TITLE 13 - BUSINESS CREDIT AND ASSISTANCE

CHAPTER I - SMALL BUSINESS ADMINISTRATION

PART 120 - BUSINESS LOANS

subpart f - SECONDARY MARKET

120.620 - SBA guarantee of a Pool Certificate.

  (a) Extent of Guarantee. SBA guarantees to a Registered Holder the timely payment of principal and interest installments and any prepayment or other recovery of principal to which the Registered Holder is entitled. If the Borrower of a loan in a Pool backing the Certificates does not make a required installment payment, SBA, through the FTA, will make advances to maintain the schedule of interest and principal payments to the Registered Holders.

  (b) SBA guarantee backed by full faith and credit. SBA's guarantee of the Pool Certificate is backed by the full faith and credit of the United States.