# 7 CFR § 1720.9: Guarantee Agreement

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.9

## Section

- **Citation:** 7 CFR § 1720.9
- **Heading:** Guarantee Agreement
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 7—Agriculture > Subtitle B—Regulations of the Department of Agriculture > CHAPTER XVII—RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE > PART 1720—GUARANTEES FOR BONDS AND NOTES ISSUED FOR UTILITY INFRASTRUCTURE PURPOSES

## Text

(a) The guaranteed lender will be required to sign a guarantee agreement with the Secretary setting forth the terms and conditions upon which the Secretary guarantees the payment of the guaranteed bonds.
(b) The guaranteed bonds shall refer to the guarantee agreement as controlling the terms of the guarantee.
(c) The guarantee agreement shall address the following matters:
(1) Definitions and principles of construction;
(2) The form of guarantee;
(3) Coverage of the guarantee;
(4) Timely demand for payment on the guarantee;
(5) Any prohibited amendments of bond documents or limitations on transfer of the guarantee;
(6) Limitation on acceleration of guaranteed bonds;
(7) Calculation and manner of paying the guarantee fee;
(8) Consequences of revocation of payment on the guaranteed bonds;
(9) Representations and warranties of the guaranteed lender;
(10) Representations and warranties for the benefit of the holder of the guaranteed bonds;
(11) Claim procedures;
(12) What constitutes a failure by the guaranteed lender to pay;
(13) Demand on RUS;
(14) Assignment to RUS;
(15) Conditions of guarantee which may include requiring the guaranteed lender to adopt measures to ensure adequate capital levels are retained to absorb losses relative to risk in the guaranteed lender's portfolio and requirements on the guaranteed lender to hold additional capital against the risk of default;
(16) Payment by RUS;
(17) RUS payment does not discharge guaranteed lender;
(18) Undertakings for the benefit of the holders of guaranteed bonds, including: notices, registration, prohibited amendments, prohibited transfers, indemnification, multiple bond issues;
(19) Governing law;
(20) Notices;
(21) Benefit of agreement;
(22) Entirety of agreement;
(23) Amendments and waivers;
(24) Counterparts;
(25) Severability, and
(26) Such other matters as the Secretary believes to be necessary or appropriate.

## Nearby sections

- [7 CFR § 1720.1 § 1720.1 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.1.md)
- [7 CFR § 1720.7 § 1720.7 Application evaluation.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.7.md)
- [7 CFR § 1720.9 § 1720.9 Guarantee Agreement.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.9.md)
- [7 CFR § 1720.10 § 1720.10 Fees.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.10.md)
- [7 CFR § 1720.12 § 1720.12 Reporting requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.12.md)
- [7 CFR § 1720.14 § 1720.14 Nature of guarantee; acceleration of guaranteed bonds.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.14.md)
- [7 CFR § 1728.30 § 1728.30 Inclusion of an item for listing or technical acceptance.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1728.30.md)
- [7 CFR § 1728.40 § 1728.40 Procedure for submission of a proposal.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1728.40.md)
- [7 CFR § 1728.50 § 1728.50 Removal of an item from listing or technical acceptance.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1728.50.md)
- [7 CFR § 1728.204 § 1728.204 Electric standards and specifications for materials and construction.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1728.204.md)
- [7 CFR § 1752.2 § 1752.2 Objectives.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1752.2.md)
- [7 CFR § 1752.6 § 1752.6 Request for special servicing action.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1752.6.md)
- [7 CFR § 1752.7 § 1752.7 Civil rights and requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1752.7.md)
- [7 CFR § 1752.15 § 1752.15 Interest rate adjustments.](https://www.frixlaw.com/law-library/statutes/ecfr-7-1752.15.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-7-1720.9. Check the current official text before relying on it. Not legal advice.