Liquidity. (1) Within thirty (30) days, the Board shall establish a written process to assess the adequacy of the Bank’s funding sources on an ongoing basis. This process shall produce a written liquidity report that includes: (a) an assessment of the Bank’s needs and sources of liquidity; (b) an assessment of the ability of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding; and (c) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization markets. (2) The Board shall require that the written liquidity report be prepared on at least a monthly basis, and more frequently if any event has occurred that might significantly affect the ability of the parent to continue to fund the daily purchase of receivables. (3) The Board shall immediately take any measures indicated by the liquidity assessment to assure that the Bank has adequate sources of liquidity, including contingent sources, for the Bank’s needs. (4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document in the written liquidity report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W. (5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the Bank. (6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article. (7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc. (8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”): (i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured. (9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty The Board shall, within fifteen (3015) days, the Board shall establish a written process to assess the adequacy of review the Bank’s 's liquidity contingency plan to ensure the plan enables the Bank to maintain a liquidity level sufficient to sustain the Bank's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process The plan shall produce a written set forth actions the Bank will take to maintain adequate liquidity report that includesin relation to the Bank's needs and identify the triggers at which management will be required to take such actions. Actions identified in the Bank's liquidity contingency plan may include:
(a) an assessment reduction of the Bank’s needs and sources wholesale or credit sensitive liabilities and/or increase of liquidityliquid assets;
(b) an assessment selling assets;
(c) obtaining lines of credit from the ability Federal Reserve Bank;
(d) obtaining lines of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of fundingcredit from correspondent banks;
(e) recovering charged-off assets; and
(cf) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board shall require that review the written Bank's liquidity report be prepared on at least biweekly. Such reviews shall consider:
(a) a monthly basismaturity schedule of certificates of deposit, including large uninsured deposits;
(b) geographic disbursement of and more frequently if any event has occurred that might significantly affect risk from brokered deposits;
(c) geographic disbursement of and risk from national market certificates of deposit;
(d) the ability amount and type of loan commitments and standby letters of credit;
(e) an analysis of the parent to continue to fund continuing availability and volatility of present funding sources; and
(f) an analysis of the daily purchase impact of receivables.decreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(3) The Board shall immediately take any measures indicated by the liquidity assessment appropriate action to assure that the Bank has ensure adequate sources of liquidity, including contingent sources, for liquidity in relation to the Bank's needs. Biweekly reports shall set forth liquidity requirements and sources and establish a contingency plan. Copies of these reports shall be forwarded to the Assistant Deputy Comptroller in the Bank’s needs.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document in the written liquidity monthly report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.
(5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the BankAssistant Deputy Comptroller.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess ensure the adequacy liquidity of the Bank is maintained at a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment of the Bank’s needs and sources of liquidityselling assets;
(b) an assessment obtaining lines of credit from the ability Federal Reserve Bank;
(c) obtaining lines of the parent, credit from correspondent ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding;
(d) recovering charged-off assets; and
(ce) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board Within ninety (90) days, the Bank shall require that the written liquidity report be prepared on at least a monthly basisreview, revise, and more frequently if any event has occurred that might significantly affect thereafter ensure Bank adherence to its plan to reduce the ability level of wholesale or credit-sensitive liabilities and revise the parent to continue to fund the daily purchase Bank's strategic plan in light of receivablesthis requirement.
(3) The Board shall immediately take any measures indicated by continue to review the Bank's liquidity assessment to assure that the Bank has adequate sources on a monthly basis. Such reviews shall consider:
(a) a maturity schedule of liquiditycertificates of deposit, including contingent large uninsured deposits;
(b) the volatility of demand deposits including escrow deposits;
(c) the amount and type of loan commitments and standby letters of credit;
(d) an analysis of the continuing availability and volatility of present funding sources, for ;
(e) an analysis of the impact of decreased cash flow from the Bank’s needs's loan portfolio resulting from delinquent and non-performing loans;
(f) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(g) geographic disbursement of and risk from brokered deposits.
(4) To The Board shall take appropriate action to maintain adequate sources of liquidity in relation to the extent that Bank's needs. Monthly reports shall set forth liquidity requirements and sources. Copies of these reports shall be forwarded to the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document Assistant Deputy Comptroller in the written liquidity report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.report to the Assistant Deputy Comptroller.
