Unknown. Final rule

3,951 words·~18 min read·/register/2002/10/22/02-26546

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2002-10-22.xml --- 67 204 Tuesday, October 22, 2002 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service Animal Animal and Plant Health Inspection Service PROPOSED RULES Exportation and importation of animals and animal products: Exotic Newcastle diease; disease status change— Campeche, Quintana Roo, and Yucatan, Mexico, 64827-64833 02-26811 NOTICES Environmental statements; availability, etc.:

Rangeland Grasshopper and Mormon Cricket Suppression Program, 64862 02-26814 Reports and guidance documents; availability, etc.: Importation of clementines, mandarins, and tangerines from Chile; pest risk assessment; comment request, 64862-64863 02-26813 Veterinary services user fees; 2003 FY reimbursable overtime charges, 64863-64868 02-26815 Appalachian Appalachian States Low-Level Radioactive Waste Commission NOTICES Meetings, 64868 02-26865 Children Children and Families Administration NOTICES Agency information collection activities:

Proposed collection; comment request, 64901 02-26774 Coast Guard Coast Guard RULES Drawbridge operations: New Jersey, 64812-64813 02-26719 Ports and waterways safety: Seabrook Nuclear Power Plant, NH; security zone, 64813-64815 02-26818 NOTICES Reports and guidance documents; availability, etc.: National Preparedness for Response Exercise Program; guidelines, 64961-64962 02-26864 Commerce Commerce Department See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration Comptroller Comptroller of the Currency NOTICES Agency information collection activities:

Proposed collection; comment request, 64964-64965 02-26831 Education Education Department NOTICES Meetings: President's Advisory Board on Tribal Colleges and Universities, 64875 02-26969 Employment Employment and Training Administration NOTICES Adjustment assistance: Ansell Healthcare, Inc. et al., 64916-64917 02-26737 Arnold Tool & Die Works, Inc., 64917 02-26756 GE Transportation Systems, 64917 02-26745 Glen Oaks Industries, Inc., 64917 02-26753 Laird Technologies, 64917-64918 02-26757 Lapcor Plastics, 64918 02-26743 Modine Manufacturing et al., 64918-64919 02-26735 Montgomery Wards, 64919 02-26752 Nidec America Corp., 64919 02-26744 Nokia Mobile Phones Americas, Inc., 64919 02-26742 NTN-Bower Corp., 64919 02-26740 Potlatch Corp., 64919-64920 02-26751 Sappi Fine Paper North America, 64920 02-26746 Trus Joist A Weyhaeuser Business Engineered Wood Products Operation, 64920 02-26755 White Mountain Stitching Co., 64920 02-26754 Adjustment assistance and NAFTA transitional adjustment assistance:

Glen Oaks Industries, Inc., 64915-64916 02-26758 NAFTA transitional adjustment assistance: Acme Electronics, LLC et al., 64920-64922 02-26736 Adcap-Dunn Manufacturing Co., et al., 64922-64924 02-26741 Crest Uniform Co., 64924 02-26747 Potlatch Corp. et al., 64924 02-26750 Temco Acquisitions, Inc., 64924 02-26748 Trust Joist Weyerhaeuser Business Engineered Wood Products Operations, 64924-64925 02-26749 Energy Energy Department See Federal Energy Regulatory Commission EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States:

North Carolina, 64989-64992, 64994-64997, 64999-65001 02-26571 Air quality planning purposes; designation of areas: Washington, 64815-64817 02-26847 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: North Carolina, 64993, 64998, 65002 02-26572 Superfund program: National oil and hazardous substances contingency plan— National priorities list update, 64846-64852 02-26710 NOTICES Pesticide, food, and feed additive petitions: Taensa, Inc., 64881-64885 02-26844 Water pollution control:

National pollutant discharge elimination system (NPDES)— Alaska; log transfer facilities, 64885-64889 02-26846 Executive Executive Office of the President See National Drug Control Policy Office See Presidential Documents See Trade Representative, Office of United States Farm Farm Credit Administration PROPOSED RULES Farm credit system: Loan policies and operations— Capital adequacy and related regulations; miscellaneous amendments, 64833-64835 02-26697 FAA Federal Aviation Administration RULES Airworthiness directives:

