Distributions by Licensee—required Distributions to private investors and SBA.

CFR · 2024-01-01 · US · Title 13

You must make Distributions under this § 107.1560 if you have outstanding Participating Securities or Earmarked Assets and you satisfy the conditions (a) (1) You must have paid all Prioritized Payments, Adjustments and Charges, so that the balance in both your Distribution Account and your Accumulation Account is zero (see §§ 107.1520 and 107.1540). (2) You must have made any permitted tax Distribution that you choose to make under § 107.1550. (3) You must satisfy the liquidity requirement in § 107.1505. (4) The amount you distribute under this section must not exceed your remaining Retained Earnings Available for Distribution. (b) (1) Your Retained Earnings Available for Distribution as of the end of your fiscal year, after giving effect to any Distribution under §§ 107.1540 and 107.1550; minus (2) All previous Distributions under this section and § 107.1570(a) that were applied as redemptions or repayments of Leverage; plus (3) All previous Distributions under § 107.1570(b) that reduced your Retained Earnings Available for Distribution. (c) (d) (1) All Distributions to private investors reduce Retained Earnings Available for Distribution. (2) Distributions to SBA, or its designated agent or Trustee, reduce Retained Earnings Available for Distribution if they are applied as payments of Profit Participation or distributions on Preferred Securities (see paragraph (g) of this section). (3) Distributions to SBA, or its designated agent or Trustee, do not reduce Retained Earnings

official document · source cfr-2024 · id 13:§ 107.1560