Common use of CAPITAL PLAN AND HIGHER MINIMUMS Clause in Contracts

CAPITAL PLAN AND HIGHER MINIMUMS. (1) The Bank shall achieve hereafter and maintain the following capital levels (as defined in 12 C.F.R. Part 3): (a) Tier 1 capital at least equal to thirteen percent (13%) of risk-weighted assets; (b) Tier 1 capital at least equal to eight and one half percent (8.5%) of adjusted total assets.1 (2) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a three-year capital program. The program shall include: (a) the primary source(s) from which the Bank will strengthen its capital structure to meet the Bank's needs; (b) contingency plans that identify alternative methods should the primary source(s) under (a) above not be available; and (c) a dividend policy that permits the declaration of a dividend only: (i) when the Bank is in compliance with its approved capital program; (ii) when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and (iii) with the prior written determination of no supervisory objection by the Assistant Deputy Comptroller. Upon receiving a determination of no supervisory objection, the Bank shall implement and adhere to the dividend policy. (3) Upon completion, and subsequent updates, the Bank's capital program shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the capital program. The Board shall review and update the Bank's capital program on an annual basis, or more frequently if 1 Adjusted total assets is defined in 12 C.F.R. § 3.2(a) as the average total asset figure used for Call Report purposes minus end-of-quarter intangible assets.

CAPITAL PLAN AND HIGHER MINIMUMS. (1) The Bank shall achieve hereafter and maintain the following capital levels after applying a 200% risk weight allocation to all assets with a FICO score of 660 or below (as defined in 12 C.F.R. Part 3): (a) Tier 1 Total qualifying capital at least equal to thirteen ten percent (1310%) of risk-risk- weighted assets; (b) Tier 1 capital at least equal to eight and one half six percent (8.56%) of risk-weighted assets; and (c) Tier 1 capital at least equal to five percent (5%) of adjusted total assets.1assets. (2) The requirement in this Agreement to meet and maintain a specific capital level means that the Bank may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv). (3) Within sixty (60) days, the Board shall adoptdevelop, implement, and thereafter ensure Bank adherence to a three-year capital program. The program shall include: (a) specific plans for the primary source(s) from which maintenance of adequate capital that may in no event be less than the Bank will strengthen its capital structure to meet the Bank's needsrequirements of paragraph (1); (b) contingency plans that identify alternative methods should the primary source(s) under (a) above not be available; and (c) a dividend policy that permits the declaration of a dividend only: (i) when the Bank is in compliance with its approved capital program; (ii) when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and (iii) with the prior written determination approval of no supervisory objection by the Assistant Deputy Comptroller. Upon receiving a determination of no supervisory objection, the Bank shall implement and adhere to the dividend policy. (34) Upon completion, and subsequent updates, the Bank's capital program shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objectionapproval. Upon receiving a determination of no supervisory objection from approval by the Assistant Deputy Comptroller, the Bank shall implement and adhere to the capital program. The Board shall review and update the Bank's capital program on an annual basis, or more frequently if 1 Adjusted total assets is defined in 12 C.F.R. § 3.2(anecessary. Copies of the reviews and updates shall be submitted to the Assistant Deputy Comptroller. (5) as The Board shall ensure that the average total asset figure used for Call Report purposes minus end-of-quarter intangible assetsBank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.

CAPITAL PLAN AND HIGHER MINIMUMS. (1) The Bank shall achieve hereafter and maintain the following capital levels (as defined in 12 C.F.R. Part 3): (a) Tier 1 capital at least equal to thirteen ten percent (1310%) of risk-weighted assets;; and (b) Tier 1 capital at least equal to eight and one half percent (8.58%) of adjusted total assets.1 (2) The requirement in this Agreement to meet and maintain a specific capital level means that the Bank may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv). (3) Within sixty (60) days, the Board shall adoptdevelop, implement, and thereafter ensure Bank adherence to a three-year capital program. The program shall include: (a) specific plans for the maintenance of adequate capital in light of the Bank’s increasing problem loans, rapid asset growth, reliance upon brokered deposits, and continuing weak earnings; (b) projections for growth and capital requirements based upon a detailed analysis of the Bank's assets, liabilities, earnings, fixed assets, and off- balance sheet activities; (c) projections of the sources and timing of additional capital to meet the Bank's current and future needs; (d) the primary source(s) from which the Bank will strengthen its capital structure to meet the Bank's needs;; 1 Adjusted total assets is defined in 12 C.F.R. § 3.2(a) as the average total asset figure used for Call Report purposes minus end-of-quarter intangible assets. (be) contingency plans that identify alternative methods should the primary source(s) under (ad) above not be available; and (cf) a dividend policy that permits the declaration of a dividend only: (i) when the Bank is in compliance with its approved capital program;; and (ii) when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and (iii) with the prior written determination of no supervisory objection by the Assistant Deputy Comptroller. Upon receiving a determination of no supervisory objection, the Bank shall implement and adhere to the dividend policy. (34) Upon completion, and subsequent updates, the Bank's capital program shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the capital program. The Board shall review and update the Bank's capital program on an annual basis, or more frequently if 1 Adjusted necessary. Copies of the reviews and updates shall be submitted to the Assistant Deputy Comptroller. (5) The Board shall restrict the Bank’s loan growth each year to an amount that is no more than five percent (5%) of the Bank’s average total assets for the preceeding year until the Bank achieves full compliance with the Agreement and such Agreement is defined in 12 C.F.R. § 3.2(a) as terminated by the average total asset figure used for Call Report purposes minus end-of-quarter intangible assetsComptroller.

