15 U.S.C. § 692 — Authority of Administration to guarantee

Page 1127 TITLE 15—COMMERCE AND TRADE § 692 § 690m. Miscellaneous To the extent such procedures are not incon- sistent with the requirements of this part, the Administrator may take such action as set forth in sections 687a, 687c, 687d, and 687f of this title and an officer, director, employee, agent, or other participant in the management or conduct of the affairs of a Renewable Fuel Capital In- vestment company shall be subject to the re- quirements of such sections. (Pub. L. 85–699, title III, § 394, as added Pub. L. 110–140, title XII, § 1207, Dec. 19, 2007, 121 Stat. 1783.) § 690n. Removal or suspension of directors or of- ficers Using the procedures for removing or sus- pending a director or an officer of a licensee set forth in section 687e of this title (to the extent such procedures are not inconsistent with the requirements of this part), the Administrator may remove or suspend any director or officer of any Renewable Fuel Capital Investment com- pany. (Pub. L. 85–699, title III, § 395, as added Pub. L. 110–140, title XII, § 1207, Dec. 19, 2007, 121 Stat. 1783.) § 690o. Regulations The Administrator may issue such regulations as the Administrator determines necessary to carry out the provisions of this part in accord- ance with its purposes. (Pub. L. 85–699, title III, § 396, as added Pub. L. 110–140, title XII, § 1207, Dec. 19, 2007, 121 Stat. 1783.) § 690p. Authorizations of appropriations (a) In general Subject to the availability of appropriations, the Administrator is authorized to make $15,000,000 in operational assistance grants under section 690h of this title for each of fiscal years 2008 and 2009. (b) Funds collected for examinations Funds deposited under section 690l(c)(2) of this title are authorized to be appropriated only for the costs of examinations under section 690l of this title and for the costs of other oversight ac- tivities with respect to the program established under this part. (Pub. L. 85–699, title III, § 397, as added Pub. L. 110–140, title XII, § 1207, Dec. 19, 2007, 121 Stat. 1783.) § 690q. Termination The program under this part shall terminate at the end of the second full fiscal year after the date that the Administrator establishes the pro- gram under this part. (Pub. L. 85–699, title III, § 398, as added Pub. L. 110–140, title XII, § 1207, Dec. 19, 2007, 121 Stat. 1783.) SUBCHAPTER IV—STATE CHARTERED IN- VESTMENT COMPANIES AND STATE DE- VELOPMENT COMPANIES § 691. Repealed. Pub. L. 87–341, § 11(f), Oct. 3, 1961, 75 Stat. 756 Section, Pub. L. 85–699, title IV, § 401, Aug. 21, 1958, 72 Stat. 696, related to conversion of any investment com- pany, or any State development company, into a small business investment company. SUBCHAPTER IV–A—GUARANTEES PART A—COMMERCIAL OR INDUSTRIAL LEASE AND QUALIFIED CONTRACT GUARANTEES § 692. Authority of Administration to guarantee payment of rentals by small business con- cerns under leases of commercial and indus- trial property (a) Nonavailability of guarantees from other sources; participation with qualified sureties The Administration may, whenever it deter- mines such action to be necessary or desirable, and upon such terms and conditions as it may prescribe, guarantee the payment of rentals under leases of commercial and industrial prop- erty entered into by small business concerns to enable such concerns to obtain such leases. Any such guarantee may be made or effected either directly or in cooperation with any qualified surety company or other qualified company through a participation agreement with such company. The foregoing powers shall be subject, however, to the following restrictions and limi- tations: (1) No guarantee shall be issued by the Ad- ministration (A) if a guarantee meeting the requirements of the applicant is otherwise available on reasonable terms, and (B) unless the Administration determines that there ex- ists a reasonable expectation that the small business concern in behalf of which the guar- antee is issued will perform the covenants and conditions of the lease. (2) The Administration shall, to the greatest extent practicable, exercise the powers con- ferred by this section in cooperation with qualified surety or other companies on a par- ticipation basis. (b) Uniform annual fee; processing fees The Administration shall fix a uniform annual fee for its share of any guarantee under this sec- tion which shall be payable in advance at such time as may be prescribed by the Administrator. The amount of any such fee shall be determined in accordance with sound actuarial practices and procedures, to the extent practicable, but in no case shall such amount exceed, on the Ad- ministration’s share of any guarantee made under this part, 21⁄2 per centum per annum of the minimum annual guaranteed rental payable under any guaranteed lease: Provided, That the Administration shall fix the lowest fee that ex- perience under the program established hereby has shown to be justified. The Administration may also fix such uniform fees for the proc- essing of applications for guarantees under this section as the Administrator determines are reasonable and necessary to pay the administra- Page 1128 TITLE 15—COMMERCE AND TRADE § 693 tive expenses that are incurred in connection therewith. (c) Escrow; default; additional discretionary pro- visions In connection with the guarantee of rentals under