SBA

SOP 50 51 3

LOAN LIQUIDATION

Office of Capital Access U.S. Small Business Administration November 15, 2010

SOP 50 51 3

Effective Date: November 15, 2010

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SOP 50 51 3

Table of Contents Chapter 1. Introduction ........................................................................................... 11 A. Purpose ...................................................................................................................................11 B. Authority ................................................................................................................................11 C. Resources ...............................................................................................................................11 1. Forms and Templates ....................................................................................................11 2. Environmental Risk Management Materials ...............................................................12 3. Tools and Quick Reference Guides .............................................................................12 Chapter 2. Definitions ............................................................................................. 15 A. Introduction ...........................................................................................................................15 B. General Terms .......................................................................................................................15 C. Environmental Terms ..........................................................................................................26 Chapter 3. Classifying Loans in Liquidation ......................................................... 27 A. When Loans Must Be Classified in Liquidation Status ....................................................27 B. When Loans Should Be Removed from Liquidation Status ...........................................27 Chapter 4. SBA Liquidation .................................................................................. 29 A. Responsibility and Authority ...............................................................................................29 B. Performance Standards ........................................................................................................29 C. Loan Actions .........................................................................................................................29 1. Documentation Requirements ......................................................................................29 2. Rule of Two Approval ...................................................................................................29 3. Review by Legal Counsel ...............................................................................................30 4. Split Decisions.................................................................................................................32 5. Exceptions to Policy.......................................................................................................32 D. Review of Quarterly Status Reports ...................................................................................33 E. Review of Requests for Loan Action Approval................................................................33

Effective Date: November 15, 2010

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SOP 50 51 3 Chapter 5. 7(a) Lender Liquidation ....................................................................... 35 A. Responsibility ........................................................................................................................35 B. Authority ................................................................................................................................35 1. Unilateral Authority ........................................................................................................35 2. Actions Requiring Prior SBA Approval .............