Funding of Licensee's draw request through sale to short-term investor.

CFR · 2024-01-01 · US · Title 13

(a) (1) The sale of your Debenture or Participating Security to a short-term investor at a rate that may be different from the Trust Certificate Rate which will be established at the time of the pooling of your security; (2) The purchase of your security from the short-term investor, either by you or on your behalf; and (3) The pooling of your security with other securities with the same maturity date. (b) (1) The sale price will be the face amount. (2) At the next scheduled date for the sale of Debenture Trust Certificates, (3) Failure to pay the interest constitutes noncompliance with the terms of your Leverage (see § 107.1810). (c) (d) (1) Give SBA written notice at least 10 days before the cut-off date for the pool in which your Debenture is to be included; and (2) Pay the face amount of the Debenture, plus interest, to the short-term investor.

official document · source cfr-2024 · id 13:§ 107.1240