Agusta S.p.A., 64791-64792 02-26665 British Aerospace, 64792-64794 02-26370 Honeywell International, 64798-64799 02-26790 Raytheon, 64794-64798 02-26667 FCC Federal Communications Commission RULES Radio stations; table of assignments: California, 64817 02-26775 Georgia, 64818 02-26778 Texas, 64817-64818 02-26776 PROPOSED RULES Radio stations; table of assignments: Virginia and West Virginia, 64853 02-26777 Regulatory Flexibility Act; review, 64967-64980 02-26429 NOTICES Meetings:

Consumer/Disability Telecommunications Advisory Committee, 64895-64896 02-26873 Federal Emergency Federal Emergency Management Agency NOTICES Agency information collection activities: Proposed collection; comment request, 64896-64897 02-26796 64897-64898 02-26797 Disaster and emergency areas: Alabama, 64899 02-26794 Mississippi, 64899 02-26792 64899 02-26795 Grants and cooperative agreements; availability, etc.: Individuals and Households Program; notice of maximum amount for assistance, 64899-64900 02-26793 Reports and guidance documents; availability, etc.:

Information disseminated by Federal agencies; quality, objectivity, utility, and integrity guidelines, 64900 02-26798 Federal Energy Federal Energy Regulatory Commission PROPOSED RULES Practice and procedure: Critical energy infrastructure information; public availability restriction, 64835 02-26489 NOTICES Agency information collection activities: Submission for OMB review; comment request, 64875-64876 02-26805 Hydroelectric applications, 64880 02-26806 *Applications, hearings, determinations, etc.:* California Independent System Operator Corp., 64876-64877 02-26804 Columbia Gas Transmission Corp., 64877-64878 02-26801 Florida Gas Transmission Co., 64878 02-26800 Iroquois Gas Transmission System, L.P., 64878 02-26807 National Fuel Gas Supply Corp., 64879 02-26802 Wisvest-Connecticut, LLC, et al., 64879 02-26803 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies:

Formations, acquisitions, and mergers, 64900 02-26791 Meetings; Sunshine Act, 64900-64901 02-26976 Food Food and Drug Administration PROPOSED RULES Medical devices: Neurological devices— Human dura mater; classification, 64835-64840 02-26816 NOTICES Reports and guidance documents; availability, etc.: Human dura mater; Class II special controls, 64901-64902 02-26817 GAO General Accounting Office NOTICES Meetings: Government Auditing Standards Advisory Council, 64901 02-26808 GSA General Services Administration NOTICES Privacy Act:

Systems of records, 65003-65006 02-26843 Health Health and Human Services Department See Children and Families Administration See Food and Drug Administration See Public Health Service Housing Housing and Urban Development Department NOTICES Agency information collection activities: Submission for OMB review; comment request, 64903-64904 02-26772 64904-64905 02-26773 Grant and cooperative agreement awards: Healthy Homes Grant Program, 64905 02-26765 Lead-baed paint programs— Lead-Based Paint Hazardous Control;

Michigan, 64905-64906 02-26767 Lead-based paint programs— Alliance to end childhood lead poisoning, 64907-64908 02-26766 Lead Hazard Control Program, 64906 02-26771 Tides Foundation, 64906 02-26770 Lead Hazard Control 2001, 64906-64907 02-26764 Low income housing: Housing assistance payments (Section 8)— Housing Choice Voucher Program and Moderate Rehabilitation Single Room Occupancy Program (2003FY); fair market rents, 64908-64909 02-26763 Immigration Immigration and Naturalization Service NOTICES Agency information collection activities:

Submission for OMB review; comment request, 64911-64912 02-26866 Industry Industry and Security Bureau NOTICES Meetings: Information Systems Technical Advisory Committee, 64868 02-26849 Interior Interior Department See Land Management Bureau IRS Internal Revenue Service RULES Income taxes, etc.: Tax shelter disclosure statements; modification, 64799-64807 02-26724 Procedure and administration: Potentially abusive tax shelters; preparation, maintenance, and furnishing lists of investors, 64807-64812 02-26726 PROPOSED RULES Income taxes, etc.:

