13 CFR § 120.645 Business Loans

§ 120.645 Redemption of Certificates.

Current through Sep 29, 2026 · Read all of Part 120

(a) Redemption of Individual Certificate. The prepayment of the underlying loan or a default on such loan will trigger the redemption of the Certificate by FTA/SBA in accordance with the procedures prescribed in the SPGA.

(b) Redemption of Pool Certificate. The FTA and SBA may redeem a Pool Certificate because of prepayment or default of all loans in a Pool.

← § 120.644 Transfers of Certificates.§ 120.650 Registration duties of FTA in Secondary Market. →