---
kind: "section"
citation: "15 U.S.C. § 689m"
title: "15"
title_heading: "Commerce and Trade"
number: "689m"
heading: "Additional penalties for noncompliance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/689m"
units:
  - "Chapter 14B — Small Business Investment Program"
  - "Subchapter III — Investment Division Programs"
  - "Part B — New Markets Venture Capital Program"
---

# §689m. Additional penalties for noncompliance

- (a) **In general—** With respect to any [New Markets Venture Capital company](/usc/15/689.md?p=4) that violates or fails to comply with any of the provisions of this chapter, of any regulation issued under this chapter, or of any [participation agreement](/usc/15/689.md?p=6) entered into under this chapter, the [Administrator](/usc/15/662.md?p=2) may in accordance with this section—
  - (1) void the [participation agreement](/usc/15/689.md?p=6) between the [Administrator](/usc/15/662.md?p=2) and the [company](/usc/15/662.md?p=3); and
  - (2) cause the [company](/usc/15/662.md?p=3) to forfeit all of the rights and privileges derived by the [company](/usc/15/662.md?p=3) from this chapter.
- (b) **Adjudication of noncompliance—**
  - (1) **In general—** Before the [Administrator](/usc/15/662.md?p=2) may cause a [New Markets Venture Capital company](/usc/15/689.md?p=4) to forfeit rights or privileges under [subsection (a)](#a), a court of the United States of competent jurisdiction must find that the [company](/usc/15/662.md?p=3) committed a violation, or failed to comply, in a cause of action brought for that purpose in the district, territory, or other place subject to the jurisdiction of the United States, in which the [principal](/usc/15/694a.md?p=6) office of the [company](/usc/15/662.md?p=3) is located.
  - (2) **Parties authorized to file causes of action—** Each cause of action brought by the United States under this subsection shall be brought by the [Administrator](/usc/15/662.md?p=2) or by the Attorney General.

## Source credit

(Pub. L. 85–699, title III, § 364, as added Pub. L. 106–554, § 1(a)(8) [§ 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–663.)

## Notes

### Editorial Notes

### References in Text

For definition of “this chapter”, referred to in subsec. (a), see References in Text note set out under section 661 of this title.