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13 CFR 120.823(up to date as of 11/18/2022) 13 CFR 120.823(d)(10) <br /> CDC Board of Directors. <br /> 10 Ensuring that the CDC invests in economic development in each of the States in its Area of <br /> Operations in which it has a portfolio, and approving each investment. If the investment is included <br /> in the CDC's budget,the Board's approval of the budget may be deemed approval of the investment. <br /> If the investment is not included in the budget,the Board must separately approve the investment; <br /> 11 Establishing a policy in the Bylaws of the CDC prohibiting an actual conflict of interest or the <br /> appearance of same, and enforcing such policy (see § 120.140 and § 120.851); <br /> ............................ <br /> (12j Retaining accountability for all of the actions of the CDC; <br /> (13) Establishing written internal control policies, in accordance with § 120.826; <br /> (14) Establishing commercially reasonable loan approval policies, procedures, and standards. The Bylaws <br /> must include any delegations of authority to the Loan Committee and Executive Committee, if either <br /> Committee has been established. In addition,the CDC must establish and set forth in detail in a <br /> policy manual its credit approval process. All 504 loan applications must have credit approval prior <br /> to submission to the Agency. The Loan Committee, if established, may be delegated the authority to <br /> provide credit approval for loans up to $2,000,000 but,for loans of$1,000,000 to $2,000,000,the <br /> Loan Committee's action must be ratified by the Board or Executive Committee prior to Debenture <br /> closing. Only the Board or Executive Committee, if authorized by the Board, may provide credit <br /> approval for loans greater than $2,000,000. <br /> (15) All members of the Board of Directors must annually certify in writing that they have read and <br /> understand this section, and copies of the certification must be included in the Annual Report to <br /> SBA. <br /> (e) The Board of Directors shall maintain Directors' and Officers' Liability and Errors and Omissions insurance <br /> in amounts established by SBA that are based on the size of the CDC's portfolio and other relevant <br /> factors. <br /> [79 FR 15649,Mar. 21,2014,as amended at 82 FR 39504,Aug. 21,2017,84 FR 66294, Dec. 4,2019] <br /> ................................ ................................ ................................ <br /> 13 CFR 120.823(e)(enhanced display) page 3 of 3 <br />