Tax shelter disclosure statements; modification; cross-reference, 64840-64842 02-26725 Procedure and administration: Potentially abusive tax shelters; preparation, maintenance, and furnishing lists of investors; cross-reference, 64842-64844 02-26727 International International Trade Administration NOTICES Antidumping: Welded large diameter line pipe from— Japan, 64870-64871 02-26861 Antidumping and countervailing duties: Administrative review requests, 64868-64869 02-26857 64869 02-26858 64870 02-26860 Countervailing duties:

Carbon and alloy steel wire rod from— Brazil and Canada, 64871-64873 02-26859 International International Trade Commission NOTICES Import investigations: Compact disc and DVD holders, 64910-64911 02-26734 Justice Justice Department See Immigration and Naturalization Service PROPOSED RULES Federal Employees Liability Reform and Tort Compensation Act: Suits based on acts or omissions of Federal employees and other persons; certification and decertification, 64844-64846 02-26832 Labor Labor Department See Employment and Training Administration See Mine Safety and Health Administration NOTICES Agency information collection activities:

Submission for OMB review; comment request, 64912-64913 02-26759 64913-64914 02-26837 64914 02-26838 64914-64915 02-26839 64915 02-26840 Organization, functions, and authority delegations: Assistant Secretary for Occupational Safety and Health, 65007-65009 02-26836 Assistant Secretary for Policy, 64981-64983 02-26739 Office of Small Business Programs, 64985-64987 02-26738 Land Land Management Bureau NOTICES Meetings: Resource Advisory Councils— Arizona et al., 64909-64910 02-26877 Western Montana, 64909 02-26789 Mine Mine Safety and Health Administration NOTICES Agency information collection activities:

Submission for OMB review; comment request, 64925 02-26919 National Credit National Credit Union Administration NOTICES Meetings; Sunshine Act, 64925 02-26901 National Drug National Drug Control Policy Office NOTICES Reports and guidance documents; availability, etc.: Information disseminated by Federal agencies; quality, objectivity, utility, and integrity guidelines, 64889-64895 02-26867 National Highway National Highway Traffic Safety Administration RULES Motor vehicle safety standards:

Child restraint systems, 64818-64825 02-26824 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management: Northeastern United States fisheries— Atlantic surfclam and ocean quahog, 64825 02-26694 Tilefish, 64825-64826 02-26871 West Coast States and Western Pacific fisheries— Pacific coast groundfish, 64826 02-26693 PROPOSED RULES Fishery conservation and management: West Coast States and Western Pacific fisheries— Coral reef ecosystems; correction, 64861 02-26870 International fisheries regulations:

Antarctic Marine Living Resources Conservation Commission; monitoring permits and system, fishing season, registered agent, and disposition of seizures, 64853-64861 02-26872 NOTICES Agency information collection activities: Proposed collection; comment request, 64873-64874 02-26869 Coastal zone management programs and estuarine sanctuaries: Consistency appeals— Millennium Pipeline Co., 64874 02-26787 Reports and guidance documents; availability, etc.: Coastal and Estuarine Land Conservation Program, 64874-64875 02-26996 Nuclear Nuclear Regulatory Commission NOTICES Meetings:

Reactor Safeguards Advisory Committee, 64925-64926 02-26828 64926 02-26829 Meetings; Sunshine Act, 64926 02-26995 Reports and guidance documents; availability, etc.: Materials licenses; medical use licenses, 64926-64927 02-26830 Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Personnel Personnel Management Office NOTICES Excepted service: Schedules A, B, and C; positions placed or revoked— Update, 64927-64929 02-26799 Presidential Presidential Documents PROCLAMATIONS *Special observances:* Year of Clean Water (Proc. 7611), 64787-64788 02-27025 Public Public Health Service See Food and Drug Administration NOTICES Reports and guidance documents; availability, etc.:

National Toxicology Program— Validation of Alternative Methods (ICCVAM) Expert Panel Report on the Current Status of In Vitro Test Methods for Detecting Endocrine Disruptors, 64902-64903 02-26733 Research Research and Special Programs Administration NOTICES Meetings: International standards on transport of dangerous goods, 64962-64963 02-26823 SEC Securities and Exchange Commission NOTICES Investment Company Act of 1940: Approval order applications— London Pacific Life & Annuity Co., 64936-64940 02-26850 Meetings;

