---
kind: "section"
citation: "7 U.S.C. § 2009cc–5"
title: "7"
title_heading: "Agriculture"
number: "2009cc–5"
heading: "Issuance and guarantee of trust certificates"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2009cc-5"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter VIII — Rural Business Investment Program"
---

# §2009cc–5. Issuance and guarantee of trust certificates

- (a) **Issuance—** The [Secretary](/usc/7/499a.md?p=b-2) may issue trust certificates representing ownership of all or a fractional part of debentures issued by a [rural business investment company](/usc/7/2009cc.md?p=14) and guaranteed by the [Secretary](/usc/7/499a.md?p=b-2) under this subchapter, if the certificates are based on and backed by a trust or pool approved by the [Secretary](/usc/7/499a.md?p=b-2) and composed solely of guaranteed debentures.
- (b) **Guarantee—**
  - (1) **In general—** The [Secretary](/usc/7/499a.md?p=b-2) may, under such terms and conditions as the [Secretary](/usc/7/499a.md?p=b-2) considers appropriate, guarantee the timely payment of the principal of and interest on trust certificates issued by the [Secretary](/usc/7/499a.md?p=b-2) or agents of the [Secretary](/usc/7/499a.md?p=b-2) for purposes of this section.
  - (2) **Limitation—** Each guarantee under this subsection shall be limited to the extent of principal and interest on the guaranteed debentures that compose the trust or pool.
  - (3) **Prepayment or default—**
    - (A) **In general—**
      - (i) **Authority to prepay—** A debenture may be prepaid at any time without penalty.
      - (ii) **Reduction of guarantee—** Subject to [clause (i)](#b-3-A-i), if a debenture in a trust or pool is prepaid, or in the event of default of such a debenture, the guarantee of timely payment of principal and interest on the trust certificates shall be reduced in proportion to the amount of principal and interest the prepaid debenture represents in the trust or pool.
    - (B) **Interest—** Interest on prepaid or defaulted debentures shall accrue and be guaranteed by the [Secretary](/usc/7/499a.md?p=b-2) only through the date of payment of the guarantee.
    - (C) **Redemption—** At any time during its term, a trust certificate may be called for redemption due to prepayment or default of all debentures.
- (c) **Full faith and credit of the United States—** [Section 2009g(i) of this title](/usc/7/2009g.md?p=i) shall apply to any guarantee of a trust certificate issued by the [Secretary](/usc/7/499a.md?p=b-2) under this section.
- (d) **Subrogation and ownership rights—**
  - (1) **Subrogation—** If the [Secretary](/usc/7/499a.md?p=b-2) pays a claim under a guarantee issued under this section, the claim shall be subrogated fully to the rights satisfied by the payment.
  - (2) **Ownership rights—** No Federal, [State](/usc/7/2009.md?p=1), or local law shall preclude or limit the exercise by the [Secretary](/usc/7/499a.md?p=b-2) of the ownership rights of the [Secretary](/usc/7/499a.md?p=b-2) in a debenture residing in a trust or pool against which 1 or more trust certificates are issued under this section.
- (e) **Management and administration—**
  - (1) **Registration—** The [Secretary](/usc/7/499a.md?p=b-2) shall provide for a central registration of all trust certificates issued under this section.
  - (2) **Creation of pools—** The [Secretary](/usc/7/499a.md?p=b-2) may—
    - (A) maintain such commercial [bank](/usc/7/27.md?p=a) accounts or investments in obligations of the [United States](/usc/7/1991.md?p=a-6) as may be necessary to facilitate the creation of trusts or pools backed by debentures guaranteed under this subchapter; and
    - (B) issue trust certificates to facilitate the creation of those trusts or pools.
  - (3) **Fidelity bond or insurance requirement—** Any agent performing functions on behalf of the [Secretary](/usc/7/499a.md?p=b-2) under this paragraph shall provide a fidelity bond or insurance in such amount as the [Secretary](/usc/7/499a.md?p=b-2) considers to be necessary to fully protect the interests of the [United States](/usc/7/1991.md?p=a-6).
  - (4) **Regulation of brokers and dealers—** The [Secretary](/usc/7/499a.md?p=b-2) may regulate [brokers](/usc/7/499a.md?p=b-7) and [dealers](/usc/7/499a.md?p=b-6) in trust certificates issued under this section.
  - (5) **Electronic registration—** Nothing in this subsection prohibits the use of a book-entry or other electronic form of registration for trust certificates issued under this section.

## Source credit

(Pub. L. 87–128, title III, § 384F, as added Pub. L. 107–171, title VI, § 6029, May 13, 2002, 116 Stat. 393; amended Pub. L. 110–234, title VI, § 6027(a), May 22, 2008, 122 Stat. 1182; Pub. L. 110–246, § 4(a), title VI, § 6027(a), June 18, 2008, 122 Stat. 1664, 1943.)

## Notes

### Editorial Notes

### Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

### Amendments

2008—Subsec. (b)(3)(A). Pub. L. 110–246, § 6027(a), added cl. (i), designated existing provisions as cl. (ii), inserted heading, and substituted “Subject to clause (i), if” for “In the event”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.