«… The lender can use the SBA 155 form or a standby contract form. A copy of the note must be attached to the standby agreement… The custodial creditor must subordinate all the security rights to the security that provide credit to the lender`s rights to the guarantees and not take action against the borrower or the security that secures the debt on standby without the lender`s consent» (added mention). First, revision C of the SOP requires that a copy of the standby note be attached to the standby agreement. Where the standby debt is a shareholder debt or other debt due to the investor, there is often no indication of the debts that exist only in the applicant`s annual accounts. In this case, the borrower must write a note and provide a copy to the lender. In certain circumstances, an SBA lender may be required to obtain a standby loan agreement for the conclusion of its SBA loan. As a general rule, the watch agreements provide for the postponement of payments on sellers` debts or debts against the borrower`s investor (s) to achieve one of the two objectives: (1) for credit reasons such as the postponement of the debt payment, in order to improve cash flow for technical insurance purposes; or (2) qualify debt as an equity contribution. Notwithstanding the reason for the standby agreement, the SBA has certain requirements for these agreements that lenders should meet when liquidating and closing their SBA-guaranteed loans. Second, whatever the reason for the standby agreement, the reference should contain a language that reflects the «watch» provisions or, at the very least, indicate that the reference is subject to the provisions of the standby agreement. By adding this language to the «watch» note, any future third-party buyer or beneficiary of the watch ticket will be informed of the monitoring rules, which will allow the lender to enforce these provisions in the future to these third parties.
Structural adjustment programmes have long been criticized as excessive savings measures in the recipient country in exchange for financial assistance. These criticisms have been less pronounced in recent years, particularly since 2009, when the IMF`s SBA policy was modified to better meet the needs of recipient countries. Greece, which came close to a sovereign debt crisis in 2010 and 2011, may be an exception. The resulting significant reductions in public spending led to mass protests and riots. In this case, there is growing criticism of the requirements for euro membership, as significant financial aid also comes from other euro area countries, not from an IMF confirmation regime.    Third, while the SBa requires the custodial creditor to be subordinated to the lender`s pledge, Form SBA 155 does not contain a language of subordination. It is therefore up to the lender to sign, in addition to Form 155, a separate subordination agreement or to use its own form, which contains the necessary language of subordination.