What documentation is required for SBA 7(a) Pool Certificates and 504 Development Company Participation Certificates?
With respect to SBA 7(a) Pool Certificates, no issuer certification, indemnity or offering document is required. However, an SBA-approved pool assembler must execute an undertaking in connection with each SBA Pool Certificate CUSIP. Such pool assembler may be either the entity that assembled the pool, or the pool assembler that is the seller in a TALF-financed transaction. For pools assembled jointly between two or more pool assemblers, any one of them may execute the undertaking. An undertaking must be delivered to the New York Fed for each CUSIP no later than four business days prior to the TALF loan settlement date in order for a borrower to pledge that CUSIP as collateral for a TALF loan. Without an undertaking, the CUSIP cannot be used as collateral for a TALF loan regardless of whether it meets other TALF eligibility requirements. Contact information for SBA pool assemblers is available on the SBA’s website.
With respect to SBA 7(a) Pool Certificates, no issuer certification, indemnity or offering document is required. However, the pool assembler that assembled the pool must execute an undertaking in connection with each SBA Pool Certificate CUSIP. An undertaking must be delivered to the New York Fed for each CUSIP no later than four business days prior to the TALF loan settlement date in order for a borrower to pledge that CUSIP as collateral for a TALF loan. Without an undertaking, the CUSIP cannot be used as collateral for a TALF loan regardless of whether it meets other TALF eligibility requirements. Contact information for SBA pool assemblers is available on the SBA’s website.
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