Mutual capital certificates.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (d) (e) (f) (g) (h) (i) (i) Shall bear on its face, in bold-face type, the following legend: “This security is not a savings account or a deposit and it is not insured by the United States or any agency or fund of the United States”; and (ii) Shall clearly state that the certificate is subject to the requirements of § 163.74(i)(2). (2) (i) Be subordinate to all claims against the association having the same priority as savings accounts, savings certificates, debt obligations or any higher priority; (ii) Not be eligible for use as collateral for any loan made by the issuing association; (iii) Constitute a claim in liquidation not exceeding the face value plus accrued dividends of the certificates, on the general reserves, surplus and undivided profits of the association remaining after the payment in full of all savings accounts, savings certificates and debt obligations; (iv) Be entitled to the payment of dividends, which may be fixed, variable, participating, or cumulative, or any combination thereof, only if, when and as declared by the association's board of directors out of funds legally available for that purpose, provided that no dividend may be declared or paid without the approval of the appropriate Federal banking agency if such payment would cause the association to fail to meet its regulatory capital requirements under 12 CFR part 3 if a Federal savings association, or 12 CFR part 324 or part 390, subpart Z, as applicable, if a state savings association

official document · source cfr-2024 · id 12:§ 163.74