Title 15 — Commerce and Trade
Chapter 14B — Small Business Investment Program
§ 697b. Pooling of debentures
Statutory text
Issuance; debentures composing trust or pool
The Administration is authorized to issue trust certificates representing ownership of all or a fractional part of debentures issued by State or local development companies and guaranteed by the Administration under this chapter: Provided, That such trust certificates shall be based on and backed by a trust or pool approved by the Administration and composed solely of guaranteed debentures.
Terms and conditions of guarantee; payment of principal and interest
The Administration is authorized, upon such terms and conditions as are deemed appropriate, to guarantee the timely payment of the principal of and interest on trust certificates issued by the Administration or its agent for purposes of this section. Such guarantee shall be limited to the extent of principal and interest on the guaranteed debentures which compose the trust or pool. In the event that a debenture in such trust or pool is prepaid, either voluntarily or in the event of default, the guarantee of timely payment of principal and interest on the trust certificates shall be reduced in proportion to the amount of principal and interest such prepaid debenture represents in the trust or pool. Interest on prepaid or defaulted debentures shall accrue and be guaranteed by the Administration only through the date of payment on the guarantee. During the term of the trust certificate, it may be called for redemption due to prepayment or default of all debentures constituting the pool.
Full faith and credit of United States
The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guarantee of such trust certificates issued by the Administration or its agent pursuant to this section.
Collection of fees
The Administration shall not collect any fee for any guarantee under this section: Provided, That nothing herein shall preclude any agent of the Administration from collecting a fee approved by the Administration for the functions described in subsection (f)(2) of this section.
Subrogation rights; ownership rights in debentures
In the event the Administration pays a claim under a guarantee issued under this section, it shall be subrogated fully to the rights satisfied by such payment.
No State or local law, and no Federal law, shall preclude or limit the exercise by the Administration of its ownership rights in the debentures constituting the trust or pool against which the trust certificates are issued.
Central registration requirements; regulation of brokers and dealers; electronic registration
The Administration shall—
provide for a central registration of all trust certificates sold pursuant to this section;
contract with an agent to carry out on behalf of the Administration the central registration functions of this section and the issuance of trust certificates to facilitate poolings; such agent shall provide a fidelity bond or insurance in such amounts as the Administration determines to be necessary to fully protect the interests of the Government;
prior to any sale, require the seller to disclose to a purchaser of a trust certificate issued pursuant to this section, information on the terms, conditions, and yield of such instrument; and
have the authority to regulate brokers and dealers in trust certificates sold pursuant to this section.
Nothing in this subsection shall prohibit the utilization of a book-entry or other electronic form of registration for trust certificates.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 85–699 title V § 505 · 72 Stat. 689
Enacted · 15 U.S.C. § 697b
Pub. L. 85–699, title V, § 505, as added Pub. L. 99–272, title XVIII, § 18008(c), Apr. 7, 1986, 100 Stat. 367
Source evidence
Code source credit
Pub. L. 85–699, title V, § 505, as added Pub. L. 99–272, title XVIII, § 18008(c), Apr. 7, 1986, 100 Stat. 367Small Business Administration Reauthorization and Amendment Act of 1988
Pub. L. 100–590 § 111(d)(2) · 102 Stat. 2989
Inserted · 15 U.S.C. § 697b
Pub. L. 100–590, § 111(d)(2), inserted “Pooling of debentures” as section catchline
Source evidence
Code amendment note
Pub. L. 100–590, § 111(d)(2), inserted “Pooling of debentures” as section catchline.Enacted provision · exact public law section
(2) Such section is further amended by inserting the following title at the beginning of such section:Small Business Administration Reauthorization and Amendment Act of 1988
Pub. L. 100–590 § 111(d)(1) · 102 Stat. 2989
Substituted · 15 U.S.C. § 697b(a)
Pub. L. 100–590, § 111(d)(1), substituted “all or a” for “all of a”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 100–590, § 111(d)(1), substituted “all or a” for “all of a”.Enacted provision · exact public law section
(1) Section 505 of the Small Business Investment Act of 1958 is amended by striking 15 USC 697b. from subsection (a) “all of a” and by inserting in lieu thereof “all or a”.Department of Commerce and Related Agencies Appropriations Act, 1997
Pub. L. 104–208 div. D title II § 205(c) · 110 Stat. 3009
Amended · 15 U.S.C. § 697b(f)
Pub. L. 104–208 designated existing provisions as par. (1)
Redesignated · 15 U.S.C. § 697b(f)
