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7 U.S.C. § 2009cc-9 - U.S. Code - Unannotated Title 7. Agriculture § 2009cc-9. Financial institution investments

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.).

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Cite this article: FindLaw.com - 7 U.S.C. § 2009cc-9 - U.S. Code - Unannotated Title 7. Agriculture § 2009cc-9. Financial institution investments - last updated January 01, 2024 | https://codes.findlaw.com/us/title-7-agriculture/7-usc-sect-2009cc-9/

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