manner and to the same extent as a State-chartered institution of similar character by any State, county, municipality, or local taxing authority or by any Territory, dependency, or possession of the United States; and its real property shall be subject to special assessments for local improvements. MISCELLANEOUS SEC. 110. (a) Wherever practicable the operations of a national investment company shall be undertaken in cooperation with banks or other financial institutions, 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 financial institutions on a fee basis. (b) Each national investment company may make use, wherever practicable, of the advisory services of the Federal Reserve System and of the Department of Commerce which are available for and useful to industrial and commercial businesses, and may provide consulting and advisory services on a fee basis and have on its staff persons competent to provide such services. Subject to the supervision and direction of the Board, any Federal Reserve bank is authorized to act as a depository or fiscal agent for any company organized under this Act. Such companies may invest funds not reasonably needed for their current operations in direct obligations of, or obligations guaranteed as to principal and interest by the United States. (c) The Board is authorized to prescribe regulations governing the operations of national investment companies and to carry out the provisions of this Act in accordance with the purposes of this Act. Each national investment company shall be subject to examinations made by direction of the Board by examiners selected or approved by the Board, and the cost of such examinations, including the compensation of the examiners, may in the discretion of the Board be assessed against the company examined and when so assessed shall be paid by such company. Every such company shall make such reports to the Board at such times and in such form as the Board may require. (d) The Secretary of Commerce is authorized to advise and assist in promoting national investment companies. (e) Should any national investment company violate or fail to comply with any of the provisions of this Act or of regulations prescribed hereunder, all of its rights, privileges, and franchises derived herefrom may thereby be forfeited. Before any such company shall be declared dissolved, or its rights, privileges, and franchises forfeited, any noncompliance with or violation of this Act shall, however, be determined and adjudged by a court of the United States of competent jurisdiction in a suit brought for that purpose in the district or territory in which the principal office of such company is located, which suit shall be brought by the United States at the instance of the Board or the Attorney General. (f) Whenever in the judgment of the Board any person has engaged or is about to engage in any acts or practices which constitute or will constitute a violation of any provision of this Act or of any regulation thereunder, the Board may make application to the proper district court of the United States, or the United States courts of any Territory or other place subject to the jurisdiction of the United States, for an order enjoining such acts or practices or for an order enforcing compliance with such provision, and such courts shall have jurisdiction of such actions and upon a showing by the Board that such person has engaged or is about to engage in any such acts or practices a permanent or temporary injunction, restraining order, or other order shall be granted without bond. (g) Any national investment company may at any time within the two years next previous to the date of the expiration of its corporate existence, by a vote of the shareholders owning two-thirds of its stock, apply to the Board for approval to extend the period of its corporate existence for a term of not more than thirty years, and upon approval of the Board as provided in section 101 hereof such company shall have its corporate existence extended for such period unless sooner dissolved by the act of the shareholders owning twothirds of its stock, or by an Act of Congress or unless its franchise becomes forfeited as herein provided. (h) Nothing in this Act or in any other provision of law shall be deemed to impose any liability on the United States or on any Federal Reserve bank with respect to any obligations entered into, or stocks issued, or commitments made, by any company organized under this Act. TITLE II-CHANGES IN FEDERAL RESERVE AUTHORITY REPEAL OF SECTION 13B OF THE FEDERAL RESERVE ACT SEC. 201. Effective one year after the date of enactment of this Act, section 13b of the Federal Reserve Act (12 U. S. C. 352a) is hereby repealed; but such repeal shall not affect the power of any Federal Reserve bank to carry out, or protect its interest under, under agreement theretofore made or transaction entered into in carrying on operations under that section. RETURN OF FUNDS TO TREASURY SEC. 202. (a) Within sixty days after the enactment of this Act, each Federal Reserve bank shall pay to the United States the aggregate amount which the Secretary of the Treasury has heretofore paid to such bank under the provisions of section 13b of the Federal Reserve Act; and such payment shall constitute a full discharge of any obligation or liability of the Federal bank to the United States or to the Secretary of the Treasury