[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR307.19]

[Page 632]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 307_ECONOMIC ADJUSTMENT ASSISTANCE INVESTMENTS--Table of Contents
 
Subpart B_Special Requirements for Revolving Loan Funds and Use of Grant 
                                  Funds
 
Sec.  307.19  RLF loan portfolio Sales and Securitizations.

    EDA may take such actions as appropriate to enable an RLF Recipient 
to sell or securitize RLF loans, except that EDA may not issue a Federal 
guaranty covering any issued Security. With prior approval from EDA, an 
RLF Recipient may enter into a Sale or a Securitization of all or a 
portion of its RLF loan portfolio, provided:
    (a) An RLF Recipient must use all proceeds from any Sale or 
Securitization (net of reasonable transaction costs) to make additional 
RLF loans;
    (b) An RLF Recipient must request EDA to subordinate its interest in 
all or a portion of any RLF loan portfolio sold or securitized;
    (c) No Security collateralized by RLF loans and other RLF property 
and offered in a secondary market transaction pursuant to a 
Securitization shall be treated as an Exempt Security for purposes of 
the Securities Act of 1933, as amended (15 U.S.C. 77a et seq.), or the 
Securities Exchange Act of 1934, as amended (15 U.S.C. 78a et seq.) (the 
``Exchange Act''), unless exempted by a rule or regulation issued by the 
Commission; and
    (d) Except as provided in paragraph (c), no provision of this 
section supersedes or otherwise affects the application of the 
``securities laws'' (as such term is defined in section 3(a)(47) of the 
Exchange Act) or the rules, regulations or orders issued by the 
Commission or a self-regulatory organization under the Commission.