(1) by inserting before the semicolon in para-
graph (3) the following: ‘‘or a company qualified to
conduct business with the Corporation under section
358’’;
(2) by striking paragraph (9) and inserting the
following:
‘‘(9) notwithstanding any other provision of
law, the term ‘private capital’ means the combined
private paid-in capital and paid-in surplus of a cor-
porate small business investment company, or the
private partnership capital of an unincorporated
small business investment company, inclusive of (A)
any funds invested in the small business investment
company by a public or private pension fund, (B)
any funds invested in the small business investment
company by State or local government entities, to
the extent that such investment does not exceed 33
percent of a small business investment company’s
total private capital and otherwise meets criteria es-
tablished by the Corporation, and (C) unfunded
commitments from institutional or individual inves-
tors that meet criteria established by the Corpora-
tion, but it excludes any funds which are borrowed
by the small business investment company from any
source or which are obtained or derived, directly or
indirectly, from any Federal source, including the
Administration: Provided, That no unfunded com-
mitment from an investor may be used for the pur-
pose of meeting the minimum amount of private
capital required by this Act or as the basis for the
Corporation to issue obligations or securities to pro-
vide financing to small business investment compa-
nies;’’;
(3) by striking the period at the end of para-
graph (10) and inserting a semicolon; and
(4) by adding at the end the following:
‘‘(11) the term ‘Corporation’ means the Ven-
ture Capital Marketing Association, as constituted
under this Act;
‘‘(12) the term ‘Board of Directors’ means the
Board of Directors of the Corporation;
‘‘(13) the term ‘law’ includes any law of the
United States or any State (including any rule of
law or of equity);
‘‘(14) the term ‘organization’ means any cor-
poration, partnership, association, business trust, or
other business entity;
‘‘(15) the term ‘security’ has the meaning given
such term by section 2(l) of the Securities Act of
1933 (15 U.S.C. 77b(l);
‘‘(16) the term ‘small business investment secu-
rity’ includes—
‘‘(A) debentures, bonds, promissory notes,
obligations or equity securities issued by small
business investment companies; and
‘‘(B) such other small business investment
company securities as determined by the Cor-
poration;
‘‘(17) the term ‘licensee in good standing’
means a small business investment company which
was approved by the Administration to operate
under the provisions of this Act and was issued a li-
cense as provided in section 301, unless such li-
censee (A) is in default under Debentures issued to
the Administration and such Debentures have been
declared due and payable by the Administration, (B)
has engaged in events which the Administration has
determined to be in violation of provisions of Partici-
pating Securities or Preferred Securities, or (C) has
been placed in liquidation status by the Administra-
tion; and
‘‘(18) the term ‘books and records of the Cor-
poration’ means the books and records of the Ven-
ture Capital Marketing Association, including but
not limited to books, accounts, financial records, re-
ports, files, all memoranda and documents obtained
by employees or agents of the Corporation or by
independent certified public accountants during au-
dits of small business investment companies and all
reports and information from such companies to the
Corporation, and all other papers, things or property
belonging to or in use by the Corporation.
SEC. 6. AMENDMENT TO SMALL BUSINESS ACT.
Section 5(b)(2) of the Small Business Act (15 U.S.C.
634(b)(2)) is amended by striking ‘‘collection;’’ and by in-
serting ‘‘collection: Provided, That nothing in this Act nor
any other law shall authorize the Administration to sell,
hypothecate, pledge, or in any way encumber small busi-
ness investment securities made or issued by such Admin-
istration except as authorized by section 357 of the Small
Business Investment Act of 1958;’’.
SEC. 7. AMENDMENT TO REVISED STATUTES.
The 6th sentence of the 7th paragraph of section
5136 of the Revised Statutes of the United States (12
U.S.C. 24) is amended by inserting after ‘‘Student Loan
Marketing Association,’’ the following: ‘‘or obligations or
other instruments or securities of the Venture Capital
Marketing Association,’’.
SEC. 8. EFFECT ON OTHER LAWS.
Except as otherwise provided by this Act, or as other-
wise provided by the Corporation or by the laws hereafter
enacted by the Congress expressly in limitations of provi-
sions of this Act, the powers and functions of the Corpora-
tion and of the Board of Directors shall be exercisable,
and the provisions of this Act shall be applicable and effec-
tive, without regard to any other law.
SEC. 9. APPLICABILITY TO STATES, TERRITORIES, AND
POSSESSIONS.
Notwithstanding any other law, this Act and the
amendments made by this Act shall be applicable to the
several States, the District of Columbia, and Common-
wealth of Puerto Rico, and the territories and possessions
of the United States.
SEC. 10. AMENDMENT TO TITLE 18.
Section 1006 of title 18, United States Code, is
amended by inserting before ‘‘or any Small Business In-
vestment Company,’’ the following: ‘‘, the Venture Capital
Marketing Association,’’.
SEC. 11. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
become effective on the date of the enactment of this Act.
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