An Act to amend the Small Business Act.
PL 87-550 (S.2970), enacted 07/25/1962

220 
PUBLIC L
A
W 87-550-JULY 25, 1962 
[76 STAT. 
is no longer totally and permanently disabled, the waiver of premiums 
shall cease as of the date of such finding and the policy and provision 
may be continued by payment of premiums as provided therein. 
In 
any case in which the Administrator finds that the insured's failure 
to make timely claim for waiver of premiums, or his failure to submit 
satisfactory evidence of the existence or continuance of total per-
manent disability was due to circumstances beyond his control, the 
Administrator may grant waiver or continuance of waiver of pre-
miums. If the insured dies without filing claim for waiver, the bene-
ficiary, within one year after the death of the insured, or, if the 
beneficiary is insane or a minor, within one year after removal of such 
legal disability, may file claim for waiver with evidence of the insured's 
right to waiver under this subsection. Policies containing a provision 
for waiver of premiums issued under this subsection may be separately 
classified for the purpose of dividend distribution from otherwise 
similar policies not containing such provision." 
Approved July 25, 1962. 
July 25,1962 
[S. 2970] 
Small Business 
Act, amendment. 
75 Stat. 666. 
15 u s e 633. 
72 Stat. 387, 
389, 689. 
15 u s e 636, 
637, 661 note. 
15 u s e 636. 
15 u s e 637. 
Public Law 87-550 
AN ACT 
To amend the Small Business Act. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) subsec-
tion (c) of section 4 of the Small Business Act is amended to read as 
follows: 
"(c) There is hereby established in the Treasury a revolving fund, 
referred to in this section as 'the fund', for the Administration's use 
in financing the functions performed under sections 7(a), 7(b), and 
8(a) and under the Small Business Investment Act of 1958, including 
the payment of administrative expenses in connection with such func-
tions. All repayments of loans and debentures, payments of interest, 
and other receipts arising out of transactions financed from the fund 
shall be paid into the fund. 
As capital thereof, appropriations not 
to exceed $1,666,000,000 are hereby authorized to be made to the fund, 
which appropriations shall remain available until expended. Not to 
exceed an aggregate of $1,325,000,000 shall be outstanding at any one 
time for the purposes enumerated in the following sections of this 
Act: 7(a) (relating to regular business loans), 7(b) (relating to dis-
aster loans), and 8(a) (relating to prime contract authority) : Pro-
vided^ That the Administration shall report promptly to the Com-
mittees on Appropriations and the Committees on Banking and Cur-
rency of the Senate and House of Representatives whenever (1) the 
aggregate amount outstanding for the purposes enumerated in sec-
tions 7(a) and 8(a) exceeds $1,222,000,000, or (2) the aggregate 
amount outstanding for the purpose enumerated in section 7(b) ex-
ceeds $103,000,000. Not to exceed an aggregate of $341,000,000 shall 
be outstanding from the fund at any one time for the exercise of the 
functions of the Administration under the Small Business Investment 
Act of 1958. The Administration shall pay into miscellaneous receipts 
of the Treasury, following the close of each fiscal year, interest on the 
outstanding cash disbursements from the fund, at rates determined by 
the Secretary of the Treasury, taking into consideration the current 
average yields on outstanding interest-bearing marketable public 
debt obligations of the United States of comparable maturities as cal-
culated for the month of June preceding such fiscal year." 
76 STAT. ] 
PUBUC LAW 87-551-JULY 27, 1962 
221 
(b) It is the sense of the Congress that the regular business loan 
program of the Small Business Administration should be reviewed 
by the Congress at least once every two years. It is further the sense 
of the Congress that the Small Business Administration should sub-
mit its estimated needs for additional authorization for such program 
to the Congress at least one year in advance of the date on which 
such authorization is to be provided, in order to assure an orderly 
and recurring review of such program and to avoid emergency ap-
peals for additional authorization. Compliance by the Small Busi-
ness Administration with the foregoing policy will enable the 
Congress hereafter to provide additional authorization for such pro-
gram on a two-year basis. 
SEC. 2. (a) The Small Business Administration is empowered to 
make loans (either directly or in cooperation with banks or other 
lenders through agreements to participate on an immediate or de-
ferred basis) to assist any firm to adjust to changed economic condi-
tions resulting from increased competition from imported articles, 
but only if (1) an adjustment proposal of such firm has been certified 
by the Secretary of Commerce pursuant to the Trade Expansion Act 
of 1962, (2) the Secretary has referred such proposal to the Admin-
istration under that Act and the loan would provide part or all of the 
financial assistance necessary to carry out such proposal, and (3) the 
Secretary's certification is m force at the time the Administration 
makes the loan.. 
(b) The Small Business Administration's authority to make loans 
under this section shall be in addition to and separate from its author-
ity to make loans under the Small Business Act. With respect to 
loans made under this section the Administration shall apply the pro-
visions of sections 314, 315, 316, 318, 319, and 320 of the Trade Ex-
pansion Act of 1962 as though such loans had been made under section 
314 of that Act. 
(c) There are hereby authorized to be appropriated, without fiscal 
year limitation, such sums as may be necessary to carry out this 
section. 
(d) This section shall take effect on such date (on or after the en-
actment of the Trade Expansion Act of 1962) as the President may 
specify in a proclamation duly published in the Federal Register 
but in no case later than 60 days after the date of the enactment of 
such Act. 
Approved July 25, 1962. 
Review by Con-
gress. 
15 u s e 631 note. 
Effective date. 
Proclamation, 
publication in 
F. R. 
Public Law 87-551 
AN ACT 
To waive section 142, title 28, United States Code, with respect to tiie United 
States District Court for the District of Connecticut for holding court at 
Bridgeport. 
Juljr27, 1962 
[H. R. 9844] 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assembled^ That the limitations 
and restrictions contained in section 142, title 28, United States Code, 
shall be waived with respect to the holding of court at Bridgeport, 
Connecticut, by the United States District Court for the District of 
Connecticut. 
Approved July 27, 1962. 
Connecticut. 
U. S. District 
Court. 
62 Stat. 898.