
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: 15USC689n]

 
                      TITLE 15--COMMERCE AND TRADE
 
             CHAPTER 14B--SMALL BUSINESS INVESTMENT PROGRAM
 
              SUBCHAPTER III--INVESTMENT DIVISION PROGRAMS
 
               Part B--New Markets Venture Capital Program
 
Sec. 689n. Unlawful acts and omissions; breach of fiduciary duty


(a) Parties deemed to commit a violation

    Whenever any New Markets Venture Capital company violates any 
provision of this chapter, of a regulation issued under this chapter, or 
of a participation agreement entered into under this chapter, by reason 
of its failure to comply with its terms or by reason of its engaging in 
any act or practice that constitutes or will constitute a violation 
thereof, such violation shall also be deemed to be a violation and an 
unlawful act committed by any person who, directly or indirectly, 
authorizes, orders, participates in, causes, brings about, counsels, 
aids, or abets in the commission of any acts, practices, or transactions 
that constitute or will constitute, in whole or in part, such violation.

(b) Fiduciary duties

    It shall be unlawful for any officer, director, employee, agent, or 
other participant in the management or conduct of the affairs of a New 
Markets Venture Capital company to engage in any act or practice, or to 
omit any act or practice, in breach of the person's fiduciary duty as 
such officer, director, employee, agent, or participant if, as a result 
thereof, the company suffers or is in imminent danger of suffering 
financial loss or other damage.

(c) Unlawful acts

    Except with the written consent of the Administrator, it shall be 
unlawful--
        (1) for any person to take office as an officer, director, or 
    employee of any New Markets Venture Capital company, or to become an 
    agent or participant in the conduct of the affairs or management of 
    such a company, if the person--
            (A) has been convicted of a felony, or any other criminal 
        offense involving dishonesty or breach of trust; or
            (B) has been found civilly liable in damages, or has been 
        permanently or temporarily enjoined by an order, judgment, or 
        decree of a court of competent jurisdiction, by reason of any 
        act or practice involving fraud, or breach of trust; and

        (2) for any person \1\ continue to serve in any of the 
    capacities described in paragraph (1), if--
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    \1\ So in original. Probably should be followed by ``to''.
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            (A) the person is convicted of a felony, or any other 
        criminal offense involving dishonesty or breach of trust; or
            (B) the person is found civilly liable in damages, or is 
        permanently or temporarily enjoined by an order, judgment, or 
        decree of a court of competent jurisdiction, by reason of any 
        act or practice involving fraud or breach of trust.

(Pub. L. 85-699, title III, Sec. 365, as added Pub. L. 106-554, 
Sec. 1(a)(8) [Sec. 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-663.)

                       References in Text

    For definition of ``this chapter'', referred to in subsec. (a), see 
References in Text note set out under section 661 of this title.
