12 USC § 4744 - Participation agreements

---
identifier: "/us/usc/t12/s4744"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 4744 - Participation agreements"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "4744"
section_name: "Participation agreements"
chapter_number: 47
chapter_name: "COMMUNITY DEVELOPMENT BANKING"
subchapter_number: "II"
subchapter_name: "SMALL BUSINESS CAPITAL ENHANCEMENT"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 103–325, title II, § 254, Sept. 23, 1994, 108 Stat. 2207.)"
---


# § 4744. Participation agreements

**(a)** **In general** A participating State may enter into a participation agreement with any financial institution determined by the participating State, after consultation with the appropriate Federal banking agency, to have sufficient commercial lending experience and financial and managerial capacity to participate in the Program. The determination by the State shall not be reviewable by the Fund.

**(b)** **Participating financial institutions** Upon entering into the participation agreement with the participating State, the financial institution shall become a participating financial institution eligible to enroll loans under the Program.

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**Source Credit**: (Pub. L. 103–325, title II, § 254, Sept. 23, 1994, 108 Stat. 2207.)