‘‘(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 Administration or its agents under this section.
‘‘(d) FEES.—The Administration shall not collect a
fee for any guarantee of a trust certificate under this sec-
tion, but any agent of the Administration may collect a
fee approved by the Administration for the functions de-
scribed in subsection (f)(2).
‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.—
‘‘(1) SUBROGATION.—In the event the Adminis-
tration 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 Administration of its ownership rights in the de-
bentures residing in a trust or pool against which
trust certificates are issued under this section.
‘‘(f) MANAGEMENT AND ADMINISTRATION.—
‘‘(1) REGISTRATION.—
‘‘(A) IN
GENERAL.—The Administration
may provide for a central registration of all
trust certificates issued under this section.
‘‘(B) FORMS OF REGISTRATION.—Nothing
in this subsection shall prohibit the use of a
book entry or other electronic form of registra-
tion for trust certificates.
‘‘(2) CONTRACTING OF FUNCTIONS.—
‘‘(A) IN
GENERAL.—The Administration
may contract with an agent or agents to carry
out on behalf of the Administration 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 Administration,
of such commercial bank accounts or in-
vestments in obligations of the United
States as may be necessary to facilitate the
creation of trusts or pools backed by de-
bentures 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 RE-
QUIREMENT.—Any agent performing functions
on behalf of the Administration under this
paragraph shall provide a fidelity bond or insur-
ance in such amounts as the Administration de-
termines to be necessary to fully protect the in-
terests of the United States.
‘‘(3) APPLICABILITY OF THE SECURITIES EX-
CHANGE
ACT
OF
1934.—Notwithstanding section
3(a)(42) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(42)), trust certificates issued under
this section shall not be treated as government secu-
rities for the purposes of that Act.
‘‘SEC. 357. FEES.
‘‘Except as provided in section 356(d), the Adminis-
tration may charge such fees as it deems appropriate with
respect to any guarantee or grant issued under this part.
‘‘SEC. 358. OPERATIONAL ASSISTANCE GRANTS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—In accordance with this sec-
tion, the Administration may make grants to New
Markets Venture Capital companies and to other en-
tities, as authorized by this part, to provide oper-
ational assistance to smaller enterprises financed, or
expected to be financed, by such companies or other
entities.
‘‘(2) TERMS.—Grants made under this sub-
section shall be made over a multiyear period not to
exceed 10 years, under such other terms as the Ad-
ministration may require.
‘‘(3) GRANTS TO SPECIALIZED SMALL BUSINESS
INVESTMENT COMPANIES.—
‘‘(A) AUTHORITY.—In accordance with
this section, the Administration may make
grants to specialized small business investment
companies to provide operational assistance to
smaller enterprises financed, or expected to be
financed, by such companies after the effective
date of the New Markets Venture Capital Pro-
gram Act of 2000.
‘‘(B) USE OF FUNDS.—
‘‘(i) IN GENERAL.—The proceeds of a
grant made under this paragraph may be
used by the company receiving such grant
only to provide operational assistance in
connection with an equity investment
(made with capital raised after the effec-
tive date of the New Markets Venture Cap-
ital Program Act of 2000) in a business lo-
cated in a low- or moderate-income geo-
graphic area.
‘‘(ii) 
ADDITIONAL
LIMITATION.—
Operational assistance referred to in clause
(i) may not be provided in connection with
more than 1 equity investment.
‘‘(C) SUBMISSION OF PLANS.—A special-
ized small business investment company shall
be eligible for a grant under this section only if
the company submits to the Administrator, in
such form and manner as the Administrator
may require, a plan for use of the grant.
‘‘(4) GRANT AMOUNT.—
‘‘(A) NEW
MARKETS
VENTURE
CAPITAL
COMPANIES.—The amount of a grant made
under this subsection to a New Markets Ven-
ture Capital company shall be equal to the re-
sources (in cash or in kind) raised by the com-
pany under section 354(d)(2).
‘‘(B) OTHER ENTITIES.—The amount of a
grant made under this subsection to any entity
other than a New Markets Venture capital com-
pany shall be equal to the resources (in cash or
in kind) raised by the entity in accordance with
the requirements applicable to New Markets
Venture Capital companies set forth in section
354(d)(2).
‘‘(5) PRO RATA REDUCTIONS.—If the amount
made available to carry out this section is insuffi-
cient for the Administration to provide grants in the
amounts provided for in paragraph (4), the Adminis-
tration shall make pro rata reductions in the
amounts otherwise payable to each company and en-
tity under such paragraph.
‘‘(b) SUPPLEMENTAL GRANTS.—
‘‘(1) IN
GENERAL.—The Administration may
make supplemental grants to New Markets Venture
Capital companies and to other entities, as author-
ized by this part, under such terms as the Adminis-
tration may require, to provide additional oper-
ational assistance to smaller enterprises financed, or
expected to be financed, by the companies.
‘‘(2) MATCHING REQUIREMENT.—The Adminis-
tration may require, as a condition of any supple-
mental grant made under this subsection, that the
company or entity receiving the grant provide from
resources (in cash or in kind), other than those pro-
vided by the Administration, a matching contribu-
tion equal to the amount of the supplemental grant.
‘‘(c) LIMITATION.—None of the assistance made
available under this section may be used for any operating
expense of a New Markets Venture Capital company or
a specialized small business investment company.
