Page:United States Statutes at Large Volume 111 Part 3.djvu/517

From Wikisource
Jump to: navigation, search
This page needs to be proofread.


PUBLIC LAW 105-135—DEC. 2, 1997 111 STAT. 2605 (iv) by adding at the end the following: "(D) the Administrator determines, with respect to the company, that the loss reserve established in accordance with subsection (c)(2) is sufficient for the company to meet its obligations to protect the Federal Government from risk of loss."; and (B) by adding at the end the following: "(3) APPLICABILITY OF CRITERIA AFTER DESIGNATION.—The Administrator may revoke the designation of a certified development company as a premier certified lender under this section at any time, if the Administrator determines that the certified development company does not meet any requirement described in subparagraphs (A) through (D) of paragraph (2)."; (3) by striking subsection (c) and inserting the following: "(c) Loss RESERVE. — "(1) ESTABLISHMENT. —^A company designated as a premier certified lender shall establish a loss reserve for financing approved pursuant to this section. "(2) AMOUNT. — The amount of each loss reserve established under paragraph (1) shall be 10 percent of the amount of the company's exposure, as determined under subsection (b)(2)(C). "(3) ASSETS. —Each loss reserve established under paragraph (1) shall be comprised of— "(A) segregated funds on deposit in an account or accounts with a federally insured depository institution or institutions selected by the company, subject to a collateral assignment in favor of, and in a format acceptable to, the Administration; "(B) irrevocable letter or letters of credit, with a collateral assignment in favor of, and a commercially reasonable format acceptable to, the Administration; or "(C) any combination of the assets described in subparagraphs (A) and (B). "(4) CONTRIBUTIONS. — The company shall make contributions to the loss reserve, either cash or letters of credit as provided above, in the following amounts and at the following intervals: "(A) 50 percent when a debenture is closed. "(B) 25 percent additional not later than 1 year after a debenture is closed. "(C) 25 percent additional not later than 2 years after a debenture is closed. "(5) REPLENISHMENT. —If a loss has been sustained by the Administration, any portion of the loss reserve, and other funds provided by the premier company as necessary, may be used to reimburse the Administration for the premier company's 10 percent share of the loss as provided in subsection (b)(2)(C). If the company utilizes the reserve, within 30 days it shall replace an equivalent amount of funds. " (6) DISBURSEMENTS. — The Administration shall allow the certified development company to withdraw from the loss reserve amounts attributable to any debenture that has been repaid."; (4) in subsection (d)(1), by striking "to approve loans" and inserting "to approve, authorize, close, service, foreclose, litigate (except that the Administration may monitor the conduct of