---
kind: "section"
citation: "13 C.F.R. § 120.522"
title: "13"
number: "120.522"
heading: "Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion."
url: "https://uscodex.org/cfr/13/120.522"
---

# §120.522. Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion.

- (a) **Rate of interest.** If SBA purchases the guaranteed portion from a Lender or from a Registered Holder (if sold in the Secondary Market), it will pay accrued interest at:
  - (1) The rate in the note if it is a fixed rate loan; or
  - (2) The rate in effect on the date of the earliest uncured payment default, or of SBA's purchase (if there has been no default).
- (b) **Payment to Lender—**
  - (1) **For loans approved on or after May 14, 2007.** SBA will pay up to a maximum of 120 days interest to a Lender at the time of guarantee purchase.
  - (2) **For loans approved before May 14, 2007.** The regulations applicable to the amount of interest that SBA will pay to a Lender upon loan default that were in effect immediately prior to this date will govern such loans.
- (c) **Payment to Registered Holder.** SBA will pay a Registered Holder all accrued interest up to the date of payment.

## Notes

### Amendments

[61 FR 3235, Jan. 31, 1996, as amended at 72 FR 18361, Apr. 12, 2007]

### 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

[61 FR 3235, Jan. 31, 1996, as amended at 72 FR 18361, Apr. 12, 2007]