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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 7 - Agriculture |
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Subtitle B - Regulations of the Department of Agriculture |
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Chapter XLII - Rural Business-Cooperative Service and Rural Utilities Service, Department of Agriculture |
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Part 4290 - Rural Business Investment Company (“RBIC”) Program |
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Subpart F - Changes in Ownership, Structure, or Control |
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Changes in Control or Ownership of RBIC |
§ 4290.440 - Standards governing prior approval for a proposed transfer of Control.
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§ 4290.440 Standards governing prior approval for a proposed transfer of Control.
The SecretaryAgency's approval of a proposed transfer of Control is contingent upon full disclosure of the real parties in interest, the source of funds for the new owners' interest, and other data requested by the SecretaryAgency. As a condition of approving a proposed transfer of control, the Secretary Agency may:
(a) Require an increase in your Regulatory Capital;
(b) Require the new owners or the transferee's Control Person(s) to assume, in writing, personal liability for your Leverage, effective only in the event of their direct or indirect participation in any transfer of Control not approved by the SecretaryAgency; or
(c) Require compliance with any other conditions set by the SecretaryAgency, including compliance with the requirements for minimum capital and management-ownership diversity in effect at such time for new RBICs.