[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR1300.23]



[Page 527-528]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

           CHAPTER VI--AIR TRANSPORTATION SYSTEM STABILIZATION

 

PART 1300_AVIATION DISASTER RELIEF_AIR CARRIER GUARANTEE LOAN PROGRAM

--Table of Contents

 

        Subpart B_Minimum Requirements and Application Procedures

 

Sec. 1300.23  Participation in guaranteed loans.



    (a) Subject to paragraph (b) 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.



[[Page 528]]



    (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) Air Carrier 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.



[[Page 529]]