7 CFR § 4290.820 - Financings in the form of guarantees.

---
identifier: "/us/cfr/t7/s4290.820"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 4290.820 - Financings in the form of guarantees."
title_number: 7
title_name: "Agriculture"
section_number: "4290.820"
section_name: "Financings in the form of guarantees."
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"
---


# 4290.820 Financings in the form of guarantees.

(a) *General rule.* At the request of an Enterprise or where necessary to protect your existing Financing in a Portfolio Concern, you may guarantee the monetary obligation of an Enterprise to any non-Associate creditor.

(b) *Exception.* You may not issue a guaranty if:

(1) You would become subject to State regulation as an insurance, guaranty or surety business; or

(2) The amount of the guaranty plus any direct Financings to the Enterprise exceed the overline limitations of § 4290.740, except that a pledge of the Equity Securities of the issuer or a subordination of your lien or creditor position does not count toward your overline.

(c) *Pledge of RBIC's assets as guaranty.* For purposes of this section, a guaranty with recourse only to specific asset(s) you have pledged is equal to the fair market value of such asset(s) or the amount of the debt guaranteed, whichever is less.