Page:United States Statutes at Large Volume 114 Part 5.djvu/725

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PUBLIC LAW 106-554—APPENDIX I 114 STAT. 2763A-685 SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM. Section 217(b) of the Small Business Administration Reauthorization and Amendments Act of 1994 (Public Law 103-403, 15 U.S.C. 697 note) (relating to section 508 of the Small Business Investment Act of 1958) is repealed. SEC. 306. SALE OF CERTAIN DEFAULTED LOANS. Section 508 of the Small Business Investment Act of 1958 (15 U.S.C. 697e) is amended— (1) in subsection (a), by striking "On a pilot program basis, the" and inserting "The"; (2) by redesignating subsections (d) through (i) as subsections (e) through (j), respectively; (3) in subsection (f) (as redesignated by paragraph (2)), by striking "subsection (f)" and inserting "subsection (g)"; (4) in subsection (h) (as redesignated by paragraph (2)), by striking "subsection (f)" and inserting "subsection (g)"; and (5) by inserting after subsection (c) the following: "(d) SALE OF CERTAIN DEFAULTED LOANS.— "(1) NOTICE.—I f, upon default in repayment, the Administration acquires a loan guaranteed under this section and identifies such loan for inclusion in a bulk asset sale of defaulted or repurchased loans or other financings, it shall give prior notice thereof to any certified development company which has a contingent liability under this section. The notice shall be given to the company as soon as possible after the financing is identified, but not less than 90 days before the date the Administration first makes any records on such financing available for examination by prospective purchasers prior to its offering in a package of loans for bulk sale. "(2) LIMITATIONS.—The Administration shall not offer any loan described in paragraph (1) as part of a bulk sale unless i1>- "(A) provides prospective purchasers with the opportunity to examine the Administration's records with respect to such loan; and "(B) provides the notice required by paragraph (1).". SEC. 307. LOAN LIQUIDATION. (a) LIQUIDATION AND FORECLOSURE. — Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the following: "SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS. "(a) DELEGATION OF AUTHORITY.—In accordance with this section, the Administration shall delegate to any qualified State or local development company (as defined in section 503(e)) that meets the eligibility requirements of subsection (b)(1) the authority to foreclose and liquidate, or to otherwise treat in accordance with this section, defaulted loans in its portfolio that are funded with the proceeds of debentures guaranteed by the Administration under section 503. "(b) ELIGIBILITY FOR DELEGATION. — "(1) REQUIREMENTS. — ^A qualified State or local development company shall be eligible for a delegation of authority under subsection (a) if— "(A) the company—