Page:United States Statutes at Large Volume 114 Part 5.djvu/726

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114 STAT. 2763A-686 PUBLIC LAW 106-554—APPENDIX I "(i) has participated in the loan Hquidation pilot program established by the Small Business Programs Improvement Act of 1996 (15 U.S.C. 695 note), as in effect on the day before promulgation of final regulations by the Administration implementing this section; "(ii) is participating in the Premier Certified Lenders Program under section 508; or "(iii) during the 3 fiscal years immediately prior to seeking such a delegation, has made an average of not less than 10 loans per year that are funded with the proceeds of debentures guaranteed under section 503; and "(B) the company— "(i) has one or more employees— "(I) with not less than 2 years of substantive, decision-making experience in administering the liquidation and workout of problem loans secured in a manner substantially similar to loans funded with the proceeds of debentures guaranteed under section 503; and "(II) who have completed a training program on loan liquidation developed by the Administration in conjunction with qualified State and local development companies that meet the requirements of this paragraph; or "(ii) submits to the Administration documentation demonstrating that the company has contracted with a qualified third-party to perform any liquidation activities and secures the approval of the contract by the Administration with respect to the qualifications of the contractor and the terms and conditions of liquidation activities. "(2) CONFIRMATION.—On request the Administration shall examine the qualifications of any compsiny described in subsection (a) to determine if such company is eligible for the delegation of authority under this section. If the Administration determines that a company is not eligible, the Administration shall provide the company with the reasons for such ineligibility. " (c) SCOPE OF DELEGATED AUTHORITY.— "(1) IN GENERAL.— Each qualified State or local development company to which the Administration delegates authority under section (a) may with respect to any loan described in subsection (a)— "(A) perform all liquidation and foreclosure functions, including the purchase in accordance with this subsection of any other indebtedness secured by the property securing the loan, in a reasonable and soiuid manner according to commercially accepted practices, pursuant to a liquidation plan approved in advance by the Administration under paragraph (2)(A); "(B) litigate any matter relating to the performance of the functions described in subparagraph (A), except that the Administration may— "(i) defend or bring any claim if—