Inclusion of subordinated debt securities and mandatorily redeemable preferred stock as Federal savings association supplementary (tier 2) capital.

CFR · 2024-01-01 · US · Title 12

(a) (2) For purposes of this section, mandatorily redeemable preferred stock means mandatorily redeemable preferred stock that was issued before July 23, 1985 or issued pursuant to regulations and memoranda of the Federal Home Loan Bank Board and approved in writing by the Federal Savings and Loan Insurance Corporation for inclusion as regulatory capital before or after issuance. (b) (ii) (A) Additional information is required to supplement the application; (B) The application has been removed from expedited review or the expedited review process is extended under § 5.13(a)(2); or (C) The OCC denies the application. (iii) (2) (A) A statement explaining why the Federal savings association believes that following the proposed prepayment the savings association would continue to hold an amount of capital commensurate with its risk; or (B) A description of the replacement capital instrument that meets the criteria for tier 1 or tier 2 capital under 12 CFR 3.20, including the amount of such instrument and the time frame for issuance. (ii) (c) (d) (1) (A) Bear the following legend on its face, in bold type: “This security is (B) State that the security is subordinated on liquidation, as to principal, interest, and premium, to all claims against the savings association that have the same priority as savings accounts or a higher priority; (C) State that the security is not secured by the savings association's assets or the assets of any affiliate of the savings association. An affili

official document · source cfr-2024 · id 12:§ 5.56