For purposes of this subpart:
Additional tier 1 capital has the same meaning as in 12 CFR 217.20(c).
Common equity tier 1 capital has the same meaning
as in 12 CFR 217.20(b).
Common
equity tier 1 capital ratio has the same meaning as in 12 CFR
217.10(b)(1) and 12 CFR 217.10(c), as applicable.
Common equity tier 1 minority interest has the
same meaning as in 12 CFR 217.2.
Default right.
(1) Means any:
(i) Right of a party,
whether contractual or otherwise (including rights incorporated by
reference to any other contract, agreement or document, and rights
afforded by statute, civil code, regulation and common law), to liquidate,
terminate, cancel, rescind, or accelerate the agreement or transactions
thereunder, set off or net amounts owing in respect thereto (except
rights related to same-day payment netting), exercise remedies in
respect of collateral or other credit support or property related
thereto (including the purchase and sale of property), demand payment
or delivery thereunder or in respect thereof (other than a right or
operation of a contractual provision arising solely from a change
in the value of collateral or margin or a change in the amount of
an economic exposure), suspend, delay or defer payment or performance
thereunder, modify the obligations of a party thereunder or any similar
rights; and
(ii)
Right or contractual provision that alters the amount of collateral
or margin that must be provided with respect to an exposure thereunder,
including by altering any initial amount, threshold amount, variation
margin, minimum transfer amount, the margin value of collateral or
any similar amount, that entitles a party to demand the return of
any collateral or margin transferred by it to the other party or a
custodian or that modifies a transferee’s right to reuse collateral
or margin (if such right previously existed), or any similar rights,
in each case, other than a right or operation of a contractual provision
arising solely from a change in the value of collateral or margin
or a change in the amount of an economic exposure; and
(2) Does not include any
right under a contract that allows a party to terminate the contract
on demand or at its option at a specified time, or from time to time,
without the need to show cause.
Discretionary bonus payment has the same meaning
as under 12 CFR 217.2.
Distribution has the same meaning as under 12 CFR 217.2.
Global systemically important BHC has the same
meaning as in 12 CFR 217.2.
Eligible debt security means, with respect to a global systemically
important BHC:
(1) A debt instrument that:
(i) Is paid
in, and issued by the global systemically important BHC;
(ii) Is not secured, not
guaranteed by the global systemically important BHC or a subsidiary
of the global systemically important BHC, and is not subject to any
other arrangement that legally or economically enhances the seniority
of the instrument;
(iii) Has a maturity of greater than or equal to 365 days (one year)
from the date of issuance;
(iv) Is governed by the laws of the
United States or any State thereof;
(v) Does not provide the holder of the
instrument a contractual right to accelerate payment of principal
or interest on the instrument, except a right that is exercisable
on one or more dates that are specified in the instrument or in the
event of:
(A) A receivership, insolvency, liquidation,
or similar proceeding of the global systemically important BHC; or
(B) A failure of the global
systemically important BHC to pay principal or interest on the instrument
when due and payable that continues for 30 days or more;
(vi) Does not have
a credit-sensitive feature, such as an interest rate that is reset
periodically based in whole or in part on the global systemically
important BHC’s credit quality, but may have an interest rate that
is adjusted periodically independent of the global systemically important
BHC’s credit quality, in relation to general market interest rates
or similar adjustments;
(vii) Is not a structured note; and
(viii) Does not provide
that the instrument may be converted into or exchanged for equity
of the global systemically important BHC; and
(2) A debt instrument issued
prior to December 31, 2016 that:
(i) Is paid in, and issued
by the global systemically important BHC;
(ii) Is not secured, not guaranteed
by the global systemically important BHC or a subsidiary of the global
systemically important BHC, and is not subject to any other arrangement
that legally or economically enhances the seniority of the instrument;
(iii) Has a maturity
of greater than or equal to 365 days (one year) from the date of issuance;
(iv) Does not have
a credit-sensitive feature, such as an interest rate that is reset
periodically based in whole or in part on the global systemically
important BHC’s credit quality, but may have an interest rate that
is adjusted periodically independent of the global systemically important
BHC’s credit quality, in relation to general market interest rates
or similar adjustments;
(v) Is not a structured note; and
(vi) Does not provide
that the instrument may be converted into or exchanged for equity
of the global systemically important BHC.
External TLAC risk-weighted buffer means,
with respect to a global systemically important BHC, the sum of 2.5
percent, any applicable countercyclical capital buffer under 12 CFR
217.11(b) (expressed as a percentage), and the global systemically
important BHC’s method 1 capital surcharge.
GAAP means generally accepted accounting principles
as used in the United States.
GSIB surcharge has the same meaning as in 12 CFR 217.2.
Method 1 capital surcharge means, with respect to a global systemically important BHC, the
most recent method 1 capital surcharge (expressed as a percentage)
the global systemically important BHC was required to calculate pursuant
to subpart H of Regulation Q (12 CFR 217.400 through 217.406).
Outstanding eligible external
long-term debt amount is defined in section 252.62(b).
Person has the same meaning as in 12 CFR 225.2.
Qualified financial contract has the same meaning as in section 210(c)(8)(D) of Title II of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5390(c)(8)(D)).
Structured note means a debt instrument that:
(1) Has a principal amount, redemption
amount, or stated maturity that is subject to reduction based on the
performance of any asset, entity, index, or embedded derivative or
similar embedded feature;
(2) Has an embedded derivative or similar embedded feature that is
linked to one or more equity securities, commodities, assets, or entities;
(3) Does not specify
a minimum principal amount that becomes due upon acceleration or early
termination; or
(4)
Is not classified as debt under GAAP, provided that an instrument
is not a structured note solely because it is one or both of the following:
(i) An instrument that is not denominated in U.S. dollars; or
(ii) An instrument
where interest payments are based on an interest rate index.
Supplementary leverage
ratio has the same meaning as in 12 CFR 217.10(c)(4).
Tier 1 minority interest has the same meaning
as in 12 CFR 217.2.
Tier 2
capital has the same meaning as in 12 CFR 217.20(d).
Total leverage exposure has the same meaning as
in 12 CFR 217.10(c)(4)(ii).
Total risk-weighted assets means the greater of total risk-weighted
assets as calculated under 12 CFR part 217, subpart D (the standardized
approach) or 12 CFR part 217, subpart E (the internal ratings-based
and advanced measurement approaches).
