13 CFR 107.1540 - Distributions by Licensee - Prioritized Payments and Adjustments.
After you compute Prioritized Payments and Adjustments under § 107.1520, you must distribute them in accordance with this § 107.1540. You must notify SBA of any planned distribution under this section 10 business days before the distribution date, unless SBA permits otherwise.
(a)Requirement to distribute Prioritized Payments and Adjustments. This paragraph (a) applies only if you satisfy the liquidity requirement in § 107.1505. All Distributions under this paragraph (a) go to SBA or its designated agent or trustee.
(1) You must distribute the balance in your Distribution Account from § 107.1520 annually on the first or second Payment Date following your fiscal year end, and on any date when you are making any other Distribution.
(b)Additional requirement for Licensees with undistributed Prioritized Payments. This paragraph (b) applies if you do not distribute the full amount in your Distribution Account by the second Payment Date following the end of your fiscal year. At the end of each fiscal quarter, until you reduce the balance in your Distribution Account to zero, you must:
(1) Do all the steps in § 107.1520; and
- 13 CFR 107.1575 — Distributions on Other Than Payment Dates.
- 13 CFR 107.1580 — Special Rules for In-Kind Distributions by Licensees.
- 13 CFR 107.1520 — How a Licensee Computes and Allocates Prioritized Payments to SBA.
- 13 CFR 107.1500 — General Description of Participating Securities.
- 13 CFR 107.1540 — Distributions by Licensee - Prioritized Payments and Adjustments.
- 13 CFR 107.1810 — Events of Default and SBA's Remedies for Licensee's Noncompliance With Terms of Debentures.
- 13 CFR 107.1560 — Distributions by Licensee - Required Distributions to Private Investors and SBA.