FDIC Troubled Condition Designation Sample Clauses
The FDIC Troubled Condition Designation clause defines the process and implications when a financial institution is classified as being in a troubled condition by the Federal Deposit Insurance Corporation (FDIC). This designation typically triggers enhanced regulatory oversight and may require the institution to provide additional reports, restrict certain activities, or obtain prior approval for management changes. The clause ensures that all parties are aware of the regulatory consequences and obligations that arise from such a designation, helping to manage risk and maintain compliance with federal banking regulations.
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FDIC Troubled Condition Designation. In the event that the Employer is deemed by the Federal Deposit Insurance Corporation to be in “troubled condition,” as defined in 12 C.F.R. section 303.101(c), any payment to be paid to the Officer pursuant to this Agreement will be made only as permitted by applicable federal regulations.