§ 120.435 - Which loan pledges do not require notice to or consent by SBA?

§ 120.435 Which loan pledges do not require notice to or consent by SBA?

(a) Notwithstanding the provisions of § 120.434(e), 7(a) loans may be pledged for the following purposes without notice to or consent by SBA:

(

a

1) Treasury tax and loan accounts;

(

b

2) The deposit of public funds;

(

c

3) Uninvested trust funds;

(

d) Discount borrowings at

4) Borrowings from a Federal Reserve Bank; or

(

e

5) Advances by a Federal Home Loan Bank.

[64 FR 6507, Feb. 10, 1999, as amended at 73 FR 75511, Dec. 11, 2008

(b) For purposes of the Paycheck Protection Program (PPP), the other provisions of § 120.434 shall also not apply to PPP loans pledged under paragraph (a)(4) or (5) of this section.

[85 FR 21752, Apr. 20, 2020]