---
kind: "section"
citation: "7 U.S.C. § 2009cc–14"
title: "7"
title_heading: "Agriculture"
number: "2009cc–14"
heading: "Unlawful acts and omissions; breach of fiduciary duty"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2009cc-14"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter VIII — Rural Business Investment Program"
---

# §2009cc–14. Unlawful acts and omissions; breach of fiduciary duty

- (a) **Parties deemed to commit a violation—** Whenever any [rural business investment company](/usc/7/2009cc.md?p=14) violates this subchapter (including any rule, regulation, order, or [participation agreement](/usc/7/2009cc.md?p=10) under this subchapter), by reason of the failure of the [rural business investment company](/usc/7/2009cc.md?p=14) to comply with this subchapter or by reason of its engaging in any act or practice that constitutes or will constitute a violation of this subchapter, the violation shall also be deemed to be a violation and an unlawful act committed by any [person](/usc/7/499a.md?p=b-1) that, directly or indirectly, authorizes, orders, participates in, causes, brings about, counsels, aids, or abets in the commission of any acts, practices, or transactions that constitute or will constitute, in whole or in part, the violation.
- (b) **Fiduciary duties—** It shall be unlawful for any officer, director, employee, agent, or other participant in the management or conduct of the affairs of a [rural business investment company](/usc/7/2009cc.md?p=14) to engage in any act or practice, or to omit any act or practice, in breach of the fiduciary duty of the officer, director, employee, agent, or participant if, as a result of the act or practice, the [rural business investment company](/usc/7/2009cc.md?p=14) suffers or is in imminent danger of suffering financial loss or other damage.
- (c) **Unlawful acts—** Except with the written consent of the [Secretary](/usc/7/499a.md?p=b-2), it shall be unlawful—
  - (1) for any [person](/usc/7/499a.md?p=b-1) to take office as an officer, director, or employee of any [rural business investment company](/usc/7/2009cc.md?p=14), or to become an agent or participant in the conduct of the affairs or management of a [rural business investment company](/usc/7/2009cc.md?p=14), if the [person](/usc/7/499a.md?p=b-1)—
    - (A) has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust; or
    - (B) has been found liable in a civil action for damages, or has been permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust; and
  - (2) for any [person](/usc/7/499a.md?p=b-1) to continue to serve in any of the capacities described in [paragraph (1)](#c-1), if—
    - (A) the [person](/usc/7/499a.md?p=b-1) is convicted of a felony or any other criminal offense involving dishonesty or breach of trust; or
    - (B) the [person](/usc/7/499a.md?p=b-1) is found liable in a civil action for damages, or is permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust.

## Source credit

(Pub. L. 87–128, title III, § 384O, as added Pub. L. 107–171, title VI, § 6029, May 13, 2002, 116 Stat. 400.)