---
kind: "section"
citation: "13 C.F.R. § 120.435"
title: "13"
number: "120.435"
heading: "Which loan pledges do not require notice to or consent by SBA?"
url: "https://uscodex.org/cfr/13/120.435"
---

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

- (a) Notwithstanding the provisions of § [120.434(e)](/cfr/13/120.434.md?p=e), [7(a)](/cfr/13/7.md?p=a) loans may be pledged for the following purposes without notice to or consent by SBA:
  - (1) Treasury tax and loan accounts;
  - (2) The deposit of public funds;
  - (3) Uninvested trust funds;
  - (4) Borrowings from a Federal Reserve Bank; or
  - (5) **Advances by a Federal Home Loan Bank.**
- (b) For purposes of the Paycheck Protection Program (PPP), the other provisions of [§ 120.434](/cfr/13/120.434.md) shall also not apply to PPP loans pledged under paragraph [(a)(4)](#a-4) or [(5)](#a-5) of this section.

## Notes

### Amendments

[85 FR 21752, Apr. 20, 2020]

### Source

Source: Sections 120.430 through 120.435 appear at 64 FR 6509, 6510, Feb. 10, 1999, 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.

### Amendments

[85 FR 21752, Apr. 20, 2020]