§ 303.244. Golden parachute and severance plan payments.
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/us/cfr/t12/s§ 303.244·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Scope. Pursuant to section 18(k) of the FDI Act (12 U.S.C. 1828(k)) and part 359 of this chapter, an insured depository institution or depository institution holding company may not make golden parachute payments or excess nondiscriminatory severance plan payments unless the depository institution or holding company obtains permission to make such payments in accordance with the rules contained in part 359 of this chapter. This section contains the procedures to file for the FDIC's consent when such consent is necessary under part 359 of this chapter.
(1)Golden parachute payments. A troubled insured depository institution or a troubled depository institution holding company is prohibited from making golden parachute payments (as defined in § 359.1(f)(1) of this chapter) unless it obtains the consent of the appropriate federal banking agency and the written concurrence of the FDIC. Therefore, in the case of golden parachute payments, the procedures in this section apply to all troubled insured depository institutions and troubled depository institution holding companies.
(2)Excess nondiscriminatory severance plan payments. In the case of excess nondiscriminatory severance plan payments as provided by § 359.1(f)(2)(v) of this chapter, the FDIC's consent is necessary for state nonmember banks that meet the criteria set forth in § 359.1(f)(1)(ii) of this chapter. In addition, the FDIC's consent is required for all insured depository institutions or depository institution holding companies that meet the same criteria and seek to make payments in excess of the 12-month amount specified in § 359.1(f)(2)(v).
(b)Where to file. Applicants shall submit a letter application to the appropriate FDIC regional director.
(c)Content of filing. The application shall contain the following:
(1)The reasons why the applicant seeks to make the payment;
(2)An identification of the institution-affiliated party who will receive the payment;
(3)A copy of any contract or agreement regarding the subject matter of the filing;
(4)The cost of the proposed payment and its impact on the institution's capital and earnings;
(5)The reasons why the consent to the payment should be granted; and
(6)Certification and documentation as to each of the points cited in § 359.4(a)(4).
(d)Additional information. The FDIC may request additional information at any time during processing of the filing.
(e)Processing. The FDIC will provide the applicant with a subsequent written notification of the final action taken as soon as the decision is rendered. [67 FR 79247, Dec. 27, 2002, as amended at 68 FR 50461, Aug. 21, 2003]
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