Sunshine Act, 64940 02-26927 64940 02-26932 Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 64940-64943 02-26782 Government Securities Clearing Corp., 64943-64944 02-26784 National Association of Securities Dealers, Inc., 64944-64948 02-26781 Pacific Exchange, Inc., 64948-64950 02-26785 64950-64951 02-26786 Philadelphia Stock Exchange, Inc., 64951-64954 02-26783 *Applications, hearings, determinations, etc.:* FFP Partners, L.P., 64929 02-26827 GDC Partners Fund, LLC, et al., 64929-64933 02-26780 Hemagen Diagnostics, Inc., 64933 02-26826 Public utility holding company filings, 64933-64936 02-26825 SBA Small Business Administration RULES Small business investment companies:

Small business concerns; assumption of control, 64789-64791 02-26546 NOTICES Disaster loan areas: Mississippi, 64954 02-26833 State State Department NOTICES Agency information collection activities— Submission for OMB review; comment request, 64954 02-26854 64954-64955 02-26855 64955 02-26856 Art objects; importation for exhibition: Ceramica y Cultura: The Story of Mexican and Spanish Mayolica, 64955 02-26853 Meetings: Overseas Security Advisory Council, 64956 02-26851 Surface Surface Transportation Board NOTICES Railroad services abandonment:

Canada Southern Railway Co., 64963 02-26691 Trade Trade Representative, Office of United States NOTICES World Trade Organization: Canada and U.S.; consultations regarding preliminary countervailing duty and critical circumstances determination concerning softwood lumber from Canada, 64956-64957 02-26761 64957-64959 02-26762 Dispute settlement panel establishment requests— European Communities;inconsistent provisional safeguard measures regarding imports of certain steel, 64959-64960 02-26760 Transportation Transportation Department See Coast Guard See Federal Aviation Administration See National Highway Traffic Safety Administration See Research and Special Programs Administration See Surface Transportation Board See Transportation Statistics Bureau NOTICES Air carriers:

U.S. passenger airlines agreements— Delta/Northwest/Continental; waiting period extended, 64960-64961 02-26973 Transportation Transportation Statistics Bureau NOTICES Agency information collection activities: Submission for OMB review; comment request, 64963-64964 02-26821 64964 02-26822 Treasury Treasury Department See Comptroller of the Currency See Internal Revenue Service Separate Parts In This Issue Part II Federal Communications Commission, 64967-64980 02-26429 Part III Labor Department, 64981-64983 02-26739 Part IV Labor Department, 64985-64987 02-26738 Part V Environmental Protection Agency, 64989-65002 02-23582 02-23583 02-26569 02-26570 02-26571 02-26572 Part VI General Services Administration, 65003-65006 02-26843 Part VII Labor Department, 65007-65009 02-26836 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 67 204 Tuesday, October 22, 2002 Rules and Regulations SMALL BUSINESS ADMINISTRATION 13 CFR Part 107 RIN 3245-AE88 Small Business Investment Companies AGENCY: U.S. Small Business Administration (SBA). ACTION: Final rule. SUMMARY:

This final rule allows a Small Business Investment Company

(SBIC)to assume control over a small business concern, without notice to the SBA, and to retain such control for a period of up to seven years, or longer with SBA approval. The final rule also allows an SBIC to sell equity securities in a portfolio concern to a competitor of that portfolio concern. DATES: This rule is effective on November 21, 2002. FOR FURTHER INFORMATION CONTACT: Carol Fendler, Director, Office of Licensing and Program Standards, Investment Division, Office of Capital Access,

(202)205-7559 or *carol.fendler@sba.gov.* SUPPLEMENTARY INFORMATION: I. Background The Small Business Investment Corrections Act of 2000, Public Law 106-554, Title IV, section 402, amended section 103(5)(A)(i) of the Small Business Investment Act

(Act)to clarify that a small business concern controlled by venture capital firms, including licensed small business investment companies (SBICs), does not for that reason cease to qualify as independently owned and operated. Under the statute, a business would be considered a small business concern “regardless of the allocation of control during the investment period under any investment agreement between the business concern and the entity making the investment.” (15 U.S.C. 662(5)(A)(i)). On May 17, 2002, SBA published in the **Federal Register** a proposed rule (67 FR 35055) to simplify its regulation governing control of a small business and bring it into conformity with the Act, as amended in 2000. The proposed rule also removed a regulatory restriction on the right of an SBIC to sell securities of a small business to a competitor of that business. SBA received six comments on the proposed rule. These are discussed in the following section-by-section analysis. II. Section-by-Section Analysis SBA amends § 107.865 by revising the heading. This change recognizes that SBICs are now allowed to exercise control over a Small Business. SBA amends paragraph

