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(2)(A) Except as provided in subparagraph (B),
equity instruments purchased or guaranteed under
this section shall be senior in priority for all pur-
poses to all non-Federal equity interests in a licensee
unless the Corporation, in the exercise of reasonable
investment prudence and in considering the financial
soundness of the qualified concern, determines oth-
erwise.
(B) The equity interests of a university or con-
sortium of universities, or of a State or instrumen-
tality of a State, in a qualified concern shall be
equal in priority to Federal equity interests for all
purposes unless the Corporation, in the exercise of
reasonable investment prudence and in considering
the financial soundness of the qualified concern, de-
termines otherwise.
(3) Equity instruments purchase or guaranteed
under this section shall be redeemed not later than
10 years after their date of issuance for an amount
equal to 100 percent of the original issue price plus
any accrued and unpaid dividends. In order to facili-
tate the orderly liquidation of a qualified concern’s
investments, redemption of such equity instruments
may be extended by mutual consent for no more
than 5 years beyond such expiration date.
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(4) The payment of dividends on equity instru-
ments purchased or guaranteed under this section
may be deferred by the qualified concern until such
time as, and to the extent that, the qualified concern
realizes earnings and returns of capital available for
distribution. Accumulated and unpaid dividends on
such equity instruments shall be paid by the quali-
fied concern before or at the time of redemption of
the equity instruments and before any distribution
of net realized earnings and returns of capital of the
qualified concern to its non-Federal equity investors.
(5) For purposes of this subsection, the term
‘‘dividends’’ means dividends on preferred stock and
returns on preferred limited partnership interests or
other similar securities.
(c) USE OF PAYMENTS.—Amounts received by the
Corporation from the payment of dividends and the re-
demption of equity instruments pursuant to this section
shall be divided as follows:
(1) 60 percent of such amounts shall be depos-
ited in the Technology Transfer Investment Fund
and shall be available solely for carrying out the pur-
poses of this Act.
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(2) 40 percent of such amounts shall be treated
as earnings of the Corporation and available for dis-
tribution as determined by the Board.
SEC. 305. TECHNICAL ASSISTANCE FOR LENDERS AND BOR-
ROWERS.
The Corporation shall, upon request, provide tech-
nical assistance and services, as appropriate and needed,
to lenders and borrowers under this title, and shall ensure
that such lenders and borrowers have ready access to ap-
propriate assistance in order to aid such lenders and bor-
rowers in achieving the purposes of this Act. The Corpora-
tion may charge fees for technical assistance and services
provided under this section in amounts sufficient to cover
the reasonable cost of such assistance and services. The
Corporation may waive such fees on a case-by-case basis.
SEC. 306. OUTREACH TO SPECIFIC AREAS.
The Corporation shall seek to ensure that qualified
concerns located in areas determined by the Secretary of
Commerce to—
(1) have a depressed economy or chronically
high unemployment,
(2) have been adversely affected by the loss of
jobs attributable to the North American Free Trade
Agreement, or
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(3) be designated Federal empowerment zones
or enterprise communities,
are notified of the availability assistance through the pro-
gram established under this title and, to the extent prac-
ticable, to encourage and facilitate the participation of
such qualified concerns in such program.
SEC. 307. LIABILITY.
Nothing in this title or in any other provision of law
imposes any liability on the United States with respect to
any obligations entered into, or stocks issued, or commit-
ments made, by the Corporation or any qualified concern
operating under the provisions of this title.
SEC. 308. INJUNCTIVE RELIEF.
If the Corporation determines that a qualified con-
cern has engaged, or is about to engage, in any acts or
practices which constitute a violation of any provision of
this title, or of any provision of a contract entered into
under authority provided under this title, the Corporation
may apply to the appropriate district court of the United
States for injunctive relief.
SEC. 309. PERFORMANCE MEASURES; ANNUAL REPORT.
(a) PERFORMANCE MEASURES.—The performance of
the program established under this title shall be evaluated
relative to progress made in achieving its purposes and
shall be measured in relevant and meaningful terms such
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as significant accomplishments in advancing technology,
businesses formed and financed, jobs created, taxes gen-
erated, licenses granted and maintained, capital invested,
and other criteria the Secretary may deem appropriate.
(b) ANNUAL REPORT.—The Secretary shall prepare
and submit annually a report to the Congress containing
a full and detailed account of operations under this title.
Such report shall include—
(1) an assessment of progress made in achiev-
ing the purposes of this subtitle;
(2) performance measures established under
subsection (a);
(3) an audit setting forth the amount, type, re-
cipient, and source of disbursements, receipts, and
losses sustained by the Corporation as a result of
operations under this title during the preceding fis-
cal year and since inception of the program;
(4) the Corporation’s plans to ensure the provi-
sion of financing to all areas of the country and to
all qualified concerns, and plans to notify and to en-
courage and facilitate the participation of qualified
concerns, including steps taken to accomplish those
goals;