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Title 7, AgricultureRelease 119-110

§2009cc–9 Financial Institution Investments

Title 7 › CHAPTER 50 — AGRICULTURAL CREDIT › SUBCHAPTER VIII — RURAL BUSINESS INVESTMENT PROGRAM › § 2009cc–9

Last updated Sep 22, 2026|Official source

Summary

Allows two kinds of lenders to set up and put money into rural business investment companies (RBICs) or into entities that only invest in RBICs: banks or savings associations whose deposits are insured by the FDIC, and Farm Credit System institutions described in 12 U.S.C. 2002(a). The Secretary cannot force these lenders to provide more investment or capital than other companies that can apply to run an RBIC. Each lender’s investments in RBICs cannot exceed 5 percent of its capital and surplus. If a Farm Credit System institution (alone or with other System affiliates) owns more than 50 percent of an RBIC, that RBIC may not invest in or help businesses that the Farm Credit System is not allowed to finance under the Farm Credit Act.

Full Legal Text

Title 7, §2009cc–9

Agriculture, Source: USLM XML via OLRC

(a)Investment
(1)In general
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)Limitation on requirements
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)Limitation
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)Limitation on rural business investment companies controlled by Farm Credit System institutions
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.).

Legislative History

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.

Reference

Citations & Metadata

Citation

7 U.S.C. § 2009cc–9

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110