Reimbursement of Legal Fees Incurred in Protecting Bank's Interest in Loan Guaranteed by the Small Business Administration

Wilson I. Cooper, Authorized Certifying Officer, SBA, requested a decision as to whether the SBA may reimburse the bank for attorney's fees incurred in litigation to liquidate an SBA-guaranteed loan made by the bank. Since SBA neither contracted for nor benefited from the attorney's services, there was no authority for reimbursement.