---
kind: "section"
citation: "7 C.F.R. § 4290.1830"
title: "7"
number: "4290.1830"
heading: "RBIC's Capital Impairment definition and general requirements."
url: "https://uscodex.org/cfr/7/4290.1830"
---

# §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)](/cfr/7/4290.1810.md?p=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](/cfr/7/4290.1840.md), 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.

## Notes

### Authority

Authority: 7 U.S.C. 1989 and 2009cc et seq.

### Source

Source: 69 FR 32204, June 8, 2004, unless otherwise noted.