Special rules for In-Kind Distributions by Licensees.

CFR · 2024-01-01 · US · Title 13

(a) (1) You may distribute only Distributable Securities. (2) You must distribute each security pro-rata to all investors and to SBA or its designated agent or Trustee, based on the amounts that each party would receive if the Distribution were in cash. (3) You must impute a gain (loss) on each security being distributed as if it were being sold, using the value of the security as of the declaration date of the Distribution (if you are a Corporate Licensee) or the distribution date (if you are a Partnership Licensee). (4) You must deposit SBA's share of securities being distributed with a disposition agent designated by SBA. As an alternative, if you agree, SBA may direct you to dispose of its shares. In this case, you must promptly remit the proceeds to SBA. (b) (1) You may make an In-Kind Distribution of an Earmarked Asset only if you pay SBA the lower of: (i) An amount equal to the Unrealized Appreciation on the asset; or (ii) The full amount of your Accumulated Prioritized Payments and unpaid Adjustments. (2) You must obtain SBA's prior written approval of any In-Kind Distribution of Earmarked Assets that are not Distributable Securities, specifically including approval of the valuation of the assets.

official document · source cfr-2024 · id 13:§ 107.1580