(5) The Board shall ensure that the Bank shall provide has processes, personnel, and control systems to ensure implementation of and adherence to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports program developed pursuant to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the Bank.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess maintain the adequacy liquidity of the Bank at a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment of the Bank’s needs and sources of liquidityselling assets;
(b) an assessment obtaining lines of credit from the ability Federal Reserve Bank;
(c) obtaining lines of the parent, credit from correspondent ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding;
(d) recovering charged-off assets; and
(ce) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board shall require that review the written Bank's liquidity report be prepared on at least a monthly basis. Such reviews shall consider:
(a) the results of management’s analysis of liquidity needs under scenarios involving a range of stress events, including but not limited to:
(i) the bank’s inability to accept additional brokered deposits;
(ii) the inability to obtain unsecured funding;
(iii) increased requirements for collateral pledged to credit-sensitive wholesale funds providers; and
(iv) erosion of deposits.
(b) a maturity schedule of certificates of deposit, including large uninsured deposits;
(c) the volatility of deposits;
(d) the amount and more frequently if any event has occurred that might significantly affect the ability type of loan commitments and standby letters of credit;
(e) an analysis of the parent to continue to fund continuing availability and volatility of present funding sources;
(f) an analysis of the daily purchase impact of receivablesdecreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(g) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(h) concentration limits for wholesale funding.
(3) The Board shall immediately take any measures indicated by the liquidity assessment appropriate action to assure that the Bank has ensure adequate sources of liquidity, including contingent sources, for liquidity in relation to the Bank's needs. Monthly reports shall set forth liquidity requirements and sources as well as establish a contingency plan. Copies of these reports shall be forwarded to the Assistant Deputy Comptroller in the Bank’s needs.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document in the written liquidity monthly report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.
(5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the BankAssistant Deputy Comptroller.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process ensure the level of liquidity at the Bank is sufficient to assess the adequacy of sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment of the Bank’s needs and sources of liquidityselling assets;
(b) an assessment obtaining lines of credit from the ability Federal Reserve Bank;
(c) obtaining lines of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of fundingcredit from correspondent banks;
(d) recovering charged-off assets; and
(ce) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board shall require that review the written Bank's liquidity report be prepared on at least a monthly basis. Such reviews shall consider:
(a) a maturity schedule of certificates of deposit, including large uninsured deposits;
(b) the volatility of demand deposits including escrow deposits;
(c) the amount and more frequently if any event has occurred that might significantly affect the ability type of loan commitments and standby letters of credit;
(d) an analysis of the parent to continue to fund continuing availability and volatility of present funding sources;
(e) an analysis of the daily purchase impact of receivablesdecreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(f) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(g) geographic disbursement of and risk from brokered deposits.
(3) The Board shall immediately take any measures indicated by the liquidity assessment appropriate action to assure that the Bank has ensure adequate sources of liquidity, including contingent sources, for liquidity in relation to the Bank's needs. Monthly reports shall set forth liquidity requirements and sources and establish a contingency plan. Copies of these reports shall be forwarded to the Assistant Deputy Comptroller in the Bank’s needs.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document in the written liquidity quarterly report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.
(5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the BankAssistant Deputy Comptroller.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess immediately increase the adequacy liquidity of the Bank to a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment of the Bank’s needs and sources of liquidityselling assets;
(b) an assessment obtaining lines of credit from the ability Federal Reserve Bank;
(c) obtaining lines of the parent, credit from correspondent ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding;
(d) recovering charged-off assets; and
(ce) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board Within ninety (90) days, the Bank shall require that develop a plan to reduce the written liquidity report be prepared on at least a monthly basis, level of wholesale or credit-sensitive liabilities and more frequently if any event has occurred that might significantly affect revise the ability Bank's strategic plan in light of the parent to continue to fund the daily purchase of receivablesthis requirement.
(3) The Board shall immediately take any measures indicated by review the Bank's liquidity assessment to assure that the Bank has adequate sources on a monthly basis. Such reviews shall consider:
(a) a maturity schedule of liquiditycertificates of deposit, including contingent large uninsured deposits;
(b) the volatility of demand deposits including escrow deposits;
(c) the amount and type of loan commitments and standby letters of credit;
(d) an analysis of the continuing availability and volatility of present funding sources, for ;
(e) an analysis of the impact of decreased cash flow from the Bank’s needs's loan portfolio resulting from delinquent and non-performing loans;
(f) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(g) geographic disbursement of and risk from brokered deposits.
