15 USC 687b - Investigations and examinations; power to subpena and take oaths and affirmations; aid of courts; examiners; reports

U.S Code last checked for updates: Nov 22, 2024

§ 687b.

Investigations and examinations; power to subpena and take oaths and affirmations; aid of courts; examiners; reports

(a)

Investigation of violations

(b)

Examinations and reports

(c)

Examinations of small business investment companies

Each small business investment company shall be examined at least every two years in such detail so as to determine whether or not—

(1)

it has engaged solely in lawful activities and those contemplated by this subchapter;

(2)

it has engaged in prohibited conflicts of interest;

(3)

it has acquired or exercised illegal control of an assisted small business;

(4)

it has made investments in small businesses for not less than 1 year;

(5)

it has invested more than 20 per centum of its capital in any individual small business, if such restriction is applicable;

(6)

it has engaged in relending, foreign investments, or passive investments; or

(7)

it has charged an interest rate in excess of the maximum permitted by law:

(d)

Valuations

(1)

Frequency of valuations

(A)

In general

(B)

Material adverse changes

(C)

Independent certification

(i)

In general

(ii)

Audit requirements

Each audit conducted under clause (i) shall include—

(I)

a review of the procedures and documentation used by the licensee in preparing the valuations required by this section; and

(II)

a statement by the independent certified public accountant that such valuations were prepared in conformity with the valuation criteria applicable to the licensee established in accordance with paragraph (2).

(2)

Valuation criteria

Each valuation submitted under this subsection shall be prepared by the licensee in accordance with valuation criteria, which shall—

(A)

be established or approved by the Administrator; and

(B)

include appropriate safeguards to ensure that the noncash assets of a licensee are not overvalued.

(Pub. L. 85–699, title III, § 310, as added Pub. L. 87–341, § 9, Oct. 3, 1961, 75 Stat. 755; amended Pub. L. 89–779, § 5, Nov. 6, 1966, 80 Stat. 1360; Pub. L. 90–104, title II, § 208, Oct. 11, 1967, 81 Stat. 271; Pub. L. 100–590, title I, § 104, Nov. 3, 1988, 102 Stat. 2992; Pub. L. 102–366, title IV, §§ 406(b), 407(a), 408(b), Sept. 4, 1992, 106 Stat. 1016; Pub. L. 104–208, div. D, title II, § 208(f), (h)(1)(C), Sept. 30, 1996, 110 Stat. 3009–745, 3009–747; Pub. L. 105–135, title II, § 216, Dec. 2, 1997, 111 Stat. 2603; Pub. L. 106–554, § 1(a)(9) [title IV, § 406], Dec. 21, 2000, 114 Stat. 2763, 2763A–691.)

cite as: 15 USC 687b