(a) Review of
resolution plans. The Board and Corporation will seek to coordinate
their activities concerning the review of resolution plans, including
planning for, reviewing, and assessing the resolution plans, as well
as such activities that occur during the periods between resolution
plan submissions.
(b) Joint determination
regarding deficient resolution plans. If the Board and Corporation
jointly determine that the resolution plan of a covered company submitted
under section 243.4 is not credible or would not facilitate an orderly
resolution of the covered company under the Bankruptcy Code, the Board
and Corporation shall jointly notify the covered company in writing
of such determination. Any joint notice provided under this paragraph
(b) shall be provided pursuant to paragraph (f) of this section and
shall identify the deficiencies identified by the Board and Corporation
in the resolution plan. A deficiency is an aspect of a covered company’s
resolution plan that the Board and Corporation jointly determine presents
a weakness that individually or in conjunction with other aspects
could undermine the feasibility of the covered company’s resolution
plan.
(c) Resubmission of a resolution
plan. Within 90 days of receiving a notice of deficiencies issued
pursuant to paragraph (b) of this section, or such shorter or longer
period as the Board and Corporation may jointly determine, a covered
company shall submit a revised resolution plan to the Board and Corporation
that addresses the deficiencies jointly identified by the Board and
Corporation, and that discusses in detail:
(1) The revisions made by the covered company
to address the deficiencies jointly identified by the Board and the
Corporation;
(2) Any changes to
the covered company’s business operations and corporate structure
that the covered company proposes to undertake to facilitate implementation
of the revised resolution plan (including a timeline for the execution
of such planned changes); and
(3)
Why the covered company believes that the revised resolution plan
is credible and would result in an orderly resolution of the covered
company under the Bankruptcy Code.
(d) Extensions of time. Upon their own initiative
or a written request by a covered company, the Board and Corporation
may jointly extend any time period under this section. Each extension
request shall be supported by a written statement of the covered company
describing the basis and justification for the request.
(e) Joint determination regarding shortcomings in
resolution plans. The Board and Corporation may also jointly
identify one or more shortcomings in a covered company’s resolution
plan. A shortcoming is a weakness or gap that raises questions about
the feasibility of a covered company’s resolution plan, but does not
rise to the level of a deficiency for both the Board and Corporation.
If a shortcoming is not satisfactorily explained or addressed before
or in the submission of the covered company’s next resolution plan,
it may be found to be a deficiency in the covered company’s next resolution
plan. The Board and the Corporation may identify an aspect of a covered
company’s resolution plan as a deficiency even if such aspect was
not identified as a shortcoming in an earlier resolution plan submission.
(f) Feedback. Following
their review of a resolution plan, the Board and the Corporation will
jointly send a notification to each covered company that identifies
any deficiencies or shortcomings in the covered company’s resolution
plan (or confirms that no deficiencies or shortcomings were identified)
and provides any feedback on the resolution plan. The Board and the
Corporation will jointly send the notification no later than 12 months
after the later of the date on which the covered company submitted the
resolution plan and the date by which the covered company was required
to submit the resolution plan, unless the Board and the Corporation
jointly determine in their discretion that extenuating circumstances
exist that require delay.