(a)of § 107.865 to allow an SBIC to exercise control over a Small Business. The period of control is limited to the seventh anniversary of the date on which control was initially acquired. This is a change from the proposed rule, which would have permitted control for up to five years. SBA received six comments on the proposed rule. Four of those submitted comments supported the proposed rule as drafted. The other two that commented supported the concept that SBICs should be permitted to take control of portfolio companies but indicated that the proposed five year period of control was insufficient. One proposed that a seven year time frame would be more appropriate, particularly where investments are in seed stage companies. This commenter indicated that such investments typically have a 4-7 year investment horizon. SBA recognizes that some investments, particularly earlier stage investments, may require additional time for the investment to mature. Recent historical experience indicates that the percentage of SBIC investments in start-up businesses has ranged from approximately 30 percent to 45 percent. By including add-on investments in companies that were originally financed as start-ups by SBICs, the percentage increases to over 50 percent. In view of this investing pattern and the potential need to grow and support start-up businesses, SBA has modified the rule to allow for control to be exercised for a period of seven years. The final commenter stated that a ten year period would be more appropriate than the proposed five year term, for a number of reasons. First, the commenter pointed out that market conditions may require SBICs to seek extensions of the control period beyond five years. The commenter expected that SBA would likely grant these extension requests, but suggested that SBA would be spared the expenditure of scarce resources needed to address such requests by adopting the ten year period at the outset. SBA believes that extension requests will be considerably less frequent with the change to a seven-year control period, and believes that it has the resources to respond to those requests that will be received. The commenter also noted that a ten-year term would be consistent with the regulations promulgated by the Board of Governors of the Federal Reserve System and the Department of Treasury in implementing the Gramm-Leach-Bliley Act (GLB), Public Law 106-102. The commenter suggested that a differing time period for the exercise of control between SBA's regulations and those implementing GLB may result in the SBIC program being less attractive to banks and may limit their participation in the program. SBA believes that the SBIC program will continue to be an attractive option for banks interested in making equity investments. Although the regulations promulgated under GLB do permit control for a period of up to ten years, the restrictions on the exercise and scope of that control are greater than in the SBIC program. For example, banks taking controlling positions in a portfolio company under GLB are prohibited from managing or operating that portfolio company. SBICs, however, are not subject to that same type of restriction. SBA also believes that banks will remain interested in the SBIC program for reasons other than the ability to take controlling positions in their investments. Many banks find the SBIC program to be an attractive option since investment in an SBIC by a bank is presumed to meet the standards for a qualified investment for purposes of investment performance under the Community Reinvestment Act regulations. Furthermore, many banks continue to invest in SBICs that obtain financial assistance from SBA at favorable rates. In adopting seven years as the allowable control period, SBA also considered the structure of the SBIC program and SBICs. For most SBICs, the projected investment cycle is a 3-5 year investing program with exits anticipated after a 3-5 year holding period. Since SBICs typically do not expect to hold investments for ten years, a control period of that length should not generally be necessary. Although SBA recognizes that company and market conditions may impact the ability to exit an investment, SBA believes that a seven year control period should be sufficient. SBA amends § 107.865(b) to clarify that this paragraph, which sets forth conditions that create a presumption of control over a small business concern, relates only to control based on ownership of voting securities. Control may still exist by other means as outlined in § 107.865 (a). No comments were received on this change. SBA amends § 107.865(d) to allow for extension of the control period in certain circumstances, with SBA's approval. One commenter indicated that the reasons for granting an extension should be expanded to allow for consideration of the financial stability of the SBIC in addition to the financial stability of the portfolio concern. SBA recognizes that relinquishment of control may be difficult to accomplish; however, SBA also recognizes that the financial stability of the SBIC may have no relationship to its control position in a particular portfolio concern and that allowing control to continue may be viewed as being adverse to the interests of the portfolio concern. SBA will consider the reasons why divestiture cannot be completed within seven years when reviewing the request for an extension, and will consider the best interests of both the SBIC and the small business concern. SBA believes the regulations as promulgated have sufficient breadth to allow for a number of considerations. Therefore, SBA does not believe that the financial stability of the SBIC should be a specifically enunciated consideration. SBA amends § 107.865 by deleting paragraphs

