---
kind: "section"
citation: "13 C.F.R. § 120.612"
title: "13"
number: "120.612"
heading: "Loans eligible to back Certificates."
url: "https://uscodex.org/cfr/13/120.612"
---

# §120.612. Loans eligible to back Certificates.

- (a) **Pool Certificates are backed by the SBA guaranteed portions of loans comprising the Pool.** An Individual Certificate is backed by the SBA guaranteed portion of a single loan. Any such loan must:
  - (1) Be current as of the date the Pool is formed or the individual guaranteed portion of a loan is initially sold in the Secondary Market;
  - (2) Be guaranteed under the Act; and
  - (3) Meet such other standards as SBA may determine to be necessary for the successful operation of the Secondary Market program.
- (b) The loans that back a Pool must meet the SBA requirements in effect at the time the Pool is formed.

## Notes

### 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.