15 USC.697 Regulation

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TITLE 15—COMMERCE AND TRADE

§ 802(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–683,
2763A–684, 2763A–702; Pub. L. 108–447, div. K, title
I, § 104, Dec. 8, 2004, 118 Stat. 3444; Pub. L. 110–140,
title XII, § 1204(b), Dec. 19, 2007, 121 Stat. 1772;
Pub. L. 111–5, div. A, title V, § 504(a), Feb. 17,
2009, 123 Stat. 155; Pub. L. 111–240, title I, §§ 1112,
1122, Sept. 27, 2010, 124 Stat. 2508, 2510.)
AMENDMENTS
2010—Par. (2)(A)(i). Pub. L. 111–240, § 1122(c), substituted ‘‘clause (ii), (iii), (iv), or (v)’’ for ‘‘subparagraph (B) or (C)’’.
Pub. L. 111–240, § 1112(1), substituted ‘‘$5,000,000’’ for
‘‘$1,500,000’’.
Par. (2)(A)(ii). Pub. L. 111–240, § 1112(2), substituted
‘‘$5,000,000’’ for ‘‘$2,000,000’’.
Par. (2)(A)(iii) to (v). Pub. L. 111–240, § 1112(3)–(5), substituted ‘‘$5,500,000’’ for ‘‘$4,000,000’’.
Par. (7)(C). Pub. L. 111–240, § 1122(b), struck out subpar. (C) relating to refinancing not involving expansions.
Pub. L. 111–240, § 1122(a), added subpar. (C).
2009—Par. (7). Pub. L. 111–5 added par. (7).
2007—Par. (2)(A)(iv), (v). Pub. L. 110–140 added cls. (iv)
and (v).
2004—Par. (2). Pub. L. 108–447 amended par. (2) generally. Prior to amendment, par. (2) read as follows:
‘‘Loans made by the Administration under this section
shall be limited to $1,000,000 for each such identifiable
small business concern, except loans meeting the criteria specified in section 695(d)(3) of this title, which
shall be limited to $1,300,000 for each such identifiable
small business concern.’’
2000—Par. (2). Pub. L. 106–554, § 1(a)(9) [title III, § 303],
amended par. (2) generally. Prior to amendment, par.
(2) read as follows: ‘‘Loans made by the Administration
under this section shall be limited to $750,000 for each
such identifiable small-business concern, except loans
meeting the criteria specified in section 695(d)(3) of this
title shall be limited to $1,000,000 for each such identifiable small business concern.’’
Par. (3)(E). Pub. L. 106–554, § 1(a)(9) [title II, § 208(b)],
designated existing provisions as cl. (i), inserted heading, and added cl. (ii).
Par. (6). Pub. L. 106–554, § 1(a)(9) [title VIII, § 802(b)],
added par. (6).
1997—Par. (1). Pub. L. 105–135, § 221(1), added par. (1)
and struck out former par. (1) which read as follows:
‘‘The proceeds of any such loan shall be used solely by
such borrower to assist in identifiable small-business
concern and for a sound business purpose approved by
the Administration.’’
Par. (3)(D), (E). Pub. L. 105–135, § 221(2), added subpars.
(D) and (E).
Par. (5). Pub. L. 105–135, § 221(3), added par. (5).
1996—Par. (3). Pub. L. 104–208 inserted heading and
amended text of par. (3) generally. Prior to amendment, text read as follows: ‘‘Any development company
assisted under this section must meet criteria established by the Administration, including the extent of
participation to be required or amount of paid-in capital to be used in each instance as is determined to be
reasonable by the Administration. Community injection funds may be derived, in whole or in part, from—
‘‘(A) State or local governments;
‘‘(B) banks or other financial institutions;
‘‘(C) foundations or other not-for-profit institutions; or
‘‘(D) a small business concern (or its owners, stockholders, or affiliates) receiving assistance through
bodies authorized under this subchapter.’’
1990—Par. (2). Pub. L. 101–574 struck out period at end
and inserted ‘‘, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to
$1,000,000 for each such identifiable small business concern.’’
1988—Pub. L. 100–590, § 116(b)(1), inserted ‘‘Loans for
plant acquisition, construction, conversion, and expansion’’ as section catchline.

