Section 120.522 - Payment of accrued interest to the Lender or Registered Holder when SBA purchases the guaranteed portion(a)Rate of interest. If SBA purchases the guaranteed portion from a Lender or from a Registered Holder (if sold in the Secondary Market), it will pay accrued interest at:(1) The rate in the note if it is a fixed rate loan; or(2) The rate in effect on the date of the earliest uncured payment default, or of SBA's purchase (if there has been no default).(b)Payment to Lender - (1)For loans approved on or after May 14, 2007. SBA will pay up to a maximum of 120 days interest to a Lender at the time of guarantee purchase.(2)For loans approved before May 14, 2007. The regulations applicable to the amount of interest that SBA will pay to a Lender upon loan default that were in effect immediately prior to this date will govern such loans.(c)Payment to Registered Holder. SBA will pay a Registered Holder all accrued interest up to the date of payment.61 FR 3235, Jan. 31, 1996, as amended at 72 FR 18361, Apr. 12, 2007