Submitted by sevans on Mon, 12/01/2014 - 3:46pm

Unless a regional director grants a waiver, the member business loan regulation requires a guarantee by a natural person for a loan to a business entity, such as a corporation; the regulation provides an exception from the guarantee requirement for certain not for profit organizations. 12 C.F.R. §§723.7(b), 723.10. The regulation identifies the natural person guarantors as “principals.” 12 C.F.R.§723.7(b) (“Principals . . . must provide their personal liability and guarantee.”) 

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