Activities of insured State banks.

CFR · 2024-01-01 · US · Title 12

(a) (2) (ii) (iii) ( ( ( (B) (C) (iv) (v) (B) (b) (2) (ii) (B) (C) (iii) (B) An insured State bank may acquire or retain other instruments of a type determined by the FDIC to have the character of debt securities and not to represent a significant risk to the Deposit Insurance Fund. Such instruments shall be included in the 15 percent of tier one capital limit imposed in paragraph (b)(2)(iii)(A) of this section. An insured State bank may conduct this activity without first obtaining the FDIC's consent, provided that the bank meets and continues to meet the applicable capital standards as prescribed by the appropriate Federal banking agency. The fact that prior consent is not required by this subpart does not preclude the FDIC from taking any appropriate action with respect to the activities if the facts and circumstances warrant such action. (c) (1) The department is physically distinct from the remainder of the bank; (2) The department maintains separate accounting and other records; (3) The department has assets, liabilities, obligations and expenses that are separate and distinct from those of the remainder of the bank; (4) The department is subject to State statute that requires its obligations, liabilities and expenses be satisfied only with the assets of the department; and (5) The department informs its customers that only the assets of the department may be used to satisfy the obligations of the department.

official document · source cfr-2024 · id 12:§ 362.3