§690d Debentures

Summary

The Administrator can promise that investors will get principal and interest paid on time for debentures sold by a Renewable Fuel Capital Investment company. The Administrator can set other terms too, but each debenture can be for no more than 15 years. The debenture must have no up-front or yearly fees, be sold at a discount, have no interest due for the first 5 years after it is issued, be repayable without penalty after 1 year, and begin paying interest twice a year after the 5-year no-interest period ends. The United States government promises to pay any amounts needed under these guarantees. The total face amount of guaranteed debentures a company can have outstanding cannot be more than 150 percent of the company’s private capital, as the Administrator decides. Private capital can include federal money if it came from someone who is not a federal department or agency.