---
kind: "section"
citation: "7 C.F.R. § 4290.820"
title: "7"
number: "4290.820"
heading: "Financings in the form of guarantees."
url: "https://uscodex.org/cfr/7/4290.820"
---

# §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](/cfr/7/4290.740.md), 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.

## Notes

### Authority

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

### Source

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