(a) BIA will not reduce or deny payment solely on the basis of Sec. Sec. 103.39(c) or (e) when the lender making the claim for loss:
(1) Is a person to whom a previous lender transferred the loan under Sec. Sec. 103.28 or 103.29 before maturity for value;
(2) Notified BIA of its acquisition of the loan interest as required by Sec. Sec. 103.28 or 103.29;
(3) Had no involvement in or knowledge of the actions or circumstances that would have allowed BIA to reduce or deny payment to a previous lender; and
(4) Has not itself violated the standards set forth in Sec. Sec. 103.39(c) or (e).
(b) If BIA makes payment to a lender under this section, it may seek reimbursement from the previous lender or lenders who contributed to the loss by violating Sec. Sec. 103.39(c) or (e).