{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where agency = \"RBS\" sorted by section_id", "rows": [["7:7:15.1.19.2.10.1.39.1", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.1 Purpose and scope.", "RBS", "", "", "", "(a) Purpose. The purpose of this program is to provide financial incentives to biorefineries in existence on June 18, 2008, the date of the enactment of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill) (Pub. L. 110-246), to replace the use of fossil fuels used to produce heat or power at their facilities by installing new systems that use renewable biomass, or to produce new energy from renewable biomass.\n\n(b) Scope. The Agency may make payments under this program to any biorefinery that meets the requirements of the program up to the limits established for the program. Based on our research and survey of medium-sized project costs, the Agency has determined that the dollar amount identified will provide adequate incentive for biorefineries to apply.\n\n(1) The Agency will determine the amount of payments to be made to a biorefinery taking into consideration the percentage reduction in fossil fuel used by the biorefinery (including the quantity of fossil fuels a renewable biomass system is replacing), and the cost and cost-effectiveness of the renewable biomass system.\n\n(2) The Agency will determine who receives payment under this program based on the percentage reduction in fossil fuel used by the biorefinery that will result from the installation of the renewable biomass system; the cost and cost-effectiveness of the renewable biomass system; and other scoring criteria identified in \u00a7 4288.21. The above criteria will be used to determine priority for awards of 50 percent of total eligible project costs, up to the maximum award applicable for the fiscal year."], ["7:7:15.1.19.2.10.1.39.10", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.11 Eligible project costs.", "RBS", "", "", "", "Eligible project costs will be only for project related construction costs for repowering improvements associated with the equipment, installation, engineering, design, site plans, associated professional fees, permits and financing fees."], ["7:7:15.1.19.2.10.1.39.11", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.12 Ineligible project costs.", "RBS", "", "", "", "Any project costs incurred by the applicant prior to application for payment assistance under this program will be ineligible for payment assistance."], ["7:7:15.1.19.2.10.1.39.12", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.13 Payment information.", "RBS", "", "", "", "(a) Maximum payment. For purposes of this program, the maximum payment an applicant may receive will be 50 percent of total eligible project costs up to the applicable fiscal year's maximum award as announced in an annual Federal Register notice. There is no minimum payment to an applicant.\n\n(b) Reimbursement payments. The Agency shall only make payments based on the biorefinery's expenditures on eligible project costs. Payments shall be determined by multiplying the amount of eligible expenditures stated on the payment request by a percentage obtained by dividing the aggregate payment award by total eligible project costs.\n\n(c) Timing of payments. The Applicant may request payments not more frequently than once a month by submitting an original, completed, validly signed Standard Form (SF) 271, \u201cOutlay Report and Request for Reimbursement for Construction Programs\u201d including the supporting documentation identified in \u00a7 4288.23, to reimburse the applicant for the Agency's pro rata share of funds expended on eligible project costs. The Agency shall make such payments until 90 percent of the total payment award has been expended. The final 10 percent of the payment award will be paid upon completion of the repowering project and satisfactory evidence has been received by the Agency demonstrating that the biorefinery is operating as described in the Agency approved application."], ["7:7:15.1.19.2.10.1.39.13", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7\u00a7 4288.14-4288.19 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.10.1.39.14", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.20 Submittal of applications.", "RBS", "", "", "[76 FR 7926, Feb. 11, 2011, as amended at 81 FR 11053, Mar. 2, 2016; 89 FR 34959, May 1, 2024]", "(a) Address to make application. Application must be submitted to USDA, Rural Development-Energy Division, Program Branch, Attention: Repowering Assistance Program, 1400 Independence Avenue, SW., Stop 3225, Washington, DC 20250-3225.\n\n(b) Content and form of submission. Applicants must submit a signed original and one copy of an application containing the information specified in this section. The applicant must also furnish the Agency the required documentation identified in Form RD 4288-4, \u201cRepowering Assistance Program Application,\u201d to verify compliance with program provisions before acceptance into the program. Note that applicants are required to have a Unique Entity Identifier (UEI) (unless the applicant is an individual). Instructions for obtaining the UEI are available at https://sam.gov/. Applicants must submit to the Agency the documents specified in paragraphs (b)(1) through (6) of this section.\n\n(1) Form RD 4288-4. Applicants must submit this form and all necessary attachments providing project information on the biorefinery; the facility at which the biorefinery operates, including location and products produced; and the types and quantities of renewable biomass feedstock being proposed to produce heat or power. This form requires the applicant to provide relevant data to allow for technical analysis of their existing facility to demonstrate replacement of fossil fuel by renewable biomass with reasonable costs and maximum efficiencies. The applicant must also submit evidence that the biorefinery was in existence on or before June 18, 2008. The applicant is required to certify the information provided.\n\n(2) RD Instruction 1940-Q, Exhibit A-1, \u201cCertification for Contracts, Grants and Loans.\u201d\n\n(3) Form RD 400-1.\n\n(4) Form RD 400-4.\n\n(5) Environmental documentation in accordance with 7 CFR part 1970.\n\n(6) Certifications. The applicant must furnish the Agency all required certifications before acceptance into the program, and furnish access to records required by the Agency to verify compliance with program provisions. The applicant must submit forms or other written documentation certifying to the following:\n\n(i) AD-1047, \u201cCertification Regarding Debarment, Suspension, and Other Responsibility Matters\u2014Primary Covered Transactions\u201d or other written documentation.\n\n(ii) AD-1048, \u201cCertification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion\u2014Lower Tier Covered Transactions\u201d or other written documentation.\n\n(iii) SF-LLL, \u201cDisclosure of Lobbying Activities.\u201d\n\n(c) Application package contents. Applicants are required to provide relevant data to allow for technical analysis of their existing facilities to demonstrate replacement of fossil fuel by renewable biomass with reasonable costs and maximum efficiencies. Applicants in existence on or before June 18, 2008 with more than 24 months of actual operating data must provide data for the most recent 24-month period. Applicants in existence on or before June 18, 2008 with less than 24 months of actual operating data must provide 12 months of data supported by engineering and design calculations, and site plans, prepared by the construction engineering firm. All applicants must submit the information specified in paragraphs (c)(1) through (c)(9) of this section as part of their application package.\n\n(1) Contact data. Contact information for the primary technical contact for the biorefinery.\n\n(2) Biorefinery data. Basic information on facility operations over time (hours/day, days/year).\n\n(3) Electric use data. Information on existing electric service to the facility, data on consumption, peak and average demand, and monthly/seasonal use patterns.\n\n(4) Fuel use data. Information on natural gas and current fuel use for boilers and heaters, including fuel type, costs, and use patterns.\n\n(5) Thermal loads. Information on existing thermal loads, including type (steam, hot water, direct heat), conditions (temperature, pressure) and use patterns.\n\n(6) Existing equipment. Information on existing heating and cooling equipment, including type, capacities, efficiencies and emissions.\n\n(7) Site-specific data. Information on other site-specific issues, such as expansion plans or neighborhood considerations that might impact the proposed new system design or operation; or environmental impacts.\n\n(8) Biofuel and biobased product production. Information on biofuel and biobased product production, including quantity and units of production.\n\n(9) Feasibility study. The applicant must submit a feasibility study by an independent qualified consultant, which has no financial interest in the biorefinery, and demonstrates that the renewable biomass system of the biorefinery is feasible, taking into account the economic, technical and environmental aspects of the system. The feasibility study must include the components specified in paragraphs (c)(9)(i) through (c)(9)(x) of this section.\n\n(i) An executive summary, including resume of the consultant, and an introduction/project overview (brief general overview of project location, size, etc. ).\n\n(ii) An economic feasibility determination, including:\n\n(A) Information regarding the project site;\n\n(B) Information on the availability of trained or trainable labor; and\n\n(C) Information on the availability of infrastructure and rail and road service to the site.\n\n(iii) A technical feasibility determination, including a report that:\n\n(A) Describes the repowering project, including:\n\n( 1 ) Information on heating and cooling equipment, including type, capacities, efficiencies and emissions;\n\n( 2 ) Anticipated impacts of the repowering project on the information requested above relating to electric use data, fuel use data, thermal loads and biofuel and biobased product production; and\n\n( 3 ) A project development schedule as more fully described in \u00a7 4288.21(b)(4)(iv);\n\n(B) Is based upon verifiable data and contains sufficient information and analysis so that a determination may be made on the technical feasibility of achieving the levels of energy production that are projected in the statements. The report must provide the information in a format that is responsive to the scoring criteria specified in \u00a7 4288.21(b)(1) through (5) and applicants should identify in their report the information that corresponds to each of the scoring criteria; and\n\n(C) Identifies and estimates project operation and development costs and specifies the level of accuracy of these estimates and the assumptions on which these estimates have been based.\n\n(iv) A financial feasibility determination that discusses the following:\n\n(A) Repowering project construction funding, including repayment terms and security arrangements. Attach any documents relating to the project financing;\n\n(B) The reliability of the financial projections and assumptions on which the project is based including all sources of project capital, both private and public, such as Federal funds;\n\n(C) Projected balance sheets and costs associated with project operations;\n\n(D) Cash flow projections for 3 years;\n\n(E) The adequacy of raw materials and supplies;\n\n(F) A sensitivity analysis, including feedstock and energy costs, product/co-product prices;\n\n(G) Risks related to the project; and\n\n(H) The continuity, maintenance and availability of records.\n\n(v) A management feasibility determination.\n\n(vi) Recommendations for implementation.\n\n(vii) The environmental concerns and issues of the system.\n\n(viii) The availability of feedstock, including discussions of:\n\n(A) Feedstock source management;\n\n(B) Estimates of feedstock volumes and costs;\n\n(C) Collection, pre-treatment, transportation, and storage; and\n\n(D) Impacts on existing manufacturing plants or other facilities that use similar feedstock.\n\n(ix) The feasibility/plans of project to work with producer associations or cooperatives including estimated amount of annual feedstock from those entities.\n\n(x) If woody biomass from National forest system lands or public lands is proposed as the feedstock, documentation must be provided that it cannot be used as a higher value wood-based product."], ["7:7:15.1.19.2.10.1.39.15", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.21 Application review and scoring.", "RBS", "", "", "", "The Agency will evaluate projects based on the cost, cost-effectiveness, and capacity of projects to reduce fossil fuels. The cost of the project will be taken into consideration in the context of each project's ability to economically produce energy from renewable biomass to replace its dependence on fossil fuels. Projects with higher costs that are less efficient will not score well. The scoring criteria are designed to evaluate projects on simple payback as well as the percentage of fossil fuel reduction.\n\n(a) Review. The Agency will evaluate each application and make a determination as to whether the applicant is eligible, whether the proposed project is eligible, and whether the proposed payment request complies with all applicable statutes and regulations. This evaluation will be conducted by experts in the Agency and other Federal agencies, including the U.S. Department of Energy based on the information provided by the applicant.\n\n(b) Scoring. The Agency will score each application in order to prioritize each proposed project. The maximum number of points awardable to any applicant will be 100. The evaluation criteria that the Agency will use to score these projects are specified in paragraphs (b)(1) through (b)(6) of this section.\n\n(1) Cost-effectiveness. Cost-effectiveness will be scored based on the anticipated simple payback period, or \u201csimple payback.\u201d Anticipated simple payback will be demonstrated by calculating documented base energy use costs for the 24-month period prior to submission of the application or at least 12 months of data supported by engineering and design calculations, and site plans, prepared by the construction engineering firm.\n\n(i) The simple payback period is calculated as follows:\n\n\u2022 Simple payback = C/S\n\nWhere:\n \n C = eligible capital expenses of the repowering project\n \n S = savings in annual operating costs.\n\nWhere:\n\nC = eligible capital expenses of the repowering project\n\nS = savings in annual operating costs.\n\n(ii) A maximum of 20 points will be awarded as follows:\n\n(A) If the anticipated simple payback is less than or equal to 4 years, award 20 points.\n\n(B) If the anticipated simple payback is greater than 4 years but less than or equal to 6 years, award 10 points.\n\n(C) If the anticipated simple payback will be greater than 6 years but less than or equal to 10 years, award 5 points.\n\n(D) If the anticipated simple payback will be greater than 10 years, award 0 points.\n\n(2) Percentage of reduction of fossil fuel use. The anticipated percent reduction in the use of fossil fuels will be measured using the same evidence provided by the applicant for measuring cost-effectiveness. However, this set of criteria will measure actual fossil fuel use for the 24-month period prior to submission of the application or for at least 12 months of data supported by engineering and design calculations, and site plans, prepared by the construction engineering firm. All fossil fuel use, for thermal loads as well as for electric use, will be evaluated by using information provided by the Energy Information Agency (EIA). The Agency will determine the percentage reduction of fossil fuel use based on and in cooperation with the applicant's submission of electric power provider contracts, power agreements, and utility billings in relation to available information from the EIA. A maximum of 35 points will be awarded as follows:\n\n(i) Applicant demonstrates an anticipated annual reduction in fossil fuel use of 100 percent, award 35 points.\n\n(ii) Applicant demonstrates an anticipated annual reduction in fossil fuel use of at least 80 percent but less than 100 percent, award 25 points.\n\n(iii) Applicant demonstrates an anticipated annual reduction in fossil fuel use of at least 60 percent but less than 80 percent, award 15 points.\n\n(iv) Applicant demonstrates an anticipated annual reduction in fossil fuel use of at least 40 percent but less than 60 percent, award 5 points.\n\n(v) Applicant demonstrates an anticipated annual reduction in fossil fuel use of less than 40 percent, award 0 points.\n\n(vi) If any of the fossil fuel being replaced is natural gas, deduct 5 points.\n\n(3) Renewable biomass factors. If an applicant demonstrates at the time of application that it has on site available access to renewable biomass or enforceable third party commitments to supply renewable biomass for the repowering project for at least 3 years, 5 points will be awarded. If an applicant cannot demonstrate this, no points will be awarded.\n\n(4) Technical review factors. Technical reviews will be conducted by a team of experts, including rural energy coordinators and State engineers. The Agency may engage the services of other government agencies or other recognized industry experts in the applicable technology field, at its discretion, to evaluate and rate the application. Each section of the technical review will be scored within a range of possible points available within that section. A maximum of 25 points will be awarded as follows:\n\n(i) Qualifications of the applicant's project team. The applicant must describe the qualifications of those individuals who will be essential to successful performance of the proposed project. This will include information regarding professional credentials, relevant experience, and education, and must be supported with documentation of service capabilities, professional credentials, licenses, certifications, and resumes, as applicable. Award 0-5 points.\n\n(ii) Agreements and permits. The applicant must describe the agreements and permits necessary for project implementation. An Agency-acceptable schedule for securing the required documents and permits must be provided. Award 0-4 points.\n\n(iii) Design and engineering. The applicant must describe the design, engineering, and testing needed for the proposed project. The Design and Engineering documents shall demonstrate that they meet the intended purpose, ensure public safety, and comply with all applicable laws, regulations, agreements, permits, codes, and standards. Award 0-4 points.\n\n(iv) Project development schedule. The applicant must provide a detailed plan for project development including a proposed schedule of activities, a description of each significant task, its beginning and end, and its relationship to the time needed to initiate and carry the project through to successful completion. This description must address the applicant's project development cash flow requirements. Award 0-3 points.\n\n(v) Equipment procurement. The applicant must describe the equipment needed, and the availability of the equipment needed, to complete installation and activation of the new system. The description supports that the required equipment is available, and can be procured and delivered within the proposed project development schedule. Award 0-3 points.