12 U.S.C. § 5710 — Oversight and audits

Page 2022 TITLE 12—BANKS AND BANKING § 5709 (1) consult with the Administrator of the Small Business Administration and the appro- priate Federal banking agencies on the admin- istration of the Program; (2) establish minimum national standards for approved State programs; (3) provide technical assistance to States for starting State programs and generally dis- seminate best practices; (4) manage, administer, and perform nec- essary program integrity functions for the Program; and (5) ensure adequate oversight of the ap- proved State programs, including oversight of the cash flows, performance, and compliance of each approved State program. (b) Appropriations There is hereby appropriated to the Secretary, out of funds in the Treasury not otherwise ap- propriated, $1,500,000,000 to carry out the Pro- gram, including to pay reasonable costs of ad- ministering the Program. (c) Termination of Secretary’s Program adminis- tration functions The authorities and duties of the Secretary to implement and administer the Program shall terminate at the end of the 7-year period begin- ning on March 11, 2021. (d) Expedited contracting During the 1-year period beginning on March 11, 2021, the Secretary may enter into contracts without regard to any other provision of law re- garding public contracts, for purposes of car- rying out this chapter. (e) Technical assistance Of the amounts appropriated for fiscal year 2021 to carry out the Program, $500,000,000 may be used by the Secretary to— (1) provide funds to States to carry out a technical assistance plan under which a State will provide legal, accounting, and financial advisory services, either directly or con- tracted with legal, accounting, and financial advisory firms, with priority given to business enterprises owned and controlled by socially and economically disadvantaged individuals, to very small businesses and business enter- prises owned and controlled by socially and economically disadvantaged individuals apply- ing for— (A) State programs under the Program; and (B) other State or Federal programs that support small businesses; (2) transfer amounts to the Minority Busi- ness Development Agency, so that the Agency may use such amounts in a manner the Agen- cy determines appropriate, including through contracting with third parties, to provide technical assistance to business enterprises owned and controlled by socially and economi- cally disadvantaged individuals applying to— (A) State programs under the Program; and (B) other State or Federal programs that support small businesses; and (3) contract with legal, accounting, and fi- nancial advisory firms (with priority given to business enterprises owned and controlled by socially and economically disadvantaged indi- viduals), to provide technical assistance to business enterprises owned and controlled by socially and economically disadvantaged indi- viduals applying to— (A) State programs under the Program; and (B) other State or Federal programs that support small businesses. (Pub. L. 111–240, title III, § 3009, Sept. 27, 2010, 124 Stat. 2580; Pub. L. 117–2, title III, § 3301(a)(1)(F), (d), Mar. 11, 2021, 135 Stat. 69, 70.) AMENDMENTS 2021—Subsecs. (c), (d). Pub. L. 117–2, § 3301(a)(1)(F), substituted ‘‘March 11, 2021’’ for ‘‘September 27, 2010’’. Subsec. (e). Pub. L. 117–2, § 3301(d), added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–2 applicable with respect to funds appropriated under section 3301 of Pub. L. 117–2 and funds appropriated on and after Mar. 11, 2021, see section 3301(g) of Pub. L. 117–2, set out as a note under section 5701 of this title. § 5709. Regulations The Secretary, in consultation with the Ad- ministrator of the Small Business Administra- tion, shall issue such regulations and other guid- ance as the Secretary determines necessary or appropriate to implement this chapter including to define terms, to establish compliance and re- porting requirements, and such other terms and conditions necessary to carry out the purposes of this chapter. (Pub. L. 111–240, title III, § 3010, Sept. 27, 2010, 124 Stat. 2581.) § 5710. Oversight and audits (a) Inspector General oversight The Inspector General of the Department of the Treasury shall conduct, supervise, and co- ordinate audits and investigations of the use of funds made available under the Program. (b) Required certification (1) Financial institutions certification With respect to funds received by a partici- pating State under the Program, any financial institution that receives a loan, a loan guar- antee, or other financial assistance using such funds after March 11, 2021, shall certify that such institution is in compliance with the re- quirements of section 103.121 of title 31, Code of Federal Regulations, a regulation that, at a minimum, requires financial institutions, as that term is defined in section 5312(a)(2) and (c)(1)(A) of title 31, to implement reasonable procedures to verify the identity of any person seeking to open an account, to the extent rea- sonable and practicable, maintain records of the information used to verify the person’s identity, and determine