12 USC 4743 - Approving States for participation

U.S Code last checked for updates: Apr 28, 2024

§ 4743.

Approving States for participation

(a)

Application

(b)

Approval criteria

The Fund shall approve a State to be a participating State, if—

(1)

a specific department or agency of the State has been designated to implement the Program;

(2)

all legal actions necessary to enable such designated department or agency to implement the Program have been accomplished;

(3)

funds in the amount of at least $1 for every 2 people residing in the State (as of the last decennial census for which data have been released) are available and have been legally committed to contributions by the State to reserve funds, with such funds being available without time limit and without requiring additional legal action, except that such requirements shall not be construed to limit the authority of the State to take action at a later time that results in the termination of its obligation to enroll loans and make contributions to reserve funds;

(4)

the State has prescribed a form of participation agreement to be entered into between it and each participating financial institution that is consistent with the requirements and purposes of this subchapter; and

(5)

the State and the Fund have executed a reimbursement agreement that conforms to the requirements of this subchapter.

(c)

Existing State programs

(1)

In general

A State that is not a participating State, but that has its own capital access program providing portfolio insurance for business loans (based on a separate loss reserve fund for each financial institution), may apply at any time to the Fund to be approved to be a participating State. The Fund shall approve such State to be a participating State, and to be eligible for reimbursements by the Fund pursuant to section 4747 of this title, if the State—

(A)

satisfies the requirements of subsections (a) and (b); and

(B)

certifies that each affected financial institution has satisfied the requirements of section 4744 of this title.

(2)

Applicable terms of participation

(A)

Status of institutions

(B)

Effective date of participation

(C)

Use of accumulated reserve funds

(d)

Prior appropriations requirement

(e)

Amendments to agreements

(Pub. L. 103–325, title II, § 253, Sept. 23, 1994, 108 Stat. 2205.)

cite as: 12 USC 4743