\n\n(vi) Equipment installation. The applicant must provide a satisfactory description of the plan for site development and system installation that reflects the soundness of the project plan. Award 0-3 points.\n\n(vii) Operations and maintenance. The applicant must describe the operations and maintenance requirements of the system necessary for the system to operate as designed and provide the savings and efficiencies as described. The description and requirements noted must be supportable by the technical review. Award 0-3 points.\n\n(5) Liquid transportation fuels. If the biorefinery primarily produces liquid transportation fuels, award 10 points.\n\n(6) Rural area. If the biorefinery is located in a Rural Area, award 5 points."], ["7:7:15.1.19.2.10.1.39.16", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.22 Ranking of applications.", "RBS", "", "", "", "All scored applications will be ranked by the Agency as soon after the application deadline as possible. The Agency will consider the score an application has received compared to the scores of other applications in the priority list, with higher scoring applications receiving first consideration for payments.\n\n(a) Selection of applications for payments. Using the application scoring criteria point values specified in \u00a7 4288.21 of this subpart, the Agency will select applications for payments.\n\n(b) Availability of funds. As applications are funded, if insufficient funds remain to pay the next highest scoring application, the Agency may elect to pay a lower scoring application. Before this occurs, the Agency will provide the applicant of the higher scoring application the opportunity to reduce the amount of its payment request to the amount of funds available. If the applicant agrees to lower its payment request, it must certify that the purposes of the project can be met, and the Agency must determine the project is feasible at the lower amount."], ["7:7:15.1.19.2.10.1.39.17", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.23 Notifications.", "RBS", "", "", "", "(a) Successful applicants. Successful applicants will receive an award letter notifying them of the award, including the terms and conditions, and Form RD 4288-5. Each funded project is unique, and, therefore, conditions of Form RD 4288-5 may vary among projects. Successful applicants must execute and return the Form RD 4288-5, accompanied by any additional items identified in the award letter.\n\n(b) Unsuccessful applicants. Unsuccessful applicants will receive a letter notifying them of their application score and ranking and the score necessary to qualify for payments."], ["7:7:15.1.19.2.10.1.39.18", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.24 Program payment provisions.", "RBS", "", "", "", "The procedure the Agency will use to make payments to eligible biorefineries is specified in paragraphs (a) through (e) of this section.\n\n(a) Payment applications. The Agency shall make payments based on the biorefinery's expenditures on eligible project costs. To request payments under this program during a fiscal year, an eligible biorefinery must:\n\n(1) Submit an original, validly signed and completed SF 271 to the Agency not more frequently than once a month with the following supporting documentation:\n\n(i) Evidence of expenditure of funds on eligible project costs which shall include paid third party invoices, receipts, bills of sale, and/or payroll records. Such records must be adequate to identify that funds to be reimbursed were spent on eligible project costs; and\n\n(ii) Evidence that construction of the repowering project is in compliance with the project development schedule.\n\n(2) Certify that the request is accurate.\n\n(3) Furnish the Agency such certifications as required in Form RD 4288-4, Part C, and access to records that verify compliance with program provisions.\n\n(b) Clarifying information. After payment applications are submitted, eligible biorefineries may be required to submit additional supporting clarification if their original submittal is not sufficient to verify eligibility for payment.\n\n(c) Notification. The Agency will notify the biorefinery, in writing, whenever the Agency determines that a payment request is ineligible and why the request was determined ineligible.\n\n(d) Refunds and interest payments. An eligible biorefinery that has received a payment under this program may be required to refund such payment as specified in paragraphs (d)(1) through (d)(5) of this section.\n\n(1) An eligible biorefinery receiving payment under this program will become ineligible for payments if the Agency determines the biorefinery has:\n\n(i) Made any material fraudulent representation;\n\n(ii) Misrepresented any material fact affecting a program determination; or\n\n(iii) Upon completion of the repowering project, failed to reduce its fossil fuel consumption, produce energy from renewal biomass or otherwise operate as described in its Agency approved application.\n\n(2) All payments made to a biorefinery determined by the Agency to be ineligible must be refunded to the Agency with interest and other such sums as may become due, including, but not limited to, any interest, penalties, and administrative costs, as determined appropriate under 31 CFR 901.9.\n\n(3) When a refund is due, it must be paid promptly. If a refund is not made promptly, the Agency may use all remedies available to it, including Treasury offset under the Debt Collection Improvement Act of 1996, financial judgment against the biorefinery, and sharing information with the Department of Justice.\n\n(4) Late payment interest will be assessed on each refund in accordance with provisions and rates as determined by the Agency.\n\n(i) Interest charged by the Agency under this program will be at the rate established annually by the Secretary of the U.S. Treasury pursuant to 31 U.S.C. 3717. Interest will accrue from the date payments were received by the biorefinery to the date of repayment, and the rate will adjust in accordance with applicable regulations.\n\n(ii) The Agency may waive the accrual of interest and/or damages if the Agency determines that the cause of the erroneous determination was not due to any fraudulent or negligent action of the biorefinery.\n\n(5) A biorefinery or person receiving payment under this program will be liable for any refund or related charges associated with their project due under this program.\n\n(e) Remedies. The remedies provided in this subpart will be in addition to other civil, criminal, or administrative remedies that may apply."], ["7:7:15.1.19.2.10.1.39.19", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.25 Succession and control of facilities and production.", "RBS", "", "", "", "Any party obtaining a biorefinery that is participating in this program must request permission to participate in this program as a successor. The Agency may grant such request if it is determined that, the party is eligible, and permitting such succession would serve the purposes of the program. If appropriate, the Agency will require the consent of the previous party to such succession. Also, the Agency may terminate payments and demand full refund of payments made if a party loses control of a biorefinery whose production of heat or power from renewable biomass is the basis of a program payment, or otherwise fails to retain the ability to assure that all program obligations and requirements will be met."], ["7:7:15.1.19.2.10.1.39.2", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.2 Definitions.", "RBS", "", "", "[76 FR 7926, Feb. 11, 2011, as amended at 80 FR 9913, Feb. 24, 2015; 87 FR 38645, June 29, 2022]", "The definitions set forth in this section are applicable for all purposes of program administration under this subpart.\n\nAgency. The USDA Rural Development, Rural Business-Cooperative Service or its successor organization.\n\nApplication period. The time period announced by the Agency during which the Agency will accept applications.\n\nBase energy use. The amount of documented fossil fuel energy use over an extended operating period.\n\n(1) The extended operating period must be at least 24 months of recorded usage, and requires metered utility records for electric energy, natural gas consumption, fuel oil, coal shipments and propane use, as applicable for providing heat or power for the operation of the biorefinery.\n\n(2) Utility billing, oil and coal shipments must be actual bills, with meter readings, applicable rates and tariffs, costs and usage. Billing must be complete, without gaps and arranged in chronological order. Drop shipments of coal or oil can be substituted for metered readings, provided the biorefinery documents the usage and its relationship to providing heat or power to the biorefinery.\n\n(3) A biorefinery in existence on or before June 18, 2008 with less than 24 months of actual operating data must provide at least 12 months of data supported by engineering and design calculations, and site plans, prepared by the construction engineering firm.\n\nBiobased products. Products determined by the Secretary to be commercial or industrial products (other than food or feed) that are:\n\n(1) Composed, in whole or in significant part, of biological products, including renewable domestic agricultural materials and forestry materials; or\n\n(2) Intermediate ingredients or feedstocks.\n\nBiofuel. Fuel derived from renewable biomass.\n\nBiorefinery. A facility (including equipment and processes) that converts renewable biomass into biofuels and biobased products, and may produce electricity.\n\nEligible biorefinery. A biorefinery that has been in existence on or before June 18, 2008.\n\nEnergy Information Agency (EIA). The statistical agency of the Department of Energy and source of official energy statistics from the U.S. Government.\n\nFeasibility study. An Agency-acceptable analysis of the economic, environmental, technical, financial, and management capabilities of a proposed project or business in terms of its expected success. A list of items that must be included in a feasibility study is presented in \u00a7 4288.20(c)(9) of this subpart.\n\nFinancial interest. Any ownership, creditor, or management interest in the biorefinery.\n\nFiscal year. A 12-month period beginning each October 1 and ending September 30 of the following calendar year.\n\nFossil fuel. Coal, oil, propane, and natural gas.\n\nRenewable biomass.\n\n(1) Materials, pre-commercial thinnings, or invasive species from National Forest System land or public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) that:\n\n(i) Are byproducts of preventive treatments that are removed to reduce hazardous fuels; to reduce or contain disease or insect infestation; or to restore ecosystem health; and\n\n(ii) Would not otherwise be used for higher value products; and\n\n(iii) Are harvested in accordance with applicable law and land management plans and the requirements for old growth maintenance, restoration, and management direction as per paragraphs (e)(2), (e)(3), and (e)(4), and large tree retention as per paragraph (f), of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); or\n\n(2) Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian Tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including:\n\n(i) Renewable plant material, including feed grains; other agricultural commodities; other plants and trees; and algae; and\n\n(ii) Waste material, including crop residue; other vegetative waste material (including wood waste and wood residues); animal waste and byproducts (including fats, oils, greases, and manure); and food waste and yard waste.\n\nRural or rural area. Any area of a State not in a city or town that has a population of more than 50,000 inhabitants according to the most recent decennial Census of the United States, not in the urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants, and which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I), as well as any area that has been determined to be \u201crural in character\u201d by the Under Secretary for Rural Development, or as otherwise identified in this definition.\n\n(1) An area that is attached to the urbanized area of a city or town with more than 50,000 inhabitants by a contiguous area of urbanized census blocks that is not more than 2 census blocks wide. Applicants from such an area should work with their Rural Development State Office to request a determination of whether their project is located in a rural area under this provision.\n\n(2) For the purposes of this definition, cities and towns are incorporated population centers with definite boundaries, local self government, and legal powers set forth in a charter granted by the State.\n\n(3) For the Commonwealth of Puerto Rico, the island is considered rural and eligible for Business Programs assistance, except for the San Juan Census Designated Place (CDP) and any other CDP with greater than 50,000 inhabitants. CDPs with greater than 50,000 inhabitants, other than the San Juan CDP, may be determined to be eligible if they are \u201cnot urban in character.\u201d\n\n(4) For the State of Hawaii, all areas within the State are considered rural and eligible for Business Programs assistance, except for the Honolulu CDP within the County of Honolulu.\n\n(5) For the purpose of defining a rural area in the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands, the Agency shall determine what constitutes rural and rural area based on available population data.\n\n(6) The determination that an area is \u201crural in character\u201d will be made by the Under Secretary of Rural Development. The process to request a determination under this provision is outlined in paragraph (6)(ii) of this definition.\n\n(i) The determination that an area is \u201crural in character\u201d under this definition will apply to areas that are within:\n\n(A) An urbanized area that has two points on its boundary that are at least 40 miles apart, which is not contiguous or adjacent to a city or town that has a population of greater than 150,000 inhabitants or the urbanized area of such a city or town; or\n\n(B) An urbanized area contiguous and adjacent to a city or town of greater than 50,000 inhabitants that is within one-quarter mile of a rural area.\n\n(ii) Units of local government may petition the Under Secretary of Rural Development for a \u201crural in character\u201d designation by submitting a petition to both the appropriate Rural Development State Director and the Administrator on behalf of the Under Secretary. The petition shall document how the area meets the requirements of paragraph (6)(i)(A) or (6)(i)(B) of this definition and discuss why the petitioner believes the area is \u201crural in character,\u201d including, but not limited to, the area's population density, demographics, and topography and how the local economy is tied to a rural economic base. Upon receiving a petition, the Under Secretary will consult with the applicable Governor or leader in a similar position and request comments to be submitted within 5 business days, unless such comments were submitted with the petition. The Under Secretary will release to the public a notice of a petition filed by a unit of local government not later than 30 days after receipt of the petition by way of publication in a local newspaper and posting on the Agency's Web site, and the Under Secretary will make a determination not less than 15 days, but no more than 60 days, after the release of the notice. Upon a negative determination, the Under Secretary will provide to the petitioner an opportunity to appeal a determination to the Under Secretary, and the petitioner will have 10 business days to appeal the determination and provide further information for consideration."], ["7:7:15.1.19.2.10.1.39.20", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.26 Fiscal Year 2009 and Fiscal Year 2010 applications.", "RBS", "", "", "", "Any entity that submitted an application for payment to the Agency under this program prior to March 14, 2011 will have their payments made and serviced in accordance with the provisions specified in this subpart."], ["7:7:15.1.19.2.10.1.39.21", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7\u00a7 4288.27-4288.100 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.10.1.39.3", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.3 Review or appeal rights.", "RBS", "", "", "", "A person may seek a review of an Agency decision or appeal to the National Appeals Division in accordance with 7 CFR part 11 of this title."], ["7:7:15.1.19.2.10.1.39.4", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.4 Compliance with other laws and regulations.", "RBS", "", "", "", "Participating biorefineries must comply with other applicable Federal, State, and local laws, including, but not limited to, the Equal Employment Opportunities Act, the Equal Credit Opportunity Act, Title VI of the Civil Rights Act of 1964, 7 CFR Part 1901, subpart E, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975. Applicants must submit and will be subject to pre-award and post award compliance reviews with the terms and conditions set forth in Form RD 400-1, \u201cEqual Opportunity Agreement\u201d and Form RD 400-4, \u201cAssurance Agreement.\u201d"], ["7:7:15.1.19.2.10.1.39.5", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.5 Oversight, monitoring, and reporting requirements.", "RBS", "", "", "", "(a) Verification. The Agency reserves the right to verify all payment requests and subsequent payments made under this program, including field visits, as frequently as necessary to ensure the integrity of the program. Documentation provided will be used to verify, reconcile, and enforce the payment terms of Form RD 4288-5, \u201cRepowering Assistance Program\u2014Agreement,\u201d along with any potential refunds that the recipient will be required to make should they fail to adequately document their request.\n\n(b) Records. (1) For purposes of verifying the eligible project costs supporting payments under this subpart, each biorefinery must maintain in one place such books, documents, papers, receipts, payroll records and bills of sale adequate to identify the purposes for which, and the manner in which funds were expended for eligible project costs. The biorefinery must maintain copies of all documents submitted to the Agency in connection with payments made hereunder. These records must be available at all reasonable times for examination by the Agency and must be held and be available for Agency examination for a period of not less than 3 years from the final payment date.\n\n(2) For the purpose of verifying compliance with the fossil fuel reduction and energy production requirements of this subpart, each biorefinery must make available and provide for the metering of all power and heat producing boilers, containment vessels, generators and any other equipment related to the production of heat or power required to displace fossil fuel loads with renewable biomass. These records must be held in one place and be available at all reasonable times for examination by the Agency. Such records include all books, papers, contracts, scale tickets, settlement sheets, invoices, and any other documents related to the program that are within the control of the biorefinery. These records must be held and made available for Agency examination for a period of not less than 3 years from the date the repowering project becomes operational.