§ 697

Par. (2). Pub. L. 100–418 substituted ‘‘$750,000’’ for
‘‘$500,000’’.
Par. (4). Pub. L. 100–590, § 116(a), added par. (4).
1981—Pars. (1) to (4). Pub. L. 97–35 redesignated pars.
(2) to (4) as (1) to (3), respectively. Former par. (1),
which provided that all loans made shall be so secured
as reasonably to assure repayment and that in agreements to participate in loans on a deferred basis, such
participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement, was struck out.
Par. (5). Pub. L. 97–35 struck out par. (5) which provided that loans, including extensions and renewals,
may be made for a period not exceeding twenty-five
years and that an extension may be granted up to ten
years, if such extension will aid in the orderly liquidation of the loan, and that the Administration may fix
the rate of interest.
1978—Par. (4). Pub. L. 95–507 inserted provisions relating to derivation of community injection funds.
1976—Pub. L. 94–305, § 108(a), inserted ‘‘acquisition,’’
after ‘‘plant’’ in introductory text.
Par. (3). Pub. L. 94–305, § 110, substituted ‘‘$500,000’’ for
‘‘$350,000’’.
1961—Par. (3). Pub. L. 87–341, § 10(1), substituted
‘‘$350,000’’ for ‘‘$250,000’’.
Par. (5). Pub. L. 87–341, § 10(2), substituted ‘‘twentyfive’’ for ‘‘ten’’ before ‘‘years plus such additional period’’.
Par. (6). Pub. L. 87–27 struck out par. (6) which provided for termination of authority of the Administration to make loans to local development companies
after June 30, 1961.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–240, title I, § 1122(b), Sept. 27, 2010, 124
Stat. 2512, provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105–135 effective Oct. 1, 1997,
see section 3 of Pub. L. 105–135, set out as a note under
section 631 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104–208 effective Oct. 1, 1996,
see section 3 of Pub. L. 104–208, set out as a note under
section 633 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 1918 of Pub. L. 97–35, set out as a note under section 631 of this title.

§ 697. Development company debentures
(a) Guarantees; Administration authority; regulatory terms and conditions; full faith and
credit; subordination of debentures
(1) Except as provided in subsection (b) of this
section, the Administration may guarantee the
timely payment of all principal and interest as
scheduled on any debenture issued by any qualified State or local development company.
(2) Such guarantees may be made on such
terms and conditions as the Administration may
be regulation determine to be appropriate: Provided, That the Administration shall not decline
to issue such guarantee when the ownership interests of the small business concern and the
ownership interests of the property to be fi-

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TITLE 15—COMMERCE AND TRADE

nanced with the proceeds of a loan made pursuant to subsection (b)(1) of this section are not
identical because one or more of the following
classes of relatives have an ownership interest
in either the small business concern or the property: father, mother, son, daughter, wife, husband, brother, or sister: Provided further, That
the Administrator or his designee has determined on a case-by-case basis that such ownership interest, such guarantee, and the proceeds
of such loan, will substantially benefit the small
business concern.
(3) The full faith and credit of the United
States in pledged to the payment of all amounts
guaranteed under this subsection.
(4) Any debenture issued by any State or local
development company with respect to which a
guarantee is made under this subsection, may be
subordinated by the Administration to any
other debenture, promissory note, or other debt
or obligation of such company.
(b) Statutory terms and conditions
No guarantee may be made with respect to
any debenture under subsection (a) of this section unless—
(1) such debenture is issued for the purpose
of making one or more loans to small business
concerns, the proceeds of which shall be used
by such concern for the purposes set forth in
section 696 of this title;
(2) necessary funds for making such loans
are not available to such company from private sources on reasonable terms;
(3) the interest rate on such debenture is not
less than the rate of interest determined by
the Secretary of the Treasury for purposes of
section 683(b) of this title;
(4) the aggregate amount of such debenture
does not exceed the amount of loans to be
made from the proceeds of such debenture
(other than any excess attributable to the administrative costs of such loans);
(5) the amount of any loan to be made from
such proceeds does not exceed an amount
equal to 50 percent of the cost of the project
with respect to which such loan is made;
(6) the Administration approves each loan to
be made from such proceeds; and
(7) with respect to each loan made from the
proceeds of such debenture, the Administration—
(A) assesses and collects a fee, which shall
be payable by the borrower, in an amount established annually by the Administration,
which amount shall not exceed—
(i) the lesser of—
(I) 0.9375 percent per year of the outstanding balance of the loan; and
(II) the minimum amount necessary to
reduce the cost (as defined in section
661a of title 2) to the Administration of
purchasing and guaranteeing debentures
under this chapter to zero; and
(ii) 50 percent of the amount established
under clause (i) in the case of a loan made
during the 2-year period beginning on October 1, 2002, for the life of the loan; and
(B) uses the proceeds of such fee to offset
the cost (as such term is defined in section

