Page:United States Statutes at Large Volume 102 Part 3.djvu/1057

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PUBLIC LAW 100-000—MMMM. DD, 1988

PUBLIC LAW 100-590—NOV. 3, 1988

102 STAT. 3009

(1) by striking "or" at the end of paragraph (1), (2) by striking the period at the end of paragraph (2) and inserting a comma, and (3) by adding at the end thereof the following new paragraphs: "(3) the surety has breached a material term or condition of such guarantee agreement, or "(4) the surety has substantially violated the regulations promulgated by the Administration pursuant to subsection (d).". SEC. 204. REPORTS AND AUDITS OF PARTICIPATING SURETIES.

Section 411(g) of the Small Business Investment Act (15 U.S.C. 694b(g)) is amended to read as follows: "(g)(1) Each participating surety shall make reports to the Administration at such times and in such form as the Administration may require. "(2) The Administration may at all reasonable times audit, in the offices of a participating surety, all documents, files, books, records, and other material relevant to the Administration's guarantee, commitments to guarantee, or agreements to indemnify any surety pursuant to this section. "(3) Each surety participating under the authority of paragraph (3) of subsection (a) shall be audited at least once each year by examiners selected and approved by the Administration.". SEC. 205. REGULATIONS.

15 USC 694b

The Administration shall promulgate final regulations to implement the amendments made by this title not later than one hundred and eighty days after the date of the enactment of this Act. SEC. 206. EVALUATION AND REPORT.

15 USC 694b

Not later than three years after the date of enactment of this Act the Comptroller General of the United States shall transmit a report to the Small Business Committees of the Senate and House of Representatives, which evaluates— (1) the amendments made by this title, (2) whether participation in the program by standard surety firms has been expanded, and (3) whether access to bonds by small business concerns especially small business concerns owned and controlled by socially and economically disadvantaiged individuals has been improved. The report shall cover the first two full fiscal years following the date of enactment of this Act. SEC. 207. SUNSET.

The provisions contained in section 41 l(a)(3) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(a)(3)), shall cease to be effective on September 30, 1991, or on the last day of the third full fiscal year after the date of enactment of this Act, whichever is later. SEC. 208. REVOLVING FUND.

Section 412 of the Small Business Investment Act of 1958 (15 U.S.C. 694c) is amended)— (1) by inserting "(a)" before "There", and (2) by adding at the end of subsection (a), the following new subsection:

15 USC 694b