\n\n(c) Reporting. Upon completion of the repowering project, the biorefinery must submit a report using Form RD 4288-6, \u201cRepowering Assistance Programs\u2014Reporting Form,\u201d to the Agency annually for the first 3 years after completion of the project. The reports are to be submitted as of October 1 of each year. The report must include the items specified in paragraphs (c)(1) and (c)(2) of this section.\n\n(1) Documentation regarding the usage and production of energy at the biorefinery during the previous year, including both the previous and current fossil fuel load and the renewable biomass energy production.\n\n(i) Metered data documenting the production of heat, steam, gas and power must be obtained utilizing an Agency approved measurement device.\n\n(ii) Metered data must be verifiable and subject to independent calibration testing.\n\n(2) Current utility billing data, indentifying metered loads, from the base energy use period."], ["7:7:15.1.19.2.10.1.39.6", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.6 Forms, regulations, and instructions.", "RBS", "", "", "", "Copies of all forms, regulations, instructions, and other materials related to this program may be obtained from the USDA Rural Development State Office, Renewable Energy Coordinator and the USDA Rural Development Web site at http://www.rurdev.usda.gov/regs/."], ["7:7:15.1.19.2.10.1.39.7", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.7 Exception authority.", "RBS", "", "", "", "The Administrator of the Agency (\u201cAdministrator\u201d) may, with the concurrence of the Secretary of Agriculture, make an exception, on a case-by-case basis, to any requirement or provision of this subpart that is not inconsistent with any authorizing statute or applicable law, if the Administrator determines that application of the requirement or provision would adversely affect the Federal government's interest."], ["7:7:15.1.19.2.10.1.39.8", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7\u00a7 4288.8-4288.9 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.10.1.39.9", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "A", "Subpart A\u2014Repowering Assistance Payments to Eligible Biorefineries", "", "\u00a7 4288.10 Applicant eligibility.", "RBS", "", "", "", "(a) Eligible projects. To be eligible for this program, the applicant must be an eligible biorefinery utilizing only renewable biomass for replacement fuel, and must meet the requirements specified in paragraphs (a)(1) through (a)(5) of this section.\n\n(1) Timely complete application submission. To be eligible for this program, the applicant must submit a complete application within the application period. Projects will be selected based on ranking which is derived from the application of the selection criteria stated in \u00a7 4288.21.\n\n(2) Multiple biorefineries. Corporations and entities with more than one biorefinery can submit an application for only one of their biorefineries. However, if a corporation or entity has multiple biorefineries located at the same location, the entity may submit an application that covers such biorefineries provided the heat and power used in the multiple biorefineries are centrally produced.\n\n(3) Cost-effectiveness. The application must be awarded at least minimum points for cost-effectiveness under \u00a7 4288.21(b)(1).\n\n(4) Percentage of reduction of fossil fuel use. The application must be awarded at least minimum points for percentage of reduction of fossil fuel use under \u00a7 4288.21(b)(2).\n\n(5) Full project financing. The applicant must demonstrate that it has sufficient funds or has obtained commitments for sufficient funds to complete the repowering project taking into account the amount of the payment request in the application.\n\n(b) Ineligible projects. A project is not eligible under this subpart if it is using feedstocks for repowering that are feed grain commodities that received benefits under Title I of the Food, Conservation, and Energy Act of 2008."], ["7:7:15.1.19.2.10.2.39.1", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.101 Purpose and scope.", "RBS", "", "", "", "(a) Purpose. The purpose of this subpart is to support and ensure an expanding production of advanced biofuels by providing payments to eligible advanced biofuel producers.\n\n(b) Scope. This subpart sets forth, subject to the availability of funds as provided herein, or as may be limited by law, the terms and conditions an advanced biofuel producer must meet to obtain payments under this Program from the United States Department of Agriculture for eligible advanced biofuel production. Additional terms and conditions may be set forth in the Program contract and payment agreement prescribed by the Agency."], ["7:7:15.1.19.2.10.2.39.10", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.111 Biofuel eligibility.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 84 FR 71302, Dec. 27, 2019]", "To be eligible for this Program, a biofuel must meet the requirements specified in paragraph (a) of this section, and must not be listed in paragraph (b) of this section, and the biofuel's producer must provide additional information as may be requested by the Agency under paragraph (c) of this section.\n\n(a) Eligible advanced biofuel. For an advanced biofuel to be eligible, each of the following conditions must be met, as applicable:\n\n(1) The advanced biofuel must meet the definition of advanced biofuel and be produced in a State;\n\n(2) The advanced biofuel must be a solid, liquid, or gaseous advanced biofuel;\n\n(3) The advanced biofuel must be a Final Product; and\n\n(4) The advanced biofuel must be sold as an advanced biofuel through an arm's length transaction to a third party.\n\n(b) Ineligible fuels. Notwithstanding the provisions of paragraph (a) of this section, for the purposes of this Program, the following fuels, and as may be supplemented by the Agency through the publication of documents in the Federal Register, are not eligible for payment:\n\n(1) Flared gases;\n\n(2) Fuels derived from paper milling and other processes commonly ascribed to wood products manufacturing and generically referred to as \u201cliquor\u201d ( e.g., black liquor, red liquor, brown liquor, white liquor, green liquor, etc.), which typically are blended with diesel and burned as boiler fuel;\n\n(3) Biofuels produced from solid eligible renewable biomass primarily by mechanical means, whether by hand or by machine, such as collecting, baling, bundling, chopping, screening, and chipping of the renewable biomass. Examples of ineligible biofuels that are not eligible advanced biofuels for the purposes of this subpart include, but are not limited to, baled energy grasses, chipped or chunked woody biomass, and chopped or split firewood; and\n\n(4) Any advanced biofuel produced under bailment or third-party production contract and/or any variation thereof.\n\n(c) Eligibility determination. The Agency will determine a biofuel's eligibility for payment under this Program. If an applicant's original submittal is not sufficient to verify a biofuel's eligibility, the Agency will notify the applicant, in writing, as soon as practicable after receipt of the application. This notification will identify, at a minimum, the additional information being requested to enable the Agency to determine the biofuel's eligibility and a timeframe in which to supply the information.\n\n(1) If the applicant provides the requested information to the Agency within the specified timeframe, the Agency will determine the biofuel's eligibility for the upcoming fiscal year.\n\n(2) If the applicant does not provide the requested information to the Agency within the specified timeframe, the biofuel will not be eligible for payment under this Program in the upcoming fiscal year. Applicants may elect to include such biofuels in the application form submitted during the next sign-up period."], ["7:7:15.1.19.2.10.2.39.11", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.112 Eligibility notifications.", "RBS", "", "", "", "(a) Applicant eligibility. If an applicant is determined by the Agency to be eligible for participation, the Agency will notify the applicant, in writing, as soon as practicable after receipt of the application and will assign the applicant a contract number.\n\n(b) Ineligibility notifications. If an applicant or a biofuel is determined by the Agency to be ineligible, the Agency will notify the applicant, in writing, as soon as practicable after receipt of the application, as to the reason(s) the applicant or biofuel was determined to be ineligible. Such applicant will have appeal rights as specified in this subpart.\n\n(c) Subsequent ineligibility determinations. If at any time a producer or an advanced biofuel is determined to be ineligible, the Agency will notify the producer in writing of its determination."], ["7:7:15.1.19.2.10.2.39.12", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.113 Payment record requirements.", "RBS", "", "", "", "To be eligible for Program payments, an advanced biofuel producer must maintain records for all relevant fiscal years and fiscal year quarters for each advanced biofuel facility indicating:\n\n(a) The type of eligible renewable biomass used in the production of advanced biofuel;\n\n(b) The quantity of advanced biofuel produced from eligible renewable biomass at each advanced biofuel facility;\n\n(c) The quantity of eligible renewable biomass used at each advanced biofuel facility to produce the advanced biofuel; and\n\n(d) All other records required to establish Program eligibility and compliance."], ["7:7:15.1.19.2.10.2.39.13", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7\u00a7 4288.114-4288.119 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.10.2.39.2", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.102 Definitions.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 84 FR 71301, Dec. 27, 2019]", "The definitions set forth in this section are applicable for all purposes of program administration under this subpart.\n\nAdvanced biofuel. A fuel that is derived from renewable biomass, other than corn kernel starch, to include:\n\n(1) Biofuel derived from cellulose, hemicellulose, or lignin;\n\n(2) Biofuel derived from sugar and starch (other than ethanol derived from corn kernel starch);\n\n(3) Biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste, food waste, and yard waste;\n\n(4) Diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat;\n\n(5) Biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass;\n\n(6) Butanol or other alcohols produced through the conversion of organic matter from renewable biomass; or\n\n(7) Other fuel derived from cellulosic biomass.\n\nAdvanced biofuel producer. An individual, corporation, company, foundation, governmental entity, school or other educational facility, association, labor organization, firm, partnership, society, joint stock company, group of organizations, or non-profit entity that produces advanced biofuel. An entity that blends or otherwise combines advanced biofuels into a blended biofuel is not considered an advanced biofuel producer under this subpart. An entity that produces biofuel exclusively under a toll/bailment arrangement/third part production contract is not considered an advanced biofuel producer under this subpart.\n\nAgency. The USDA Rural Development, Rural Business-Cooperative Service or its successor organization.\n\nAlcohol. Anhydrous ethyl alcohol manufactured in the United States and its territories and sold either:\n\n(1) For fuel use, rendered unfit for beverage use, produced at a biofuel facility and in a manner approved by the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the production of alcohol for fuel; or\n\n(2) As denatured alcohol used by blenders and refiners and rendered unfit for beverage use.\n\nAlcohol producer. An advanced biofuel producer authorized by ATF to produce alcohol.\n\nATF. The Bureau of Alcohol, Tobacco, Firearms, and Explosives of the United States Department of Justice.\n\nBailment. The temporary placement of control over, or possession of property by an individual or entity, the bailor, into the hands of another, the bailee, for a designated purpose upon which the parties have agreed. For purposes of this Program any advanced biofuel produced by a toll producer of any form, or under any form of third-party production agreement, is regarded/considered as produced under bailment and is ineligible for payment; to either bailor or bailee.\n\nBiodiesel. A mono alkyl ester, manufactured in the United States and its territories, that meets the requirements of the appropriate ASTM International standard.\n\nBiofuel. Fuel derived from renewable biomass.\n\nBiorefinery. The term \u201cbiorefinery\u201d means a facility (including equipment and processes) that\u2014\n\n(1) Converts renewable biomass or an intermediate ingredient or feedstock of renewable biomass into any 1 or more, or a combination, of\u2014\n\n(i) Biofuels;\n\n(ii) Renewable chemicals; or\n\n(iii) Biobased products; and\n\n(2) May produce electricity.\n\nBlender. A blender is a processor of fuels who combines two or more fuels, one of which must be an advanced biofuel, for distribution and sale. Producers who blend one or more of their own fuels are not blenders under this definition.\n\nCertificate of analysis. A document approved by the Agency that certifies the quality and purity of the advanced biofuel being produced. The document must be from a qualified, independent third party.\n\nCommodity. Renewable biomass, other than corn kernel starch, used primarily for the purposes of this Program, by advanced biofuel producers as feedstock from which to produce/derive advanced biofuel. Eligible renewable biomass is organized into the following commodity categories:\n\n(1) Title I grains and oilseeds including: Wheat, corn, grain sorghum, barley, oats, and rice; sugars, and starches (other than corn kernel starch); Soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard, crambe, sesame, and peanuts; as identified under Title I, Public Law 115-334, and as determined by the Secretary;\n\n(2) Other oilseeds and nuts including cottonseed, palm, camelina, coconut, and olive; and algae;\n\n(3) A cellulosic commodity grown for energy purposes, such as, hybrid poplar and other energy trees, switch grass and other energy grasses; cellulose, hemicellulose, or lignin;\n\n(4) Waste material, including crop residue/Stover, other vegetative waste material/orchard waste, animal waste/manure, food waste/food processing waste, and yard waste/biodegradable solid waste/organic matter;\n\n(5) Fats, oils, and greases, derived from an agricultural product, including: Recycled fats, oils, and greases, such as used cooking oil and reclaimed-industrial grade-distillers' corn/sorghum oil; tallow, white grease, yellow grease, and other livestock renderings; and\n\n(6) Any animal byproduct (in addition to oils, fats, and greases) that may be used to produce bioenergy, as determined by the Secretary.\n\nContract. Form RD 4288-2, \u201cAdvanced Biofuel Payment Program Contract,\u201d signed by the eligible advanced biofuel producer and the Agency, that defines the terms and conditions for participating in and receiving payment under this Program.\n\nDerived. A process that creates a physical, and/or chemical, and/or biological change in renewable biomass/feedstock.\n\nEligible advanced biofuel producer. A producer of advanced biofuels that meets all requirements of \u00a7 4288.110 of this subpart.\n\nEligible renewable biomass. Renewable biomass, as defined in this section, excluding corn kernel starch. See also commodity.\n\nEligible renewable energy content. That portion of an advanced biofuel's energy content derived from eligible renewable biomass feedstock. The energy content from any portion of the biofuel, whether from, for example, blending with another fuel or a denaturant, that is derived from a non-eligible renewable biomass feedstock (e.g., corn kernel starch) is not eligible for payment under this Program.\n\nEnrollment application. Form RD 4288-1, \u201cAdvanced Biofuel Payment Program Annual Application,\u201d which is submitted by advanced biofuel producers for participation in this Program.\n\nEthanol. Anhydrous ethyl alcohol manufactured in the United States and its territories and sold either:\n\n(1) For fuel use, and which has been rendered unfit for beverage use and produced at an advanced biofuel facility approved by the ATF for the production of ethanol for fuel, or\n\n(2) As denatured ethanol used by blenders and energy refiners, which has been rendered unfit for beverage use.\n\nEthanol producer. An advanced biofuel producer authorized by ATF to produce ethanol.\n\nFinal Product. A product of a biorefinery that is ready for sale/distribution without further processing. For purposes of this Program, an advanced biofuel is a Final Product eligible for payment if it is ready for distribution and sale as a fuel.\n\nFiscal Year. A 12-month period beginning each October 1 and ending September 30 of the following calendar year.\n\nFlared gas. The burning of unwanted gas through a pipe (also called a flare). Flaring is a means of disposal used when the operator cannot transport the gas to market or convert to electricity and cannot use the gas for any other purpose.\n\nIncremental production. The quantity of eligible advanced biofuel produced at an advanced biofuel biorefinery in the fiscal year for which payment is sought that exceeds the quantity of advanced biofuel produced at the biorefinery over the prior fiscal year.\n\nLarge producer. (1) An advanced biofuel producer which in the prior fiscal year, produced more than:\n\n(i) 150,000,000 gallons of liquid advanced biofuel per year; or\n\n(ii) 15,900,000 Million British Thermal Units (MMBTU) of biogas and/or solid advanced biofuel per year.\n\n(2) The amount of gallons and MMBTUs listed in paragraphs (1)(i) and (ii) of this definition include the advanced biofuel production at all facilities, in the United States, in which the producer and/or its parent company(ies) have a 50-percent or greater ownership.\n\nParent company. A company/corporation that has a controlling interest in another company/corporation, giving it control of its operations. The company is deemed a subsidiary of the parent company.\n\nPayment application. Form RD 4288-3, \u201cAdvanced Biofuel Payment Program\u2014Payment Request,\u201d which is submitted by an eligible advance producer to the Agency in order to receive payment under this Program.\n\nQuarter. The Federal fiscal time period for any fiscal year as follows:\n\n(1) 1st Quarter: October 1 through December 31;\n\n(2) 2nd Quarter: January 1 through March 31;\n\n(3) 3rd Quarter: April 1 through June 30; and\n\n(4) 4th Quarter: July 1 through September 30.\n\nRenewable biomass.\n\n(1) Materials, pre-commercial thinnings, or invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) that:\n\n(i) Are byproducts of preventive treatments that are removed to reduce hazardous fuels; to reduce or contain disease or insect infestation; or to restore ecosystem health;\n\n(ii) Would not otherwise be used for higher-value products; and\n\n(iii) Are harvested in accordance with applicable law and land management plans and the requirements for old-growth maintenance, restoration, and management direction of paragraphs (e)(2), (e)(3), and (e)(4) and large-tree retention of paragraph (f) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512); or\n\n(2) Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian Tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including:\n\n(i) Renewable plant material, including feed grains; other agricultural commodities; other plants and trees; and algae; and\n\n(ii) Waste material, including crop residue; other vegetative waste material (including wood waste and wood residues); animal waste and byproducts (including fats, oils, greases, and manure); and food waste and yard waste.