital company; and

(B) the total amount of leverage projected in the participation agreement of the covered New Markets Venture Capital.

¹So in original. Probably should be "the".

15 U.S.C. § 689d

Pub. L. 85-699, title III, §355, as added Pub. L. 106-554, §1(a)(8) [§1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-658; amended Pub. L. 111-240, title I, §11151115,, 124 Stat. 2508.

EDITORIAL NOTES

AMENDMENTS2010-Subsec. (e). Pub. L. 111-240 added subsec. (e).

leverage

the term "leverage" includes- (A) debentures purchased or guaranteed by the Administration;(B) participating securities purchased or guaranteed by the Administration; and(C) preferred securities outstanding as of October 1, 1995;

Administrator

the terms "Administration" and "Administrator" mean the Small Business Administration and the Administrator thereof, respectively; and