whether the person appears on any lists of known or suspected ter- rorists or terrorist organizations provided to the financial institution by any government agency. Page 2023 TITLE 12—BANKS AND BANKING § 5802 (2) Sex offense certification With respect to funds received by a partici- pating State under the Program, any private entity that receives a loan, a loan guarantee, or other financial assistance using such funds after March 11, 2021, shall certify to the par- ticipating State that the principals of such en- tity have not been convicted of a sex offense against a minor (as such terms are defined in section 20911 of title 34). (c) Prohibition on pornography None of the funds made available under this chapter may be used to pay the salary of any in- dividual engaged in activities related to the Pro- gram who has been officially disciplined for vio- lations of subpart G of the Standards of Ethical Conduct for Employees of the Executive Branch for viewing, downloading, or exchanging pornog- raphy, including child pornography, on a Fed- eral Government computer or while performing official Federal Government duties. (Pub. L. 111–240, title III, § 3011, Sept. 27, 2010, 124 Stat. 2581; Pub. L. 113–188, title IX, § 901(d), Nov. 26, 2014, 128 Stat. 2020; Pub. L. 117–2, title III, § 3301(a)(1)(G), Mar. 11, 2021, 135 Stat. 69.) Editorial Notes AMENDMENTS 2021—Subsec. (b). Pub. L. 117–2 substituted ‘‘March 11, 2021’’ for ‘‘September 27, 2010’’ in pars. (1) and (2). 2014—Subsecs. (b) to (d). Pub. L. 113–188 redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out former subsec. (b). Prior to amendment, text of subsec. (b) read as follows: ‘‘The Comptroller General of the United States shall perform an annual audit of the Program and issue a report to the appropriate com- mittees of Congress containing the results of such audit.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–2 applicable with respect to funds appropriated under section 3301 of Pub. L. 117–2 and funds appropriated on and after Mar. 11, 2021, see section 3301(g) of Pub. L. 117–2, set out as a note under section 5701 of this title. CHAPTER 55—ADJUSTABLE INTEREST RATE (LIBOR) Sec. 5801. Findings and purpose. 5802. Definitions. 5803. LIBOR contracts. 5804. Continuity of contract and safe harbor. 5805. Benchmark for loans. 5806. Preemption. 5807. Rulemaking. § 5801. Findings and purpose (a) Findings Congress finds that— (1) LIBOR is used as a benchmark rate in more than $200,000,000,000,000 worth of con- tracts worldwide; (2) a significant number of existing con- tracts that reference LIBOR do not provide for the use of a clearly defined or practicable re- placement benchmark rate when LIBOR is dis- continued; and (3) the cessation or nonrepresentativeness of LIBOR could result in disruptive litigation re- lated to existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate. (b) Purpose It is the purpose of this chapter— (1) to establish a clear and uniform process, on a nationwide basis, for replacing LIBOR in existing contracts the terms of which do not provide for the use of a clearly defined or prac- ticable replacement benchmark rate, without affecting the ability of parties to use any ap- propriate benchmark rate in new contracts; (2) to preclude litigation related to existing contracts the terms of which do not provide for the use of a clearly defined or practicable replacement benchmark rate; (3) to allow existing contracts that reference LIBOR but provide for the use of a clearly de- fined and practicable replacement rate, to op- erate according to their terms; and (4) to address LIBOR references in Federal law. (Pub. L. 117–103, div. U, § 102, Mar. 15, 2022, 136 Stat. 825.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (b), was in the original ‘‘this division’’, meaning div. U of Pub. L. 117–103, Mar. 15, 2022, 136 Stat. 825, known as the Adjust- able Interest Rate (LIBOR) Act, which is classified principally to this chapter. For complete classification of div. U to the Code, see Short Title note set out below and Tables. Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 117–103, div. U, § 101, Mar. 15, 2022, 136 Stat. 825, provided that: ‘‘This division [enacting this chapter and amending section 77ppp of Title 15, Commerce and Trade, and section 1087–1 of Title 20, Education] may be cited as the ‘Adjustable Interest Rate (LIBOR) Act’.’’ § 5802. Definitions In this chapter: (1) Benchmark The term ‘‘benchmark’’ means an index of interest rates or dividend rates that is used, in whole or in part, as the basis of or as a ref- erence for calculating or determining any valuation, payment, or other measurement. (2) Benchmark administrator The term ‘‘benchmark administrator’’ means a person that publishes a benchmark for use by third parties. (3) Benchmark replacement The term ‘‘benchmark replacement’’ means a benchmark, or an interest rate or dividend rate (which may or may not be based in whole or in part on a prior setting of LIBOR), to re- place LIBOR or any interest rate or dividend rate based on LIBOR, whether on a temporary, permanent, or indefinite basis, under or with respect to a LIBOR contract.