Q. When are payments due to the Fiscal and Transfer Agent (FTA)?
A. FTA's share of regularly scheduled payments received by the Lender in the preceding month are due by the third calendar day of the month, or the next business day if the third is not a business day. SBA also gives a two business day grace period beyond this date. See paragraph 6 subparagraphs (a) and (c).

Q. What if the borrower pays late?
A. With the exception of prepayments pursuant to Paragraph 15 of SBA Form 1086, payments received other than as regularly scheduled in the previous month must be remitted by Lender to FTA within two business days of receipt of collected funds. See paragraph 6 subparagraph (b).

Q. When are payments remitted to the Investor?
A. Investor payment date is the fifteenth of the month, or the next business day if the fifteenth is not a business day. Any payment received up to the second business day prior to the Investor payment date will be sent on that Investor payment date. Any payment received by FTA on or after the second business day prior to the Investor payment date will be forwarded within two business days of receipt of immediately available funds. Partial prepayments pursuant to paragraph 15 will be remitted to Registered Holder within two business days of receipt of immediately available funds. Total prepayment will be made only after the Certificate has been received from the Registered Holder. See paragraph 7 subparagraphs (a) and (b).

Q. What is the Record Date to determine the Registered Holder for a particular payment?
A. The Record Date is last business day of the prior month. See paragraph 8.

Q. Can modifications be made to the original note after the loan has been sold on the Secondary Market?
A. Lender may grant one deferment of up to three consecutive months without prior approval of the Registered Holder. Lender must send written notification to FTA of this deferment. Any additional deferment or any other modification of the repayment terms and conditions must have the prior written consent of the Registered Holder. See paragraph 2.

Q. How do I obtain the Registered Holder's approval?
A. Lender must forward their modification request to FTA. FTA will forward the request to the Registered Holder. See paragraph 2.

Q. How long will it be before I get a response to my modification request?
A. The Registered holder has thirty calendar days from the date of FTA's request. If the Registered Holder does not respond, it will be construed as nonconsent. See paragraph 2.

Q. When is prepayment notice required?
A. When Borrower intends to make a payment greater than twenty percent of the outstanding principal amount at the time of the prepayment, Lender shall transmit written notice to FTA at least ten business days prior to the prepayment date. See paragraph 15 subparagraphs (a) and (c).

Q. When does the prepayment notice expire?
A. If prepayment funds are not received within thirty calendar days of the date originally identified as the prepayment date, the prepayment notice will no longer be valid and a new notice will have to be forwarded.

Q. What is the difference between prepayment notice and prepayment certification?
A. Prepayment notice is Lender's notification to FTA that the Borrower intends a total or partial prepayment of the outstanding principal amount. The prepayment certificate is a 'certification by an officer of the Lender that the prepayment is in accordance with SBA Form 1086, the Note, and applicable law. See paragraph 15 subparagraphs (a) and (c).