Liquidation and litigation plans.

CFR · 2024-01-01 · US · Title 13

(a) (b) (c) (1) Non-Routine Litigation includes: (i) All litigation where factual or legal issues are in dispute and require resolution through adjudication; (ii) Any litigation where legal fees are estimated to exceed $10,000; (iii) Any litigation involving a loan where a Lender or Authorized CDC Liquidator has an actual or potential conflict of interest with SBA; and (iv) Any litigation involving a 7(a) or 504 loan where the Lender or CDC has made a separate loan to the same borrower which is not a 7(a) or 504 loan. (2) Routine Litigation means uncontested litigation, such as non-adversarial matters in bankruptcy and undisputed foreclosure actions, having (d) (1) The litigation involves important governmental policy or program issues. (2) The case is potentially of great precedential value or there is a risk of adverse precedent to the Government. (3) The Lender or Authorized CDC Liquidator has an actual or potential conflict of interest with SBA. (4) The legal fees of the Lender or Authorized CDC Liquidator's outside counsel are unnecessary, unreasonable or not customary in the locality. (e) (1) Changes arising during the course of Routine Litigation that transform the litigation into Non-Routine Litigation, such as when the debtor contests a foreclosure or when the actual legal fees incurred exceed $10,000. (2) If SBA has approved a litigation plan where anticipated legal fees exceed $10,000, or has approved an amended plan, and thereafter the anticipated or actual legal

official document · source cfr-2024 · id 13:§ 120.540