[Federal Register Volume 59, Number 183 (Thursday, September 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23338]
[[Page Unknown]]
[Federal Register: September 22, 1994]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 107
Small Business Investment Companies; Leverage
AGENCY: Small Business Administration.
ACTION: Final rule.
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SUMMARY: This final rule allows Small Business Investment Companies
licensed under sections 301 (c) and (d) of the Small Business
Investment Act of 1958 (Licensees) having no immediate need for SBA
financial assistance (Leverage) to reserve the future availability of
such financial assistance by obtaining SBA's conditional commitment to
guarantee Debentures or Participating Securities (collectively ``pooled
securities''), or to purchase Preferred Securities, that will be
offered in the future as the Licensee draws against SBA's commitment.
EFFECTIVE DATE: This final rule is effective September 22, 1994.
FOR FURTHER INFORMATION CONTACT:
Saunders Miller, Office of Program Development; Telephone (202) 205-
6510.
SUPPLEMENTARY INFORMATION: On August 8, 1994, SBA published a proposed
rule which contemplated allowing Licensees to apply for a conditional
commitment from SBA to reserve Leverage for their future use. See 59 FR
40315. The amount of Leverage that could be reserved by any Licensee
was proposed to be not less than $1,000,000, and not more than 50
percent of the Licensee's Regulatory Capital.
The public was afforded a 30-day period in which to submit comments
on the proposed rule. SBA received six comment letters during that
time, all of which strongly supported the underlying concept of an
Agency commitment of future financial assistance to Licensees but which
also made several suggestions for improving the proposal.
One recurring suggestion was that SBA eliminate the restriction on
the amount that could be reserved on behalf of any one Licensee. As
stated above, the proposed rule would have established a commitment
ceiling equal to 50% of a Licensee's Regulatory Capital. Although SBA's
rationale for the ceiling was not discussed in the proposed rule, most
of the commenters understood that the ceiling was proposed in an
attempt to fairly distribute scarce resources and to prevent the
hoarding of committed funds by any one Licensee.
SBA did realize, as the comment letters pointed out, that even if
there were no ceiling in the regulations, the Agency would still have
the authority to allocate commitment authority among interested
Licensees. Nevertheless, SBA believed that given: (i) A probable
timetable for the funding of an average Licensee's investors'
commitments of 25% a year for 4 years (thereby converting the
Licensee's Regulatory Capital into Leverageable Capital) and (ii) an
ideal Leverage ratio during those 4 years of 2:1, the average
Licensee's need for committed Leverage funds would be adequately met by
an annual limit of 50% of Regulatory Capital.
SBA has reconsidered its position and has concluded that the
regulation should be broad enough to accommodate, without resort to an
Agency waiver, those Licensees with investor-funding schedules that are
more compressed than the average. SBA still believes that some ceiling
is desirable administratively, but a ceiling set at 50% of Regulatory
Capital may be too low, particularly in years when demand for reserved
funds does not exceed the supply. Accordingly, in this final rule, SBA
has increased the ceiling to 100% of Regulatory Capital.
A second suggestion submitted during the comment period addressed
the documentation proposed to be required pre- and post-funding of
draws under SBA's commitment. Under the proposed rule, every Licensee
with an outstanding commitment from SBA would be required to submit a
Financial Statement on SBA Form 468 (Short Form) within 30 days of the
close of each of its fiscal quarters. A Licensee submitting a draw
request within that 30-day period would be required to submit the Short
Form Financial Statement, or a statement of no adverse change since its
most recent Short Form 468, with the draw request.
A few of the comment letters objected to quarterly financial
reporting as burdensome and unnecessary. SBA disagrees. The preparation
of a quarterly short form financial statement becomes a simple matter
if performed on a personal computer, using readily-available
bookkeeping software together with reporting software provided by SBA.
Furthermore, the commitment funding process as proposed by SBA was
not intended to put SBA at a disadvantage relative to where it would
have been if it were considering a request for Leverage under the
traditional funding mechanism. Since Leverage requests outside of the
commitment process must be accompanied by a Short Form 468 for the most
recent fiscal quarter, and since the draw down of funds under the SBA
commitment is the issuance of Leverage, SBA should receive a Short Form
468 for the most recent quarter in order to evaluate a draw request.
