SBA SOP 50 10 8.1, B.Ch6.D.5 — Collateral:

SOP 50 10 8.1 B.Ch6.D.5

Effective 2026-10-01 · publisher's stamp for this provision

5. Collateral: The Lender must obtain all required collateral and must meet all other required terms and conditions as applicable before or at the time of disbursement. Required terms and conditions include requirements identified in the credit memorandum, such as cash/equity injections, standby agreements, appraisals or evaluations, etc. Lenders must obtain a valid and enforceable security interest in any loan collateral with evidence of proper lien priority and must retain in their loan file proof of the lien filings, and, when received, proof of the recordation of the liens. Lenders may sell loans on the secondary market after filing a required lien with the appropriate office, but before receiving proof from the appropriate office that the required filing was recorded, However, if the loan defaults, and there is a loss resulting from the Lender’s failure to obtain a properly perfected and recorded required lien with the required priority, the Lender will be subject to a full or partial denial of liability equal to the guaranteed share of the net loss.

Source: SBA SOP 50 10 8.1, B.Ch6.D.5 — Collateral: · source URL · snapshot 0fb0c4692cf52938