§687d. Conflicts of interest

For the purpose of controlling conflicts of interest which may be detrimental to small business concerns, to small business investment companies, to the shareholders or partners of either, or to the purposes of this chapter, the Administration shall adopt regulations to govern transactions with any officer, director, shareholder, or partner of any small business investment company, or with any person or concern, in which any interest, direct or indirect, financial or otherwise, is held by any officer, director, shareholder or partner of (1) any small business investment company, or (2) any person or concern with an interest, direct or indirect, financial or otherwise, in any small business investment company. Such regulations shall include appropriate requirements for public disclosure (including disclosure in the locality most directly affected by the transaction) necessary to the purposes of this section.

(Pub. L. 85–699, title III, §312, as added Pub. L. 88–273, §6(a), Feb. 28, 1964, 78 Stat. 147 ; amended Pub. L. 94–305, title I, §106(f), June 4, 1976, 90 Stat. 666 .)

References in Text

For definition of "this chapter", referred to in text, see References in Text note set out under section 661 of this title.

Codification

Phrase "or shareholders" which section 106(f)(2) of Pub. L. 94–305 directed be stricken and replaced with "shareholder, or partner" did not appear in this section as originally enacted. Since the phrase "or shareholder" appeared in two places in this section as originally enacted, the substitution was executed thereto as the probable intent of Congress.

Amendments

1976-Pub. L. 94–305 inserted "or partners" after "to the shareholders" and substituted "shareholder, or partner" for "or shareholders".