Investments in premises and securities.

CFR · 2024-01-01 · US · Title 12

(a) (1) The bank notifies the appropriate Reserve Bank at least fifteen days prior to such investment and has not received notice that the investment is subject to further review by the end of the fifteen day notice period; (2) The aggregate of all such investments and loans, together with the amount of any indebtedness incurred by any such corporation that is an affiliate of the bank (as defined in section 2 of the Banking Act of 1933, as amended, 12 U.S.C. 221a), is less than or equal to the bank's perpetual preferred stock and related surplus plus common stock plus surplus, as those terms are defined in the FFIEC Consolidated Reports of Condition and Income; or (3)(i) The aggregate of all such investments and loans, together with the amount of any indebtedness incurred by any such corporation that is an affiliate of the bank, is less than or equal to 150 percent of the bank's perpetual preferred stock and related surplus plus common stock plus surplus, as those terms are defined in the FFIEC Consolidated Reports of Condition and Income; and (ii) The bank: (A) Has a CAMELS composite rating of 1 or 2 under the Uniform Interagency Bank Rating System (B) Is well capitalized and will continue to be well capitalized, in accordance with subpart D of this part, after the investment or loan. (b)

official document · source cfr-2024 · id 12:§ 208.21