![]() |
Code of Federal Regulations (Last Updated: July 5, 2024) |
![]() |
Title 13 - Business Credit and Assistance |
![]() |
Chapter I - Small Business Administration |
![]() |
Part 107 - Small Business Investment Companies |
![]() |
Subpart I - SBA Financial Assistance for Licensees (Leverage) |
![]() |
Preferred Securities Leverage - Section 301(D) Licensees |
§ 107.1440 - Three percent preferred stock issued before November 21, 1989.
Latest version.
-
§ 107.1440 Three percent preferred stock issued before November 21, 1989.
Before November 21, 1989, Preferred Securities were available only in the form of preferred stock and had a preferred and cumulative dividend of 3 percent. If you have such preferred stock outstanding, you must follow § 107.1400 (except for § 107.1400(d)), substituting “3 percent” for “4 percent” throughout.) Dividends on 3 percent preferred stock are payable at the discretion of your Board of Directors or General Partner(s), except that all dividends in arrears must be paid in full before any non-SBA investor receives any distribution. Upon your liquidation, SBA is entitled to payment of all dividends in arrears even if you have no Retained Earnings Available for Distribution at such time.