Q: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
That this Act may be
cited as ''The Small Business Prepayment Penalty Relief Act of 1993''.

TITLE II

Sec. 201. Buy-Downs and Interest Rate Reductions.--(a) Upon the
request of the issuer, annually the Administration is authorized to
buy-down the interest rate on any debenture purchased by the Federal
Financing Bank (1) which has been issued by a development company
pursuant to the provisions of section 503 of the Investment Act or (2)
which has been issued by a small business investment company pursuant
to the provisions of section 303 of such Act. The buy-down shall be
limited to the current year only. As used in this section, the term
''buy-down'' means a payment from the Administration to the Federal
Financing Bank in an amount determined by the Administration to reduce
the interest payment for that year to an amount equal to 7.5 per centum
of the outstanding principal amount of the debenture.
(b) Upon the request of the issuer, annually the Administration is
authorized to reduce the interest rate on any debenture issued by a
small business investment company licensed pursuant to the provisions
of section 301(d) of the Investment Act. The reduction shall be limited
to the current year only. The amount of the reduction shall be an
amount determined by the Administration to make the interest payment
for that year equal to 7.5 per centum of the outstanding principal
amount of the debenture, less the amount of any other reductions or
credits otherwise provided by law.

TITLE III

Sec. 301. Prepayments.--(a) Annually, after the regular
Appropriations Act has been signed into law providing funding for the
Administration, the Administration shall calculate the amount needed to
carry out the provisions of section 201 of this Act. If it determines
that it has sufficient funding to fully carry out the buy-downs and
reductions authorized by such section, it shall obtain from the Federal
Financing Bank a computation of the amount of the prepayment penalty
which would be required from the issuer of each such debenture if it
was prepaid as of the end of the current fiscal year. The
Administration shall also compute the amount of the prepayment penalty
on 301(d) debentures as if such debentures had been sold to the Federal
Financing Bank.
(b) After making the above determinations, the Administration shall
promptly notify the issuer of each debenture subject to the provisions
of section 201 of this Act that it will receive offers from any
interested issuer to prepay the debenture in full. The issuer shall
include in any offer amount of the full prepayment penalty, or assumed
prepayment penalty in the case of a debenture from a 301(d) issuer,
less any amount proposed by the issuer to be paid by the Administration
pursuant to the provisions of this title. The notification to the
issuer shall include such information as the Administration determines
to be appropriate, but shall include--
(1) the amount of funds available to carry out this title;
(2) a computation of the total amount of the prepayment
penalties and assumed prepayment penalties if all issuers
prepaid;
(3) the amount of the prepayment penalty or assumed
prepayment penalty for the issuer receiving the notification;
(4) the time period during which the Administration will
accept offers; and
(5) a description of the process under which the
Administration will evaluate, give priority to, and accept
submission of offers pursuant to this title.
(c) Within 30 days after termination of the period for submission
of offers, the Administration shall evaluate each offer and shall
assign each a priority. The priority shall be based upon the per centum
of the prepayment penalty which the issuer offers to pay, with the
highest per centum receiving the highest priority. The Administration
shall approve offers beginning with the one with the highest priority
and continuing until it utilizes all funds available to carry out this
title in the current fiscal year.
Sec. 302. Prepaying Development Company Debentures.--(a) For
purposes of this section, the term ''issuer'' means the issuer of a
debenture which has been purchased by the Federal Financing Bank
pursuant to section 503 of the Investment Act, and the term
''borrower'' means the small business concern whose loan secures a
debenture issued pursuant to such section.
(b) The issuer of a debenture purchased by the Federal Financing
Bank and guaranteed by the Small Business Administration under section
503 of the Investment Act may offer to prepay such debenture pursuant
to section 301 of this Act: Provided, That--
(1) the debenture is outstanding on the date of enactment
of this Act, and neither the loan that secures the debenture
nor the debenture is in default on the date the prepayment is
made;
(2) State or personal funds, which may include refinancing
under the programs authorized by sections 504 and 505 of the
Investment Act are used to prepay the debenture; and
(3) the issuer certifies that the benefits, net of fees and
expenses authorized herein, associated with prepayment of the
debenture are entirely passed through to the borrower.
(c) No fees or penalties other than those specified in this section
may be imposed as a condition of such prepayment against the issuer or
the borrower, or the Administration or any fund or account administered
by the Administration, except as provided in this Act. If the debenture
is prepaid or refinanced other than through section 504, the issuer may
require the borrower or pay a fee to the issuer in an amount equal to
one-half of one percent of the unpaid principal balance of the
debenture. If a debenture is refinanced with a guarantee pursuant to
section 504, the issuer may require the borrower to pay a fee to the
issuer in an amount equal to one-fourth of one percent of the unpaid
balance of the debenture.
(d) Debentures refinanced under section 504 shall be subject to all
of the other provisions of sections 504 and 505 of the Investment Act
and the rules and regulations of the Administration promulgated
thereunder, including, but not limited to, payment of authorized
expenses and commissions, fees and discounts to brokers and dealers in
trust certificates issued pursuant to section 505: Provided however,
That the issuer shall be deemed to have waived any origination fee on
the new debenture to which it otherwise would have been entitled.
Sec. 303. Prepaying Specialized Small Business Investment Company
Debentures.--(a) Any specialized small business investment company
which is the issuer of a debenture purchased by the Administration
under title III of the Investment Act may offer to prepay the debenture
pursuant to the provisions of section 301 of this Act: Provided, That--
(1) the debenture is outstanding on the date of enactment
of this Act and is not in default on the date the prepayment is
made; and
(2) personal funds, which may include refinancing with
proceeds of debentures under title III of the Investment Act,
are used to prepay the debenture, except that if new guaranteed
debenture proceeds are utilized, the length of time of the
interest rate reduction authorized by such title shall be
reduced by the length of time the issuer received an interest
rate reduction on the debenture being prepaid.
(b) No fees or penalties other than those specified in this section
may be imposed as a condition of such prepayment against the issuer,
the Administration or any fund or account administered by the
Administration, except as expressly provided herein.
Sec. 304. Prepaying Regular Small Business Investment Company
Debentures.--(a) Any small business investment company which is the
issuer of a debenture guaranteed by the Administration under title III
of the Investment Act and purchased by the Federal Financing Bank may
offer to prepay the debenture pursuant to section 301 of this Act:
Provided, That--
(1) the debenture is outstanding on the date of enactment
of this Act and is not in default on the date the prepayment is
made; and
(2) personal funds, which may include refinancing with
proceeds of guaranteed debentures under title III of the
Investment Act, are used to prepay the debenture.
(b) No fees or penalties other than those specified in this section
may be imposed as a condition of such prepayment against the issuer,
the Administration or any fund or account administered by the
Administration, except as expressly provided herein.
(c) Debentures refinanced under title III of the Investment Act
shall be subject to all of the other provisions of such Act, including,
but not limited to, payment of authorized expenses and commissions,
fees or discounts to brokers and dealers in trust certificates issued
pursuant to section 321.

