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:
(1) 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.
(2) Any Farm Credit System institution described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
No bank, association, or institution described in subsection (a) of this section may make investments described in subsection (a) of this section that are greater than 5 percent of the capital and surplus of the bank, association, or institution.
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 25 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.).
(Pub. L. 87–128, title III, §384J, as added Pub. L. 107–171, title VI, §6029, May 13, 2002, 116 Stat. 397; amended Pub. L. 110–234, title VI, §6027(d), May 22, 2008, 122 Stat. 1182; Pub. L. 110–246, §4(a), title VI, §6027(d), June 18, 2008, 122 Stat. 1664, 1944.)
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Last modified: October 26, 2015