Title 7 — AgricultureRelease 119-73

§2009cc–13 Additional penalties for noncompliance

Title 7 › Chapter CHAPTER 50— - AGRICULTURAL CREDIT › Subchapter SUBCHAPTER VIII— - RURAL BUSINESS INVESTMENT PROGRAM › § 2009cc–13

Last updated Apr 6, 2026|Official source

Summary

The Secretary can cancel a rural business investment company's participation agreement and make the company lose all rights and benefits it got under these rules if the company breaks or fails to follow them. The Secretary cannot force the forfeiture until a federal court finds the company violated the rules. The United States must sue in the federal court where the company's main office is, and the suit must be brought by the Secretary or the Attorney General.

Full Legal Text

Title 7, §2009cc–13

Agriculture — Source: USLM XML via OLRC

(a)With respect to any rural business investment company that violates or fails to comply with this subchapter (including any rule, regulation, order, or participation agreement under this subchapter), the Secretary may, in accordance with this section—

(1)void the participation agreement between the Secretary and the rural business investment company; and

(2)cause the rural business investment company to forfeit all of the rights and privileges derived by the rural business investment company under this subchapter.

(b)(1)Before the Secretary may cause a rural business investment company to forfeit rights or privileges under subsection (a), a court of the United States of competent jurisdiction must find that the rural business investment company committed a violation, or failed to comply, in a cause of action brought for that purpose in the district, territory, or other place subject to the jurisdiction of the United States, in which the principal office of the rural business investment company is located.

(2)Each cause of action brought by the United States under this subsection shall be brought by the Secretary or by the Attorney General.

Reference

Citations & Metadata

Citation

7 U.S.C. § 2009cc–13

Title 7 — Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73