§ 366.5. What causes a substantial loss to a federal deposit insurance fund?
173 words·~1 min read·
/us/cfr/t12/s§ 366.5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
You cause a substantial loss to the Deposit Insurance Fund (or any predecessor deposit insurance fund) under § 366.3(d) when you, or any person that owns or controls you, or any entity you own or control has:
(a)An obligation to us that is delinquent for 90 days or more and on which there is an outstanding balance of principal, interest, or a combination thereof of more than $50,000;
(b)An unpaid final judgment in our favor that is in excess of $50,000, regardless of whether it becomes discharged in whole or in part in a bankruptcy proceeding;
(c)A deficiency balance following foreclosure of collateral on an obligation owed to us that is in excess of $50,000, regardless of whether it becomes discharged in whole or in part in a bankruptcy proceeding; or
(d)A loss to us that is in excess of $50,000 that we report on IRS Form 1099-C, Information Reporting for Discharge of Indebtedness. [67 FR 69991, Nov. 20, 2002, as amended at 71 FR 20527, Apr. 21, 2006]