CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XLII—RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE (parts 4274 to 4290) > PART 4290—RURAL BUSINESS INVESTMENT COMPANY (“RBIC”) PROGRAM > SUBPART K—RBIC's Noncompliance With Terms of Leverage (§4290.1810 to §4290.1840) > 4290.1830—RBIC's Capital Impairment definition and general requirements.

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 Secretary 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 Secretary promptly if you are Capitally Impaired.
(d) The Secretary's right to determine RBIC's Capital Impairment condition. The Secretary may make his or her own determination of your Capital Impairment condition at any time.