(a) Notwithstanding the provisions of § 120.434(e), 7(a) loans may be pledged for the following purposes without notice to or consent by SBA:
- (1) Treasury tax and loan accounts;
- (2) The deposit of public funds;
- (3) Uninvested trust funds;
- (4) Borrowings from a Federal Reserve Bank; or
- (5) Advances by a Federal Home Loan Bank.
- (b) For purposes of the Paycheck Protection Program (PPP), the other provisions of § 120.434 shall also not apply to PPP loans pledged under paragraph (a)(4) or (5) of this section.
[85 FR 21752, Apr. 20, 2020]