PUBLIC LAW 102-366—SEPT. 4, 1992 106 STAT. 1013 of its profit participation at the same time as other investors in the company. "(2) The formula shall not be modified due to an increase in the private capital unless the increase is provided for in a proposed business plan submitted to and approved by the A(uninistration. " (3) After distributions have been made, the Administration's share of such distributions shall not be recomputed or reduced. "(4) If the company prepays or repays the participating securities, the Administration shall receive the requisite participation upon the distribution of profits due to any investments held by the company on the date of the repayment or prepayment. "(5) If a company is Ucensed on or before March 31, 1993, it may elect to exclude froza profit participation all investments held on that date and in such case the Administration shall determine the amount of the future expenses attributable to such prior investment: Provided, That if the company issues participating securities to refinance debentures as authorized m subsection (g)(6), it may not elect to exclude profits on existing investments under this paragraph.". SEC. 404. POOLING. Section 321 of the Small Business Investment Act of 1958 (15 U.S.C. 6871) is amended to read as follows: "SEC. 321. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES. "(a) The Administration is authorized to issue trust certificates representing ownership of all or a firactional part of debentures issued by small business investment companies, including companies operating under the authority of section 301(d), and guaranteed by the Administration under this Act, or participating securities which are issued by such companies and purchased and guaranteed pursuant to section 303(g): 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 or guaranteed participating securities. "(b) 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 or the redemption price of and priority pa3mients on the participating securities, which compose the trust or pool. In the event that a debenture in such trust or pool is prepaid, or peirticipating securities are redeemed, either voluntarily or involuntarily, or in the event of default of a debenture or voluntary or involuntary redemption of a participating security, 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 or redeemed participating security and priority payments represent in the trust or pool. Interest on prepaid or defaulted debentures, or priority payments on participating securities, 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 csdled for redemption due to prepayment or default of all debentures or redemption, whether voluntary or involuntary, of all participating securities residing in the pool.
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