---
kind: "section"
citation: "13 C.F.R. § 120.620"
title: "13"
number: "120.620"
heading: "SBA guarantee of a Pool Certificate."
url: "https://uscodex.org/cfr/13/120.620"
---

# §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.

## 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.