HR 660 SC
(A) have access to all books, accounts, fi-
nancial records, reports, rules, and all other pa-
pers, things, or property belonging to or in use
by the Corporation and necessary to facilitate
the audit; and
(B) be afforded full access for verifying
transactions with certified poolers and other en-
tities with whom the Corporation conducts
transactions.
(c) ANNUAL REPORT OF CONDITION.—The Corpora-
tion shall make and publish an annual report of condition
as prescribed by the Secretary. Each report shall contain
financial statements prepared in accordance with generally
accepted accounting principles and contain such additional
information as the Secretary may by regulation prescribe.
The financial statements of the Corporation shall be au-
dited by an independent public accountant. If the Sec-
retary, in his discretion, determines that it would contrib-
ute to the financial safety and soundness of the Corpora-
tion and would not impose an undue expense or adminis-
trative burden on it, he may also require the Corporation
to include in the report additional financial statements
prepared on a market-value basis, including the Corpora-
tion’s market-value net worth.
HR 660 SC
(d) ASSESSMENTS TO COVER COSTS.—The Secretary
shall assess the Corporation for the cost to the Secretary
of any regulatory activities conducted under this section,
including the cost of any examination.
SEC. 14. SECURITIES.
(a) FEDERAL LAWS.—
(1) APPLICABILITY OF CERTAIN FEDERAL SE-
CURITIES LAWS.—For purposes of section 3(a)(2) of
the Securities Act of 1933, no security issued by the
Corporation nor qualified loan nor security rep-
resenting an interest in a pool of qualified loans for
which guarantees have been provided by the Cor-
poration shall be deemed to be a security issued or
guaranteed by a person controlled or supervised by,
or acting as an instrumentality of, the Government
of the United States. No such security shall be
deemed to be a ‘‘government security’’ for purposes
of the Securities Exchange Act of 1934 or for pur-
poses of the Investment Company Act of 1940.
(2) NO FULL FAITH AND CREDIT OF THE UNIT-
ED STATES.—Each loan or security for which credit
enhancement has been provided by the Corporation
and each security issued by the Corporation shall
clearly indicate that it is not an obligation of, and
is not guaranteed as to principal or interest by the
HR 660 SC
United States, or any other agency or instrumental-
ity of the United States (other than the Venture En-
hancement and Loan Development Administration
for Smaller Undercapitalized Enterprises).
(b) STATE SECURITIES LAWS.—
(1) GENERAL
EXEMPTION.—Any security is-
sued by the Corporation and any qualified loan, se-
curity or obligation that has been provided a guaran-
tee by the Corporation shall be exempt from any law
of any State with respect to or requiring registration
or qualification of securities or real estate to the
same extent as any obligation issued by, or guaran-
teed as to principal and interest by, the United
States or any other agency or instrumentality of the
United States.
(2) STATE OVERRIDE.—The provisions of para-
graph (1) shall not be applicable to any State that,
during the 5-year period beginning on the effective
date of this Act, enacts a law that—
(A) specifically refers to this subsection;
and
(B) expressly provides that paragraph (1)
shall not apply to the State.
(c) AUTHORIZED INVESTMENTS.—
HR 660 SC
(1) IN GENERAL.—Securities issued by the Cor-
poration and qualified loans, or securities represent-
ing an interest in, or obligations backed by, pools of
qualified loans with respect to which the Corporation
has provided a guarantee shall be authorized invest-
ments of any person, trust corporation, partnership,
association, business trust, or business entity created
pursuant to or existing under the laws of the United
States or any State to the same extent that the per-
son, trust, corporation, partnership, association,
business trust, or business entity is authorized under
any applicable law to purchase, hold, or invest in ob-
ligations issued by or guaranteed as to principal and
interest by the United States or any agency or in-
strumentality of the United States. Such loans, secu-
rities or obligations may be accepted as security for
all fiduciary, trust, and public funds, the investment
or deposits of which shall be under the authority and
control of the United States or any State or any of-
ficers of either.
(2) STATE LIMITATIONS ON PURCHASE, HOLD-
ING, OR INVESTMENT.—If State law limits the pur-
chase, holding, or investment in obligations issued
by the United States by the person, trust, corpora-
tion, partnership, association, business trust, or
HR 660 SC
business entity, then qualified loans, or securities or
obligations of a certified pooler on which the Cor-
poration has provided a guarantee shall be consid-
ered to be obligations issued by the United States
for purposes of the limitation.
(3) NONAPPLICABILITY OF PROVISIONS.—
(A) SUBSEQUENT
STATE
LAW.—Para-
graphs (1) and (2) shall not apply with respect
to a particular person, trust, corporation, part-
nership, association, business trust, or business
entity, or class thereof, in any State that, prior
to the expiration of the five year period begin-
ning on the date of the enactment of this Act,
enacts a law that specifically refers to this sec-
tion and either prohibits or provides for a more
limited authority to purchase, hold, or invest in
the qualified loans or securities by any person,
trust, corporation, partnership, association,
business trust, or business entity, or class
thereof, than is provided in paragraphs (1) and
(2).
(B) EFFECT
OF
SUBSEQUENT
STATE
LAW.—The enactment by any State of a law of
the type described in subparagraph (A) shall
not affect the validity of any contractual com-
HR 660 SC
mitment to purchase, hold, or invest that was
made prior to the effective date of the law and
shall not require the sale or other disposition of
any loans or securities acquired prior to the ef-
fective date of the law.
(d) STATE USURY LAWS SUPERSEDED.—Any provi-
sion of the constitution or law of any State which expressly
limits the rate or amount of interest, discount points, fi-
nance charges, or other charges that may be charged,
taken, received, or reserved by the Corporation, origina-
tors or certified poolers shall not apply to any qualified
loan made by an originator or to security issued by the
Corporation or a certified pooler in accordance with this
Act.
SEC. 15. AUTHORITY TO ISSUE OBLIGATIONS TO COVER
LOSSES OF CORPORATION.
(a) SALE OF OBLIGATIONS TO TREASURY.—
(1) IN
GENERAL.—Subject to the limitations
contained in section 12(c) and the requirement of
paragraph (2), the Corporation may issue obliga-
tions to the Secretary of the Treasury, the proceeds
of which may be used by the Corporation solely for
the purpose of fulfilling the obligations of the Cor-
poration under any security issued by the Corpora-