Page 990

661a of title 2) to the Administration of making guarantees under subsection (a) of this
section.
(c) Commercial loan interest rate
(1) The purpose of this subsection is to facilitate the orderly and necessary flow of long-term
loans from certified development companies to
small business concerns.
(2) Notwithstanding the provisions of the constitution or laws of any State limiting the rate
or amount of interest which may be charged,
taken, received, or reserved, the maximum legal
rate of interest on any commercial loan which
funds any portion of the cost of the project financed pursuant to this section or section 697a
of this title which is not funded by a debenture
guaranteed under this section shall be a rate
which is established by the Administrator of the
Small Business Administration under the authority of this section.
(3) The Administrator is authorized and directed to establish and publish quarterly a maximum legal interest rate for any commercial
loan which funds any portion of the cost of the
project financed pursuant to this section or section 697a of this title which is not funded by a
debenture guaranteed under this section.
(d) Charges for Administration expenses
(1) Level of charges
The Administration may impose an additional charge for administrative expenses with
respect to each debenture for which payment
of principal and interest is guaranteed under
subsection (a) of this section.
(2) Participation fee
The Administration shall collect a one-time
fee in an amount equal to 50 basis points on
the total participation in any project of any
institution described in subclause (I), (II), or
(III) of section 696(3)(B)(i) of this title. Such
fee shall be imposed only when the participation of the institution will occupy a senior
credit position to that of the development
company. All proceeds of the fee shall be used
to offset the cost (as that term is defined in
section 661a of title 2) to the Administration
of making guarantees under subsection (a) of
this section.
(3) Development company fee
The Administration shall collect annually
from each development company a fee of 0.125
percent of the outstanding principal balance of
any guaranteed debenture authorized by the
Administration after September 30, 1996. Such
fee shall be derived from the servicing fees collected by the development company pursuant
to regulation, and shall not be derived from
any additional fees imposed on small business
concerns. All proceeds of the fee shall be used
to offset the cost (as that term is defined in
section 661a of title 2) to the Administration
of making guarantees under subsection (a) of
this section.
(e) ‘‘Qualified State or local development company’’ defined; exception for rural company;
authority
(1) For purposes of this section, the term
‘‘qualified State or local development company’’

Page 991

means any State or local development company
which, as determined by the Administration,
has—
(A) a full-time professional staff;
(B) professional management ability (including adequate accounting, legal, and businessservicing abilities); and
(C) a board of directors, or membership,
which meets on a regular basis to make management decisions for such company, including decisions relating to the making and servicing of loans by such company.
(2) A company in a rural area shall be deemed
to have satisfied the requirements of a full-time
professional staff and professional management
ability if it contracts with another certified development company which has such staff and
management ability and which is located in the
same general area to provide such services.
(3) Notwithstanding any other provision of
law, qualified State or local development companies shall be authorized to prepare applications for deferred participation loans under section 636(a) of this title, to service such loans and
to charge a reasonable fee for servicing such
loans.
(f) Effective date
The fees authorized by subsections (b) and (d)
of this section shall apply to financings approved by the Administration on or after October 1, 1996.
(g) Calculation of subsidy rate
All fees, interest, and profits received and retained by the Administration under this section
shall be included in the calculations made by
the Director of the Office of Management and
Budget to offset the cost (as that term is defined
in section 661a of title 2) to the Administration
of purchasing and guaranteeing debentures
under this chapter.
(h) Required actions upon default
(1) Initial actions
Not later than the 45th day after the date on
which a payment on a loan funded through a
debenture guaranteed under this section is due
and not received, the Administration shall—
(A) take all necessary steps to bring such
a loan current; or
(B) implement a formal written deferral
agreement.
(2) Purchase or acceleration of debenture
Not later than the 65th day after the date on
which a payment on a loan described in paragraph (1) is due and not received, and absent a
formal written deferral agreement, the administration 1 shall take all necessary steps to
purchase or accelerate the debenture.
(3) Prepayment penalties
With respect to the portion of any project
derived from funds set forth in section 696(3) of
this title, the Administration—
(A) shall negotiate the elimination of any
prepayment penalties or late fees on defaulted loans made prior to September 30,
1996;
1 So

