Corporation for Small Business Investment Charter Act

Corporation for Small Business Investment Charter Act - Amends the Small Business Investment Act of 1958 to give a licensee in good standing three months from the date the Small Business Administration receives notice that it is ready to conduct business to qualify for doing so with the Corporation for Small Business Investment and a special-purpose trust established by this Act.

Requires the Administration, within six months after receiving notice that a licensee is ready to conduct business, to promulgate regulations to effect the termination of operations of any licensee which has not qualified for conducting business with the Corporation for Small Business Investment and the Trust.

Establishes the Corporation for Small Business Investment and requires it to maintain its principal office in the District of Columbia.

Requires the President to appoint an interim board of directors for it. Sets forth procedures for selecting the Corporation's permanent board.

Describes the Corporation's stock structure.

Authorizes any depository institution to: (1) make payments to the Corporation of capital contributions; (2) receive the Corporation's stock as evidence of capital contributions; and (3) dispose of such stock. Authorizes the Corporation to issue nonvoting preferred stock.

Sets forth limitations on obligations and securities issued by the Corporation. Authorizes the Secretary of the Treasury to purchase obligations issued by the Corporation. Sets forth limitations on the amount and yield of such purchases and requires advance approval of the Congress.

Makes all obligations issued by the Corporation acceptable as security for all fiduciary, trust, and public funds controlled by the United States.

Authorizes the Corporation to issue commitments or otherwise deal in small business investment securities after the permanent board has been duly constituted. Sets forth the procedure for perfecting a security or ownership interest in small business investment securities created by the Corporation. Authorizes the Corporation to guarantee specified securities.

Sets forth criteria for the qualifications of small business investment companies to conduct business with the Corporation.

Authorizes the Corporation to enter into agreements with small business investment companies. Authorizes such companies to provide equity capital and loans to small-business concerns. Limits small business investment companies to activities contemplated by this Act and sets forth procedures for eliminating conflicts of interest. Requires the Corporation to adopt a rule prohibiting small business investment companies from assuming control over small-business concerns except on a temporary basis. Sets forth restrictions on the financing of small business investment companies.

Exempts loans from small business investment companies to small business concerns from the provisions of the Constitution or State laws that limit the terms of such loan, unless the exemption is overriden by a State.

Requires the Corporation to adopt criteria for making investments in disadvantaged small business concerns.

Establishes a special-purpose trust which shall operate in accordance with a trust agreement between it and the Corporation. Sets forth procedures for appointing trustees. Requires the trust to establish separate accounting for all preferred securities, debentures, loss reserves, and other funds acquired and to make an annual accounting of its operations to the Secretary of the Treasury.

Requires the Administration, within 30 days after receiving notice from the Corporation that it is prepared to conduct business, to convey it all of the right, title, and interest to all securities and outstanding debentures issued by small business investment companies which are not in liquidation.

Requires the trust to apply all of the funds held in trust and income to: (1) cover any losses realized on debentures purchased or guaranteed by the Corporation; (2) reduce the interest rate on debentures issued by special small business investment companies; (3) purchase preferred securities issued by special small business investment companies; and (4) cover the operating costs of administering the trust.

Authorizes the trustees of the trust to purchase preferred securities and the Corporation to purchase or guarantee the payment of principal and interest on debentures issued by special small business investment companies. Sets forth the terms and conditions for small purchases.

Authorizes a special small business investment company to request the Corporation to purchase or guarantee debentures issued by such company.

Provides that all outstanding preferred securities purchased by the trust from special small business investment companies shall be redeemed and transferred to the U.S. Treasury 50 years after the effective date of this Act. Authorizes appropriations for FY 1990 through 1994.

Gives the Administration review authority over the Corporation. Requires that the Corporation's books be audited annually and that a report of each such audit be made by the Secretary of the Treasury to the President and to the Congress' small business committees. Subjects the Corporation's books and records to audit by the General Accounting Office at the request of either of the Congress' small business committees and by the Administration's Office of Inspector General while specified debentures remain outstanding. Requires the Corporation to transmit to the President and the Congress' small business committees an annual report.

Directs the Administration to enter into a contract with the Corporation which provides for the administration, management, and servicing by the Corporation of the Administration's interests in all small business investment company securities the Administration guaranteed or or purchased before a certain date. Provides for an annual fee to be paid by the Administration for the Corporation's services.