Title 7 — AgricultureRelease 119-73

§2009cc–14 Unlawful acts and omissions; breach of fiduciary duty

Title 7 › Chapter CHAPTER 50— - AGRICULTURAL CREDIT › Subchapter SUBCHAPTER VIII— - RURAL BUSINESS INVESTMENT PROGRAM › § 2009cc–14

Last updated Apr 6, 2026|Official source

Summary

Treats as unlawful anyone who helps a rural business investment company break the rules. If the company violates the law, people who authorize, order, cause, take part in, advise, or help the wrongful acts are also treated as having committed the unlawful act. Makes it illegal for officers, directors, employees, agents, or others who run the company to break their duty to act in the company’s best interest if their actions or failures could cause, or clearly threaten, financial loss or other harm to the company. Also, unless the Secretary gives written permission, a person who has been convicted of a felony or a crime involving dishonesty or breach of trust, or who has been found by a court to have committed fraud or breached trust (including court orders against them), may not become or continue as an officer, director, employee, agent, or manager of the company.

Full Legal Text

Title 7, §2009cc–14

Agriculture — Source: USLM XML via OLRC

(a)Whenever any rural business investment company violates this subchapter (including any rule, regulation, order, or participation agreement under this subchapter), by reason of the failure of the rural business investment company to comply with this subchapter or by reason of its engaging in any act or practice that constitutes or will constitute a violation of this subchapter, the violation shall also be deemed to be a violation and an unlawful act committed by any person that, directly or indirectly, authorizes, orders, participates in, causes, brings about, counsels, aids, or abets in the commission of any acts, practices, or transactions that constitute or will constitute, in whole or in part, the violation.

(b)It shall be unlawful for any officer, director, employee, agent, or other participant in the management or conduct of the affairs of a rural business investment company to engage in any act or practice, or to omit any act or practice, in breach of the fiduciary duty of the officer, director, employee, agent, or participant if, as a result of the act or practice, the rural business investment company suffers or is in imminent danger of suffering financial loss or other damage.

(c)Except with the written consent of the Secretary, it shall be unlawful—

(1)for any person to take office as an officer, director, or employee of any rural business investment company, or to become an agent or participant in the conduct of the affairs or management of a rural business investment company, if the person—

(A)has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust; or

(B)has been found liable in a civil action for damages, or has been permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust; and

(2)for any person to continue to serve in any of the capacities described in paragraph (1), if—

(A)the person is convicted of a felony or any other criminal offense involving dishonesty or breach of trust; or

(B)the person is found liable in a civil action for damages, or is permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust.

Reference

Citations & Metadata

Citation

7 U.S.C. § 2009cc–14

Title 7 — Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73