118 STAT. 1762 PUBLIC LAW 108–373—OCT. 27, 2004 SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT. (a) ASSISTANCE TO MANUFACTURING COMMUNITIES.—Section 209(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(c)) is amended— (1) in paragraph (3), by striking ‘‘or’’; (2) in paragraph (4), by striking the period at the end and inserting ‘‘; or’’; and (3) by adding at the end the following: ‘‘(5) the loss of manufacturing jobs, for reinvesting in and diversifying the economies of the communities.’’. (b) DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT; SPECIAL PROVISIONS RELATING TO REVOLVING LOAN FUND GRANTS.—Section 209 of the Public Works and Economic Develop ment Act of 1965 (42 U.S.C. 3149) is amended by striking subsection (d) and inserting the following: ‘‘(d) SPECIAL PROVISIONS RELATING TO REVOLVING LOAN FUND GRANTS.— ‘‘(1) IN GENERAL.—The Secretary shall promulgate regula tions to maintain the proper operation and financial integrity of revolving loan funds established by recipients with assistance under this section. ‘‘(2) EFFICIENT ADMINISTRATION.—The Secretary may— ‘‘(A) at the request of a grantee, amend and consolidate grant agreements governing revolving loan funds to provide flexibility with respect to lending areas and borrower cri teria; ‘‘(B) assign or transfer assets of a revolving loan fund to third party for the purpose of liquidation, and the third party may retain assets of the fund to defray costs related to liquidation; and ‘‘(C) take such actions as are appropriate to enable revolving loan fund operators to sell or securitize loans (except that the actions may not include issuance of a Federal guaranty by the Secretary). ‘‘(3) TREATMENT OF ACTIONS.—An action taken by the Sec retary under this subsection with respect to a revolving loan fund shall not constitute a new obligation if all grant funds associated with the original grant award have been disbursed to the recipient. ‘‘(4) PRESERVATION OF SECURITIES LAWS.— ‘‘(A) NOT TREATED AS EXEMPTED SECURITIES.—No secu rities issued pursuant to paragraph (2)(C) shall be treated as exempted securities for purposes of the Securities Act of 1933 (15 U.S.C. 77a et seq.) or the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), unless exempted by rule or regulation of the Securities and Exchange Commis sion. ‘‘(B) PRESERVATION.—Except as provided in subpara graph (A), no provision of this subsection or any regulation promulgated by the Secretary under this subsection super sedes or otherwise affects the application of the securities laws (as the term is defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) or the rules, regulations, or orders of the Securities and Exchange Commission or a self regulatory organization under that Commission.’’. Regulations.
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