123STA T . 1 54PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9(D)TheAdmin i stra t o risa u thori z ed to c ontract w ith p ri v ate sector f iduciar y and custom dia l a g ents as necessary to operate the Authority . ( 2 ) GUAR A NTE E P R OC E S S. — (A) The Administrator shall esta b lish , by rule, a process in which private sector entities may apply to the Administration for a F ederal guarantee on pools of first lien position 504 loans that are to be sold to third - party investors. ( B ) The Administrator is authorized to contract with private sector fiduciary and custom dial agents as necessary to operate the Authority. ( 3 ) R ESPONS IB I L ITIES.— (A) The Administrator shall establish, by rule, a process in which private sector entities may apply to the S BA for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors. (B) The rule under this section shall provide for a process for the Administrator to consider and ma k e decisions regarding whether to e x tend a Federal guarantee referred to in clause (i). Such rule shall also provide that
(i) The seller of the pools purchasing a guarantee under this section retains not less than 5 percent of the dollar amount of the pools to be sold to third- party investors. (ii) The Administrator shall charge fees, upfront or annual, at a specified percentage of the loan amount that is at such a rate that the cost of the program under the Federal C redit Reform Act of 19 90 (title V of the Congressional Budget and I mpoundment Con- trol Act of 19 7 4
2 U .S.C. 6 61) shall be e q ual to zero. (iii) The Administrator may guarantee not more than $ 3,000,000,000 of pools under this authority. (C) The Administrator shall establish documents, legal covenants, and other required documentation to protect the interests of the United States. (D) The Administrator shall establish a process to receive and disburse funds to entities under the authority established in this section. (d) L I M ITATIONS.— (1) The Administrator shall ensure that entities purchasing a guarantee under this section are using such guarantee for the purpose of selling 504 first lien position pools to third- party investors. (2) If the Administrator finds that any such guarantee was used for a purpose other than that specified in paragraph (1), the Administrator shall— (A) prohibit the purchaser of the guarantee or its affili- ates (within the meaning of the regulations under 13 CFR 121.103) from using the authority of this section in the future; and (B) take any other actions the Administrator, in con- sultation with the Attorney General of the United States deems appropriate. (e) OV ERSI GH T.—The Administrator shall submit a report to Congress not later than the third business day of each month setting forth each of the following: Reports.D e adlin es. Re gu lations. Regulations.