Pub. L. 104–208 redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, of par. (1), in subpar. (A) substituted “provide for a central registration of all trust certificates sold pursuant to this section;” for “provide for a central registration of all trust certificates sold pursuant to this section; such central registration shall include with respect to each sale, identification of each development company; the interest rate paid by the development company; commissions, fees, or discounts paid to brokers and dealers in trust certificates; identification of each purchaser of the trust certificate; the price paid by the purchaser for the trust certificate; the interest rate paid on the trust certificate; the fees of any agent for carrying out the functions described in paragraph (2); and such other information as the Administration deems appropriate;”
Added · 15 U.S.C. § 697b(f)
Pub. L. 104–208 added par. (2)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 104–208 designated existing provisions as par. (1), redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, of par. (1), in subpar. (A) substituted “provide for a central registration of all trust certificates sold pursuant to this section;” for “provide for a central registration of all trust certificates sold pursuant to this section; such central registration shall include with respect to each sale, identification of each development company; the interest rate paid by the development company; commissions, fees, or discounts paid to brokers and dealers in trust certificates; identification of each purchaser of the trust certificate; the price paid by the purchaser for the trust certificate; the interest rate paid on the trust certificate; the fees of any agent for carrying out the functions described in paragraph (2); and such other information as the Administration deems appropriate;”, and added par. (2).Enacted provision · exact public law section
Sec. 205. Not to exceed 5 percent of any appropriation made available for the current fiscal year for the Department of Commerce in this Act may be transferred between such appropriations, but no such appropriation shall be increased by more than 10 percent by any such transfers: Provided, That any transfer pursuant to this section shall be treated as a reprogramming of funds under section 605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that section.Effective date note
Amendment by Pub. L. 104–208 effective Oct. 1, 1996, see section 3 of Pub. L. 104–208, set out as a note under section 633 of this title.
5 of 6 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
For definition of “this chapter”, referred to in subsec. (a), see References in Text note set out under section 661 of this title.
Amendments1988–1996 · 2 rounds
1996
Subsec. (f). Pub. L. 104–208 designated existing provisions as par. (1), redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, of par. (1), in subpar. (A) substituted “provide for a central registration of all trust certificates sold pursuant to this section;” for “provide for a central registration of all trust certificates sold pursuant to this section; such central registration shall include with respect to each sale, identification of each development company; the interest rate paid by the development company; commissions, fees, or discounts paid to brokers and dealers in trust certificates; identification of each purchaser of the trust certificate; the price paid by the purchaser for the trust certificate; the interest rate paid on the trust certificate; the fees of any agent for carrying out the functions described in paragraph (2); and such other information as the Administration deems appropriate;”, and added par. (2).
1988
Pub. L. 100–590, § 111(d)(2), inserted “Pooling of debentures” as section catchline.
Subsec. (a). Pub. L. 100–590, § 111(d)(1), substituted “all or a” for “all of a”.
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–208 effective , see section 3 of Pub. L. 104–208, set out as a note under section 633 of this title.
Rules and Regulations for Implementation of Central Registration, Pilot Program and Trust Certificate Provisions; Consultation
Pub. L. 99–272, title XVIII, § 18008(d), , 100 Stat. 368, provided that:
“(1) Notwithstanding any law, rule, or regulation, within 60 days after the date of enactment of this Act [], the Small Business Administration shall develop and promulgate final rules and regulations to implement the central registration provisions provided for in section 505(f)(1) of the Small Business Investment Act [15 U.S.C. 697b(f)(1)], and shall contract with an agent for an initial period of not to exceed two years to carry out the functions provided for in section 505(f)(2) of such Act.
“(2) Notwithstanding any law, rule or regulation, within 60 days after the date of enactment of this Act [], the Small Business Administration also shall consult with representatives of appropriate Federal and State agencies and officials, the securities industry, financial institutions and lenders, and small business persons, and shall develop and promulgate final rules and regulations to implement sections 504 and 505 of the Small Business Investment Act [15 U.S.C. 697a, 697b].”
Credits
1986–1996 · 3 acts
- 1986Pub. L. 85–699, title V, § 505, as added Pub. L. 99–272, title XVIII, § 18008(c), , 100 Stat. 367
- 1988amended Pub. L. 100–590, title I, § 111(d)(1), (2), , 102 Stat. 2995
- 1996Pub. L. 104–208, div. D, title II, § 205(c), , 110 Stat. 3009–738.
Show as published
(Pub. L. 85–699, title V, § 505, as added Pub. L. 99–272, title XVIII, § 18008(c), , 100 Stat. 367; amended Pub. L. 100–590, title I, § 111(d)(1), (2), , 102 Stat. 2995; Pub. L. 104–208, div. D, title II, § 205(c), , 110 Stat. 3009–738.)