Restrictions on industrial bank subsidiaries of Covered Companies.

CFR · 2024-01-01 · US · Title 12

Without the FDIC's prior written approval, an industrial bank that is controlled by a Covered Company shall not: (a) Make a material change in its business plan after becoming a subsidiary of such Covered Company; (b) Add or replace a member of the board of directors, board of managers, or a managing member, as the case may be, of the subsidiary industrial bank during the first three years after becoming a subsidiary of such Covered Company; (c) Add or replace a senior executive officer during the first three years after becoming a subsidiary of such Covered Company; (d) Employ a senior executive officer who is, or during the past three years has been, associated in any manner (e) Enter into any contract for services material to the operations of the industrial bank (for example, loan servicing function) with such Covered Company or any subsidiary thereof.

official document · source cfr-2024 · id 12:§ 354.5