TITLE IV

Sec. 401. Miscellaneous Provisions.--(a) The provisions of this Act
are exercisable at the option of the borrower under section 302 of this
Act or at the option of a small business investment company under
sections 303 and 304 of this Act and are in addition to any prepayment
options otherwise authorized by law.
(b) Within sixty days of the date of enactment of this Act, the
Small Business Administration shall issue regulations to implement this
Act.
(c) Any new credit or spending authority provided for in this Act
is subject to amounts provided for in advance in appropriations acts.
Sec. 402. Authorization.--(a) There are authorized to be
appropriated such sums as may be necessary to carry out the provisions
of this Act.
(b) In the administration of this Act, the Administration shall not
obligate any funds pursuant to title III of this Act in any fiscal year
unless it has provided the full amount of assistance authorized and
requested pursuant to title II of this Act.
(c) If sufficient funds are not appropriated for any fiscal year to
fully carry out the buy-downs and reductions authorized and requested
pursuant to title II of this Act, the Administration shall buy-down and
reduce the interest rates to the extent that funds are available for
that year, but may not utilize any funds to carry out title III.
Sec. 403. As used in this Act--
(a) the term ''Administration'' means the Small Business
Administration; and
(b) the term ''Investment Act'' means the Small Business
Investment Act of 1958.
A:
Small Business Prepayment Penalty Relief Act of 1993 -
Title II (sic)
- Authorizes the Small Business Administration (SBA), upon the request of the issuer, to annually buy-down the interest rate on any debenture purchased by the Federal Financing Bank which has been issued by a development company or a small business investment company (SBIC) pursuant to appropriate provisions of the Small Business Investment Act of 1958. Allows such buy-down to reduce such interest rate to 7.5 percent annually.
Title III
- Directs the SBA, after the appropriations Act for each year has been enacted, to calculate the amount needed to carry out the buy-downs authorized in title II. Allows the SBA, after such determination, to notify the debenture issuers that it will receive offers from any interested issuer to prepay the debenture in full. Requires a prioritization of such offers based on the amount of prepayment penalty an issuer offers to pay. Prohibits the imposition against the issuer, the borrower, or the SBA of fees or penalties (with exceptions) as a condition of such prepayment.
Allows regular and specialized SBICs which are the issuer of a debenture purchased by the SBA under such Act to offer to prepay the debenture under prior provisions of this Act, subject to specified conditions, and with the same prohibition against the imposition of fees or penalties for such prepayment.
Title IV
- Authorizes appropriations.