arising out of subsection (e) of said section 13b or out of any agreement thereunder. (b) The amounts repaid to the United States pursuant to section 202, and any remaining balance of the funds set aside in the Treasury for payments under section 13b of the Federal Reserve Act shall be covered into miscellaneous receipts. AUTHORITY TO SELL ASSETS TO NATIONAL INVESTMENT COMPANIES SEC. 203. Any national investment company organized under this Act may purchase from any Federal Reserve bank, and any Federal Reserve bank is authorized to sell to any such company, at such reasonable price as may be agreed upon, any or all of the assets heretofore or hereafter acquired by such Reserve bank under the provisions of section 13b of the Federal Reserve Act. TITLE III-MISCELLANEOUS PROVISIONS PENALTIES SEC. 301. Title 18, United States Code, section 1014, is amended by inserting the phrase "a national investment company organized under the National Investment Company Act of 1957," after the words "National farm loan association,". GEOGRAPHIC APPLICABILITY SEC. 302. The authority provided in this Act shall be applicable in the United States, including the District of Columbia and the Territories and possessions. RIGHT TO AMEND THIS ACT SEC. 303. The right to amend, alter, or repeal this Act is hereby expressly reserved. [S. 2185, 85th Cong., 1st sess.] A BILL To amend the Small Business Act of 1953 to authorize the Small Business Administration to make loans to local private nonprofit organizations formed to assist, develop, and expand the economy of the area Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 207 of the Small Business Act of 1953, as amended, is hereby amended by adding the following new subsection: "(c) The Administration is empowered to make loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) to local private nonprofit organizations (including industrial foundations, development credit corporations or similar groups) formed to assist, develop, and expand the economy of the area: Provided, however, That all such loans shall be of such sound value or so secured as reasonably to assure repayment: And provided further, That no such loans including renewals and extensions thereof may be made for a period or periods exceeding twenty years." [S. 2286, 85th Cong., 1st sess.] A BILL To assist State programs for small business, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 207 of the Small Business Act of 1953, as amended, is hereby amended by adding the following new subsections: "(c) The Administration is empowered to purchase investment securities issued by State chartered development credit or finance corporations formed to assist, develop, and expand the economy of a State. The Administration shall not purchase investment securities in an amount in excess of the amount of such securities which are held by purchasers other than the Administration, but in no event shall the Administration purchase more than $5,000,000 of investment securities in any one State. Investment securities purchased by the Administration shall bear interest at a rate not less than the total of one-quarter of 1 per centum per annum added to the rate of interest paid by the Administration on funds obtained from the Secretary of the Treasury as provided in subsection (d) of this section, and shall have maturity dates of twenty years or less. The term investment securities' as used in this subsection shall mean obligations evidencing the indebtedness of any State chartered development credit or finance corporation in the form of bonds, notes, and/or debentures as may be further defined by regulations of the Administration. "(d) In order to finance activities under subsection (c) of this section, the Administration is authorized and empowered to issue to the Secretary of the Treasury, from time to time and to have outstanding at any one time, notes and other obligations in an amount not exceeding $27,500,000. Such obligations shall be in such forms and denominations, have such maturities and be subject to such terms and conditions as may be prescribed by the Administration, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States of comparable maturities as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations of the Administration to be issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Funds borrowed under this section and any proceeds shall constitute a revolving fund which may be used by the Administration in the exercise of its functions under subsection (c) of this section." SEC. 2. Effective one year after the date of enactment of this Act, section 13b of the Federal Reserve Act (12 U. S. C. 352a) is hereby repealed; but such repeal shall not affect the power of any Federal Reserve bank to carry out. or protect its interest under, any agreement theretofore made or transaction entered into in carrying on operations under that section. Within sixty days after the enactment of this Act, each Federal Reserve bank shall pay to the United States the aggregate amount which the Secretary of the Treasury has heretofore paid to such bank under the provisions of section 13b of the Federal Reserve Act; and such payment shall constitute a full discharge of any obligation or liability of the Federal bank to the United States or to the Secretary of the Treasury arising out of subsection (e) of said section 13b or out of any agreement