Preferred Securities Law and Legal Definition

According to 13 CFR 107.50 [Title 13 -- Business Credit and Assistance Chapter I - Small Business Administration], preferred securities means nonvoting preferred stock or nonvoting limited partnership interests issued to SBA prior to October 1, 1996, by a Section 301(d) Licensee. Such securities were issued at par value in the case of preferred stock, or at face value in the case of preferred limited partnership interests.