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TITLE 15—COMMERCE AND TRADE

in original. Probably should be capitalized.

(B) shall not pay any prepayment penalty
or late fee on the default based purchase of
loans issued after September 30, 1996; and
(C) for any project financed after September 30, 1996, shall not pay any default interest rate higher than the interest rate on the
note prior to the date of default.
(i) Two-year waiver of fees
The Administration may not assess or collect
any up front guarantee fee with respect to loans
made under this subchapter during the 2-year
period beginning on October 1, 2002.
(Pub. L. 85–699, title V, § 503, as added Pub. L.
96–302, title I, § 113(a), July 2, 1980, 94 Stat. 837;
amended Pub. L. 100–590, title I, §§ 112(c), 114,
117(a), Nov. 3, 1988, 102 Stat. 2996–2998; Pub. L.
101–515, title V, § 8, Nov. 5, 1990, 104 Stat. 2144;
Pub. L. 103–403, title II, § 213(1), Oct. 22, 1994, 108
Stat. 4184; Pub. L. 104–36, § 6, Oct. 12, 1995, 109
Stat. 297; Pub. L. 104–208, div. D, title II,
§§ 202(b)–(e), 203, Sept. 30, 1996, 110 Stat. 3009–735,
3009–736; Pub. L. 105–135, title II, § 222, Dec. 2,
1997, 111 Stat. 2604; Pub. L. 106–554, § 1(a)(9) [title
III, § 304], Dec. 21, 2000, 114 Stat. 2763, 2763A–684;
Pub. L. 107–100, § 6(b), Dec. 21, 2001, 115 Stat. 971;
Pub. L. 108–199, div. B, title VI, § 631, Jan. 23,
2004, 118 Stat. 100; Pub. L. 108–205, § 2, Mar. 15,
2004, 118 Stat. 553; Pub. L. 108–217, § 2, Apr. 5, 2004,
118 Stat. 591; Pub. L. 108–306, § 2, Sept. 24, 2004,
118 Stat. 1131; Pub. L. 108–447, div. B, title V, div.
K, title II, § 204, Dec. 8, 2004, 118 Stat. 2911, 3466.)
REFERENCES IN TEXT
For definition of ‘‘this chapter’’, referred to in subsecs. (b)(7)(A)(ii) and (g), see References in Text note
set out under section 661 of this title.
AMENDMENTS
2004—Subsec. (f). Pub. L. 108–447, § 204, struck out
‘‘, but shall not apply to financings approved by the
Administration on or after October 1, 2005’’ before period at end.
Pub. L. 108–447, title V, substituted ‘‘October 1, 2005’’
for ‘‘October 1, 2004’’.
Pub. L. 108–217 substituted ‘‘October 1, 2004’’ for ‘‘May
21, 2004’’.
Pub. L. 108–205, as amended by Pub. L. 108–306, substituted ‘‘May 21, 2004’’ for ‘‘March 15, 2004’’.
Pub. L. 108–199 substituted ‘‘March 15, 2004’’ for ‘‘October 1, 2003’’ before period at end.
2001—Subsec. (b)(7)(A). Pub. L. 107–100, § 6(b)(1), designated existing provisions following ‘‘not exceed’’ as
cl. (i), redesignated former cls. (i) and (ii) as subcls. (I)
and (II), respectively, of cl. (i), realigned margins, and
added cl. (ii).
Subsec. (i). Pub. L. 107–100, § 6(b)(2), added subsec. (i).
2000—Subsec. (f). Pub. L. 106–554 amended heading and
text of subsec. (f) generally. Prior to amendment, text
read as follows: ‘‘The fees authorized by subsections (b)
and (c) of this section shall apply to financings approved by the Administration on or after October 1,
1996, but shall not apply to financings approved by the
Administration on or after October 1, 2000.’’
1997—Subsec. (b)(7)(A). Pub. L. 105–135, § 222(1), added
subpar. (A) and struck out former subpar. (A) which
read as follows: ‘‘assesses and collects a fee, which shall
be payable by the borrower, in an amount equal to the
lesser of—
‘‘(i) 0.9375 percent per year of the outstanding balance of the loan; or
‘‘(ii) such percentage per year of the outstanding
balance of the loan as the Administrator may determine to be necessary to reduce the cost (as that term
is defined in section 661a of title 2) to the Administra-