Under the commitment funding process, decisions on requests for
draws will have to be made quickly by SBA staff, more quickly than
decisions on requests for Leverage under the traditional funding
process. SBA staff will need to monitor more closely the financial
status of a Licensee with an outstanding SBA commitment in order to be
able to respond in a timely fashion to the Licensee's draw requests.
The filing of quarterly financial statements on Short Form 468 by all
Licensees with outstanding SBA commitments will allow SBA to perform
that function as promised.
As mentioned above, in the event the draw request is made within 30
days of the end of the Licensee's fiscal quarter, SBA had proposed to
accept a statement of no adverse change in lieu of the Short Form 468.
Most of the comment letters argued in favor of adopting the more
familiar standard of ``no material adverse change''. SBA agrees that
adverse changes which are immaterial to the Licensee's financial status
should not be a barrier to consideration for a draw of Leverage.
Accordingly, Sec. 107.215(f)(3)(i)(A) has been finalized with the
suggested change.
Most of the comment letters also contained an objection to the
requirement for specific deal information both pre- and post-draw. SBA
reaffirms its position that while a Licensee need not have specific
transactions under consideration in order to obtain SBA's commitment,
draws under that commitment must be intended for use in a particular
transaction with a particular small concern.
To ease the paperwork burden on Licensees, however, the statement
evidencing the Licensee's need for the funds no longer requires that
the Licensee provide the small concern's Standard Industrial
Classification code number or a summary of the proposed financing. See
proposed Sec. 107.215(f)(2)(i)(B), finalized as
Sec. 107.215(f)(3)(i)(B). Instead, the statement must include only the
name and address of the small concern, the amount of the proposed
financing, and the scheduled closing date.
SBA is also extending by 30 days the due date for the written
explanation of the failure to close a transaction. In summary, if the
intended transaction closes, the Licensee must submit a Form 1031
(``Portfolio Financing Report'') within 30 days of the actual closing
date. If the transaction fails to close, however, a written explanation
must be filed with SBA within 60 days (instead of 30 days, as proposed)
after the scheduled closing date. Penalties for the failure to file the
Form 1031 or the written explanation remain unchanged from the proposed
rule.
The final documentation matter addressed in some of the comment
letters concerns the requirement that a Licensee submit a certified
statement with each draw request representing that it is in compliance
with applicable regulations. The suggestion was made that SBA be
permitted to accept draw requests in the event violations are disputed
or are not material in nature. SBA has considered the suggestion and
believes a clarification of the subject matter is in order.
SBA did not intend to apply a different standard to draw requests
than it currently applies to Leverage requests. A Licensee with an
unresolved regulatory violation that would not be cause for automatic
disqualification for Leverage under the traditional funding process
should not, for the same violation, be disqualified automatically from
drawing down Leverage under the commitment funding process.
In practice, there are two separate circumstances under the
traditional funding process where SBA would consider favorably the
Leverage request of a Licensee with an outstanding violation: (1) If
the Licensee's violation is of a non-substantive provision of the Act
or regulations and the Licensee has not repeatedly violated non-
substantive provisions; or (2) if the Licensee has agreed with SBA on a
course of action for the resolution of its violation, and if the terms
of the agreement do not preclude the Licensee from obtaining Leverage
prior to the resolution of the violation. In each case, the
determination as to whether a violation exists is made by SBA, as is
the decision to provide Leverage notwithstanding the violation.
SBA has revised the proposed rule to allow for favorable
consideration of a draw request under those two circumstances. See new
paragraph 107.215(f)(2) ``Conditions to draws.'' Proposed
Sec. 107.215(f)(2) has been renumbered as Sec. 107.215(f)(3), and now
permits a Licensee to submit a certification that, to the best of its
knowledge and belief, it is in compliance with applicable regulations
(i.e., it has no unresolved regulatory violations) or an explanation as
to the specific nature of any outstanding violations.
One additional change has been made to the proposed rule. The
amount of the commitment fee was not set forth in the proposal. This
final rule fixes -he commitment fee at 3% of the face amount of the
pooled securities and 1% of the issue price of the Preferred Securities
reserved under the commitment. As explained below, when pooled
securities are issued by a Licensee as a draw against SBA's commitment,
the 2% guaranty fee ordinarily due pursuant to Sec. 107.210(d)(1) will
be offset against the 3% commitment fee already paid. No additional
payment will be necessary.
