---
kind: "section"
citation: "13 C.F.R. § 120.1719"
title: "13"
number: "120.1719"
heading: "SBA's right to recover from Seller."
url: "https://uscodex.org/cfr/13/120.1719"
---

# §120.1719. SBA's right to recover from Seller.


SBA is entitled to recover from Seller any monies paid on SBA's guarantee of a Pool Certificate backed in part by Seller's Pool Loan, plus interest, if SBA in its sole discretion determines that any of the following events has occurred:

- (a) Seller's improper action or inaction has put SBA at risk;
- (b) Seller has failed to disclose a material fact to SBA regarding a Seller's Pool Loan in a timely manner;
- (c) Seller has misrepresented a material fact to SBA regarding Seller's Pool Loan;
- (d) Seller has failed to comply materially with [§ 120.1720](/cfr/13/120.1720.md) of this subpart;
- (e) SBA has received a written request from Seller to terminate the SBA's guarantee on the Loan Interest in Seller's Pool Loan;
- (f) Seller has failed to comply materially with Program Rules and Regulations; or
- (g) **Seller has failed to make, close, service or liquidate Seller's Pool Loan in a prudent manner.**

## Notes

### Source

Source: 74 FR 56093, Oct. 30, 2009, unless otherwise noted.

### Authority

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

### Source

Source: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.