7 CFR § 4290.1830 - RBIC's Capital Impairment definition and general requirements.

---
identifier: "/us/cfr/t7/s4290.1830"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 4290.1830 - RBIC's Capital Impairment definition and general requirements."
title_number: 7
title_name: "Agriculture"
section_number: "4290.1830"
section_name: "RBIC's Capital Impairment definition and general requirements."
chapter_name: "RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "4290"
part_name: "RURAL BUSINESS INVESTMENT COMPANY (“RBIC”) PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 1989 and 2009cc"
regulatory_source: "69 FR 32204, June 8, 2004, unless otherwise noted."
cfr_part: "4290"
---


# 4290.1830 RBIC's Capital Impairment definition and general requirements.

(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 § 4290.1810(g).

(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 § 4290.1840, exceeds 70 percent.

(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.

(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.