thereunder. The amounts repaid to the United States pursuant to this section and any remaining balance of the funds set aside in the Treasury for payments under section 13b of the Federal Reserve Act shall be covered into miscellaneous receipts. SEC. 3. Subsection (b) of section 207 of the Small Business Act of 1953, as amended, is amended by adding the following new subparagraph: "(6) to make grants to any State government, or any agency thereof, State chartered development credit or finance corporations, land-grant colleges and universities, and colleges and schools of business, engineering, commerce, or agriculture for studies, research, and counseling concerning the managing, financing, and operation of small business enterprises and technical and statisti- [S. 3191, 85th Cong., 2d sess.] A BILL to create a Small Business Capital Bank System to make available to small business Be it enacted by the Senate and House of Representatives of the United States TITLE I-SHORT TITLE, STATEMENT OF PURPOSE, AND DEFINITIONS SHORT TITLE SEC. 101. This Act, divided into titles and sections according to the following TABLE OF CONTENTS TITLE I-SHORT TITLE, STATEMENT OF PURPOSE, AND DEFINITIONS Sec. 401. Organization of associations. Sec. 403. Articles of incorporation. Sec. 405. Secretary-treasurer. Sec. 406. Payment of expenses and salaries. Sec. 409. Investment by associations in stock of banks. Sec. 410. Use of services of public agencies and private financial institutions. Sec. 601. Criminal penalties. TITLE VI-MISCELLANEOUS STATEMENT OF PURPOSE SEC. 102. (a) The Congress hereby finds that there is an increasing need among the small-business concerns of the United States for funds to finance their operations and to promote and facilitate their growth, expansion, and modernization; that this need must be met in the interest of a sound national economy; and that the loans which are presently available to small-business concerns from the Federal Government and from other public and private sources not only fail to meet this need but in fact, because of the burden of repayment over a relatively short period of time, frequently prevent such growth and expansion. (b) It is therefore declared to be the policy of the Congress and the purpose of this Act to improve and stimulate the national economy in general and the small-business segment thereof in particular by establishing a program under which small-business concerns in the United States can be supplied with the equity capital and long-term loan funds which they need for the sound financing of their business operations and for their growth, expansion, and modernization. DEFINITIONS SEC. 103. (a) As used in this Act (1) the term "Board" means the Small Business Capital Bank Board established by section 201; (2) the term "bank" means a small business capital bank established under section 301; (3) the term "association" means a small business investment association organized as provided in section 401; (4) the terms "district" and "small business capital bank district" mean a geological area coextensive with one of the twelve Federal Reserve districts created under section 2 of the Federal Reserve Act and existing on the date of the enactment of this Act, except that the boundaries of such districts may from time to time be readjusted by the Board after the date of the enactment of this Act to take into account more effectively the smallbusiness needs of the country; (5) the term "trading area" means a business community embracing an entire metropolitan area (as defined by the Board), or a geographical area embracing a number of municipalities when such a designation is determined by the Board to be necessary and appropriate in order to include all of an integrated business and commercial community; and (6) the terms "State" and (when used in a geographical sense) "United States" include the several States, the Territories of Alaska and Hawaii, the District of Columbia, and the Commonwealth of Puerto Rico. (b) (1) As used in this Act, the term "small-business concern" means a business concern, incorporated or unincorporated, which is not dominant in a wellestablished industry or line of business, and which meets the more detailed standards and criteria prescribed by the Board under paragraph (2). (2) As soon as practicable after the date of the enactment of this Act, the Board shall prescribe detailed standards and criteria for the definition of the term "small-business concern," which standards and criteria may be based upon, but shall not be limited to, such things as number of employees, assets, volume of sales, and other factors related to the concern's relative position in its industry or line of business. (3) The Board shall from time to time revise such standards and criteria to the extent necessary to take into account more accurately and realistically the relationship of small-business operations to the economy as a whole. Whenever such standards and criteria have been prescribed or revised with respect to any industry or line of business, the definition shall be published in the Federal Register, and for purposes of this Act shall thereafter remain in effect with respect to such industry or line of business until subsequently revised and published by the Board in accordance with the same standards and procedures as those which were applicable when it was originally prescribed. |