[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1300.23]

[Page 529-530]
 
                     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 530]]

    (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 531]]