§ 120.424What are the basic conditions a Lender must meet to securitize?
To securitize, a Lender must:
(a) Be in good standing with SBA as defined in § 120.420(f) of this chapter and determined by SBA in its discretion;
(b) Have satisfactory SBA performance, as determined by SBA in its discretion. The Lender's Risk Rating, among other factors, will be considered in determining satisfactory SBA performance. Other factors may include, but are not limited to, on-site review/examination assessments, historical performance measures (like default rate, purchase rate and loss rate), loan volume to the extent that it impacts performance measures, and other performance related measurements and information (such as contribution toward SBA mission);
(c) Use a securitization structure which is satisfactory to SBA;
(d) Use documents acceptable to SBA, including SBA's model multi-party agreement, as amended from time to time;
(e) Obtain SBA's written consent, which it may withhold in its sole discretion, prior to executing a commitment to securitize; and
(f) Cause the original notes to be stored at the FTA, as defined in § 120.600, and other loan documents to be stored with a party approved by SBA.