Audit committees.

CFR · 2024-01-01 · US · Title 12

(a) (1) Each insured depository institution with total assets of $1 billion or more as of the beginning of its fiscal year shall establish an independent (2) Each insured depository institution with total assets of $500 million or more but less than $1 billion as of the beginning of its fiscal year shall establish an audit committee of its board of directors, the members of which shall be outside directors, the majority of whom shall be independent of management of the institution. The appropriate Federal banking agency may, by order or regulation, permit the audit committee of such an insured depository institution to be made up of less than a majority of outside directors who are independent of management, if the agency determines that the institution has encountered hardships in retaining and recruiting a sufficient number of competent outside directors to serve on the audit committee of the institution. (3) An outside director is a director who is not, and within the preceding fiscal year has not been, an officer or employee of the institution or any affiliate of the institution. (b) (c) (i) Indemnify the independent public accountant against claims made by third parties; (ii) Hold harmless or release the independent public accountant from liability for claims or potential claims that might be asserted by the client insured depository institution, other than claims for punitive damages; or (iii) Limit the remedies available to the client insured depository institution. (2

official document · source cfr-2024 · id 12:§ 363.5