e-CFR data is current as of January 26, 2021
TITLE 7—Agriculture
Subtitle B—REGULATIONS OF THE DEPARTMENT OF AGRICULTURE (CONTINUED) CHAPTER XLII—RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 4290—RURAL BUSINESS INVESTMENT COMPANY (“RBIC”) PROGRAM
Subpart A—INTRODUCTION TO PART 4290
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| Description of the Rural Business Investment Company Program. |
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| Leveraged and Non-leveraged Rural Business Investment Companies. |
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| Legal basis and applicability of this part 4290. |
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| Amendments to Act and regulations. |
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| How to read this part 4290. |
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| Responsibility for implementing this part 4290. |
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Subpart B—DEFINITION OF TERMS USED IN PART 4290
Subpart C—QUALIFICATIONS FOR THE RBIC PROGRAM
Organizing a RBIC
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| Plan to invest in Rural Areas. |
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| Approval of initial Management Expenses. |
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| Management and ownership diversity requirement. |
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| Special rules for Partnership RBICs and LLC RBICs. |
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| Obligations of Control Persons. |
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Capitalizing a RBIC
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| Adequate capital for RBICs. |
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| Minimum capital requirements for RBICs. |
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| Private Capital for RBICs. |
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| Limitations on non-cash capital contributions in Private Capital. |
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Subpart D—APPLICATION AND APPROVAL PROCESS FOR RBIC LICENSING
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| When and how to apply for a RBIC License. |
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| Contents of comprehensive business plan. |
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Subpart E—EVALUATION AND SELECTION OF RBICS
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| Evaluation and selection—general. |
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| Eligibility and completeness. |
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| Initial review of Applicant's management team's qualifications. |
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Subpart F—CHANGES IN OWNERSHIP, STRUCTURE, OR CONTROL
Changes in Control or Ownership of RBIC
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| Changes in ownership of 10 percent or more of RBIC but no change of Control. |
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| Changes in Control of RBIC (through change in ownership or otherwise). |
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| Prohibition on exercise of ownership or Control rights in RBIC before approval. |
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| Notification of transactions that may change ownership or Control. |
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| Standards governing prior approval for a proposed transfer of Control. |
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| Notification of pledge of RBIC's shares. |
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Restrictions on Common Control or Ownership of Two or More RBICs
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| Restrictions on Common Control or ownership of two (or more) RBICs. |
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Change in Structure of RBIC
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| Prior approval of merger, consolidation, or reorganization of RBIC. |
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| Prior approval of changes to RBIC's business plan. |
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Subpart G—MANAGING THE OPERATIONS OF A RBIC
General Requirements
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| Lawful operations under the Act. |
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| Representations to the public. |
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| RBIC's adoption of an approved valuation policy. |
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| Equipment of USDA or SBA officials. |
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| Safeguarding the RBIC's assets/Internal controls. |
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| Violations based on false filings and nonperformance of agreements with the Agency or SBA. |
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| Compliance with non-discrimination laws and regulations applicable to federally-assisted programs. |
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| Employment of USDA or SBA officials. |
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Management and Compensation
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| Approval of RBIC's Investment Adviser/Manager. |
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| Management Expenses of a RBIC. |
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Cash Management by a RBIC
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| Restrictions on investments of idle funds by RBICs. |
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Secured Borrowing by RBICs
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| Prior approval of secured third-party debt of RBICs. |
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Voluntary Decrease in Regulatory Capital
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| Voluntary decrease in RBIC's Regulatory Capital. |
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Subpart H—RECORDKEEPING, REPORTING, AND EXAMINATION REQUIREMENTS FOR RBICS
Recordkeeping Requirements for RBICs
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| General requirement for RBIC to maintain and preserve records. |
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| Required certifications for Loans and Investments. |
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| Requirements to obtain information from Portfolio Concerns. |
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Reporting Requirements for RBICs
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| Requirement for RBICs to file financial statements and supplementary information with the Agency. |
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| Requirement to file portfolio financing reports with the Agency. |
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| Requirement to report portfolio valuations to the Agency |
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| Other items required to be filed by RBIC with the Agency. |
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| Reporting changes in RBIC not subject to prior approval. |
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Examinations of RBICs by the Agency for Regulatory Compliance
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| Responsibilities of RBIC during examination. |
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Subpart I—FINANCING OF ENTERPRISES BY RBICS
Determining Eligibility of an Enterprise for RBIC Financing
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| Requirements concerning types of enterprises to receive financing. |
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| Enterprises that may be ineligible for Financing. |
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| Financings which constitute conflicts of interest. |