With the exception of some minor changes in wording, the proposed
rule is otherwise adopted without change.
Effective immediately, any Licensee may submit an application for
SBA's conditional commitment to reserve Leverage. The Application must
be accompanied by the same financial information and other
documentation as is required of Licensees applying for Leverage, except
that no securities forms should accompany an application for SBA's
commitment. For a Licensee wishing to participate in the next scheduled
pooling of Leverage securities, and also wishing to obtain SBA's
conditional commitment for future Leverage, separate applications
should be filed.
A determination to grant a Licensee's request for a commitment will
be made only after SBA reviews the applicant's financial and regulatory
status as well as its representation as to projected needs. The actual
amount of a commitment which SBA will approve for a particular Licensee
will depend in part on factors other than the applicant Licensee's own
financial and regulatory situation, including such matters as the
anticipated need for Leverage by all other Licensees making Leverage
requests and the amount of program authority appropriated by Congress
for the fiscal year.
The commitment, when granted, will represent a conditional
agreement on SBA's part to permit a Licensee to make draws against an
agreed upon reserved amount of Leverage over a fixed period of time.
As a condition to a commitment's taking effect, the Licensee must
pay a non-refundable commitment fee in the amount discussed above.
Payment must be received within thirty days following SBA's issuance of
the commitment, or prior to any draw against the commitment if
requested within such thirty day period. When a Licensee issuing pooled
securities draws against SBA's commitment, the amount of the user fee
associated with the guarantee of the Licensee's security or securities
will be debited against an account holding the commitment fees and
credited against an account holding guaranty fees. Failure to make
timely and full payment of the commitment fee will preclude any draws
against the commitment, and will cause SBA's commitment to lapse
automatically at 5:00 p.m. Eastern Time on the thirtieth calendar day
following SBA's issuance of the commitment.
In any case, as mentioned above, SBA's commitment will also lapse
at 5:00 p.m. Eastern Time on the 60th calendar day preceding the close
of the next full Federal fiscal year following issuance of such
commitment. Under present law, the Federal fiscal year ends on
September 30. Therefore, depending upon when within a given Federal
fiscal year a commitment was extended, the term of the commitment may
be as short as ten months or as long as twenty-two months.
Requests for a draw may be submitted at any time during the term of
the commitment. It is contemplated that requests for a draw of pooled
securities will, eventually, be funded as frequently as twice a month.
Requests for a draw of preferred securities may be funded at any time.
The minimum amount of any draw of pooled securities will be $1,000,000,
with integral multiples of $100,000 permitted thereafter. Requests for
draws of preferred securities may be in any amount.
As was explained in the proposed rule, SBA's present general
practice, which is not proposed to be changed (and which SBA is
extending to Participating Securities) is to extend invitations to
Licensees to participate in the creation of a pool of SBA-guaranteed
Debentures, against which a public offering of SBA-guaranteed trust or
pool certificates, each evidencing a fractional interest in the pool,
is made to long-term investors. Such pools are formed and certificates
sold every three months, give or take a few days. Preceding the closing
of the sale of the pool certificates there is a ten-day period during
which no more Debentures may be considered for inclusion in the pool.
During that ten-day period, the rate of interest on Debentures or of
Prioritized Payments on Participating Securities is determined.
When a Licensee requests a draw, it will be deemed to have
authorized SBA to guarantee its security immediately, and to have
authorized SBA, acting as the Licensee's agent, to sell such security
to a short-term investor that will agree to hold the Licensee's
security until the Licensee's security is put into the next pool, or is
repurchased by the Licensee, or is repurchased by SBA because of a
definitive determination based on subsequently-received adverse
information concerning the Licensee's credit or regulatory status.
If the security is a Debenture, it will be sold to a short-term
investor at a discount, calculated as if the maturity date of the
Debenture were the next scheduled closing date for the sale of pool
certificates. The Licensee will also agree to the payment of additional
interest to the short-term investor, at the same rate used to calculate
the discount, for each day that the sale of pool certificates is
delayed beyond the scheduled date. While payment to the short-term
investor of all interest accrued from the date of sale to the actual
closing date shall be the responsibility of the Licensee, it shall be
guaranteed by SBA. The Licensee's failure to make full payment of such
additional interest shall constitute an event giving rise to a
condition affecting the Licensee's good standing under SBA's
regulations. If the Licensee's security is a Participating Security,
the same conditions will apply, however, the Participating Security
will be sold to a short-term investor at a price equal to the face
amount thereof.
