Regulations last checked for updates: Oct 17, 2024

Title 7 - Agriculture last revised: Oct 11, 2024
§ 4290.440 - Standards governing prior approval for a proposed transfer of Control.

The Agency'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 Agency. As a condition of approving a proposed transfer of control, the 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 Agency; or

(c) Require compliance with any other conditions set by the Agency, including compliance with the requirements for minimum capital and management-ownership diversity in effect at such time for new RBICs.

authority: 7 U.S.C. 1989 and 2009cc
source: 69 FR 32204, June 8, 2004, unless otherwise noted.
cite as: 7 CFR 4290.440