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TITLE 15—COMMERCE AND TRADE

tion of purchasing and guaranteeing debentures
under this chapter to an amount that, taking into
consideration any available appropriated funds,
would permit the Administration to purchase or
guarantee $2,000,000,000 of debentures in fiscal year
1997; and’’.
Subsec. (f). Pub. L. 105–135, § 222(2), substituted ‘‘2000’’
for ‘‘1997’’.
1996—Subsec. (b)(7)(A). Pub. L. 104–208, § 202(b), substituted ‘‘equal to the lesser of—’’ for ‘‘equal to 0.125
percent per year of the outstanding balance of the
loan’’ and added cls. (i) and (ii).
Subsec. (d). Pub. L. 104–208, § 202(c), inserted heading
and amended text of subsec. (d) generally. Prior to
amendment, text read as follows: ‘‘The Administration
may impose an additional charge for administrative expenses with respect to each debenture for which payment of principal and interest is guaranteed under subsection (a) of this section.’’
Subsec. (f). Pub. L. 104–208, § 202(d), added subsec. (f).
Subsec. (g). Pub. L. 104–208, § 202(e), added subsec. (g).
Subsec. (h). Pub. L. 104–208, § 203, added subsec. (h).
1995—Subsec. (b)(7). Pub. L. 104–36 added par. (7).
1994—Subsec. (c) to (e). Pub. L. 103–403 made technical
amendment to Pub. L. 100–590, § 112(c). See 1988 Amendment note below.
1990—Subsec. (e)(3). Pub. L. 101–515 added par. (3).
1988—Subsec. (a)(2). Pub. L. 100–590, § 114, inserted two
provisos that Administration not decline to issue such
guarantee when ownership interests of small business
concern and of property to be financed with loan are
not identical, and that Administrator has determined
on case-by-case basis that such ownership interest,
guarantee, and loan, will substantially benefit small
business concern.
Subsec. (c). Pub. L. 100–590, § 112(c)(B), formerly
§ 112(c)(1)(B), as amended by Pub. L. 103–403, added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 100–590, § 112(c)(A), formerly
§ 112(c)(1)(A), as amended by Pub. L. 103–403, redesignated subsec. (c) as (d). Former subsec. (d) redesignated
(e).
Subsec. (e). Pub. L. 100–590, § 117, which directed substitution of ‘‘(1) For purposes of’’ for ‘‘For purposes of’’,
redesignated former pars. (1) to (3) as subpars. (A) to
(C), respectively, and added par. (2), was executed to
subsec. (e) to reflect the probable intent of Congress
and the intervening redesignation of subsec. (d) as (e)
by Pub. L. 100–590, § 112(c)(1).
Pub. L. 100–590, § 112(c)(A), formerly § 112(c)(1)(A), as
amended by Pub. L. 103–403, redesignated former subsec. (d) as (e).
EFFECTIVE DATE OF 2004 AMENDMENT
Pub. L. 108–306, § 2, Sept. 24, 2004, 118 Stat. 1131, provided in part that: ‘‘The amendment made by the preceding sentence [amending section 2 of Pub. L. 108–205,
which amended this section] shall take effect as if included in the enactment of the section to which it relates.’’
EFFECTIVE DATE OF 2001 AMENDMENT; USE OF FUNDS
Pub. L. 107–100, § 6(d), (e), Dec. 21, 2001, 115 Stat. 972,
provided that:
‘‘(d) USE OF FUNDS.—The amendments made by this
section to section 503 of the Small Business Investment
Act of 1958 [15 U.S.C. 697], shall be effective only to the
extent that funds are made available under appropriations Acts, which funds shall be utilized by the Administrator to offset the cost (as such term is defined in
section 502 of the Federal Credit Reform Act of 1990 [2
U.S.C. 661a]) of such amendments.
‘‘(e) EFFECTIVE DATE.—The amendments made by this
section [amending this section and section 636 of this
title] shall become effective on October 1, 2002.’’
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105–135 effective Oct. 1, 1997,
see section 3 of Pub. L. 105–135, set out as a note under
section 631 of this title.