Although SBA guarantees the Licensee's undertaking to the short-
term investor concerning payment of interest on a Debenture or
Prioritized Payments on a Participating Security on the date such
Debenture or Participating Security is pooled, the Licensee does not
warrant, nor does SBA guarantee, that pooling will take place on any
specific date. The short-term investor assumes the risk that the
recovery of its invested principal and the receipt of interest or
Prioritized Payments will be delayed to the extent that the pool
closing is delayed. Based on historical experience, it is unlikely that
any such delay will occur and if it does, the duration of the delay
should be minimal. The rate at which the Licensee's Debenture will be
discounted or at which the Prioritized Payments will accumulate on a
Participating Security when either of these securities are sold to a
short-term investor will, in both cases, be determined with reference
to the current average market yield on obligations of the United States
with comparable periods to maturity. However, for the purpose of
determining the rate of interest or of Prioritized Payments payable to
a short-term investor, ``maturity'' refers to the next scheduled
pooling date, not the stated maturity date of the security in question.
In the normal course of events, when the sale of pool certificates
closes, the Licensee's security will be included in the pool, having
been purchased, as previously agreed, from the short-term investor with
the Licensee's share of the proceeds of the sale of SBA guaranteed
certificates issued against the pool.
The sale of the Licensee's security to a short-term investor with
SBA's guaranty does not obligate SBA to include that security in a pool
of long-term securities in disregard of subsequently-obtained
information calling into question either the Licensee's financial
soundness or the Licensee's compliance with applicable regulations. If
SBA determines to withhold its guarantee of the Licensee's security to
the pool, SBA will purchase the Licensee's security from the short-term
investor on or before the pool closing date.
Sale of the Licensee's security to a short-term investor with SBA's
guaranty does not cut off the Licensee's right to withdraw its security
from entering into the pool by repurchasing it directly from the short-
term investor if notice is given to SBA at least ten days prior to the
pool cut-off date. However, since the sale of the Licensee's security
to a short-term investor, and not the subsequent pooling of the
security, is the event that discharges SBA from its reservation
obligation to the extent of the security's face amount, the Licensee's
subsequent repurchase of its security from the short-term investor does
not re-obligate SBA under the terms of its commitment, or restore SBA's
guarantee authority to the extent of the face amount of the repurchased
security.
SBA's approval of an application for a commitment does not lock in
any interest or Prioritized Payment rate, nor does SBA's guarantee of a
security sold to a short-term investor indicate in any way what the
Licensee's interest or Prioritized Payment rate will be when the
security is pooled and certificates are sold to long-term investors.
Once in the hands of the pool trustee, the Licensee's Debenture or
Participating Security will assume all the terms and characteristics of
the other securities in the pool, including an interest or Prioritized
Payment rate recalculated with reference to the maturities of the other
securities being pooled.
Compliance With Executive Orders 12866, 12612, and 12778, and With the
Regulatory Flexibility and Paperwork Reduction Acts
Executive Order 12866 and Regulatory Flexibility Act
This final rule will not constitute a significant regulatory action
for the purposes of Executive Order 12866 because it is not likely to
have an annual impact on the national economy of $100 million or more,
and, for purposes of the Regulatory Flexibility Act, 5 U.S.C. 601, et
seq., it will not have a substantial impact upon a significant number
of small entities.
1. The legal basis for this final regulation is section 308(c) of
the Small Business Investment Act, 15 U.S.C. 687(c), and section
20(a)(2) of the Small Business Act, 15 U.S.C. 631 (note) as amended by
section 414 of Pub. L. 102-366.
2. The potential benefits of this final regulation have been set
forth in the discussion above, under Supplementary Information.
3. The potential cost of this final regulation cannot be quantified
or estimated.
4. There are no Federal rules which duplicate, overlap, or conflict
with this final rule.
5. SBA is not aware of regulatory alternatives that could achieve
the same objectives at lower cost.
This rule was not reviewed under Executive Order 12866.
Executive Order 12612
SBA certifies that this final regulation has no federalism
implications warranting the preparation of a Federalism Assessment in
accordance with Executive Order 12612.
