Page:United States Statutes at Large Volume 75.djvu/793

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[75 Stat. 753]
[75 Stat. 753]
PUBLIC LAW 87-000—MMMM. DD, 1961

76 STAT.]

753

PUBLIC LAW 87-341-OCT. 3, 1961

with other investors, incorporated or unincorporated, through agreements to participate on an immediate basis." SEC. 6. Section 305(b) of the Small Business Investment Act of 1958 is amended by striking out "other lending institutions" and inserting in lieu thereof "other lenders, incorporated or unincorporated,". SEC. 7. (a) Section 306 of the Small Business Investment Act of 1958 is amended by striking out the matter following "exceed" and inserting in lieu thereof the following: "(1) 20 per centum of the combined capital and surplus of such small business investment company authorized by this Act, or (2) $500,000, whichever is the lesser." (b) The amendment made by subsection (a) shall apply only with respect to obligations and securities acquired by a small business investment company on or after the date of the enactment of this Act; except that such amendment shall not apply with respect to any obligations or securities so acquired pursuant to a commitment issued before such date. SEC. 8. Section 308(a) of the Small Business Investment Act of 1958 is amended to read as follows: " (a) Wherever practicable the operations of a small business investment company, including the generation of business, may be undertaken in cooperation with banks or other investors or lenders, incorporated or unincorporated, and any servicing or initial investigation required for loans or acquisitions of securities by the company under the provisions of this Act may be handled through such banks or other investors or lenders on a fee basis. Any small business investment company may receive fees for services rendered to such banks and other mvestors and lenders." SEC. 9. Title III of the Small Business Investment Act of 1958 is amended by adding after section 308 the following new sections: SUSPENSION o r

L I C E N S E S; C E A S E A N D D E S I S T ORDERS

"SEC. 309. (a) A license may be suspended by the Administration— "(1) for false statements knowingly made in any written statement re(]^uired under this title, or under any regulation issued under this title by the Administration, for the purpose of obtaining the license; "(2) if any written statement required under this title, or under any regulation issued under this title by the Administrator, for the purpose of obtaining the license, fails to state a material fact necessary in order to make the statement not misleading in the light of the circumstances under which the statement was made; " (3) for willful or repeated violation of, or willful or repeated failure to observe, any provision of this Act; "(4) for willful or repeated violation of, or willful or repeated failure to observe, any rule or regulation of the Administration authorized by this Act; or " (5) for violation of, or failure to observe, any cease and desist order issued by the Administration under this section. "(b) Where a licensee has not complied with any provision of this Act, or of any reflation issued under this Act by the Administration, the Administration may order such licensee to cease and desist from such action or failure to act; and the Administration may further order such licensee to take such action or to refrain from such action as the Administration deems necessary to ensure compliance with the Act and the regulations. The Administration may also suspend

72 Stat. 693. 15 USC 685.

Limitation. IS u s e 686.

15 USC 687. eooperation with banks or other investors.

15 USC 687.