
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC689e]

 
                      TITLE 15--COMMERCE AND TRADE
 
             CHAPTER 14B--SMALL BUSINESS INVESTMENT PROGRAM
 
              SUBCHAPTER III--INVESTMENT DIVISION PROGRAMS
 
               Part B--New Markets Venture Capital Program
 
Sec. 689e. Issuance and guarantee of trust certificates


(a) Issuance

    The Administrator may issue trust certificates representing 
ownership of all or a fractional part of debentures issued by a New 
Markets Venture Capital company and guaranteed by the Administrator 
under this part, if such certificates are based on and backed by a trust 
or pool approved by the Administrator and composed solely of guaranteed 
debentures.

(b) Guarantee

                           (1) In general

        The Administrator may, under such terms and conditions as it 
    deems appropriate, guarantee the timely payment of the principal of 
    and interest on trust certificates issued by the Administrator or 
    its agents for purposes of this section.

                           (2) Limitation

        Each guarantee under this subsection shall be limited to the 
    extent of principal and interest on the guaranteed debentures that 
    compose the trust or pool.

                      (3) Prepayment or default

        In the event that a debenture in a trust or pool is prepaid, or 
    in the event of default of such a debenture, 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 represents in the trust or pool. Interest on 
    prepaid or defaulted debentures shall accrue and be guaranteed by 
    the Administrator only through the date of payment of the guarantee. 
    At any time during its term, a trust certificate may be called for 
    redemption due to prepayment or default of all debentures.

(c) Full faith and credit of the United States

    The full faith and credit of the United States is pledged to pay all 
amounts that may be required to be paid under any guarantee of a trust 
certificate issued by the Administrator or its agents under this 
section.

(d) Fees

    The Administrator shall not collect a fee for any guarantee of a 
trust certificate under this section, but any agent of the Administrator 
may collect a fee approved by the Administrator for the functions 
described in subsection (f)(2) of this section.

(e) Subrogation and ownership rights

                           (1) Subrogation

        In the event the Administrator pays a claim under a guarantee 
    issued under this section, it shall be subrogated fully to the 
    rights satisfied by such payment.

                        (2) Ownership rights

        No Federal, State, or local law shall preclude or limit the 
    exercise by the Administrator of its ownership rights in the 
    debentures residing in a trust or pool against which trust 
    certificates are issued under this section.

(f) Management and administration

                          (1) Registration

        The Administrator may provide for a central registration of all 
    trust certificates issued under this section.

                    (2) Contracting of functions

        (A) In general

            The Administrator may contract with an agent or agents to 
        carry out on behalf of the Administrator the pooling and the 
        central registration functions provided for in this section 
        including, notwithstanding any other provision of law--
                (i) maintenance, on behalf of and under the direction of 
            the Administrator, of such commercial bank accounts or 
            investments in obligations of the United States as may be 
            necessary to facilitate the creation of trusts or pools 
            backed by debentures guaranteed under this part; and
                (ii) the issuance of trust certificates to facilitate 
            the creation of such trusts or pools.

        (B) Fidelity bond or insurance requirement

            Any agent performing functions on behalf of the 
        Administrator under this paragraph shall provide a fidelity bond 
        or insurance in such amounts as the Administrator determines to 
        be necessary to fully protect the interests of the United 
        States.

                (3) Regulation of brokers and dealers

        The Administrator may regulate brokers and dealers in trust 
    certificates issued under this section.

                     (4) Electronic registration

        Nothing in this subsection may be construed to prohibit the use 
    of a book-entry or other electronic form of registration for trust 
    certificates issued under this section.

(Pub. L. 85-699, title III, Sec. 356, as added Pub. L. 106-554, 
Sec. 1(a)(8) [Sec. 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-658.)

                  Section Referred to in Other Sections

    This section is referred to in section 689f of this title.