\n\nSale. A transaction between two or more parties, typically a buyer and a seller, in which goods or services are exchanged for money or other assets.\n\nSign-up period. The time period during which the Agency will accept enrollment applications.\n\nState. Any of the 50 States of the United States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.\n\nThird party production. Third party production involves outsourcing production processes to a third-party company whereby the third-party company, hired to produce, is supplying the manufacturing process as well as sourcing the raw materials/commodity feedstock. The contract producer is responsible for manufacturing the product to specification and disposition/delivery requirements. For purposes of this Program, any advanced biofuel produced under a contractual third-party production agreement is ineligible for payment. A producer that is strictly a third-party contractor produces no eligible advanced biofuel.\n\nToll producer. See also bailment. Toll production/manufacturing is an arrangement, where a company with specialised equipment processes raw materials or unfinished goods for a different company. A toll producer of advanced biofuels produces advanced biofuels for another company. For purposes of this Program, any advanced biofuel produced by a toll producer of any form, or under any form of third-party production agreement, is regarded/considered as produced under bailment and is ineligible for payment.\n\nUSDA. The United States Department of Agriculture."], ["7:7:15.1.19.2.10.2.39.3", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.103 Review or appeal rights.", "RBS", "", "", "", "A person may seek a review of an Agency decision or appeal to the National Appeals Division in accordance with 7 CFR part 11 of this title."], ["7:7:15.1.19.2.10.2.39.4", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.104 Compliance with other laws and regulations.", "RBS", "", "", "", "(a) Advanced biofuel producers must comply with other applicable Federal, State, and local laws, including, but not limited to, the Equal Employment Opportunity Act, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, The Age Discrimination Act of 1975, the Americans with Disabilities Act of 1990, and 7 CFR part 1901, subpart E. This includes collection and maintenance of race, sex, and national origin data of the recipient's employee.\n\n(b) Producers must comply with equal opportunity and nondiscriminatory requirements in accordance with 7 CFR 15d. Rural Development will not discriminate against an applicant on the bases of race, color, religion, national origin, sex, sexual orientation, marital status, familial status, disability, or age (provided that the applicant has the capacity to contract); to the fact that all or part of the applicant's income derives from public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act."], ["7:7:15.1.19.2.10.2.39.5", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.105 Oversight and monitoring.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 84 FR 71302, Dec. 27, 2019]", "(a) Verification. The Agency reserves the right to verify all payment applications and subsequent payments made under this subpart, as frequently as necessary, to ensure the integrity of the Program. The Agency will conduct site visits as necessary.\n\n(1) Production and feedstock verification. The Agency will review producer records to verify the type and amount of biofuel produced and the type and amount of commodity/eligible renewable biomass used.\n\n(2) Blending verification. The Agency will review the producer's certificates of analysis and feedstock records to verify the portion of the advanced biofuel eligible for payment.\n\n(3) Certificate of Analysis. The Agency will review the producer records for quarterly payments to ensure that each Certificate of Analysis has been issued by an Agency-approved qualified entity, which may include the blender only if the blender is not associated with the biorefinery.\n\n(b) Records. For the purpose of verifying compliance with the requirements of this subpart, each eligible advanced biofuel producer shall make available at one place at a reasonable time for examination by representatives of USDA, all books, papers, records, contracts, scale tickets, settlement sheets, invoices, written price quotations, and other documents related to the Program that is within the control of such advanced biofuel producer for not less than 3 years from each Program payment date."], ["7:7:15.1.19.2.10.2.39.6", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.106 Forms, regulations, and instructions.", "RBS", "", "", "[84 FR 71302, Dec. 27, 2019]", "Copies of all forms, regulations, instructions, and other materials related to this Program may be obtained from the USDA Rural Development State Office, Rural Energy Coordinator and the USDA Rural Development website at https://www.rd.usda.gov/."], ["7:7:15.1.19.2.10.2.39.7", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.107 Exception authority.", "RBS", "", "", "", "The Administrator of the Agency (\u201cAdministrator\u201d) may, with the concurrence of the Secretary of Agriculture, make an exception, on a case-by-case basis, to any requirement or provision of this subpart that is not inconsistent with any authorizing statute or applicable law, if the Administrator determines that application of the requirement or provision would adversely affect the Federal government's interest."], ["7:7:15.1.19.2.10.2.39.8", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7\u00a7 4288.108-4288.109 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.10.2.39.9", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.110 Applicant eligibility.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 84 FR 71302, Dec. 27, 2019]", "Sections 4288.110 through 4288.119 present the requirements associated with advanced biofuel producer eligibility, biofuel eligibility, eligibility notifications, and payment record requirements. To be eligible for this Program, the applicant must meet the requirements specified in paragraph (a) of this section and must provide additional information as may be requested by the Agency under paragraph (b) of this section. Public bodies and educational institutions are not eligible for this Program.\n\n(a) Eligible producer. The applicant must be an advanced biofuel producer, as defined in this subpart.\n\n(b) Eligibility determination. The Agency will determine an applicant's eligibility for participation in this Program. If an applicant's original submittal is not sufficient to verify an applicant's eligibility, the Agency will notify the applicant, in writing, as soon as practicable after receipt of the application. This notification will identify, at a minimum, the additional information being requested to enable the Agency to determine the applicant's eligibility and a timeframe in which to supply the information.\n\n(1) If the applicant provides the requested information to the Agency within the specified timeframe, the Agency will determine the applicant's eligibility for the upcoming fiscal year.\n\n(2) If the applicant does not provide the requested information to the Agency within the specified timeframe, the Agency will not consider the applicant any further for participation in the upcoming fiscal year. Such applicants may elect to enroll during the next sign-up period.\n\n(c) Ineligibility determination. An otherwise eligible producer will be determined to be ineligible if the producer:\n\n(1) Refuses to allow the Agency to verify any information provided by the producer under this subpart, including information for determining applicant eligibility, advanced biofuel eligibility, and application payments;\n\n(2) Fails to meet any of the conditions set out in this subpart, in the contract, or in other Program documents; or\n\n(3) Fails to comply with all applicable Federal, State, or local laws."], ["7:7:15.1.19.2.10.2.40.14", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.120 Enrollment.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 84 FR 71302, Dec. 27, 2019]", "In order to participate in the Program, a producer of advanced biofuels must be approved by the Agency and enter into a contract with the Agency. The process for enrolling in the Program is presented in this section. Advanced biofuel producers who expect to produce eligible advanced biofuels at any time during a fiscal year must enroll in the Program as described in this section.\n\n(a) Enrollment. To enroll in the Program, an advanced biofuel producer must submit to the Agency a completed enrollment application during the applicable sign-up period, as specified in paragraph (b) of this section. Applicants must be registered in the System for Award Management (SAM) prior to submitting an application; which can be obtained at no cost via a toll-free request line at (866) 705-5711 or online at www.sam.gov/SAM. Registration of a new entity in SAM requires an original, signed, and notarized letter stating that the applicant is the authorized Entity Administrator, before the registration will be activated.\n\n(1) Eligible advanced biofuel producers must submit enrollment applications during each sign-up period in order to continue participating in this Program. If a participating producer fails to submit the enrollment application during a fiscal year's applicable sign-up period, the producer's contract will be terminated and the producer will be ineligible to receive payments for that fiscal year. Such a producer must reapply, and sign a new contract, to participate in the Program for future fiscal years.\n\n(2) Eligible advanced biofuel producers may submit an enrollment application during a fiscal year's sign-up period even if the advanced biofuel facility is not currently producing, but is scheduled to start producing advanced biofuel in that fiscal year.\n\n(3) The producer must furnish the Agency all required certifications before acceptance into the Program, and furnish access to the advanced biofuel producer's records required by the Agency to verify compliance with Program provisions. The required certifications depend on the type of biofuel produced. Certifications specified in paragraphs (a)(3)(i) through (a)(3)(iv) of this section are to be completed and provided by an accredited independent third party.\n\n(i) Alcohol. For alcohol producers with authority from ATF to produce alcohol, copies of either\n\n(A) The Alcohol Fuel Producers Permit (TTB F 5110.74) or\n\n(B) The registration of Distilled Spirits Plant (TTB F 5110.41) and Operating Permit (TTB F 5110.25).\n\n(ii) Hydrous ethanol. For hydrous ethanol that is upgraded by another distiller to anhydrous ethyl alcohol, the increased ethanol production is eligible for payment one time only. If the advanced biofuel producer entering into this agreement is:\n\n(A) The hydrous ethanol producer, then the advanced biofuel producer shall include with the contract an affidavit, acceptable to the Agency, from the distiller stating that the:\n\n( 1 ) Applicable hydrous ethanol produced is distilled and denatured for fuel use according to ATF requirements, and\n\n( 2 ) Distiller will not include the applicable ethanol in any payment requests that the distiller may make under this Program.\n\n(B) The distiller that upgrades hydrous ethanol to anhydrous ethyl alcohol, then the advanced biofuel producer shall include with the contract an affidavit, acceptable to the Agency, from the hydrous ethanol producer stating that the hydrous ethanol producer will not include the applicable ethanol in any payment requests that may be made under this Program.\n\n(iii) Biodiesel, biomass-based diesel, and liquid hydrocarbons derived from biomass. For these fuels, the advanced biofuel producer shall certify that the producer, the advanced biofuel facility, and the biofuel meet the definitions of these terms as defined in \u00a7 4288.102, the applicable registration requirements under the Energy Independence and Security Act and the Clean Air Act and under the applicable regulations of the U.S. Environmental Protection Agency and Internal Revenue Service, and the quality requirements per applicable ASTM International standards (e.g., ASTM D6751) and commercially acceptable quality standards of the local market. If a Renewable Identification Number has been established, the advanced biofuel producer shall also provide documentation of the most recent Renewable Identification Number for a typical gallon of each type of advanced biofuel produced.\n\n(iv) Gaseous advanced biofuel. For gaseous advanced biofuel producers, certification that the biofuel meets commercially acceptable pipeline quality standards of the local market; that the flow meters used to determine the quantity of advanced biofuel produced are industry standard and properly calibrated by a third-party professional; and that the readings have been taken by a qualified individual.\n\n(v) Woody biomass feedstock. If the feedstock is from National Forest system land or public lands, documentation must be provided that it cannot be used as a higher value wood-based product.\n\n(4) Applicants must submit the forms specified in this paragraph (a)(4) with the enrollment application when applying for participation under this subpart and as needed when re-enrolling in the program.\n\n(i) RD Instruction 1940-Q, Exhibit A-1, \u201cCertification for Contracts, Grants and Loans.\u201d\n\n(ii) SF-LLL, \u201cDisclosure of Lobbying Activities.\u201d\n\n(iii) Form RD 400-4, \u201cAssurance Agreement.\u201d\n\n(b) Sign-up period. The sign-up period is October 1 to October 31 of the fiscal year for which payment is sought, unless otherwise announced by the Agency in a Federal Register notice."], ["7:7:15.1.19.2.10.2.40.15", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.121 Contract.", "RBS", "", "", "", "Advanced biofuel producers determined to be eligible to receive payments must then enter into a contract with the Agency in order to participate in this Program.\n\n(a) Contract. The Agency will forward the contract to the advanced biofuel producer. The advanced biofuel producer must agree to the terms and conditions of the contract, sign, date, and return it to the Agency within the time provided by the Agency.\n\n(b) Length of contract. Once signed, a contract will remain in effect until terminated as specified in paragraph (d) of this section.\n\n(c) Contract review. All contracts will be reviewed at least annually to ensure compliance with the contract and ensure the integrity of the program.\n\n(d) Contract termination. Contracts under this Program will be terminated in writing by the Agency. Contracts may be terminated under any one of the following conditions:\n\n(1) At the mutual agreement of the parties;\n\n(2) In accordance with applicable Program notices and regulations;\n\n(3) The advanced biofuel producer withdraws from the Program and so notifies the Agency, in writing;\n\n(4) The advanced biofuel producer fails to submit the enrollment application during a sign-up period;\n\n(5) The Program is discontinued or not funded;\n\n(6) All of a participating advanced biofuel producer's advanced biofuel facilities no longer exist or no longer produce any eligible advanced biofuel; or\n\n(7) The Agency determines that the advanced biofuel producer is ineligible for participation."], ["7:7:15.1.19.2.10.2.40.16", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7\u00a7 4288.122-4288.129 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.10.2.41.17", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.130 Payment applications.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 84 FR 71302, Dec. 27, 2019]", "Sections 4288.130 through 4288.189 identify the process and procedures the Agency will use to make payments to eligible advanced biofuel producers. In order to receive payments under this Program, eligible advanced biofuel producers with valid contracts must submit a payment application, as required under paragraph (a) of this section. The Agency will review the payment application and, if necessary, may request additional information, as specified under paragraph (b) of this section.\n\n(a) Applying for payment. To apply for payments under this subpart for a fiscal year, an eligible advanced biofuel producer must:\n\n(1) After a quarter has been completed, submit a payment application covering the quarter;\n\n(2) Certify that the request is accurate;\n\n(3) Furnish the Agency such certification, and access to such records, as the Agency considers necessary to verify compliance with Program provisions; and\n\n(4) Provide documentation as requested by the Agency of the net production of advanced biofuel at all advanced biofuel facilities during the relevant quarter.\n\n(b) Review of payment applications. The Agency will review each payment application it receives to determine if it is eligible for payment.\n\n(1) Review factors. Factors that the Agency will consider in reviewing payments applications include, but are not necessarily limited to:\n\n(i) Contract validity. Whether the entity submitting the payment application has a valid contract with the Agency under this Program;\n\n(ii) Biofuel eligibility. Whether the biofuel for which payment is sought is an eligible advanced biofuel; and\n\n(iii) Calculations. Whether the calculations for determining the requested payment are complete and accurate.\n\n(2) Additional documentation. If the Agency determines additional information is required for the Agency to complete its review of a payment application, eligible advanced biofuel producers shall submit such additional supporting documentation as requested by the Agency. If the producer does not provide the requested information within the required time period, the Agency will not make payment.\n\n(c) Payment application eligibility. The Agency will notify the advanced biofuel producer, in writing, as soon as practicable after the payment application, whenever the Agency determines that a payment application, or any portion thereof, is ineligible for payment and the basis for the Agency's determination of ineligibility.\n\n(d) Submittal information. Unless otherwise specified in a notice published in the Federal Register, eligible advanced biofuel producers must submit payment applications for this Program no later than 4:30 p.m. local time on the last day of the calendar month following the quarter for which payment is being requested. No payment applications received after the specified date and time will be considered, regardless of the postmark on the application.\n\n(1) Any payment application form that is received by the Agency after October 31 of the calendar year for the preceding fiscal year is ineligible for payment.\n\n(2) If the actual deadline falls on a weekend or a Federally-observed holiday, the deadline is the next Federal business day."], ["7:7:15.1.19.2.10.2.41.18", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.131 Payment provisions.", "RBS", "", "", "[84 FR 71302, Dec. 27, 2019]", "Payments to advanced biofuel producers for eligible advanced biofuel production will be determined in accordance with the provisions of this section.\n\n(a) Actual production. Participating producers will be paid on a quarterly basis for the actual quantity of eligible advanced biofuel produced during the quarter. Payment for actual production will be determined according to paragraph (d) of this section.