Retirement of other equities.

CFR · 2024-01-01 · US · Title 12

(a) Equities other than eligible borrower stock shall be retired at not more than their book value. (b) Subject to the redemption restrictions in part 628 of this chapter, no equities shall be retired, except pursuant to §§ 615.5280 and 615.5290 or term stock at its stated maturity, unless after retirement the institution would continue to meet the minimum permanent capital standards established under subpart H of this part, part 628 of this chapter, and the capital requirements established by the board of directors of the System institution. (c) A System bank, association, or service corporation board of directors may delegate authority to retire at-risk stock to institution management if: (1) The board has determined that the institution's capital position is adequate; (2) All retirements are in accordance with applicable provisions of part 628 of this chapter and the institution's capital adequacy plan or capital restoration plan; (3) After any retirements, the institution's permanent capital ratio will be in excess of 9 percent, its capital conservation buffer set forth in § 628.11 of this chapter will be above 2.5 percent, and its leverage buffer set forth in § 628.11 of this chapter will be above 1.0 percent; (4) The institution will continue to satisfy all applicable regulatory capital standards after any retirements; and (5) Management reports the aggregate amount and net effect of stock purchases and retirements to the board of directors each quarter. (d) Each board

official document · source cfr-2024 · id 12:§ 615.5270