Title 7, AgricultureRelease 119-110

§2009cc–4 Debentures

Title 7 › CHAPTER 50 — AGRICULTURAL CREDIT › SUBCHAPTER VIII — RURAL BUSINESS INVESTMENT PROGRAM › § 2009cc–4

Last updated Sep 22, 2026|Official source

Summary

The Secretary can guarantee that rural business investment companies will make scheduled principal and interest payments on debentures. The Secretary sets the guarantee terms, but no guaranteed debenture can run longer than 15 years. The guarantees are backed by the full faith and credit of the United States under section 2009g(i). A company’s total guaranteed debentures cannot exceed the lesser of 300% of its private capital or $105,000,000, and the Secretary may allow discounted debentures.

Full Legal Text

Title 7, §2009cc–4

Agriculture, Source: USLM XML via OLRC

(a)In general

The Secretary may guarantee the timely payment of principal and interest, as scheduled, on debentures issued by any rural business investment company.

(b)Terms and conditions

The Secretary may make guarantees under this section on such terms and conditions as the Secretary considers appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.

(c)Full faith and credit of the United States

section 2009g(i) of this title shall apply to any guarantee under this section.

(d)Maximum guarantee

Under this section, the Secretary may—

(1)guarantee the debentures issued by a rural business investment company only to the extent that the total face amount of outstanding guaranteed debentures of the rural business investment company does not exceed the lesser of—

(A)300 percent of the private capital of the rural business investment company; or

(B)$105,000,000; and

(2)provide for the use of discounted debentures.

Reference

Citations & Metadata

Citation

7 U.S.C. § 2009cc–4

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110