EXAMINATIONS OF SMALL BUSINESS INVESTMENT COMPANIES.

SEC. 104. EXAMINATIONS OF SMALL BUSINESS INVESTMENT COMPANIES. Section 310 of the Small Business Investment Act of 1958 (15 U.S.C. 687b) is amended by striking the second sentence of subsection (b) and by adding the following new subsection to such section: “(c) 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 title; “(2) it has engaged in prohibited conflicts of interest; “(3) it has acquired or exercised illegal control of an assisted small business; 102 STAT. 2993 “(4) it has made investments in small businesses for not less than four years in the case of section 301(d) licensees and in all other cases, not less than five years; “(5) it has invested more than 20 per centum of its capital in any individual small business; “(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: Provided, That the Administration may waive the examination (A) for up to one additional year if, in its discretion, it determines such a delay would be appropriate, based upon the amount of debentures being issued by the company and its repayment record, the prior operating experience of the company, the contents and results of the last examination and the management expertise of the company, or (B) if it is a company whose operations have been suspended while the company is involved in litigation or is in receivership.”.