any lease pursuant to authority conferred by this section, the Administrator may require, in order to minimize the financial risk assumed under such guarantee— (1) that the lessee pay an amount, not to ex- ceed one-fourth of the minimum guaranteed annual rental required under the lease, which shall be held in escrow and shall be available (A) to meet rental charges accruing in any month for which the lessee is in default, or (B) if no default occurs during the term of the lease, for application (with accrued interest) toward final payments of rental charges under the lease; (2) that upon occurrence of a default under the lease, the lessor shall, as a condition precedent to enforcing any claim under the lease guarantee, utilize the entire period, for which there are funds available in escrow for payment of rentals, in reasonably diligent ef- forts to eliminate or minimize losses, by re- leasing the commercial or industrial property covered by the lease to another qualified ten- ant, and no claim shall be made or paid under the guarantee until such effort has been made and such escrow funds have been exhausted; (3) that any guarantor of the lease will be- come a successor of the lessor for the purpose of collecting from a lessee in default rentals which are in arrears and with respect to which the lessor has received payment under a guar- antee made pursuant to this section; and (4) such other provisions, not inconsistent with the purposes of this part, as the Adminis- trator may in his discretion require. (Pub. L. 85–699, title IV, § 401, as added Pub. L. 89–117, title III, § 316(a), Aug. 10, 1965, 79 Stat. 482; amended Pub. L. 90–104, title II, § 209, Oct. 11, 1967, 81 Stat. 271; Pub. L. 91–609, title IX, § 911(a)(2), Dec. 31, 1970, 84 Stat. 1812.) Editorial Notes AMENDMENTS 1970—Subsecs. (b), (c)(4). Pub. L. 91–609 substituted ‘‘part’’ for ‘‘title’’. 1967—Subsec. (a). Pub. L. 90–104 struck out from in- troductory text ‘‘that are (1) eligible for loans under section 636(b)(3) of this title, or (2) eligible for loans under subchapter IV of chapter 34 of Title 42,’’ after ‘‘small business concerns’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1967 AMENDMENT Amendment by Pub. L. 90–104 effective 90 days after Oct. 11, 1967, see section 211 of Pub. L. 90–104, set out as a note under section 681 of this title. § 693. Powers of Administration respecting loans; liquidation of obligations through creation of new leases, execution of subleases, and as- signments of leases Without limiting the authority conferred upon the Administrator and the Administration by section 671 of this title, the Administrator and the Administration shall have, in the perform- ance of and with respect to the functions, pow- ers, and duties conferred by this part, all the au- thority and be subject to the same conditions prescribed in section 634(b) of this title with re- spect to loans, including the authority to exe- cute subleases, assignments of lease and new leases with any person, firm, organization, or other entity, in order to aid in the liquidation of obligations of the Administration hereunder. (Pub. L. 85–699, title IV, § 402, as added Pub. L. 89–117, title III, § 316(a), Aug. 10, 1965, 79 Stat. 483; amended Pub. L. 91–609, title IX, § 911(a)(2), Dec. 31, 1970, 84 Stat. 1812.) Editorial Notes AMENDMENTS 1970—Pub. L. 91–609 substituted ‘‘part’’ for ‘‘title’’. § 694. Repealed. Pub. L. 100–590, title I, § 111(b), Nov. 3, 1988, 102 Stat. 2995 Section, Pub. L. 85–699, title IV, § 403, as added Pub. L. 89–117, title III, § 316(a), Aug. 10, 1965, 79 Stat. 484; amended Pub. L. 91–609, title IX, § 911(a)(3), Dec. 31, 1970, 84 Stat. 1812; Pub. L. 93–386, § 6(a)(2), Aug. 23, 1974, 88 Stat. 747; Pub. L. 94–305, title I, § 103, June 4, 1976, 90 Stat. 665; Pub. L. 95–89, title I, § 103, Aug. 4, 1977, 91 Stat. 556, provided for revolving fund for commercial or industrial lease guarantees. Statutory Notes and Related Subsidiaries TRANSFER OF REMAINING LEASE GUARANTEE FUND MONEYS Pub. L. 100–590, title I, § 111(b), Nov. 3, 1988, 102 Stat. 2995, provided in part that: ‘‘Any moneys remaining in the Lease Guarantee Fund on the date of enactment of this Act [Nov. 3, 1988] shall be transferred to the Small Business Administration’s business loan and invest- ment fund.’’ § 694–1. Planning design or installation of pollu- tion control facilities (a) Definitions For purposes of this section, the term— (1) ‘‘pollution control facilities’’ means such property (both real and personal) as the Ad- ministration in its discretion determines is likely to help prevent, reduce, abate, or con- trol noise, air or water pollution or contami- nation by removing, altering, disposing or storing pollutants, contaminants, wastes, or heat, and such property (both real and per- sonal) as the Administration determines will be used for the collection, storage, treatment, utilization, processing, or final disposal of solid or liquid waste. (2) ‘‘person’’ includes corporations, compa- nies, associations, firms, partnerships, soci- eties, joint stock companies, States, terri- tories, and possessions of the United States, or subdivisions of any of the foregoing, and the District of Columbia, as well as individuals. (3) ‘‘qualified contract’’ means a lease, sub- lease, loan agreement, installment sales con- tract, or similar instrument, entered into be- tween a small business concern and any per- son.