Title 7, AgricultureRelease 119-110

§2009cc–14 Unlawful Acts and Omissions; Breach of Fiduciary Duty

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

Last updated Sep 22, 2026|Official source

Summary

Anyone who authorizes, orders, helps, or takes part in a rural business investment company breaking the rules is treated as having committed the unlawful act too. If the company violates this law because someone caused, aided, counseled, or otherwise joined in the bad acts, that person is also responsible. Officers, directors, employees, agents, and other managers must not act, or fail to act, against the company’s best interests if doing so causes or risks financial loss or other harm. Except with written permission from the Secretary, a person may not become or remain an officer, director, employee, agent, or manager of such a company if they have been convicted of a felony or another crime involving dishonesty or breach of trust, or if a court has found them liable for fraud or breach of trust or has issued a temporary or permanent order against them for those reasons.

Full Legal Text

Title 7, §2009cc–14

Agriculture, Source: USLM XML via OLRC

(a)Parties deemed to commit a violation

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)Fiduciary duties

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)Unlawful acts

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

Sep 22, 2026

Release point: 119-110