CAPITAL PLAN AND HIGHER MINIMUMS. (1) The Bank shall achieve hereafter and maintain the following capital levels (as defined in 12 C.F.R. Part 3): (a) Tier 1 Total risk based capital at least equal to thirteen eleven percent (1311%) of risk-risk- weighted assets; (b) Tier 1 capital at least equal to eight and one half percent (8.58%) of adjusted total assets.1assets. (2) Within sixty The requirement in this Agreement to maintain a specific capital level means that the Bank may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv). (603) days, The Bank shall implement and adhere to the capital program approved by the Board on June 20, 2002, as amended by the Board on November 21, 2002. (4) The Board shall adoptreview and update the Bank's capital program on an annual basis, implement, and thereafter ensure Bank adherence to a three-year or more frequently if necessary. Any updated capital program. The program shall include: (a) specific plans for the maintenance of adequate capital that may in no event be less than the requirements of paragraph (1); (b) projections for growth and capital requirements based upon a detailed analysis of the Bank's assets, liabilities, earnings, fixed assets, and off-balance sheet activities; (c) projections of the sources and timing of additional capital to meet the Bank's current and future needs; (d) the primary source(s) from which the Bank will strengthen its capital structure to meet the Bank's needs; (be) contingency plans that identify alternative methods should the primary source(s) under (ad) above not be available; and (cf) a dividend policy that permits the declaration of a dividend only: (i) when the Bank is in compliance with its approved capital program; (ii) when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and (iii) if the dividend is for any purpose other than servicing debt of the Bank’s holding company, with the prior written determination approval of no supervisory objection by the Assistant Deputy Comptroller. Upon receiving a determination Copies of no supervisory objection, the Bank shall implement reviews and adhere to the dividend policy. (3) Upon completion, and subsequent updates, the Bank's capital program updates shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the capital program. . (5) The Board shall review ensure that the Bank has processes, personnel, and update control systems to ensure implementation of and adherence to the Bank's capital program on an annual basis, or more frequently if 1 Adjusted total assets is defined in 12 C.F.R. § 3.2(a) as the average total asset figure used for Call Report purposes minus end-of-quarter intangible assetsrequired by this Article.

CAPITAL PLAN AND HIGHER MINIMUMS. (1) The Bank shall achieve hereafter by December 31, 2002, and maintain thereafter maintain, the following capital levels (as defined in 12 C.F.R. Part 3): (a) Tier 1 capital at least equal to thirteen eleven percent (1311%) of risk-weighted assets;; and (b) Tier 1 capital at least equal to eight and one half percent (8.58%) of adjusted total assets.1 (2) The requirement in this Agreement to meet and maintain a specific capital level means that the Bank may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv). (3) Within sixty one hundred eighty (60180) days, the Board shall adoptdevelop, implement, and thereafter ensure Bank adherence to a three-year capital program. The program shall include: (a) specific plans for the primary source(smaintenance of adequate capital that may in no event be less than the requirements of paragraph (1); (b) from which projections for growth and capital requirements based upon a detailed analysis of the Bank will strengthen its Bank's assets, liabilities, earnings, fixed assets, and off- balance sheet activities; (c) projections of the sources and timing of additional capital structure to meet the Bank's current and future needs; (b) contingency plans that identify alternative methods should the primary source(s) under (a) above not be available; and (cd) a dividend policy that permits the declaration of a dividend onlyonly if: (i) when the Bank is in compliance with its approved capital program;; and (ii) when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and (iii) with the prior written determination of no supervisory objection by the Assistant Deputy Comptroller. Upon receiving a determination of no supervisory objection, the Bank shall implement and adhere to the dividend policy. (34) Upon completion, and subsequent updates, the Bank's capital program shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank shall implement and adhere to the capital program. The Board shall review and update the Bank's capital program on an annual basis, or more frequently if 1 Adjusted total assets is defined in 12 C.F.R. § 3.2(a) as the average total asset figure used for Call Report purposes minus end-of-quarter intangible assets. capital program on an annual basis, or more frequently if necessary. Copies of the reviews and updates shall be submitted to the Assistant Deputy Comptroller. (5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.