§2009cc–9 — Title 7 Agriculture | U.S. Code

Summary

Allows FDIC‑insured banks and savings associations and certain Farm Credit System institutions to form and invest in rural business investment companies, or in firms that only invest in those companies. The government cannot make these banks or institutions put in more money than other applicants are required to put in. No eligible bank or institution may invest more than 5 percent of its capital and surplus in these investments. If a Farm Credit System institution owns more than 50 percent of a rural business investment company, alone or with affiliates, that company cannot make equity investments or give other financial help to businesses that the Farm Credit System would not be allowed to finance.

Title 7, §2009cc–9

Agriculture — Source: USLM XML via OLRC

(a)(1)Except as otherwise provided in this section and notwithstanding any other provision of law, the following banks, associations, and institutions are eligible both to establish and invest in any rural business investment company or in any entity established to invest solely in rural business investment companies:

(A)Any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), including an investment pool created entirely by such bank or savings association.

(B)Any Farm Credit System institution described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).

(2)The Secretary may not require that an entity described in paragraph (1) provide investment or capital that is not required of other companies eligible to apply to operate as a rural business investment company under section 2009cc–3(a) of this title.

(b)No bank, association, or institution described in subsection (a) may make investments described in subsection (a) that are greater than 5 percent of the capital and surplus of the bank, association, or institution.

(c)If a Farm Credit System institution described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 50 percent of the shares of a rural business investment company, either alone or in conjunction with other System institutions (or affiliates), the rural business investment company shall not provide equity investments in, or provide other financial assistance to, entities that are not otherwise eligible to receive financing from the Farm Credit System under that Act (12 U.S.C. 2001 et seq.).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Deposit Insurance Act, referred to in subsec. (a)(1)(A), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see

Short Title

note set out under section 1811 of Title 12 and Tables. The Farm Credit Act of 1971, referred to in subsec. (c), is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, which is classified generally to chapter 23 (§ 2001 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see

Short Title

note set out under section 2001 of Title 12 and Tables. Codification Pub. L. 110–234 and Pub. L. 110–246 made identical

Amendments

to this section. The

Amendments

by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2018—Subsec. (a). Pub. L. 115–334, § 6426(f), substituted “Investment” for “In general” in heading, designated existing provisions as par. (1) and inserted heading, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), added par. (2), and realigned margins. Subsec. (c). Pub. L. 115–334, § 6426(e), substituted “50” for “25”. 2008—Subsec. (a)(1). Pub. L. 110–246, § 6027(d)(1), inserted “, including an investment pool created entirely by such bank or savings association” before period at end. Subsec. (c). Pub. L. 110–246, § 6027(d)(2), substituted “25” for “15”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an

Effective Date

note under section 8701 of this title.

§2009cc–9 Financial institution investments

Summary

Title 7, §2009cc–9

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Short Title

Amendments

Amendments

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

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