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| Portfolio diversification (“overline” limitation). |
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| How a change in size or activity of a Portfolio Concern affects the RBIC and the Portfolio Concern. |
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Structuring RBIC Financing of Eligible Enterprises—Types of Financings
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| Financings in the form of Equity Securities. |
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| Financings in the form of Loans. |
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| Financings in the form of Debt Securities. |
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| Financings in the form of guarantees. |
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| Purchasing securities from an underwriter or other third party. |
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| Minimum term of Financing. |
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| Exceptions to minimum term of Financing. |
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| Maximum term of Financing. |
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| Maximum rate of amortization on Loans and Debt Securities. |
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| Restrictions on redemption of Equity Securities. |
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| Financing fees and expense reimbursements a RBIC may receive from an Enterprise. |
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| Assets acquired in liquidation of Portfolio securities. |
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Limitations on Disposition of Assets
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| Disposition of assets to RBIC's Associates or to competitors of Portfolio Concerns. |
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| Management fees for services provided to an Enterprise by RBIC or its Associate. |
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Subpart J—FINANCIAL ASSISTANCE FOR RBICS (LEVERAGE)
General Information About Obtaining Leverage
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| Type of Leverage and application procedures. |
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| General eligibility requirements for Leverage. |
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| Leverage fees payable by RBIC. |
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| RBIC's acceptance of remedies under §4290.1810. |
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Maximum Amount of Leverage for Which a RBIC Is Eligible
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| Maximum amount of Leverage for a RBIC. |
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Conditional Commitments To Reserve Leverage for a RBIC
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| Leverage commitment to a RBIC—application procedure, amount, and term. |
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| Requirement for RBIC to file financial statements at the time of request for a draw. |
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| Draw-downs by RBIC under Leverage commitment. |
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| Funding of RBIC's draw request through sale to third-party. |
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Distributions by RBICs With Outstanding Leverage
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| Restrictions on distributions to RBIC investors while RBIC has outstanding Leverage. |
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Funding Leverage by Use of Guaranteed Trust Certificates (“TCs”)
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| Agency's authority to issue and guarantee Trust Certificates. |
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| Effect of prepayment or early redemption of Leverage on a Trust Certificate. |
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| Functions of agents, including Central Registration Agent, Selling Agent and Fiscal Agent. |
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| Regulation of Brokers and Dealers and disclosure to purchasers of Leverage or Trust Certificates. |
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| Agency's access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers. |
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Miscellaneous
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| Agency's transfer of interest in a RBIC's Leverage security. |
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| Agency's authority to collect or compromise claims. |
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| Characteristics of Agency's guarantee. |
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Subpart K—RBIC'S NONCOMPLIANCE WITH TERMS OF LEVERAGE
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| Events of default and the Agency's remedies for RBIC's noncompliance with terms of Debentures. |
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Computation of RBIC'S Capital Impairment
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| RBIC's Capital Impairment definition and general requirements. |
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| Computation of RBIC's Capital Impairment Percentage. |
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Subpart L—ENDING OPERATIONS AS A RBIC
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| Termination of participation as a RBIC. |
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Subpart M—MISCELLANEOUS
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| Non-waiver of rights or terms of Leverage security. |
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| RBIC's application for exemption from a regulation in this part 4290. |
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| Effect of changes in this part 4290 on transactions previously consummated. |
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| Integration of this part with other regulations applicable to USDA's programs. |
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Subpart N—REQUIREMENTS FOR OPERATIONAL ASSISTANCE GRANTS TO RBICS
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| Operational Assistance Grants to RBICs. |
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Subpart O—ADDITIONAL REQUIREMENTS FOR NON-LEVERAGED LICENSEES AND EXCEPTIONS TO REGULATIONS
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| Non-leveraged RBICs—General. |
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| Responsibilities for implementing Non-leveraged RBICs. |
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| Qualifications for the Non-leveraged RBIC Program. |
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| Application and Approval Process for RBIC licensing without Leverage. |
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| Evaluation and selection of Non-leveraged RBICs. |
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| Changes in Ownership, Structure, or Control. |
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| Managing the Operations of a RBIC. |
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| Financing of Enterprises by RBICs. |
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| Recordkeeping, Reporting, and Examination Requirements for RBICs. |
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| Financial Assistance for RBICs. |
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| Events of default and the Agency's remedies for RBIC's noncompliance with terms of licensure. |
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| Computation of RBIC's Capital Impairment. |
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| Operational Assistance Grants for RBICs. |
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