(e)and

(f)and redesignating paragraph

(g)as (e). The deleted paragraphs are no longer necessary. SBA amends § 107.885 by removing paragraph

(b)and removing the designation “(a)”. This change allows a SBIC to sell its interests in a portfolio concern to a competitor of that portfolio concern. This change recognizes that in the venture capital industry a likely exit for an investment is the sale of an interest in a portfolio concern to a competitor of the portfolio concern. Three commenters addressed this provision directly, all favorably. Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 601-612) Compliance With Executive Order 12866 The Office of Management and Budget

(OMB)did not review this rule as a “significant” regulatory action under Executive Order 12866. The rule implements technical corrections to the SBIC program. The rule will not have an annual effect on the economy of $100 million or more, adversely affect the economy in a material way, create a serious inconsistency or otherwise interfere with an action taken or planned by another agency, materially alter the budgetary impact of loan programs or other governmental programs, or raise novel legal or policy issues arising out of legal mandates or the President's priorities. Compliance With Executive Order 12988 For purposes of Executive Order 12988, the SBA has determined that this rule was drafted, to the extent practicable, in accordance with the standards set forth in section 3 of that order. Compliance With Executive Order 13132 For purposes of Executive Order 13132, SBA has determined that the rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, under Executive Order 13132, SBA has determined that the rule does not have sufficient federalism implications warranting the preparation of a Federalism Assessment. Compliance with Paperwork Reduction Act, 44 U.S.C. Ch. 35 The rule does not impose any new information collection requirements from SBA which require approval by OMB under the Paperwork Reduction Act, 44 U.S.C. Ch. 35. Compliance with the Regulatory Flexibility Act, 5 U.S.C. 601-612 SBA determined that the rule will not have a significant impact on a substantial number of small entities. SBA invited comments on this determination but received none. List of Subjects in 13 CFR Part 107 Investment companies, Loan programs-business, Reporting and recordkeeping requirements, Small Businesses. For the reasons stated in the preamble, amend part 107 of title 13 of the Code of Federal Regulations as follows: PART 107—SMALL BUSINESS INVESTMENT COMPANIES 1. The authority citation for part 107 continues to read as follows: Authority: 15 U.S.C. 681 *et seq.* , 683, 687(c), 687b, 687d, 687g, and 687m. 2. In § 107.865, revise the section heading and paragraphs (a), (b), and (d), remove paragraphs

(e)and (f), and redesignate paragraph

(g)as paragraph

(e)to read as follows: § 107.865 Control of a small business by a licensee.

(a)*In general.* You, or you and your Associates (in the latter case, the “Investor Group”), may exercise Control over a Small Business for purposes connected to your investment, through ownership of voting securities, management agreements, voting trusts, majority representation on the board of directors, or otherwise. The period of such Control will be limited to the seventh anniversary of the date on which such Control was initially acquired, or any earlier date specified by the terms of any investment agreement.

(b)*Presumption of control.* Control over a Small Business based on ownership of voting securities will be presumed to exist whenever you or the Investor Group own or control, directly or indirectly:

(1)At least 50 percent of the outstanding voting securities, if there are fewer than 50 shareholders; or

(2)More than 25 percent of the outstanding voting securities, if there are 50 or more shareholders; or

(3)At least 20 percent of the outstanding voting securities, if there are 50 or more shareholders and no other party holds a larger block.

(d)*Extension of Control.* With SBA's prior written approval you, or the Investor Group, may retain Control for such additional period as may be reasonably necessary to complete divestiture of Control or to ensure the financial stability of the portfolio company. § 107.885 [Amended] 3. Amend § 107.885 by removing paragraph

(b)and removing the paragraph designation “(a)''. Dated: October 10, 2002. Hector V. Barreto, Administrator. [FR Doc. 02-26546 Filed 10-21-02; 8:45 am]

Connectionstraces to 5

Traces to 5 documents

U.S. Code