---
kind: "section"
citation: "13 C.F.R. § 400.214"
title: "13"
number: "400.214"
heading: "Participations in guaranteed loans."
url: "https://uscodex.org/cfr/13/400.214"
---

# §400.214. Participations in guaranteed loans.

- (a) Subject to paragraphs [(b)](#b), [(c)](#c) and [(d)](#d) of this section, a Lender may distribute the risk of a portion of a loan guaranteed under the Program by sale of participations therein if:
  - (1) Neither the loan note nor the Guarantee is assigned, conveyed, sold, or transferred in whole or in part;
  - (2) The Lender remains solely responsible for the administration of the loan; and
  - (3) The Board's ability to assert any and all defenses available to it under the Guarantee and the law is not adversely affected.
- (b) The following categories of entities may purchase participations in loans guaranteed under the Program:
  - (1) Eligible Lenders;
  - (2) Private investment funds and insurance companies that do not usually invest in commercial loans;
  - (3) Steel company suppliers or customers, who are interested in participating as a means of commencing or solidifying the supplier or customer relationship with the borrower; or
  - (4) **Any other entity approved by the Board on a case-by-case basis.**
- (c) The Agent may not grant participations in that portion of its interest in a loan that may not be assigned or transferred under [§ 400.210(d)](/cfr/13/400.210.md?p=d). A Lender, other than the Agent, may not grant participations in that portion of its interest in a loan that may not be assigned or transferred under [§ 400.210(d)](/cfr/13/400.210.md?p=d).
- (d) At least 5 percent of any participation interest in a loan must be unguaranteed.

## Notes

### Amendments

[65 FR 70294, Nov. 22, 2000]

### Authority

Authority: Pub. L. 106-51, 113 Stat. 252 (15 U.S.C. 1841 note); Pub. L. 106-102, 113 Stat. 1338.

### Source

Source: 64 FR 57933, Oct. 27, 1999, unless otherwise noted.

### Amendments

[65 FR 70294, Nov. 22, 2000]