Page 992

EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104–208 effective Oct. 1, 1996,
see section 3 of Pub. L. 104–208, set out as a note under
section 633 of this title.
EFFECTIVE DATE OF 1995 AMENDMENT
Amendment by Pub. L. 104–36 inapplicable to loans
made or guaranteed under Small Business Act or Small
Business Investment Act of 1958 before Oct. 12, 1995, unless such loans are refinanced, extended, restructured,
or renewed on or after Oct. 12, 1995, see section 8 of Pub.
L. 104–36, set out as a note under section 634 of this
title.
TERMINATION DATE OF 1988 AMENDMENT
Pub. L. 100–590, title I, § 112(c), Nov. 3, 1988, 102 Stat.
2996, as amended by Pub. L. 101–515, title V, § 3, Nov. 5,
1990, 104 Stat. 2140; Pub. L. 103–317, title IV, Aug. 26,
1994, 108 Stat. 1755, which provided that the amendment
made by paragraph (1), amending this section, was to
be repealed on Oct. 1, 1997, was repealed by Pub. L.
103–403, title II, § 213(2), Oct. 22, 1994, 108 Stat. 4184.
EFFECTIVE DATE
Section effective Oct. 1, 1980, see section 507 of Pub.
L. 96–302, set out as an Effective Date of 1980 Amendment note under section 631 of this title.

§ 697a. Private debenture sales
(a) Notwithstanding any other law, rule, or
regulation, the Administration shall sell to investors, either publicly or by private placement,
debentures pursuant to section 697 of this title
as follows:
(1) Of the program levels otherwise authorized by law for fiscal year 1986, an amount not
to exceed $200,000,000.
(2) Of the program levels otherwise authorized by law for each of fiscal years 1987 and
1988, an amount not to exceed $425,000,000.
(3) All of the program levels authorized for
fiscal year 1989 and subsequent fiscal years.
(b) Nothing in any provision of law shall be
construed to authorize the Federal Financing
Bank to acquire—
(1) any obligation the payment of principal
or interest on which at any time has been
guaranteed in whole or in part under section
697 of this title and which is being sold pursuant to the provisions of the program authorized in this section;
(2) any obligation which is an interest in any
obligation described in paragraph (1); or
(3) any obligation which is secured by, or
substantially all of the value of which is attributable to, any obligation described in
paragraph (1) or (2).
(Pub. L. 85–699, title V, § 504, as added Pub. L.
99–272, title XVIII, § 18008(a), Apr. 7, 1986, 100
Stat. 366; amended Pub. L. 100–72, § 2 July 11,
1987, 101 Stat. 477; Pub. L. 100–590, title I, § 112(a),
Nov. 3, 1988, 102 Stat. 2996.)
AMENDMENTS
1988—Pub. L. 100–590 inserted ‘‘Private debenture
sales’’ as section catchline and amended text generally.
Prior to amendment, text read as follows:
‘‘(a) Notwithstanding any other law, rule, or regulation, the Administration shall conduct a pilot program
involving the sale to investors, either publicly or by
private placement, of debentures guaranteed pursuant
to section 697 of this title as follows—
‘‘(1) of the program levels otherwise authorized by
law for fiscal year 1986, an amount not to exceed
$200,000,000;