Transfer of capital from banks to associations.

CFR · 2024-01-01 · US · Title 12

(a) (i) The purchase of nonvoting stock or participation certificates; (ii) The payment of cash; (iii) Debt forgiveness or reduction; (iv) Interest rate concessions or interest-free loans; (v) The transfer of loans at other than fair market value; (vi) The reduction or elimination of standard loan servicing or other fees; and (vii) The assumption of operating or other expenses, such as legal fees or insurance premiums. (2) (3) (b) (1) The transfer of capital is in the best interests of all of the shareholders; (2) The bank will be able to achieve its capital adequacy and business plan goals after making the transfer of capital; and (3) The transfer of capital is the “least cost” alternative available and will enable the association to maintain sound, adequate, and constructive service to borrowers. (c)

official document · source cfr-2024 · id 12:§ 615.5171