Topic: Regulatory Capital Rule
-
We are a state-chartered bank with a holding company. Are there any federal or state regulations restricting our ability or our holding company’s ability to pay dividends on our stock?
—
by
The Federal Deposit Insurance Act generally prohibits FDIC banks from banking capital distributions, including dividend distributions, if the distribution would result in the institution becoming undercapitalized. Additionally, after a bank receives notice from the FDIC that it is considered undercapitalized, it is subject to restrictions on capital distributions. The Illinois Banking Act also appears to…
-
I have a question about High Volatility Commercial Real Estate (HVCRE). If a loan is in a low or moderate income tract, do the HVCRE rules apply?
—
by
A loan does not automatically qualify for an exemption from the HVCRE rules when it is made to acquire, develop or construct property in a low or moderate income census tract. However, the loan may be eligible for an exemption if it qualifies as an investment in community development under the Community Reinvestment Act or…