\n\n(b) Amount of payment funds available. Based on the amount of funds made available to this Program each fiscal year, the Agency will allocate available program funds according to paragraphs (c), (d), and (e) of this section.\n\n(c) Quarterly allocations. For each fiscal year, the Agency will allocate in each quarter one-fourth of the funds identified in paragraph (b) of this section allocated for the entire fiscal year.\n\n(d) Determination of payment rate. Each quarter, the Agency will establish an actual production payment rate using the procedures specified in paragraphs (d)(1) through (4) of this section. This rate will be applied to the actual quantity of eligible advanced biofuel produced to determine payments to eligible advanced biofuel producers.\n\n(1) Based on the information provided in each payment application, the Agency will determine the eligible advanced biofuel production. If the Agency determines that the amount of advanced biofuel production reported in a payment application is not supported by the documentation submitted with the payment application, the Agency may revise the reported production to an amount that is commensurate with the submitted documentation.\n\n(2) For each producer, the Agency will convert the production determined to be eligible under paragraph (c) of this section into British Thermal Unit (BTU) equivalent using factors published by the Energy Information Administration (EIA) (or successor organization). If the Energy Information Administration does not publish such conversion factor for a specific type of advanced biofuel, the Agency will use a conversion factor developed by another appropriate entity. If no such conversion factor exists, the Agency, in consultation with other Federal agencies, will establish and use a conversion formula as appropriate, until the Energy Information Administration or other appropriate entity publishes a conversion factor for said advanced biofuel. The Agency will then calculate the total eligible BTUs across all eligible applications.\n\n(3) For each quarter, the Agency will determine the actual production payment rate ($/BTU) based on paragraphs (b), (c), and (d) of this section. The rate will be calculated such that all quarterly funds for actual production will be distributed, subject to the payment provisions specified in paragraph (e) of this section.\n\n(4) Using the actual production payment rate determined and the actual production for each type of advanced biofuel produced at a biorefinery, the Agency will calculate each quarter payment for each eligible advanced biofuel producer for that quarter.\n\n(e) Other payment provisions. The following provisions apply:\n\n(1) Notwithstanding any other provisions in this section, the Agency will provide payments to one or more eligible advanced biofuel producers from a single eligible Commodity, including intermediate ingredients of that single Commodity or use of that single Commodity and its intermediate ingredients in combination with another Commodity, of not more than one-third of available program funds in each quarter.\n\n(i) Payments to producers for advanced biofuel derived from a commodity listed in Title I grains and oilseeds (as defined paragraph (1) of the defintion of commodity in \u00a7 4288.102), are subject to the one-third limitation as tracked individually for each commodity. For example, with respect to the Title I grains and oilseeds commodity\u2014grain sorghum, all payments for the quarter to producers of advanced biofuel derived from grain sorghum are tabulated and subject to the one-third payment limitation. This is similarly true for each commodity listed under Title I grains and oilseeds\u2014barley, oats, rice, soybeans, etc.\n\n(ii) Payments to producers for advanced biofuel derived from a commodity listed in paragraphs (2) through (6) of the defintion of commodity in \u00a7 4288.102, inclusively, are subject to the one-third limitation as tracked cumulatively with each commodity group. For example, with respect to the commodity in paragraph (2) of the definition of commodity (other oilseeds and nuts including cottonseed, palm, camelina, coconut, and olive and algae), all payments for the quarter to producers of fuel derived from \u201cother oilseeds, nuts and algae\u201d are tabulated cumulatively (all are tracked as \u201cother oilseeds, nuts, and algae\u201d whether olive, or coconut, or camelina, etc.) and subject cumulatively to the one-third payment limitation. This is similarly true for the commodity in paragraphs (3) through (6) of the definition of commodity.\n\n(2) Notwithstanding any other provision of this section, the Agency will provide payments to large producers of not more than five (5) percent of available program funds in any fiscal year. At any time during the year, if the limit on payments to large producers would be reached, the Agency will pro-rate payments to large producers based on the BTU content of their eligible advanced biofuel production so as not to exceed the limit.\n\n(3) Notwithstanding any other provision of this section, the Agency will provide payments to any eligible advanced biofuel producer, that is not a large producer, of not more than eight (8) percent of available funds in any fiscal year. At any time during the year, if the eight percent to the advanced biofuel producer would be reached, the Agency will pro-rate payments based on the BTU content of the eligible advanced biofuel production so as not to exceed the limit.\n\n(4) Advanced biofuel producers will be paid based on the amount of eligible renewable energy content of the advanced biofuels only if the producer provides sufficient documentation, including a Certificate of Analysis, for the Agency to determine the eligible renewable energy content for which payment is being requested, and quantity produced through such documentation as, but not limited to, records of sale and calibrated flow meter records.\n\n(5) Payment will be made to only one eligible advanced biofuel producer per biorefinery. If a producer owns more than one facility, the Agency's tracking system will add all actual BTUs and calculate one payment amount. For facilities owned by more than one producer, only one payment will be issued per facility.\n\n(6) Subject to other provisions of this section, advanced biofuel producers shall be paid any sum due.\n\n(7) A producer will be paid only for the advanced biofuels identified in the enrollment application submitted during the sign-up period and which are produced during the fiscal year. If the producer starts producing a new advanced biofuel or changes the type of advanced biofuel during the fiscal year, the producer will not receive any payments for those new advanced biofuels. However, during each sign-up period, a producer may identify new advanced biofuels and production levels compared to the previous year.\n\n(8) When determining the quantity of eligible advanced biofuel, if an applicant is blending its advanced biofuel using ineligible feedstocks ( e.g., fossil gasoline or methanol, corn kernel starch), only the quantity of advanced biofuel being produced from Renewable Biomass, other than corn kernel starch, will be used in determining the payment rates and for which payments will be made."], ["7:7:15.1.19.2.10.2.41.19", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.132 Payment adjustments.", "RBS", "", "", "", "The Agency will adjust the payments otherwise payable to the advanced biofuel producer if there is a difference between the amount actually produced and the amount determined by the Agency to be eligible for payment."], ["7:7:15.1.19.2.10.2.41.20", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.133 Payment liability.", "RBS", "", "", "", "Any payment, or portion thereof, made under this subpart shall be made without regard to questions of title under State law and without regard to any claim or lien against the advanced biofuel, or proceeds thereof, in favor of the owner or any other creditor except agencies of the U.S. Government."], ["7:7:15.1.19.2.10.2.41.21", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.134 Refunds and interest payments.", "RBS", "", "", "", "An eligible advanced biofuel producer who receives payments under this subpart may be required to refund such payments as specified in this section. If the Agency suspects fraudulent representation through its site visits and records inspections under \u00a7 4288.105(b), it will be referred to the Office of Inspector General for appropriate action.\n\n(a) An eligible advanced biofuel producer receiving payments under this subpart shall become ineligible if the Agency determines the advanced biofuel producer has:\n\n(1) Made any fraudulent representation; or\n\n(2) Misrepresented any material fact affecting a Program determination.\n\n(b) If an Agency determination that a producer is not eligible for participation under this subpart is appealed and overturned, the Agency will make appropriate and applicable payments to the producer from Program funds, to the extent such funds are available, that remain from the fiscal year in which the original adverse Agency decision was made.\n\n(c) All payments made to an entity determined by the Agency to be ineligible shall be refunded to the Agency with interest and other such sums as may become due, including, but not limited to, any interest, penalties, and administrative costs as determined appropriate under 31 CFR 901.9.\n\n(d) When a refund is due, it shall be paid promptly. If a refund is not made promptly, the Agency may use all remedies available to it, including Treasury offset under the Debt Collection Improvement Act of 1996, financial judgment against the producer, and referral to the Department of Justice.\n\n(e) Late payment interest shall be assessed on each refund in accordance with the provisions and rates as established by the United States Treasury.\n\n(1) Interest charged by the Agency under this subpart shall be established by the United States Treasury. Such interest shall accrue from the date such payments were made by the Agency to the date of repayment by the producer.\n\n(2) The Agency may waive the accrual of interest or damages if the Agency determines that the cause of the erroneous payment was not due to any action of the advanced biofuel producer.\n\n(f) Any advanced biofuel producer or person engaged in an act prohibited by this section and any advanced biofuel producer or person receiving payment under this subpart shall be jointly and severally liable for any refund due under this subpart and for related charges."], ["7:7:15.1.19.2.10.2.41.22", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.135 Unauthorized payments and offsets.", "RBS", "", "", "", "When unauthorized assistance has been made to an advanced biofuel producer under this Program, the Agency reserves the right to collect from the recipient the sum that is determined to be unauthorized. If the recipient fails to pay the Agency the unauthorized assistance plus other sums due under this section, the Agency reserves the right to offset that amount against Program payments.\n\n(a) Unauthorized assistance. The Agency will seek to collect from recipients all unauthorized assistance made under this Program using the procedures specified in paragraphs (a)(1) through (a)(4) of this section.\n\n(1) Notification to the producer. Upon determination that unauthorized assistance has been made to an advanced biofuel producer under this Program, the Agency will send a demand letter to the producer. Unless the Agency modifies the original demand, it will remain in full force and effect. The demand letter will:\n\n(i) Specify the amount of unauthorized assistance, including any accrued interest to be repaid, and the standards for imposing accrued interest;\n\n(ii) State the amount of penalties and administrative costs to be paid, the standards for imposing them and the date on which they will begin to accrue;\n\n(iii) Provide detailed reason(s) why the assistance was determined to be unauthorized;\n\n(iv) State the amount is immediately due and payable to the Agency;\n\n(v) Describe the rights the producer has for seeking review or appeal of the Agency's determination pursuant to 7 CFR part 11;\n\n(vi) Describe the Agency's available remedies regarding enforced collection, including referral of debt delinquent after due process for Federal salary, benefit and tax offset under the Department of Treasury Offset Program; and\n\n(vii) Provide an opportunity for the producer to meet with the Agency and to provide to the Agency facts, figures, written records, or other information that might refute the Agency's determination.\n\n(A) If the producer meets with the Agency, the producer will be given an opportunity to provide information to refute the Agency's findings.\n\n(B) When requested by the producer, the Agency may grant additional time for the producer to assemble documentation. Such extension of time for payment will be valid only if the Agency documents the extension in writing and specifies the period in days during which period the payment obligation created by the demand letter (but not the ongoing accrual of interest) will be suspended. Interest and other charges will continue to accrue pursuant to the initial demand letter during any extension period unless the terms of the demand letter are modified in writing by the Agency.\n\n(2) Payment in full. If the producer agrees with the Agency's determination or will pay the amount in question, the Agency may allow a reasonable period of time (usually not to exceed 90 days) for the producer to arrange for repayment. The amount due will be the unauthorized payments made plus interest accrued beginning on the date of the demand letter at the interest rate stipulated until the date paid unless otherwise agreed, in writing, by the Agency.\n\n(3) Promissory note. If the producer agrees with the Agency's determination or is willing to pay the amount in question, but cannot repay the unauthorized assistance within a reasonable period of time, the Agency will convert the unauthorized assistance amount to a loan provided all of the conditions specified in paragraphs (a)(3)(i) through (a)(3)(iii) of this section are met. Loans established under this paragraph will be at the Treasury interest rate in effect on the date the financial assistance was provided and that is consistent with the term length of the promissory note. In all cases, the receivable will be amortized per a repayment schedule satisfactory to the Agency that has the producer pay the unauthorized assistance as quickly as possible, but in no event will the amortization period exceed fifteen (15) years. The producer will be required to execute a debt instrument to evidence this receivable, and the best security position practicable in a manner that will adequately protect the Agency's interest during the repayment period will be taken as security.\n\n(i) The producer did not provide false information;\n\n(ii) It would be highly inequitable to require prompt repayment of the unauthorized assistance; and\n\n(iii) Failure to collect the unauthorized assistance immediately will not adversely affect the Agency's interests.\n\n(4) Appeals. Appeals resulting from the demand letter prescribed in paragraph (a)(1) of this section will be handled according to the provisions of \u00a7 4288.103. All appeal provisions will be concluded before proceeding with further actions.\n\n(b) Offsets. Failure to make payment as determined under paragraph (a) of this section will be treated by the Agency as a debt that can be collected by an Administrative offset, unless written agreements to repay such debt as an alternative to administrative offset is agreed to between the Agency and the producer.\n\n(1) Any debtor who wishes to reach a written agreement to repay the debt as an alternative to administrative offset must submit a written proposal for repayment of the debt, which must be received by the Agency within 20 calendar days of the date the notice was delivered to the debtor. In response, the Agency will notify the debtor in writing whether the proposed agreement is acceptable. In exercising its discretion, the Agency will balance the Government's interest in collecting the debt against fairness to the debtor.\n\n(2) When the Agency receives a debtor's proposal for a repayment agreement, the offset is stayed until the debtor is notified as to whether the initial agreement is acceptable. If a Government payment will be made before the end of the fiscal year and the review is not yet completed, payment will be deferred pending resolution of the review."], ["7:7:15.1.19.2.10.2.41.23", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.136 Remedies.", "RBS", "", "", "[76 FR 7967, Feb. 11, 2011, as amended at 85 FR 31939, May 28, 2020]", "In addition to the steps available under the provisions of \u00a7\u00a7 4288.134 and 4288.135, if the Agency has determined that a producer has misrepresented the information or defrauded the Government, the Agency will take one of the following steps in accordance with 2 CFR part 417:\n\n(a) Suspend payments on the Contract until the violation has been reconciled;\n\n(b) Terminate the Contract; or\n\n(c) Debarment to participate in any Federal Government program."], ["7:7:15.1.19.2.10.2.41.24", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7 4288.137 Succession and loss of control of advanced biofuel facilities and production.", "RBS", "", "", "", "(a) Contract succession. An entity who becomes the eligible advanced biofuel producer for an advanced biofuel facility that is under contract under this subpart must request permission from the Agency to succeed to the Program contract and the Agency may grant such request if it is determined that the entity is an eligible producer and permitting such succession would serve the purposes of the Program. If appropriate, the Agency may require the consent of the previous eligible advanced biofuel producer to such succession.\n\n(b) Loss of control. Payments will be made only for eligible advanced biofuels produced at an advanced biofuel facility owned or controlled by an eligible advanced biofuel producer with a valid contract. If payments are made to an advanced biofuel producer for production at an advanced biofuel facility no longer owned or controlled by said producer or to an otherwise ineligible advanced biofuel producer, the Agency will demand full refund of all such payments."], ["7:7:15.1.19.2.10.2.41.25", 7, "Agriculture", "XLII", "", "4288", "PART 4288\u2014PAYMENT PROGRAMS", "B", "Subpart B\u2014Advanced Biofuel Payment Program General Provisions", "", "\u00a7\u00a7 4288.138-4288.200 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.1.65.