[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: 13CFR307.20]

[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.  307.20  Partial liquidation and liquidation upon termination.

    (a) Partial liquidation. EDA may require an RLF Recipient to 
transfer any RLF loans that are more than one hundred and twenty (120) 
days delinquent to an RLF Third Party for liquidation.
    (b) Liquidation upon termination. When EDA approves the termination 
of an RLF Grant, EDA may assign or transfer assets of the RLF to an RLF 
Third Party for liquidation.
    (c) Terms. The following terms will govern any liquidation:
    (1) EDA shall have sole discretion in choosing the RLF Third Party;
    (2) The RLF Third Party may be an Eligible Applicant or a for-profit 
organization not otherwise eligible for Investment Assistance;
    (3) EDA may enter into an agreement with the RLF Third Party to 
liquidate the assets of one (1) or more RLFs or RLF Recipients;
    (4) EDA may allow the RLF Third Party to retain a portion of the RLF 
assets, consistent with the agreement referenced in paragraph (c)(3) of 
this section, as reasonable compensation for services rendered in the 
liquidation; and
    (5) EDA may require additional reasonable terms and conditions.
    (d) Distribution of proceeds. The proceeds resulting from any 
liquidation upon termination shall be distributed in the following order 
of priority:
    (1) First, for any third party liquidation costs;
    (2) Second, for the payment of EDA's Federal Share (as defined in 
Sec.  314.5 of this chapter); and
    (3) Third, if any proceeds remain, to the RLF Recipient.