‘‘SEC. 359. BANK PARTICIPATION.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), any national bank, any member bank of the Federal
Reserve System, and (to the extent permitted under appli-
cable State law) any insured bank that is not a member
of such system, may invest in any New Markets Venture
Capital company, or in any entity established to invest
solely in New Markets Venture Capital companies.
‘‘(b) LIMITATION.—No bank described in subsection
(a) may make investments described in such subsection
that are greater than 5 percent of the capital and surplus
of the bank.
‘‘SEC. 360. FEDERAL FINANCING BANK.
‘‘Section 318 shall not apply to any debenture issued
by a New Markets Venture Capital company under this
part.
‘‘SEC. 361. REPORTING REQUIREMENTS.
‘‘Each New Markets Venture Capital company that
participates in the program established under this part
shall provide to the Administration such information as
the Administration may require, including—
‘‘(1) information related to the measurement
criteria that the company proposed in its program
application; and
‘‘(2) in each case in which the company under
this part makes an investment in, or a loan or grant
to, a business that is not located in a low- or mod-
erate-income geographic area, a report on the num-
ber and percentage of employees of the business who
reside in such areas.
‘‘SEC. 362. EXAMINATIONS.
‘‘(a) IN GENERAL.—Each New Markets Venture
Capital company that participates in the program estab-
lished under this part shall be subject to examinations
made at the direction of the Investment Division of the
Administration in accordance with this section.
‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—
Examinations under this section may be conducted with
the assistance of a private sector entity that has both the
qualifications and the expertise necessary to conduct such
examinations.
‘‘(c) COSTS.—
‘‘(1) ASSESSMENT.—
‘‘(A) IN
GENERAL.—The Administration
may assess the cost of examinations under this
section, including compensation of the exam-
iners, against the company examined.
‘‘(B) PAYMENT.—Any company against
which the Administration assesses costs under
this paragraph shall pay such costs.
‘‘(2) DEPOSIT
OF
FUNDS.—Funds collected
under this section shall be deposited in the account
for salaries and expenses of the Administration.
‘‘SEC. 363. INJUNCTIONS AND OTHER ORDERS.
‘‘(a) IN GENERAL.—Whenever, in the judgment of
the Administration, a New Markets Venture Capital com-
pany or any other person has engaged or is about to en-
gage in any acts or practices which constitute or will con-
stitute a violation of any provision of this Act, or of any
rule or regulation under this Act, or of any order issued
under this Act, the Administration may make application
to the proper district court of the United States or a
United States court of any 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, rule, regulation, or order, and such courts shall
have jurisdiction of such actions and, upon a showing by
the Administration that such New Markets Venture Cap-
ital company or other person has engaged or is about to
engage in any such acts or practices, a permanent or tem-
porary injunction, restraining order, or other order, shall
be granted without bond.
‘‘(b) JURISDICTION.—In any proceeding under sub-
section (a), the court as a court of equity may, to such
extent as it deems necessary, take exclusive jurisdiction
of the New Market Venture Capital company and the as-
sets thereof, wherever located, and the court shall have
jurisdiction in any such proceeding to appoint a trustee
or receiver to hold or administer under the direction of
the court the assets so possessed.
‘‘(c) ADMINISTRATION AS TRUSTEE OR RECEIVER.—
‘‘(1) AUTHORITY.—The Administration may act
as trustee or receiver of a New Markets Venture
Capital company.
‘‘(2) APPOINTMENT.—Upon request of the Ad-
ministration, the court may appoint the Administra-
tion to act as a trustee or receiver of a New Markets
Venture Capital company unless the court deems
such appointment inequitable or otherwise inappro-
priate by reason of the special circumstances in-
volved.
‘‘SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.
‘‘(a) IN GENERAL.—With respect to any New Mar-
kets Venture Capital company that violates or fails to
comply with any of the provisions of this Act, of any regu-
lation issued under this Act, or of any participation agree-
ment entered into under this Act, the Administration may
in accordance with this section—
‘‘(1) void the participation agreement between
the Administration and the company; and
‘‘(2) cause the company to forfeit all of the
rights and privileges derived by the company from
this Act.
‘‘(b) ADJUDICATION OF NONCOMPLIANCE.—
‘‘(1) IN GENERAL.—Before the Administration
may cause a New Markets Venture Capital company
to forfeit rights or privileges under subsection (a), a
court of the United States of competent jurisdiction
must find that the company committed a violation,
or failed to comply, in a cause of action brought for
that purpose in the district, territory, or other place
subject to the jurisdiction of the United States, in
which the principal office of the company is located.
‘‘(2) PARTIES AUTHORIZED TO FILE CAUSES OF
ACTION.—Each cause of action brought by the
United States under this subsection shall be brought
by the Administration or by the Attorney General.
‘‘SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF
FIDUCIARY DUTY.
‘‘(a) PARTIES DEEMED TO COMMIT A VIOLATION.—
Whenever any New Markets Venture Capital company vio-
lates any provision of this Act, of a regulation issued
under this Act, or of a participation agreement entered
into under this Act, by reason of its failure to comply with
its terms or by reason of its engaging in any act or prac-
tice 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, em-
ployee, agent, or participant if, as a result thereof, the
company suffers or is in imminent danger of suffering fi-
nancial loss or other damage.
‘‘(c) UNLAWFUL ACTS.—Except with the written con-
sent of the Administration, 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 partici-
pant in the conduct of the affairs or management of
such a company, if the person—