H. R. 4818—655
‘‘(C) JUDICIAL
REVIEW
OF
SUSPENSION
PRIOR
TO
HEARING.—Not later than 10 days after a management
official is suspended or prohibited from participation under
subparagraph (A), the management official may apply to
an appropriate district court for a stay of the suspension
or prohibition pending the completion of the administrative
proceedings pursuant to a notice of intent to remove served
upon the management official under paragraph (2).
‘‘(4) AUTHORITY TO SUSPEND ON CRIMINAL CHARGES.—
‘‘(A) IN GENERAL.—If a management official is charged
in any information, indictment, or complaint authorized
by a United States attorney, with a felony involving dishon-
esty or breach of trust, the Administrator may, by written
notice served upon the management official, suspend the
management official from office or prohibit the manage-
ment official from further participation in any manner
in the management or conduct of the affairs of the small
business lending company or non-Federally regulated
lender.
‘‘(B) EFFECTIVENESS.—A suspension or prohibition
under subparagraph (A) shall remain in effect until the
information, indictment, or complaint is finally disposed
of, or until terminated by the Administrator or upon an
order of a district court.
‘‘(C) AUTHORITY UPON CONVICTION.—If a judgment of
conviction with respect to an offense described in subpara-
graph (A) is entered against a management official, then
at such time as the judgment is not subject to further
judicial review (and for purposes of this subparagraph shall
not include any petition for a writ of habeas corpus), the
Administrator may issue and serve upon the management
official an order removing the management official, effective
upon service of a copy of the order upon the small business
lending company or non-Federally regulated lender.
‘‘(D) AUTHORITY UPON DISMISSAL OR OTHER DISPOSI-
TION.—A finding of not guilty or other disposition of charges
described in subparagraph (A) shall not preclude the
Administrator from instituting proceedings under sub-
section (e) or (f).
‘‘(5) NOTIFICATION TO SMALL BUSINESS LENDING COMPANY
OR
A
NON-FEDERALLY
REGULATED
LENDER.—Copies of each
notice required to be served on a management official under
this section shall also be served upon the small business lending
company or non-Federally regulated lender involved.
‘‘(6) FINAL AGENCY ACTION AND JUDICIAL REVIEW.—
‘‘(A) ISSUANCE OF ORDERS.—After a hearing under this
subsection, and not later than 30 days after the Adminis-
trator notifies the parties that the case has been submitted
for final decision, the Administrator shall render a decision
in the matter (which shall include findings of fact upon
which its decision is predicated), and shall issue and cause
to be served upon each party to the proceeding an order
or orders consistent with this section. The decision of the
Administrator shall constitute final agency action for pur-
poses of chapter 7 of title 5, United States Code.
H. R. 4818—656
‘‘(B) JUDICIAL REVIEW.—An adversely aggrieved party
shall have 20 days from the date of issuance of the order
to seek judicial review in an appropriate district court.
‘‘(h) APPOINTMENT OF RECEIVER.—
‘‘(1) In any proceeding under subsection (f)(4) or subsection
(g)(6)(C), the court may take exclusive jurisdiction of a small
business lending company or a non-Federally regulated lender
and appoint a receiver to hold and administer the assets of
the company or lender.
‘‘(2) Upon request of the Administrator, the court may
appoint the Administrator as a receiver under paragraph (1).
‘‘(i) POSSESSION OF ASSETS.—
‘‘(1) If a small business lending company or a non-Federally
regulated lender is not in compliance with capital requirements
or is insolvent, the Administrator may take possession of the
portfolio of loans guaranteed by the Administrator and sell
such loans to a third party by means of a receiver appointed
under subsection (h).
‘‘(2) If a small business lending company or a non-Federally
regulated lender is not in compliance with capital requirements
or is insolvent or otherwise operating in an unsafe and unsound
condition, the Administrator may take possession of servicing
activities of loans that are guaranteed by the Administrator
and sell such servicing rights to a third party by means of
a receiver appointed under subsection (h).
‘‘(j) PENALTIES AND FORFEITURES.—
‘‘(1) Except as provided in paragraph (2), a small business
lending company or a non-Federally regulated lender which
violates any regulation or written directive issued by the
Administrator regarding the filing of any regular or special
report shall pay to the United States a civil penalty of not
more than $5,000 for each day of the continuance of the failure
to file such report, unless it is shown that such failure is
due to reasonable cause and not due to willful neglect. The
civil penalties under this subsection may be enforced in a
civil action brought by the Administrator. The penalties under
this subsection shall not apply to any affiliate of a small busi-
ness lending company that procures at least 10 percent of
its annual purchasing requirements from small manufacturers.
‘‘(2) The Administrator may by rules and regulations that
shall be codified in the Code of Federal Regulations, after
an opportunity for notice and comment, or upon application
of an interested party, at any time previous to such failure,
by order, after notice and opportunity for hearing which shall
be conducted pursuant to sections 554, 556, and 557 of title
5, United States Code, exempt in whole or in part, any small
business lending company or non-Federally regulated lender
from paragraph (1), upon such terms and conditions and for
such period of time as it deems necessary and appropriate,
if the Administrator finds that such action is not inconsistent
with the public interest or the protection of the Administration.
The Administrator may for the purposes of this section make
any alternative requirements appropriate to the situation.’’.