Topic: Regulatory Capital Rule
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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?
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…
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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?
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…