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Code · BILL · 116th Congress · S. 4321 (Introduced in Senate) — To establish the Paycheck Protection Program Second Draw Loan and amend the 7(a) loan guaranty program for recovery s... · Sec. 117

Sec. 117. Conflicts of interest

422 words·~2 min read·/bill/116/s/4321/is/section-117

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In this section: The term controlling interest means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. The term covered entity means an entity in which a covered individual directly or indirectly holds a controlling interest. For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated.
The term covered individual means— the President, the Vice President, the head of an Executive department, or a Member of Congress; and the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subparagraph (A). The term Executive department has the meaning given the term in section 101 of title 5, United States Code. The term Member of Congress means a Member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico.
The term equity interest means— a share in an entity, without regard to whether the share is— transferable; or classified as stock or anything similar; a capital or profit interest in a limited liability company or partnership; or a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subparagraph
(A)or (B), respectively. The principal executive officer and the principal financial officer, or individuals performing similar functions, of an entity seeking to enter a transaction made under paragraph (36), (37), or
(38)of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as added and amended by this title, shall, before that transaction is approved, disclose to the Administrator whether the entity is a covered entity. The requirement under subsection (b)— shall apply with respect to any transaction made under paragraph (36), (37), or
(38)of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), as added and amended by this title, on or after the date of enactment of this Act; and shall not apply with respect to— any transaction described in paragraph
(1)that was made before the date of enactment of this Act; or forgiveness under section 1106 of the CARES Act ( 15 U.S.C. 9005 ) or any other provision of law of any loan associated with any transaction described in paragraph
(1)that was made before the date of enactment of this Act.
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Sec. 117
Conflicts of interest
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