13 C.F.R. § 120.522 How much accrued interest does SBA pay to the Lender or Registered Holder when SBA purchases the guaranteed portion?
Title 13 - Business Credit and Assistance
(a) Rate of interest. If SBA purchases the guaranteed portion from a Lender or from a Registered Holder (if sold in the Secondary Market), it will pay accrued interest at: (1) The rate in the note if it is a fixed rate loan; or (2) The rate in effect on the date of the earliest uncured payment default, or of SBA's purchase (if there has been no default). (b) Payment to Lender. If the Lender submits a complete purchase request to SBA within 120 days of the earliest uncured payment default, SBA will pay accrued interest to the Lender from the last interest paid-to-date up to the date of payment. If the Lender requests SBA to purchase after 120 days from the date of the earliest uncured payment default date, SBA will pay only 120 days of interest. For LowDoc loans, the interest paid to the Lender will be governed by the Supplemental Guarantee Agreement. (c) Payment to Registered Holder. SBA will pay a Registered Holder all accrued interest up to the date of payment. (d) Extension of the 120 day period. Before the 120 days expire, the SBA field office may extend the period if the Lender and SBA agree that the Borrower can cure the default within a reasonable and definite period of time or that the benefits from doing so otherwise will exceed the costs of SBA paying additional interest. If the 120 days have passed, only the AA/FA or designee can extend the period.
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart E—Loan Administration
§ 120.522 How much accrued interest does SBA pay to the Lender or Registered Holder when SBA purchases the guaranteed portion?