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "A", "Subpart A\u2014Introduction to Part 4290", "", "\u00a7 4290.10 Description of the Rural Business Investment Company Program.", "RBS", "", "", "", "The Rural Business Investment Company (\u201cRBIC\u201d) Program is a Developmental Capital program for the purpose of promoting economic development and the creation of wealth and job opportunities in Rural Areas and among individuals living in such Areas. To this end, the Agency will select and license RBIC Applicants that will agree to address the unmet Equity Capital needs of Smaller Enterprises primarily located in Rural Areas."], ["7:7:15.1.19.2.11.1.65.2", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "A", "Subpart A\u2014Introduction to Part 4290", "", "\u00a7 4290.15 Leveraged and Non-leveraged Rural Business Investment Companies.", "RBS", "", "", "[76 FR 80221, Dec. 23, 2011]", "The regulations in this part apply to rural business investment companies (RBICs) that seek leverage and to RBICs that do not seek leverage. The provisions of subparts A through N of this part apply to Leveraged RBICs and, except as indicated or as otherwise modified by subpart O of this part, to Non-leveraged RBICs. The provisions in subpart O of this part apply to Non-leveraged RBICs and, in addition, modify certain provisions in subparts A through N of this part as they apply to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.1.65.3", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "A", "Subpart A\u2014Introduction to Part 4290", "", "\u00a7 4290.20 Legal basis and applicability of this part 4290.", "RBS", "", "", "", "The regulations in this part implement Subtitle H of the Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 2009cc et seq. ) (\u201cAct\u201d). All RBICs must comply with all applicable regulations, accounting guidelines and valuation guidelines for RBICs."], ["7:7:15.1.19.2.11.1.65.4", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "A", "Subpart A\u2014Introduction to Part 4290", "", "\u00a7 4290.30 Amendments to Act and regulations.", "RBS", "", "", "", "A RBIC is subject to all existing and future provisions of the Act and part 4290 of title 7 of the Code of Federal Regulations."], ["7:7:15.1.19.2.11.1.65.5", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "A", "Subpart A\u2014Introduction to Part 4290", "", "\u00a7 4290.40 How to read this part 4290.", "RBS", "", "", "", "(a) Center Headings. Center headings are descriptive and are used for convenience only. They have no regulatory effect.\n\n(b) Capitalizing defined terms. Terms defined in \u00a7 4290.50 have initial capitalization in this part 4290.\n\n(c) \u201cYou.\u201d The pronoun \u201cyou\u201d as used in this part 4290 means a RBIC unless otherwise noted.\n\n(d) Forms. All references in this part to forms, and instructions for their preparation, are to the current issue of such forms."], ["7:7:15.1.19.2.11.1.65.6", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "A", "Subpart A\u2014Introduction to Part 4290", "", "\u00a7 4290.45 Responsibility for implementing this part 4290.", "RBS", "", "", "", "The Agency has delegated to the U.S. Small Business Administration (SBA), pursuant to an agreement under the Economy Act (31 U.S.C. 1535), the authority to implement the RBIC program, including implementing and enforcing the regulations in this part 4290. Therefore, unless specifically stated otherwise, SBA will exercise on behalf of the Agency all responsibilities and authorities assigned to the Agency in this part 4290."], ["7:7:15.1.19.2.11.10.81.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1100 Type of Leverage and application procedures.", "RBS", "", "", "", "(a) Type of Leverage available. You may apply for Leverage from the Agency in the form of a guarantee of your Debentures.\n\n(b) Applying for Leverage. The Leverage application process has two parts. You must first apply for the Agency's conditional commitment to reserve a specific amount of Leverage for your future use. You may then apply to draw down Leverage against the commitment. See \u00a7\u00a7 4290.1200 through 4290.1240.\n\n(c) Where to send your application. Send all Leverage draw-down applications to Funding Control Officer, Investment Division, U.S. Small Business Administration, 409 Third Street, SW., Suite 6300, Mail Code 7050, Washington, DC 20416."], ["7:7:15.1.19.2.11.10.81.2", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1120 General eligibility requirements for Leverage.", "RBS", "", "", "", "To be eligible for Leverage, you must be in compliance with the Act, the regulations in this part, and your Participation Agreement."], ["7:7:15.1.19.2.11.10.81.3", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1130 Leverage fees payable by RBIC.", "RBS", "", "", "", "(a) Leverage fee. You must pay the Agency a non-refundable leverage fee for each issuance of a Debenture. The fee is 3 percent of the face amount of the Debenture issued, and will be deducted from the proceeds remitted to you.\n\n(b) Additional charge. You must pay the Agency an additional annual charge of 1 percent of the outstanding amount of your Debenture.\n\n(c) Other Leverage fees. The Agency may establish a fee structure for services performed by the Central Registration Agent (CRA). The Agency will not collect any fee for its guarantee of TCs."], ["7:7:15.1.19.2.11.10.81.4", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1140 RBIC's acceptance of remedies under \u00a7 4290.1810.", "RBS", "", "", "", "If you issue Leverage, you automatically agree to the terms and conditions in \u00a7 4290.1810 as it exists at the time of issuance. The effect of these terms and conditions is the same as if they were fully incorporated in the terms of your Leverage."], ["7:7:15.1.19.2.11.10.82.5", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1150 Maximum amount of Leverage for a RBIC.", "RBS", "", "", "", "The face amount of a RBIC's outstanding Debentures may not exceed the lesser of 200 percent of its Leverageable Capital or $105,000,000."], ["7:7:15.1.19.2.11.10.83.6", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1200 Leverage commitment to a RBIC\u2014application procedure, amount, and term.", "RBS", "", "", "", "(a) General. Under the provisions in \u00a7\u00a7 4290.1200 through 4290.1240, you may apply for the Agency's conditional commitment to reserve a specific amount of Leverage and type of Debenture (standard or discounted) for your future use. You may then apply to draw down Leverage against the commitment.\n\n(b) Applying for a Leverage commitment. The Agency will notify you when requests for Leverage commitments are being accepted, and upon receipt of your request, will send you a complete application package.\n\n(c) Limitations on the amount of a Leverage commitment. The amount of a Leverage commitment must be a multiple of $5,000. The Agency in its discretion may determine a minimum dollar amount for Leverage commitments. Any such minimum amounts will be published in Notices in the Federal Register from time to time.\n\n(d) Term of Leverage commitment. Your Leverage commitment will automatically lapse on the expiration date stated in the commitment letter issued to you by the Agency. The Agency's Leverage commitment will be included in the Participation Agreement at the time of your licensing as a RBIC, under \u00a7 4290.390."], ["7:7:15.1.19.2.11.10.83.7", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1220 Requirement for RBIC to file financial statements at the time of request for a draw.", "RBS", "", "", "[69 FR 32204, June 8, 2004, as amended at 76 FR 80224, Dec. 23, 2011]", "(a) If you submit a request for a draw against your Leverage commitment more than 90 days following your submission of an annual SBA Form 468 or a SBA Form 468 (Short Form) or other USDA-approved form(s), you must:\n\n(1) Give the Agency a financial statement on Form 468 (Short Form) or other USDA-approved form(s), and\n\n(2) File a statement of no material adverse change in your financial condition since your last filing of SBA Form 468 or other USDA-approved form(s).\n\n(b) You will not be eligible for a draw if you are not in compliance with this \u00a7 4290.1220."], ["7:7:15.1.19.2.11.10.83.8", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1230 Draw-downs by RBIC under Leverage commitment.", "RBS", "", "", "[69 FR 32204, June 8, 2004, as amended at 76 FR 80224, Dec. 23, 2011]", "(a) RBIC's authorization of the Agency to guarantee securities. By submitting a request for a draw against the Leverage commitment, you authorize the Agency, or the Agency's designated agent or trustee, to guarantee your Debenture and to sell it with the Agency's guarantee.\n\n(b) Limitations on amount of draw. The amount of a draw must be a multiple of $5,000. The Agency, in its discretion, may determine a minimum dollar amount for draws against Leverage commitments. Any such minimum amounts will be published in Notices in the Federal Register from time to time.\n\n(c) Effect of regulatory violations on RBIC's eligibility for draws \u2014(1) General rule. You are eligible to make a draw against your Leverage commitment only if you are in compliance with all applicable provisions of the Act and this part ( i.e., no unresolved statutory or regulatory violations) and your Participation Agreement.\n\n(2) Exception to general rule. If you are not in compliance, you may still be eligible for draws if:\n\n(i) The Agency determines that your outstanding violations are of non-substantive provisions of the Act or this part or your Participation Agreement and that you have not repeatedly violated any non-substantive provisions; or\n\n(ii) You have agreed with the Agency in writing on a course of action to resolve your violations and such agreement does not prevent you from issuing Leverage.\n\n(d) Procedures for funding draws. You may request a draw at any time during the term of the commitment. With each request, submit the following documentation:\n\n(1) A statement certifying that there has been no material adverse change in your financial condition since your last filing of SBA Form 468 or other USDA-approved form(s) (see also \u00a7 4290.1220 for filing requirements).\n\n(2) If your request is submitted more than 30 days following the end of your fiscal year, but before you have submitted your annual filing of SBA Form 468 or other USDA-approved form(s) in accordance with \u00a7 4290.630(a), a preliminary unaudited annual financial statement on SBA Form 468 (Short Form) or other USDA-approved form(s).\n\n(3) A statement certifying that to the best of your knowledge and belief, you are in compliance with all provisions of the Act and this part ( i.e., no unresolved regulatory or statutory violations) and your Participation Agreement, or a statement listing any specific violations you are aware of. Either statement must be executed by one of the following:\n\n(i) An officer of the RBIC;\n\n(ii) An officer of a corporate general partner or managing member of the RBIC;\n\n(iii) An individual who is authorized to act as or for a general partner of the RBIC; or\n\n(iv) An individual who is authorized to act as or for a managing member of the RBIC.\n\n(4) A statement that the proceeds are needed to fund one or more particular Enterprises or to provide liquidity for your operations. If required by the Agency, the statement must include the name and address of each Enterprise, and the amount and anticipated closing date of each proposed Financing.\n\n(e) Reporting requirements after drawing funds. (1) Within 30 calendar days after the actual closing date of each Financing funded with the proceeds of your draw, you must file an SBA Form 1031 or other USDA-approved form(s) confirming the closing of the transaction.\n\n(2) If the Agency required you to provide information concerning a specific planned Financing under paragraph (d)(4) of this section, and such Financing has not closed within 60 calendar days after the anticipated closing date, you must provide a written explanation of the failure to close.\n\n(3) If you do not comply with this paragraph (e), you will not be eligible for additional draws. The Agency may also determine that you are not in compliance with the terms of your Leverage under \u00a7 4290.1810."], ["7:7:15.1.19.2.11.10.83.9", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1240 Funding of RBIC's draw request through sale to third-party.", "RBS", "", "", "", "(a) RBIC's authorization of the Agency to arrange sale of Debentures to third-party. By submitting a request for a draw of Debenture Leverage, you authorize the Agency, or any agent or trustee the Agency designates, to enter into any agreements (and to bind you to such agreements) necessary to accomplish:\n\n(1) The sale of your Debenture to a third-party at a price approved by the Agency; and\n\n(2) The purchase of your Debenture from the third-party and the pooling of your Debenture with other Debentures with the same maturity date.\n\n(b) Sale of Debentures to a third-party. If the Agency arranges for the sale of your Debenture to a third-party, the sale price may be an amount discounted from the face amount of the Debenture."], ["7:7:15.1.19.2.11.10.84.10", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1500 Restrictions on distributions to RBIC investors while RBIC has outstanding Leverage.", "RBS", "", "", "", "(a) Restriction on distribution. If you have outstanding Leverage, whenever you make a distribution to your investors you must make, at the same time, a prepayment to or for the benefit of the third-party holder of the Debenture sold pursuant to \u00a7 4290.1240 of this part, accrued unpaid interest and the principal, in whole or in part, of one or more of your Debentures outstanding as of the date of the distribution (subject to the terms of such Debentures).\n\n(b) Amount of prepayment. You must calculate the amount due the third-party holder by multiplying the total amount you intend to distribute by a fraction whose numerator is the outstanding principal of your Debenture(s) immediately preceding your distribution, and whose denominator is the sum of your Leverageable Capital as of that time plus the outstanding principal amount of your Debentures. For purposes of the preceding sentence \u201cprincipal\u201d means both the net proceeds and interest accrued to date of a discounted Debenture. The amount of any payment received under this section will be credited first against unpaid interest accrued to the date of distribution and then to the principal in whole or in part of the first Debenture you select to prepay and then to the interest and principal in whole or in part of such other Debenture(s) as you select to prepay. You may elect to prepay in whole any discounted Debenture under this section only within five years of its maturity date. Payments under this section must be made on the next occurring March 1 or September 1.\n\n(c) Effect of prepayment. Subject to the terms of the Debenture(s), you may voluntarily prepay additional principal, but neither mandatory nor voluntary prepayment will increase your future Leverage eligibility."], ["7:7:15.1.19.2.11.10.85.11", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1600 Agency's authority to issue and guarantee Trust Certificates.", "RBS", "", "", "[69 FR 32204, June 8, 2004, as amended at 76 FR 80224, Dec. 23, 2011]", "(a) Authorization. Section 384F of the Act authorizes the Agency to issue TCs and to guarantee the timely payment of the principal and interest thereon. Any such guarantee of such TC is limited to the principal and interest due on the Debentures in any Trust or Pool backing such TC. The full faith and credit of the United States is pledged to the payment of all amounts due under the guarantee of any TC.\n\n(b) Authority to arrange public or private fundings of Leverage. The Agency in its discretion may arrange for public or private financing under its guarantee authority. Such financing may be accomplished by the sale of individual Debentures, aggregations of Debentures, or Pools or Trusts of Debentures.\n\n(c) Pass-through provisions. TCs shall provide for a pass-through to their holders of all amounts of principal and interest paid on the Debentures in the Pool or Trust against which they are issued.\n\n(d) Formation of a Pool or Trust holding Leverage Securities. The Agency shall approve the formation of each Pool or Trust. The Agency may, in its discretion, establish the size of the Pools and their composition, the interest rate on the TCs issued against Trusts or Pools, discounts, premiums and other charges made in connection with the Pools, Trusts, and TCs, and any other characteristics of a Pool or Trust it deems appropriate. Notwithstanding \u00a7 4290.1130(c), any agent of the Agency may collect a fee for the functions described in 7 U.S.C. 2009cc-5(e)(2) that does not exceed $500."], ["7:7:15.1.19.2.11.10.85.12", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1610 Effect of prepayment or early redemption of Leverage on a Trust Certificate.", "RBS", "", "", "", "(a) The rights, if any, of a RBIC to prepay any Debenture is established by the terms of such security, and no such right is created or denied by the regulations in this part.\n\n(b) The Agency's rights to purchase or prepay any Debenture without premium are established by the terms of the Guaranty Agreement relating to the Debenture.\n\n(c) Any prepayment of a Debenture pursuant to the terms of the Guaranty Agreement relating to such security shall reduce the Agency's guarantee of timely payment of principal and interest on a TC in proportion to the amount of principal that such prepaid Debenture represents in the Trust or Pool backing such TC.\n\n(d) The Agency shall be discharged from its guarantee obligation to the holder or holders of any TC, or any successor or transferee of such holder, to the extent of any such prepayment, whether or not such successor or transferee shall have notice of any such prepayment.\n\n(e) Interest on prepaid Debentures shall accrue only through the date of prepayment.\n\n(f) In the event that all Debentures constituting a Trust or Pool are prepaid, the TCs backed by such Trust or Pool shall be redeemed by payment of the unpaid principal and interest on the TCs; provided, however, that in the case of the prepayment of a Debenture pursuant to the provisions of the Guaranty Agreement relating to the Debenture, the Central Registration Agent (CRA) shall pass through pro rata to the holders of the TCs any such prepayments including any prepayment penalty paid by the obligor RBIC pursuant to the terms of the Debenture."], ["7:7:15.1.19.2.11.10.85.13", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1620 Functions of agents, including Central Registration Agent, Selling Agent and Fiscal Agent.", "RBS", "", "", "", "(a) Agents. The Agency may appoint or cause to be appointed agent(s) to perform functions necessary to market and service Debentures or TCs pursuant to this part.\n\n(1) Selling Agent. As a condition of guaranteeing a Debenture, the Agency may cause each RBIC to appoint a Selling Agent to perform functions that include, but are not limited to:\n\n(i) Selecting qualified entities to become pool or Trust assemblers (\u201cPoolers\u201d).\n\n(ii) Receiving guaranteed Debentures as well as negotiating the terms and conditions of sales or periodic offerings of Debentures and/or TCs on behalf of RBICs.\n\n(iii) Directing and coordinating periodic sales of Debentures and/or TCs.\n\n(iv) Arranging for the production of Offering Circulars, certificates, and such other documents as may be required from time to time.\n\n(2) Fiscal Agent. The Agency shall appoint a Fiscal Agent to:\n\n(i) Establish performance criteria for Poolers.\n\n(ii) Monitor and evaluate the financial markets to determine those factors that will minimize or reduce the cost of funding Debentures.\n\n(iii) Monitor the performance of the Selling Agent, Poolers, CRA, and the Trustee.\n\n(iv) Perform such other functions as the Agency, from time to time, may prescribe.