§2009cc–5 Issuance and Guarantee of Trust Certificates

Summary

The Secretary may issue trust certificates that show ownership of all or part of debentures issued by a rural business investment company and guaranteed by the Secretary. These certificates must be backed by a Secretary‑approved trust or pool made only of those guaranteed debentures. The Secretary can also guarantee timely payment of principal and interest on those certificates, but the guarantee only covers the portion tied to the debentures in the trust. Debentures may be prepaid at any time without penalty; if one is prepaid or defaults, the guarantee and any interest covered shrink in proportion, and the certificate can be redeemed if all debentures are prepaid or default. Section 2009g(i) applies. If the Secretary pays a claim, the Secretary gets the rights that were paid. The Secretary must keep a central registry of the certificates, may use bank accounts or U.S. investments to help create trusts, require agents to have fidelity bonds or insurance, regulate brokers and dealers, and allow electronic registration.