An Act to relieve the Veterans' Administration from paying interest on the amount of the capital funds
PL 88-274 (S.2064), enacted 02/29/1964

78 STAT. ] 
PUBLIC LAW 88-274-FEB. 29, 1964 
147 
under the provisions of this Act for any single enterprise shall not 
exceed 20 per centum of the combined capital and surplus of such 
small business investment company authorized bv this Act." 
SEC. 5. The last sentence of section 308(b) of the Small Business 
Investment Act of 1958 is amended to read as follows: "Such compa-
nies may invest funds not reasonably needed for their current opera-
tions in direct obligations of, or obligations guaranteed as to principal 
and interest by, the United States, or in insured savings accounts (up 
to the amount of the insurance) in any institution the accounts of 
which are insured by the Federal Savings and Loan Insurance 
Corporation." 
SEC. 6. (a) The Small Business Invesnuent Act of 1958 is further 
amended by adding at the end of title 111 a new se<;tion as follows: 
"•a)NFLICTS OF INTKKEvST 
"SEC. 312. For the purjx)se of controlling conflicts of interest which 
may be detrimental to small l)usiness ccmcenis, to small business invest-
ment companies, t o the shareholders of either, or to the purposes of 
this Act, the Administration shall adopt regulations to govern trans-
actions with any officer, director, or shai-eholdei- of any small business 
investment company, or with any pereou or concei-n, in which any 
interest, direct or indirect, financial or otherwise, is held by any offi-
cer, director, or shareholder of (1) any small business investment 
company, or (2) any |)erson or concern with an interest, direct or 
indirect, financial or otherwise, in any small business investment com-
pany. 
Such regulations shall include appi-opriate requirements for 
public disclosure (including disclosure in the locality most directly 
affected by the transaction) necessai-y to the purposes of this section.'' 
(b) That part of the Table of (^ontents of such Act which describes 
the matter included in title I I I is amended by adding at the end thereof 
the following: 
"Sec. 312. Conflicts of interest." 
Approved February 28, 1964. 
Investment of 
funds. 
15 u s e 687. 
72 Stat. 691; 
75 Stat. 7 53. 
15 u s e 681-
687c. 
Public Law 88-274 
AN A C T 
February 29, 1964 
To r«'Ii*!V«r (IM- Velerjins' Adiniuistnitinii from pjiyiug interest on (he amount of 
[S. 2064] 
csiiiital fuiuls tniiisferrefl in lisciil yeur VM'2 from this direct loan revolving 
fund to tlie li^Hii Ktiaranty revolvinjr fund. 
fie it eMdctrd hy the Senate <ind Honm of liepre^ientdtlveH of the 
United Stdtea of Amerka in Congress a^f^eitibled^ I'hat section 1823(b) 
of title 38, United States Code, is amended by adding at the end 
thereof the following sentence: "Tlie .\diniiiistrator shall not be 
required to pay interest oii transfei'S made pursuant to the Act of 
February 13, 19(52 (76 Stat. 8), from the capital of the 'direct loans 
to veterans and reserves revolving fiuid' to the 'loan guaranty revolv-
ing fund' ajid adjustments shall be made for payments of interest on 
such transfers l>efore the date of enactment of this sentence." 
Approved February 29, 1964. 
Veterans* Ad-
ministration. 
Interest on cap-
ital funds. 
72 Stat. 1214.