\n\n(3) Central Registration Agent. Pursuant to a contract entered into with the Agency, the CRA, as the Agency's agent, will do the following with respect to the Pools or Trust Certificates for the Debentures:\n\n(i) Form an approved Pool or Trust;\n\n(ii) Issue the TCs in the prescribed form;\n\n(iii) Transfer the TCs upon the sale of original issue TCs in any secondary market transaction;\n\n(iv) Receive payments from RBICs;\n\n(v) Make periodic payments as scheduled or required by the terms of the TCs, and pay all amounts required to be paid upon prepayment of Debentures;\n\n(vi) Hold, safeguard, and release all Debentures constituting Trusts or Pools upon instructions from the Agency;\n\n(vii) Remain custodian of such other documentation as the Agency shall direct by written instructions;\n\n(viii) Provide for the registration of all pooled Debentures, all Pools and Trusts, and all TCs; and\n\n(ix) Perform such other functions as the Agency may deem necessary to implement the provisions of this section.\n\n(b) Functions. Either the Agency or an agent appointed by the Agency may perform the function of locating purchasers, and negotiating and closing the sale of Debentures and TCs. Nothing in the regulations in this part shall be interpreted to prevent the CRA from acting as the Agency's agent for this purpose."], ["7:7:15.1.19.2.11.10.85.14", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1630 Regulation of Brokers and Dealers and disclosure to purchasers of Leverage or Trust Certificates.", "RBS", "", "", "", "(a) Brokers and Dealers. Each broker, dealer, and Pool or Trust assembler approved by the Agency pursuant to these regulations shall either be regulated by a Federal financial regulatory agency, or be a member of the National Association of Securities Dealers (NASD), and shall be in good standing in respect to compliance with the financial, ethical, and reporting requirements of such body. It also shall be in good standing with the Agency as determined by the SBA official with delegated authority to made this determination ( see paragraph (c) of this section) and shall provide a fidelity bond or insurance in such amount as the Agency may require.\n\n(b) Suspension and/or termination of Broker or Dealer. The Agency shall exclude from the sale and all other dealings in Debentures or TCs any broker or dealer:\n\n(1) If such broker's or dealer's authority to engage in the securities business has been revoked or suspended by a supervisory agency. When such authority has been suspended, the Agency will suspend such broker or dealer for the duration of such suspension by the supervisory agency.\n\n(2) If such broker or dealer has been indicted or otherwise formally charged with a misdemeanor or felony bearing on its fitness, such broker or dealer may be suspended while the charge is pending. Upon conviction, participation may be terminated.\n\n(3) If such broker or dealer has suffered an adverse final civil judgment holding that such broker or dealer has committed a breach of trust or violation of law or regulation protecting the integrity of business transactions or relationships, participation in the market for Debentures or TCs may be terminated.\n\n(c) Termination/suspension proceedings. A broker's or dealer's participation in the market for Debentures or TCs will be conducted in accordance with 7 CFR part 11. The Agency may, for any of the reasons stated in paragraphs (b)(1) through (3) of this section, suspend the privilege of any broker or dealer to participate in this market. The Agency shall give written notice at least ten business days prior to the effective date of such suspension. Such notice shall inform the broker or dealer of the opportunity for a hearing pursuant to 7 CFR part 11."], ["7:7:15.1.19.2.11.10.85.15", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1640 Agency's access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers.", "RBS", "", "", "", "The CRA and any broker, dealer and Pool or Trust assembler operating under the regulations in this part shall make all books, records and related materials associated with Debentures and TCs available to the Agency for review and copying purposes. Such access shall be at such party's primary place of business during normal business hours."], ["7:7:15.1.19.2.11.10.86.16", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1700 Agency's transfer of interest in a RBIC's Leverage security.", "RBS", "", "", "", "Upon such conditions and for such consideration as it deems reasonable, the Agency may sell, assign, transfer, or otherwise dispose of any Debenture held by or on behalf of the Agency. Upon notice by the Agency, a RBIC will make all payments of principal and interest as shall be directed by the Agency. A RBIC will be liable for all damage or loss which the Agency may sustain by reason of the RBIC's failure to follow such payment instructions, up to the amount of the RBIC's liability under such security, plus court costs and reasonable attorney's fees incurred by the Agency."], ["7:7:15.1.19.2.11.10.86.17", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1710 Agency's authority to collect or compromise claims.", "RBS", "", "", "", "The Agency may, upon such conditions and for such consideration as it deems reasonable, collect or compromise all claims relating to obligations it holds or has guaranteed, and all legal or equitable rights accruing to it."], ["7:7:15.1.19.2.11.10.86.18", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "J", "Subpart J\u2014Financial Assistance for RBICs (Leverage)", "", "\u00a7 4290.1720 Characteristics of Agency's guarantee.", "RBS", "", "", "", "If the Agency agrees to guarantee a RBIC's Debentures, such guarantee will be unconditional, irrespective of the validity, regularity or enforceability of the Debentures or any other circumstances that might constitute a legal or equitable discharge or defense of a guarantor. Pursuant to its guarantee, the Agency will make timely payments of principal and interest on the Debentures."], ["7:7:15.1.19.2.11.11.87.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "K", "Subpart K\u2014RBIC's Noncompliance With Terms of Leverage", "", "\u00a7 4290.1810 Events of default and the Agency's remedies for RBIC's noncompliance with terms of Debentures.", "RBS", "", "", "[69 FR 32204, June 8, 2004, as amended at 76 FR 80224, Dec. 23, 2011]", "(a) Applicability of this section. Upon acceptance of a license to operate as an RBIC, you automatically agree to the terms, conditions and remedies in this section, as in effect at the time of issuance of the license and as fully set forth in all documents relating to the license, including, without limitation, the Participation Agreement and Debentures.\n\n(b) Automatic events of default. The occurrence of one or more of the events in this paragraph (b) causes the remedies in paragraph (c) of this section to take effect immediately.\n\n(1) Insolvency. You become equitably or legally insolvent.\n\n(2) Voluntary assignment. You make a voluntary assignment for the benefit of creditors without the Agency's prior written approval.\n\n(3) Bankruptcy. You file a petition to begin any bankruptcy or reorganization proceeding, receivership, dissolution or other similar creditors' rights proceeding, or such action is initiated against you and is not dismissed within 60 days.\n\n(c) Remedies for automatic events of default. Upon the occurrence of one or more of the events in paragraph (b) of this section:\n\n(1) Without notice, presentation or demand, the entire indebtedness evidenced by your Debentures, including accrued interest, and any other amounts owed with respect to your Debentures, is immediately due and payable; and\n\n(2) You automatically consent to the appointment of the Agency or its designee, as your receiver under section 384M of the Act.\n\n(d) Events of default with notice. For any occurrence (as determined by the Agency) of one or more of the events in this paragraph (d), the Agency may avail itself of one or more of the remedies in paragraph (e) of this section.\n\n(1) Fraud. You commit a fraudulent act that causes detriment to the Agency's position as a creditor or guarantor.\n\n(2) Fraudulent transfers. You make any transfer or incur any obligation that is fraudulent under the terms of 11 U.S.C. 548.\n\n(3) Willful conflicts of interest. You willfully violate \u00a7 4290.730.\n\n(4) Willful non-compliance. You willfully violate one or more of the substantive provisions of the Act or any substantive regulation promulgated under the Act or any substantive provision of your Participation Agreement.\n\n(5) Repeated Events of Default. At any time after being notified of the occurrence of an event of default under paragraph (f) of this section, you engage in similar behavior that results in another occurrence of the same event of default.\n\n(6) Transfer of Control. You willfully violate \u00a7 4290.410, and as a result of such violation you undergo a transfer of Control.\n\n(7) Non-cooperation under \u00a7 4290.1810(h). You fail to take appropriate steps, satisfactory to the Agency, to accomplish any action the Agency may have required under paragraph (h) of this section.\n\n(8) Non-notification of Events of Default. You fail to notify the Agency as soon as you know or reasonably should have known that any event of default exists under this section.\n\n(9) Non-notification of defaults to others. You fail to notify the Agency in writing within ten days from the date of a declaration of an event of default or nonperformance under any note, debenture or indebtedness of yours, issued to or held by anyone other than the Agency.\n\n(e) Remedies for events of default with notice. Upon written notice to you of the occurrence (as determined by the Agency) of one or more of the events in paragraph (d) of this section:\n\n(1) The Agency may declare the entire indebtedness evidenced by your Debentures, including accrued interest and/or any other amounts owed the Agency with respect to your Debentures, immediately due and payable: and\n\n(2) The Agency may avail itself of any remedy available under the Act, specifically including institution of proceedings for its, or its designee's appointment as your receiver under section 384M(c) of the Act.\n\n(f) Events of default with opportunity to cure. For any occurrence (as determined by the Agency) of one or more of the events in this paragraph (f), the Agency may avail itself of one or more of the remedies in paragraph (g) of this section.\n\n(1) Excessive Management Expenses. Without the Agency's prior written consent, you incur Management Expenses in excess of those permitted under \u00a7\u00a7 4290.510 and 4290.520.\n\n(2) Improper Distributions. You make any Distribution to your shareholders or partners, except with the Agency's prior written consent, other than:\n\n(i) Distributions permitted under \u00a7 4290.585; and\n\n(ii) Payments from Retained Earnings Available for Distribution based on either the shareholders' or members' pro-rata interests or the provisions for profit distributions in your partnership agreement, as appropriate.\n\n(3) Failure to make payment. Unless otherwise approved by the Agency, you fail to make timely payment of any amount due under any security or obligation of yours that is issued to, held or guaranteed by the Agency.\n\n(4) Failure to maintain Regulatory Capital. You fail to maintain the minimum Regulatory Capital required under these regulations or, without the Agency's prior written consent, you reduce your Regulatory Capital except as permitted by \u00a7 4290.585.\n\n(5) Capital Impairment. You have a condition of Capital Impairment as determined under \u00a7 4290.1830.\n\n(6) Cross-default. An obligation of yours that is greater than $100,000 becomes due or payable (with or without notice) before its stated maturity date, for any reason including your failure to pay any amount when due. This provision does not apply if you pay the amount due within any applicable grace period or contest the payment of the obligation in good faith by appropriate proceedings.\n\n(7) Nonperformance. You violate or fail to perform one or more of the terms and conditions of any security or obligation of yours that is issued to, held or guaranteed by the Agency, or of any agreement (including your Participation Agreement) with or conditions imposed by the Agency in the administration of the Act and the regulations promulgated under the Act.\n\n(8) Noncompliance. Except as otherwise provided in paragraph (d)(5) of this section, the Agency determines that you have violated one or more of the substantive provisions of the Act or any substantive regulation promulgated under the Act.\n\n(9) Failure to maintain diversity. You fail to maintain diversity between management and ownership as required by \u00a7 4290.150.\n\n(g) Remedies for events of default with opportunity to cure. (1) Upon written notice to you of the occurrence (as determined by the Agency) of one or more of the events of default in paragraph (f) of this section, and subject to the conditions in paragraph (g)(2) of this section:\n\n(i) The Agency may declare the entire indebtedness evidenced by your Debentures, including accrued interest, and/or any other amounts owed the Agency with respect to your Debentures, immediately due and payable; and\n\n(ii) The Agency may avail itself of any remedy available under the Act, specifically including institution of proceedings for the appointment of the Agency or a designee as your receiver under \u00a7 348M of the Act.\n\n(2) The Agency may invoke the remedies in paragraph (g)(1) of this section only if:\n\n(i) You have been given at least 15 days to cure the default(s); and\n\n(ii) You fail to cure the default(s) to the Agency's satisfaction within the allotted time.\n\n(h) Repeated non-substantive violations. If you repeatedly fail to comply with one or more of the non-substantive provisions of the Act or any non-substantive regulation promulgated under the Act, the Agency, after written notification to you and until you cure such condition to the Agency's satisfaction, may deny you additional Leverage and/or require you to take such actions as the Agency may determine to be appropriate under the circumstances.\n\n(i) Consent to removal of officers, directors, or general partners and/or appointment of receiver. The Articles of each RBIC must include the following provisions as a condition to the purchase or guarantee of Leverage. Upon the occurrence of any of the events specified in paragraphs (d)(1) through (d)(6) or (f)(l) through (f)(3) of this section as determined by the Agency, the Agency shall have the right, and you consent to the Agency's exercise of such right:\n\n(1) With respect to a Corporate RBIC, upon written notice, to require you to replace, with individuals approved by the Agency, one or more of your officers and/or such number of directors of your board of directors as is sufficient to constitute a majority of such board; or\n\n(2) With respect to a Partnership RBIC or an LLC RBIC, upon written notice, to require you to remove the person(s) responsible for such occurrence and/or to remove the general partner or manager of the RBIC, which general partner or manager shall then be replaced in accordance with the RBIC's Articles by a new general partner or manager approved by the Agency; and/or\n\n(3) With respect to a Corporate RBIC, Partnership RBIC, or LLC RBIC, to obtain the appointment of the Agency or its designee as your receiver under section 384M of the Act for the purpose of continuing your operations. The appointment of a receiver to liquidate an RBIC is not within such consent, but is governed instead by the relevant provisions of the Act."], ["7:7:15.1.19.2.11.11.87.2", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "K", "Subpart K\u2014RBIC's Noncompliance With Terms of Leverage", "", "\u00a7 4290.1830 RBIC's Capital Impairment definition and general requirements.", "RBS", "", "", "", "(a) Significance of Capital Impairment condition. If you have a condition of Capital Impairment, you are not in compliance with the terms of your Leverage. As a result, the Agency has the right to impose the applicable remedies for noncompliance in \u00a7 4290.1810(g).\n\n(b) Definition of Capital Impairment condition. You have a condition of Capital Impairment if your Capital Impairment Percentage, as computed pursuant to the procedures set forth in \u00a7 4290.1840, exceeds 70 percent.\n\n(c) Quarterly computation requirement and procedure. You must determine whether you have a condition of Capital Impairment as of the end of each fiscal quarter. You must notify the Agency promptly if you are Capitally Impaired.\n\n(d) The Agency's right to determine RBIC's Capital Impairment condition. The Agency may make its own determination of your Capital Impairment condition at any time."], ["7:7:15.1.19.2.11.11.87.3", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "K", "Subpart K\u2014RBIC's Noncompliance With Terms of Leverage", "", "\u00a7 4290.1840 Computation of RBIC's Capital Impairment Percentage.", "RBS", "", "", "[69 FR 32204, June 8, 2004, as amended at 76 FR 80225, Dec. 23, 2011]", "(a) General. This section contains the procedures you must use to determine your Capital Impairment Percentage. You must compare your Capital Impairment Percentage to the maximum permitted under \u00a7 4290.1830(b) to determine whether you have a condition of Capital Impairment.\n\n(b) Preliminary impairment test. If you satisfy the preliminary impairment test, your Capital Impairment Percentage is zero and you do not have to perform any more procedures in this \u00a7 4290.1840. Otherwise, you must continue with paragraph (c) of this section. You satisfy the test if each of the following amounts is zero or greater:\n\n(1) The sum of Undistributed Net Realized Earnings, as reported on SBA Form 468 or other USDA-approved form(s) and Includible Non-Cash Gains.\n\n(2) Unrealized Gain (Loss) on Securities Held.\n\n(c) How to compute your Capital Impairment Percentage. (1) If you have an Unrealized Gain on Securities Held, compute your Adjusted Unrealized Gain using paragraph (d) of this section. If you have an Unrealized Loss on Securities Held, continue with paragraph (c)(2) of this section.\n\n(2) Add together your Undistributed Net Realized Earnings, your Includible Non-cash Gains, and either your Unrealized Loss on Securities Held or your Adjusted Unrealized Gain.\n\n(3) If the sum in paragraph (c)(2) of this section is zero or greater, your Capital Impairment Percentage is zero.\n\n(4) If the sum in paragraph (c)(2) of this section is less than zero, drop the negative sign, divide by your Regulatory Capital (excluding Treasury Stock), and multiply by 100. The result is your Capital Impairment Percentage.\n\n(d) How to compute your Adjusted Unrealized Gain. (1) Subtract Unrealized Depreciation from Unrealized Appreciation. This is your \u201cNet Appreciation\u201d.\n\n(2) Determine your Unrealized Appreciation on Publicly Traded and Marketable securities. This is your \u201dClass I Appreciation\u201d.\n\n(3) Determine your Unrealized Appreciation on securities that are not Publicly Traded and Marketable and meet the following criteria, which must be substantiated to the Agency's satisfaction (this is your \u201cClass 2 Appreciation\u201d):\n\n(i) The Portfolio Concern that issued the security received a significant subsequent equity financing by an investor whose objectives were not primarily strategic and at a price that conclusively supports the Unrealized Appreciation;\n\n(ii) Such financing represents a substantial investment in the form of an arm's-length transaction by a sophisticated new investor in the issuer's securities; and\n\n(iii) Such financing occurred within 24 months of the date of the Capital Impairment computation, or the Portfolio Concern's pre-tax cash flow from operations for its most recent fiscal year was at least 10 percent of its average contributed capital for such fiscal year.\n\n(4) Perform the appropriate computation from the table in 13 CFR 107.1840(d)(4).