Requirements for the Loan Loss Reserve Fund (LLRF).

CFR · 2024-01-01 · US · Title 13

(a) (b) (1) With respect to any Debenture that has been purchased. Within 30 days after purchase, the CDC must restore the balance maintained in the LLRF for the Debenture that was purchased to one percent of the original principal amount of that Debenture; or (2) With respect to any other Debenture if SBA notifies the CDC in writing that it has failed to satisfy the requirements in paragraph (e), (f), (h), (i), or (j) of this section. In such case, the CDC will not be required to restore the balance maintained in the LLRF to one percent of the original principal amount of the Debenture but must base the amount maintained in the LLRF on one percent of the principal amount of the Debenture as of the date of notification. The CDC may not begin to use the declining balance methodology again until SBA notifies the CDC in writing that SBA has determined, in its discretion, that the CDC has corrected the noncompliance and has demonstrated its ability to comply with these requirements. (c) (d) (e) (1) At least 50 percent of the required deposits to the LLRF on or about the date that it issues the PCLP Debenture. (2) At least an additional 25 percent of the required deposits to the LLRF no later than one year after it issues the PCLP Debenture. (3) Any remainder of the required deposits to the LLRF no later than two years after it issues the PCLP Debenture. (f) (g) (h) (1) If the PCLP CDC agrees with SBA's calculations of the loss, it must reimburse SBA for ten percent of the amount

official document · source cfr-2024 · id 13:§ 120.847