For purposes of this part, the
following definitions shall apply:
(a) Appropriate
federal banking agency has the same meaning as in section 3 of
the Federal Deposit Insurance Act (FDI Act) (12 U.S.C. 1813(q)).
(b) Critically undercapitalized insured depository
institution means any insured depository institution as defined
in section 3 of the FDI Act (12 U.S.C. 1813(c)(2)) that is deemed
to be critically undercapitalized under section 38 of the FDI Act
(12 U.S.C. 1831o(b)(1)(E)) and its implementing regulations.
(c) (1) Depository institution means an institution that maintains reservable transaction accounts
or nonpersonal time deposits and is—
(i) an insured bank as defined
in section 3 of the FDI Act (12 U.S.C. 1813(h)) or a bank which is
eligible to make application to become an insured bank under section
5 of such act (12 U.S.C. 1815);
(ii) a mutual savings bank as defined
in section 3 of the FDI Act (12 U.S.C. 1813(f)) or a bank which is
eligible to make application to become an insured bank under section
5 of such act (12 U.S.C. 1815);
(iii) a savings bank as defined in section
3 of the FDI Act (12 U.S.C. 1813(g)) or a bank that is eligible to
make application to become an insured bank under section 5 of such
act (12 U.S.C. 1815);
(iv) an insured credit union as defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752(7)) or a credit union that is eligible
to make application to become an insured credit union pursuant to
section 201 of such act (12 U.S.C. 1781);
(v) a member as defined in section 2
of the Federal Home Loan Bank Act (12 U.S.C. 1422(4)); or
(vi) a savings association
as defined in section 3 of the FDI Act (12 U.S.C. 1813(b)) that is
an insured depository institution as defined in section 3 of the act
(12 U.S.C. 1813(c)(2)) or is eligible to apply to become an insured
depository institution under section 5 of the act (12 U.S.C. 1815(a)).
(2) The term depository institution does not include a financial institution
that is not required to maintain reserves under section 204.1(c)(4)
of Regulation D (12 CFR 204.1(c)(4)) because it is organized solely
to do business with other financial institutions, is owned primarily
by the financial institutions with which it does business, and does
not do business with the general public.
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(d) Transaction account and nonpersonal time deposit have
the meanings specified in Regulation D (12 CFR 204).
(e) Undercapitalized insured depository institution means
any insured depository institution as defined in section 3 of the
FDI Act (12 U.S.C. 1813(c)(2)) that—
(1) is not a critically undercapitalized
insured depository institution; and
(2) (i) is deemed
to be undercapitalized under section 38 of the FDI Act (12 U.S.C.
1831o(b)(1)(C)) and its implementing regulations; or
(ii) has received from its appropriate
federal banking agency a composite CAMELS rating of 5 under the Uniform
Financial Institutions Rating System (or an equivalent rating by its
appropriate federal banking agency under a comparable rating system)
as of the most recent examination of such institution.
(f) Viable, with respect to a depository
institution, means that the Board of Governors or the appropriate
federal banking agency has determined, giving due regard to the economic
conditions and circumstances in the market in which the institution
operates, that the institution is not critically undercapitalized,
is not expected to become critically undercapitalized, and is not
expected to be placed in conservatorship or receivership. Although
there are a number of criteria that may be used to determine viability,
the Board of Governors believes that ordinarily an undercapitalized
insured depository institution is viable if the appropriate federal
banking agency has accepted a capital-restoration plan for the depository
institution under 12 U.S.C. 1831o(e)(2) and the depository institution
is complying with that plan.
