§ 303.203 - Applications for capital distributions.

§ 303.203 Applications for capital distributions.

Cross Reference

Link to an amendment published at 85 FR 3245, Jan. 21, 2020.

(a) Scope. An insured state nonmember bank and any insured branch of a foreign bank FDIC-supervised institution shall submit an application for a capital distribution if, after having made a capital distribution, the institution would be undercapitalized, significantly undercapitalized, or critically undercapitalized.

(b) Content of filing. An application to repurchase, redeem, retire, or otherwise acquire shares or ownership interests of the insured depository FDIC-supervised institution shall describe the proposal, the shares or obligations which that are the subject thereof, and the additional shares or obligations of the institution which that will be issued in at least an amount equivalent to the distribution. The application also shall explain how the proposal will reduce the institution's financial obligations or otherwise improve its financial condition. If the proposed action also requires an application under section 18(i) of the FDI Act (12 U.S.C. 1828(i)) as implemented by § 303.241 of this part regarding prior consent to retire capital, such application should be filed concurrently with, or made a part of, the application filed pursuant to section 38 of the FDI Act (12 U.S.C. 1831o).

[85 FR 3245, Jan. 21, 2020]