Title 15, Commerce and TradeRelease 119-110

§690d Debentures

Title 15 › CHAPTER 14B — SMALL BUSINESS INVESTMENT PROGRAM › SUBCHAPTER III — INVESTMENT DIVISION PROGRAMS › Part C — Renewable Fuel Capital Investment Pilot Program › § 690d

Last updated Sep 22, 2026|Official source

Summary

The Administrator can guarantee that principal and interest on debentures from Renewable Fuel Capital Investment companies will be paid on time. Each guaranteed debenture may run no more than 15 years. Debentures must have no front-end or annual fees, be issued at a discount, pay no interest for the first 5 years, be prepaid without penalty after 1 year, and pay interest every six months after the 5-year no-interest period. The United States backs these guarantees. The Administrator may only guarantee up to a total face amount equal to 150% of the company’s private capital. Capital treated as federal still counts as private capital here if it was contributed by someone who is not a federal department or agency.

Full Legal Text

Title 15, §690d

Commerce and Trade, Source: USLM XML via OLRC

(a)In general

The Administrator may guarantee the timely payment of principal and interest, as scheduled, on debentures issued by any Renewable Fuel Capital Investment company.

(b)Terms and conditions

The Administrator may make guarantees under this section on such terms and conditions as it determines appropriate, except that—

(1)the term of any debenture guaranteed under this section shall not exceed 15 years; and

(2)a debenture guaranteed under this section—

(A)shall carry no front-end or annual fees;

(B)shall be issued at a discount;

(C)shall require no interest payments during the 5-year period beginning on the date the debenture is issued;

(D)shall be prepayable without penalty after the end of the 1-year period beginning on the date the debenture is issued; and

(E)shall require semiannual interest payments after the period described in subparagraph (C).

(c)Full faith and credit of the United States

The full faith and credit of the United States is pledged to pay all amounts that may be required to be paid under any guarantee under this part.

(d)Maximum guarantee

(1)In general

Under this section, the Administrator may guarantee the debentures issued by a Renewable Fuel Capital Investment company only to the extent that the total face amount of outstanding guaranteed debentures of such company does not exceed 150 percent of the private capital of the company, as determined by the Administrator.

(2)Treatment of certain Federal funds

For the purposes of paragraph (1), private capital shall include capital that is considered to be Federal funds, if such capital is contributed by an investor other than a department or agency of the Federal Government.

Reference

Citations & Metadata

Citation

15 U.S.C. § 690d

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110