§ 252.162. Covered IHC long-term debt requirement.
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/us/cfr/t12/s§ 252.162·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Covered IHC long-term debt requirement. A Covered IHC must have an outstanding eligible Covered IHC long-term debt amount that is no less than the amount equal to the greatest of:
(1)6 percent of the Covered IHC's total risk-weighted assets;
(2)If the Covered IHC is required to maintain a minimum supplementary leverage ratio, 2.5 percent of the Covered IHC's total leverage exposure; and
(3)3.5 percent of the Covered IHC's average total consolidated assets.
(b)Outstanding eligible Covered IHC long-term debt amount.
(1)A Covered IHC's outstanding eligible Covered IHC long-term debt amount is the sum of:
(i)One hundred
(100)percent of the amount due to be paid of unpaid principal of the outstanding eligible Covered IHC debt securities issued by the Covered IHC in greater than or equal to 730 days (two years); and
(ii)Fifty
(50)percent of the amount due to be paid of unpaid principal of the outstanding eligible Covered IHC debt securities issued by the Covered IHC in greater than or equal to 365 days (one year) and less than 730 days (two years); and
(iii)Zero
(0)percent of the amount due to be paid of unpaid principal of the outstanding eligible Covered IHC debt securities issued by the Covered IHC in less than 365 days (one year).
(2)For purposes of paragraph (b)(1) of this section, the date on which principal is due to be paid on an outstanding eligible Covered IHC debt security is calculated from the earlier of:
(i)The date on which payment of principal is required under the terms governing the instrument, without respect to any right of the holder to accelerate payment of principal; and
(ii)The date the holder of the instrument first has the contractual right to request or require payment of the amount of principal, provided that, with respect to a right that is exercisable on one or more dates that are specified in the instrument only on the occurrence of an event (other than an event of a receivership, insolvency, liquidation, or similar proceeding of the Covered IHC, or a failure of the Covered IHC to pay principal or interest on the instrument when due), the date for the outstanding eligible Covered IHC debt security under this paragraph (b)(2)(ii) will be calculated as if the event has occurred.
(3)After notice and response proceedings consistent with 12 CFR part 263, subpart E, the Board may order a Covered IHC to exclude from its outstanding eligible Covered IHC long-term debt amount any debt security with one or more features that would significantly impair the ability of such debt security to take losses.
(c)Redemption and repurchase. Without the prior approval of the Board, a Covered IHC may not redeem or repurchase any outstanding eligible Covered IHC debt security if, immediately after the redemption or repurchase, the Covered IHC would not have an outstanding eligible Covered IHC long-term debt amount that is sufficient to meet its Covered IHC long-term debt requirement under paragraph
(a)of this section. [82 FR 8311, Jan. 24, 2017, as amended at 86 FR 738, Jan. 6, 2021]
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§ 252.162
Covered IHC long-term debt requirement.
Fed. Reg.×6
C.F.R.×2
Cite12 CFR 263
Cites 1Cited by 8 across 2 sources