Executive Order 12278
For the purposes of Executive Order 12278, SBA certifies that this
final rule is drafted, to the extent practicable, in accordance with
the standards set forth in Section 2 of that Order.
Paperwork Reduction Act
This final regulation will impose an additional record-keeping
requirement on those Licensees that voluntarily avail themselves of the
benefit of this final rule. Viewing the matter from the Licensee's
standpoint, the additional burden of preparing a quarterly short-form
financial statement is offset by the assurance of the future
availability of Leverage and the reduction of cost resulting from
elimination of the need to draw down Leverage funds long before they
may be invested in Small Concerns. From SBA's standpoint, the
additional record-keeping is necessary if SBA is not to rely upon out-
dated financial information when its funds draws against its
commitment.
[Catalog of Federal Domestic Assistance Program No. 59.011 Small
Business Investment Companies]
List of Subjects in 13 CFR Part 107
Investment companies, Loan programs-business, Reporting and record-
keeping requirements, Small businesses.
For the reasons set forth above, part 107 of Title 13, Code of
Federal Regulations is amended as follows:
PART 107--SMALL BUSINESS INVESTMENT COMPANIES
1. The authority citation for Part 107 continues to read as
follows:
Authority: Title III of the Small Business Investment Act, 15
U.S.C. 681 et seq.; 15 U.S.C. 683; 15 U.S.C. 687(c); 15 U.S.C. 687b;
15 U.S.C. 687d; 15 U.S.C. 687g; 15 U.S.C. 687m, as amended by Pub.
L. 102-366.
2. Part 107 is amended by adding a new Sec. 107.215 to read as
follows:
Sec. 107.215 Commitments by SBA.
(a) General. A Licensee may apply for SBA's conditional commitment
to reserve an amount of Leverage against which SBA may purchase its
Preferred Securities or guarantee its Debentures or Participating
Securities as and when offered for future public sales. The amount of
any such commitment shall be not less than $1,000,000 but not more than
100 percent of Regulatory Capital. Applications shall be prepared and
submitted in accordance with Sec. 107.210(b), as amended from time to
time, except to the extent that this Sec. 107.215 is inconsistent
therewith.
(b) Commitment fees. The Licensee shall pay to SBA a nonrefundable
fee of 3% of the face amount of the Debentures or Participating
Securities reserved under the commitment or, in the case of Preferred
Securities reserved under a commitment, 1% of the issue price of such
Preferred Securities. No request for a draw will be approved unless
this fee has been paid in full. The 2% fee required to be paid by
issuers of Debentures or Participating Securities pursuant to
Sec. 107.210(d) shall be credited against the 3% commitment fee paid
pursuant to this paragraph (b).
(c) Automatic cancellation of commitment. Unless the full amount of
the commitment fee is paid by 5:00 p.m. Eastern Time on the 30th
calendar day following SBA's issuance of its commitment, the commitment
shall be automatically cancelled.
(d) Lapse of commitment. Notwithstanding payment of the commitment
fee, SBA's commitment shall automatically lapse at 5:00 p.m. Eastern
Time on the 60th calendar day preceding the close of the next full
Federal fiscal year following issuance of such commitment.
(e) Additional record-keeping requirements. Following notification
that SBA's commitment has been granted, a Licensee shall submit a
Financial Statement on SBA Form 468 (Short Form) as of the close of
each quarter of its fiscal year to SBA within 30 days after the close
of the quarter, or with any request for a draw that is made within such
30-day period. If a Licensee is not in compliance with this paragraph,
no draw request shall be considered.
(f) Draws. (1) Minimum amount of draw. The minimum face amount of
Debentures or Participating Securities that may be issued in connection
with a draw against SBA's commitment is $1,000,000; plus multiples of
$100,000 above $1,000,000. Preferred Securities may be issued in any
amount.
(2) Conditions to draws. No Licensee shall be eligible to make a
draw against SBA's commitment unless it is in compliance with all
applicable provisions of the Act and SBA regulations (i.e., no
unresolved statutory or regulatory violations); Provided, however, that
a Licensee that is not in compliance may nevertheless be eligible for
draws if SBA determines that
(i) The Licensee's outstanding violations are of non-substantive
provisions of the Act or regulations and that the Licensee has not
repeatedly violated non-substantive provisions of the Act or
regulations or
(ii) The Licensee has agreed with SBA as to a course of action for
the resolution of its violations and such agreement does not preclude
the issuance of Leverage by the Licensee.
