13 C.F.R. § 120.453 What are the requirements of a PLP Lender in servicing and liquidating SBA guaranteed loans?
Title 13 - Business Credit and Assistance
The PLP Lender must service and liquidate its SBA guaranteed loan portfolio (including its non-PLP loans) using generally accepted commercial banking standards employed by prudent lenders. The PLP Lender must liquidate any defaulted SBA guaranteed loan in its portfolio unless SBA advises in writing that SBA will liquidate the loan. The PLP Lender must submit a liquidation plan to SBA prior to commencing liquidation action. The PLP Lender may take any necessary servicing action, or liquidation action consistent with a plan, for any SBA guaranteed loan in its portfolio, except it may not: (a) Take any action that confers a Preference on the Lender; and (b) Accept a compromise settlement without prior written SBA consent. [61 FR 3235, Jan. 31, 1996, as amended at 64 FR 6510, Feb. 10, 1999]
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart D—Lenders
§ 120.453 What are the requirements of a PLP Lender in servicing and liquidating SBA guaranteed loans?