\n\n(5) Reduce the gain computed in paragraph (d)(4) of this section by your estimate of related future income tax expense. Subject to any adjustment required by paragraph (d)(6) of this section, the result is your Adjusted Unrealized Gain for use in paragraph (c)(2) of this section.\n\n(6) If any securities that are the source of either Class 1 or Class 2 Appreciation are pledged or encumbered in any way, you must reduce the Adjusted Unrealized Gain computed in paragraph (d)(5) of this section by the amount of the related borrowing or other obligation, up to the amount of the Unrealized Appreciation on the securities."], ["7:7:15.1.19.2.11.12.88.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "L", "Subpart L\u2014Ending Operations as a RBIC", "", "\u00a7 4290.1900 Termination of participation as a RBIC.", "RBS", "", "", "", "You may not terminate your participation as a RBIC without the Agency's prior written approval. Your request for approval must be accompanied by an offer of immediate repayment of all of your outstanding Leverage (including any prepayment penalties thereon), or by a plan satisfactory to the Agency for the orderly liquidation of the RBIC."], ["7:7:15.1.19.2.11.13.88.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "M", "Subpart M\u2014Miscellaneous", "", "\u00a7 4290.1910 Non-waiver of rights or terms of Leverage security.", "RBS", "", "", "", "The Agency's failure to exercise or delay in exercising any right or remedy under the Act or the regulations in this part does not constitute a waiver of such right or remedy. The Agency's failure to require you to perform any term or provision of your Leverage does not affect the Agency's right to enforce such term or provision. Similarly, the Agency's waiver of, or failure to enforce, any term or provision of your Leverage or of any event or condition set forth in \u00a7 4290.1810 does not constitute a waiver of any succeeding breach of such term or provision or condition."], ["7:7:15.1.19.2.11.13.88.2", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "M", "Subpart M\u2014Miscellaneous", "", "\u00a7 4290.1920 RBIC's application for exemption from a regulation in this part 4290.", "RBS", "", "", "", "(a) General. You may file an application in writing with the Agency to have a proposed action exempted from any procedural or substantive requirement, restriction, or prohibition to which it is subject under this part, unless the provision is mandated by the Act. The Agency may grant an exemption for such applicant, conditionally or unconditionally, provided the exemption would not be contrary to the purposes of the Act.\n\n(b) Contents of application. Your application must be accompanied by supporting evidence that demonstrates to the Agency's satisfaction that:\n\n(1) The proposed action is fair and equitable; and\n\n(2) The exemption requested is reasonably calculated to advance the best interests of the RBIC program in a manner consistent with the policy objectives of the Act and the regulations in this part."], ["7:7:15.1.19.2.11.13.88.3", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "M", "Subpart M\u2014Miscellaneous", "", "\u00a7 4290.1930 Effect of changes in this part 4290 on transactions previously consummated.", "RBS", "", "", "", "The legality of a transaction covered by the regulations in this part is governed by the regulations in this part in effect at the time the transaction was consummated, regardless of later changes. Nothing in this part bars enforcement action with respect to any transaction consummated in violation of provisions applicable at the time, but no longer in effect."], ["7:7:15.1.19.2.11.13.88.4", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "M", "Subpart M\u2014Miscellaneous", "", "\u00a7 4290.1940 Integration of this part with other regulations applicable to USDA's programs.", "RBS", "", "", "[69 FR 32204, June 8, 2004, as amended at 79 FR 76019, Dec. 19, 2014; 81 FR 11053, Mar. 2, 2016]", "(a) Intergovernmental review. To the extent applicable to this part, the Agency will comply with 2 CFR part 415, subpart C, \u201cIntergovernmental Review of Department of Agriculture Programs and Activities.\u201d The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45.\n\n(b) National flood insurance. To the extent applicable to this part, the Agency will comply with subpart B of 7 CFR part 1806. The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45 of this part.\n\n(c) Clean Air Act and Water Pollution Control Act requirements. To the extent applicable to this part, the Agency will comply with the requirements of the Clean Air Act, section 306; the Clean Water Act, section 508; Executive Order 11738; and 40 CFR part 32. The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45 of this part.\n\n(d) Historic preservation requirements. To the extent applicable to this part, the Agency will comply with subpart F of 7 CFR part 1901. The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45 of this part.\n\n(e) Lead-based paint requirements. To the extent applicable to this part, the Agency will comply with subpart A of 7 CFR part 1924. The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45 of this part.\n\n(f) Conflict of interest. To the extent applicable to this part, the Agency will comply with 2 CFR 400.2, subpart D of 7 CFR part 1900, and RD Instruction 2045-BB. The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45.\n\n(g) Civil rights impact analysis. To the extent applicable to this part, the Agency will comply with RD Instruction 2006-P, \u201cCivil Rights Impact Analysis.\u201d The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45 of this part.\n\n(h) Environmental requirements. To the extent applicable to this part, the Agency will comply with 7 CFR part 1970. The Agency has not delegated this responsibility to SBA pursuant to \u00a7 4290.45.\n\n(i) Appeals to the National Appeals Division for review of adverse decisions. Applicants and RBICs have the right to request review by the National Appeals Division within the USDA of adverse decisions, as defined in 7 CFR 11.1, pursuant to 7 CFR part 11."], ["7:7:15.1.19.2.11.14.88.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "N", "Subpart N\u2014Requirements for Operational Assistance Grants to RBICs", "", "\u00a7 4290.2000 Operational Assistance Grants to RBICs.", "RBS", "", "", "", "(a) Regulations governing. Regulations governing Operational Assistance grants to RBICs may be found in subparts D and E of this part 4290 and in this \u00a7 4290.2000.\n\n(b) Restrictions on use. A RBIC must use Operational Assistance grant funds only to provide Operational Assistance to Smaller Enterprises to which it either has made, or expects to make, a Financing.\n\n(c) Amount of grant. Each RBIC will receive an Operational Assistance grant award equal to the lesser of 10 percent of the Regulatory Capital raised by the RBIC at the time of licensing or $1,000,000.\n\n(d) Term. Operational Assistance grants made under this part will be made for a multiyear period (not to exceed 10 years) under such terms as the Agency may require.\n\n(e) Reporting and recordkeeping requirements. Policies governing reporting, record retention, and recordkeeping requirements applicable to RBICs may be found in subpart H of this part 4290."], ["7:7:15.1.19.2.11.15.88.1", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3000 Non-leveraged RBICs\u2014General.", "RBS", "", "", "", "This subpart identifies provisions specific to RBICs seeking a non-leveraged license, including exceptions and additions to provisions associated with subparts A through N of this part."], ["7:7:15.1.19.2.11.15.88.10", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3016-4290.3019 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.11", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3020 Changes in Ownership, Structure, or Control.", "RBS", "", "", "", "Paragraph (b) in \u00a7 4290.440 does not apply to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.15.88.12", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3021-4290.3024 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.13", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3025 Managing the Operations of a RBIC.", "RBS", "", "", "", "(a) Nonperformance. In addition to the provisions specified in \u00a7 4290.507, failure of an approved Non-leveraged RBIC to maintain sound investment practice, as determined by the Agency, may result in loss of approval for participating in this program.\n\n(b) Employment of USDA or SBA officials. Paragraph (a)(2) of \u00a7 4290.509 does not apply to Non-leveraged RBICs.\n\n(c) Approval of RBIC's Investment Adviser/Manager. In addition to complying with \u00a7 4290.510, a Non-leveraged RBIC must notify the Agency of the Management Expenses to be incurred under such contract, or of any subsequent material changes in such Management Expenses, within 30 days of execution.\n\n(d) Management Expenses of a RBIC. When complying with \u00a7 4290.520, Non-leveraged RBICs do not need prior approval of initial Management Expenses and any increases in those expenses.\n\n(e) Restrictions on investments of idle funds by RBICs. The provisions of \u00a7 4290.530 apply to Non-leveraged RBICs only when the Non-leveraged RBIC engages in activities not contemplated by the Act.\n\n(f) Prior approval of secured third-party debt of RBICs. The provisions of \u00a7 4290.550 do not apply to Non-leveraged RBICs.\n\n(g) Voluntary decrease in Regulatory Capital. When complying with \u00a7 4290.585, Non-leveraged RBICs do not need to obtain prior approval for decreases in Regulatory Capital of more than 2 percent (but not below the minimum required under this Act or these regulations). However, Non-leveraged RBICs must report the reduction to the Agency within 30 days."], ["7:7:15.1.19.2.11.15.88.14", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3026-4290.3029 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.15", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3030 Financing of Enterprises by RBICs.", "RBS", "", "", "", "(a) Non-compliance with this section. The last sentence of \u00a7 4290.700(e) does not apply to Non-leveraged RBICs.\n\n(b) Enterprises that may be ineligible for Financing. The provisions associated with real estate enterprises found in \u00a7 4290.720(c) apply to Non-leveraged RBICs unless the Non-leveraged RBIC requests, and has received, an irrevocable exemption from the Agency in accordance with \u00a7 4290.1920.\n\n(c) Farmland purchases. The provisions associated with farmland purchases found in \u00a7 4290.720(e) apply to Non-leveraged RBICs unless the Non-leveraged RBIC requests, and has received, an irrevocable exemption from the Agency in accordance with \u00a7 4290.1920.\n\n(d) Purchasing securities from an underwriter or other third party. Non-leveraged RBICs are exempt from the recordkeeping requirements and fee limitations in \u00a7 4290.825(b) and (c), respectively, for securities purchased through or from an underwriter.\n\n(e) Assets acquired in liquidation of Portfolio securities. The provisions of \u00a7 4290.880 do not apply to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.15.88.16", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3031-4290.3034 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.17", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3035 Recordkeeping, Reporting, and Examination Requirements for RBICs.", "RBS", "", "", "", "Except for \u00a7 4290.600(d), Subpart H, Recordkeeping, Reporting, and Examination Requirements for RBICs, of this part applies to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.15.88.18", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3036-4290.3039 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.19", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3040 Financial Assistance for RBICs.", "RBS", "", "", "", "Subpart J, Financial Assistance for RBICs (Leveraged), of this part does not apply to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.15.88.2", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3001-4290.3002 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.20", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3041 Events of default and the Agency's remedies for RBIC's noncompliance with terms of licensure.", "RBS", "", "", "[76 FR 80225, Dec. 23, 2011, as amended at 77 FR 4885, Feb. 1, 2012]", "In addition to complying with the provisions of \u00a7 4290.1810, a RBIC's failure to comply with the terms of this part may result in the Agency revoking the Non-leveraged RBIC's license issued under this part."], ["7:7:15.1.19.2.11.15.88.21", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3042-4290.3044 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.22", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3045 Computation of RBIC's Capital Impairment.", "RBS", "", "", "", "The provisions specified in \u00a7\u00a7 4290.1830 and 4290.1840 do not apply to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.15.88.23", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3046-4290.3049 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.24", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3050 Operational Assistance Grants for RBICs.", "RBS", "", "", "", "Subpart N, Requirements for Operational Assistance Grant to RBICs, of this part does not apply to Non-leveraged RBICs. All other references to Operational Assistance in this part do not apply to Non-leveraged RBICs."], ["7:7:15.1.19.2.11.15.88.25", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7\u00a7 4290.3051-4290.3099 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.3", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3003 Responsibilities for implementing Non-leveraged RBICs.", "RBS", "", "", "[77 FR 4885, Feb. 1, 2012]", "Section 4290.45 does not apply to Non-leveraged RBICs. Instead, for the purposes of this part as it applies to Non-leveraged RBICs, all authorities and responsibilities assigned to the Agency under this part shall be carried out by the Agency. Thus, when applying subparts A through N of this part to Non-leveraged RBICs, all references to the Small Business Administration (SBA) or Administrator on behalf of USDA shall be read as the Agency. All forms shall be submitted to USDA or its designee."], ["7:7:15.1.19.2.11.15.88.4", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3004 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.11.15.88.5", 7, "Agriculture", "XLII", "", "4290", "PART 4290\u2014RURAL BUSINESS INVESTMENT COMPANY (\u201cRBIC\u201d) PROGRAM", "O", "Subpart O\u2014Additional Requirements for Non-Leveraged Licensees and Exceptions to Regulations", "", "\u00a7 4290.3005 Qualifications for the Non-leveraged RBIC Program.", "RBS", "", "", "", "(a) Business form. In addition to complying with the applicable provisions of \u00a7 4290.100 not otherwise modified by this section, paragraphs (a)(1) through (a)(4) of this section apply.\n\n(1) For RBICs applying for non-leveraged status, the types of investors eligible to invest in a RBIC must have been approved by the Agency. Investors seeking approval must submit a request to the Agency with sufficient documentation to support their request. The USDA will announce such approved categories and types of investors in a public notice published in the Federal Register from time to time. Subsequent notices that modify the types of investors eligible to invest in a RBIC will not be applied retroactively.\n\n(2) In lieu of complying with \u00a7 4290.100(d)(1)(i), you must have a minimum duration of 10 years. After 10 years, the Partnership RBIC may be terminated by a vote of your partners.\n\n(3) In lieu of complying with \u00a7 4290.100(d)(2), if you are a LLC RBIC, you must have a minimum duration of 10 years. After 10 years, the LLC RBIC may be terminated by a vote of your members.\n\n(4) In lieu of complying with \u00a7 4290.100(d)(3), if you are a Corporate RBIC, you must have a duration of not less than 30 years unless earlier dissolved by the shareholders.\n\n(b) Approval of initial Management Expenses. Section 4290.140 does not apply to Non-leveraged RBICs. However, the Agency will provide a cap on these expenses in each Federal Register notice soliciting applications for Non-leveraged RBICs.\n\n(c) Management and ownership diversity requirements. A Non-leveraged RBIC is subject to the provisions of \u00a7 4290.150 unless it is exempted from these provisions by the Agency. Exemptions will only be granted when the applicant establishes, to the satisfaction of the Agency, that granting the exemption will not unduly impair the integrity and soundness of the Non-leveraged RBIC.\n\n(d) Special rules for Partnership RBICs and LLC RBICs. Paragraph (c) of \u00a7 4290.160 does not apply to Non-leveraged RBICs."]], "truncated": false, "filtered_table_rows_count": 809, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"agency\" = :p0 order by section_id limit 101", "params": {"p0": "RBS"}}, "facet_results": {"title_number": {"name": "title_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?agency=RBS", "results": [{"value": 7, "label": 7, "count": 809, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&title_number=7", "selected": false}], "truncated": false}, "agency": {"name": "agency", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?agency=RBS", "results": [{"value": "RBS", "label": "RBS", "count": 809, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json", "selected": true}], "truncated": false}, "part_number": {"name": "part_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?agency=RBS", "results": [{"value": "4280", "label": "4280", "count": 145, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4280", "selected": false}, {"value": "4290", "label": "4290", "count": 133, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4290", "selected": false}, {"value": "4279", "label": "4279", "count": 129, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4279", "selected": false}, {"value": "4284", "label": "4284", "count": 125, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4284", "selected": false}, {"value": "5001", "label": "5001", "count": 107, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=5001", "selected": false}, {"value": "4287", "label": "4287", "count": 59, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4287", "selected": false}, {"value": "4288", "label": "4288", "count": 46, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4288", "selected": false}, {"value": "4274", "label": "4274", "count": 26, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4274", "selected": false}, {"value": "4285", "label": "4285", "count": 22, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4285", "selected": false}, {"value": "4270", "label": "4270", "count": 17, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&part_number=4270", "selected": false}], "truncated": false}}, "suggested_facets": [{"name": "chapter", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&_facet=chapter"}, {"name": "part_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&_facet=part_name"}, {"name": "subpart", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&_facet=subpart"}], "next": "7~3A7~3A15~2E1~2E19~2E2~2E11~2E15~2E88~2E5,7~3A7~3A15~2E1~2E19~2E2~2E11~2E15~2E88~2E5", "next_url": "https://www.pawtectors.org/openregs/cfr_sections.json?agency=RBS&_next=7~3A7~3A15~2E1~2E19~2E2~2E11~2E15~2E88~2E5%2C7~3A7~3A15~2E1~2E19~2E2~2E11~2E15~2E88~2E5&_sort=section_id", "private": false, "allow_execute_sql": true, "query_ms": 696.6007919982076, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}