(3) Procedures for funding draws. (i) General. A request for a
draw, which may be submitted at any time, is submitted in the form of a
request that the Licensee's Preferred Security be purchased by SBA; or
that its Debenture or Participating Security be guaranteed by SBA, sold
to a short-term investor and subsequently included in the next pool for
which the Licensee's securities are eligible. The following
documentation shall accompany each such request for a draw:
(A) If such request is submitted within 30 days following the close
of the Licensee's fiscal quarter, the request shall be accompanied by a
Financial Statement on SBA Form 468 (Short Form) reflecting the
Licensee's condition as of the close of that fiscal quarter; otherwise,
the request shall be accompanied by a formal statement of no material
adverse change in financial condition since the filing of the most
recent SBA Form 468 (Long or Short Form).
(B) A certified statement executed by an officer of the Licensee or
of a corporate general partner of the Licensee, or by an individual
that is authorized to act as or for a general partner of the Licensee,
as the case may be, representing that to the best of its knowledge and
belief the Licensee is in compliance with all provisions of the Act and
SBA regulations (i.e., no unresolved regulatory or statutory
violations) or a statement as to the specific nature of any violations
of which it is aware.
(C) A statement that the proceeds are needed to fund a particular
Small Concern, which statement shall also include the name and address
of the Small Concern, the amount of the Licensee's proposed Financing,
and the scheduled closing date thereof. Within 30 calendar days after
the actual closing date, the Licensee shall submit an SBA Form 1031
confirming the closing of the transaction(s) with the proceeds of the
draw or, within 60 calendar days after the scheduled closing date, the
Licensee shall submit a written explanation of the failure to close.
Failure to submit an accurate Form 1031 or satisfactory written
explanation of failure to close will preclude consideration of any
subsequent draw requests, and may be deemed an event affecting the
Licensee's good standing or constituting consent to restricted
operations, as the case may be.
(ii) Draw process. (A) General. By submitting a request for a draw,
a Licensee is conclusively presumed to have authorized SBA to purchase
its Preferred Security, or to have authorized SBA or any agent or
trustee designated by SBA to guaranty its Debenture or Participating
Security and to sell it with SBA's guarantee, to enter into any
agreements (and to bind the Licensee to such agreements) that may be
necessary to effect:
(1) The sale of the Licensee's security to a short-term investor,
(2) Its purchase on the Licensee's behalf (or by the Licensee
itself), and
(3) The subsequent pooling of that security with other securities
with the same maturity date: Provided, however, That the Licensee shall
retain the right to repurchase its securities upon notice to SBA at
least 10 days prior to the cut-off date for the pool in which the
Licensee's security is to be included by tendering the face amount of
the Debenture, or the face amount of the Participating Security plus
Earned Prioritized Payments, as the case may be, to the short-term
investor.
(B) Debentures. An SBA guaranteed Debenture shall be sold to a
short-term investor at a discount calculated with reference to a rate
determined by the Secretary of the Treasury in accordance with Section
303(b) of the Act (but without regard to any interest subsidy to which
the Licensee may be otherwise entitled), as if the maturity date of the
Debenture were the next scheduled date for the sale of pool
certificates: Provided, however, That if the actual sale of pool
certificates shall take place after the scheduled date, the Licensee
shall pay to the short-term investor, on the actual sale date, an
additional sum equal to daily interest as scheduled on the Debenture,
at the same rate, from the scheduled sale date to the actual sale date.
Failure to make such interest payment on the closing date shall
constitute an event giving rise to a condition affecting the Licensee's
good standing.
(C) Participating securities. The Licensee's Participating Security
shall be sold to a short-term investor for a sum equal to the face
amount thereof. The Licensee shall undertake, with SBA's guarantee, to
pay the short-term investor, at the closing of the next scheduled sale
of pool certificates, Prioritized Payments as scheduled on the Security
at a rate determined by the Secretary of the Treasury in accordance
with Section 303(b) of the Act, as if the maturity date of the
Participating Security were the next scheduled date for the sale pool
certificates.
Dated: September 15, 1994.
Erskine B. Bowles,
Administrator.
[FR Doc. 94-23338 Filed 9-21-94; 8:45 am]
BILLING CODE 8025-01-M
