Unconditional Ownership [Business Credit and Assistance] Law and Legal Definition

According to 13 CFR 124.3 [Title 13 -- Business Credit and Assistance; Chapter I -- Small Business Administration; Part 124 -- 8(A) Business Development/Small Disadvantaged Business Determinations; Subpart A -- 8(A) Business Development; Provisions of General Applicability], unconditional ownership means “ownership that is not subject to conditions precedent, conditions subsequent, executory agreements, voting trusts, restrictions on or assignments of voting rights, or other arrangements causing or potentially causing ownership benefits to go to another (other than after death or incapacity). The pledge or encumbrance of stock or other ownership interest as collateral, including seller-financed transactions, does not affect the unconditional nature of ownership if the terms follow normal commercial practices and the owner retains control absent violations of the terms.”