(4) To The Board shall take appropriate action to ensure adequate sources of liquidity in relation to the extent that Bank's needs. Monthly reports shall set forth liquidity requirements and sources and establish a contingency plan. Copies of these reports shall be forwarded to the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document Assistant Deputy Comptroller in the written liquidity report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.
(5) The Bank shall provide monthly report to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the BankAssistant Deputy Comptroller.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess immediately increase the adequacy liquidity of the Bank to a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment obtaining lines of credit from the Federal Reserve Bank’s needs and sources of liquidity;
(b) an assessment obtaining lines of the ability of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of fundingcredit from correspondent banks;
(c) recovering charged-off assets; and
(cd) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board Bank shall require immediately revise and reduce its liquidity policy limits for wholesale funding to a level that is in accordance with guidance from the written liquidity report be prepared on at least a monthly basis, and more frequently if any event has occurred that might significantly affect the ability of the parent to continue to fund the daily purchase of receivablesComptroller.
(3) The Board Bank shall immediately take any measures indicated by the revise its liquidity assessment contingency plan to assure that the Bank has adequate specifically address alternate sources of liquidity, including contingent sources, for liquidity to meet its funding needs in light of the Bank’s needs“troubled condition” status and resulting restrictions on “brokered deposits” imposed by 12 C.F.R. § 337.6.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank The Board shall document in the written liquidity report facts that demonstrate review the Bank’s compliance with 12 C.F.R. §§ 223.3(j's liquidity on a monthly basis. Such reviews shall consider:
(a) a maturity schedule of certificates of deposit, including large uninsured deposits;
(b) the volatility of demand deposits including escrow deposits;
(c) the amount and 223.42(ltype of loan commitments and standby letters of credit;
(d) an analysis of Regulation W.the continuing availability and volatility of present funding sources;
(e) an analysis of the impact of decreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(f) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(g) geographic disbursement of and risk from brokered deposits.
(5) The Bank Board shall provide take appropriate action to ensure adequate sources of liquidity in relation to the OCC copies of the monthly servicing Bank's needs. Monthly reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities shall set forth liquidity requirements and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies sources and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by incorporate the Bank.
(6) The Board ’s revised contingency plan. Copies of these monthly reports shall by the fifteenth (15th) of each month forward be forwarded to the OCC Assistant Deputy Comptroller on a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Articlequarterly basis for review.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Formal Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess maintain the adequacy liquidity of the Bank at a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment of the Bank’s needs and sources of liquidityselling assets;
(b) an assessment obtaining lines of credit from the ability Federal Reserve Bank;
(c) obtaining lines of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of fundingcredit from correspondent banks;
(d) recovering charged-off assets; and
(ce) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board shall require that review the written Bank's liquidity report be prepared on at least a monthly basis. Such reviews shall consider:
(a) the results of management’s analysis of liquidity needs under scenarios involving a range of stress events, including but not limited to:
(i) the bank’s inability to accept additional brokered deposits;
(ii) the inability to obtain unsecured funding;
(iii) increased requirements for collateral pledged to credit-sensitive wholesale funds providers; and
(iv) erosion of deposits.
(b) a maturity schedule of certificates of deposit, including large uninsured deposits;
(c) the volatility of deposits;
(d) the amount and more frequently if any event has occurred that might significantly affect the ability type of loan commitments and standby letters of credit;
(e) an analysis of the parent to continue to fund continuing availability and volatility of present funding sources;
(f) an analysis of the daily purchase impact of receivablesdecreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(g) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(h) concentration limits for wholesale funding.
(3) The Board shall immediately take any measures indicated by the liquidity assessment appropriate action to assure that the Bank has ensure adequate sources of liquidity, including contingent sources, for liquidity in relation to the Bank's needs. Monthly reports shall set forth liquidity requirements and sources as well as establish a contingency plan. Copies of these reports shall be forwarded to the Assistant Deputy Comptroller in the Bank’s needs.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document in the written liquidity monthly report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.
(5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the BankAssistant Deputy Comptroller.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess immediately increase the adequacy liquidity of the Bank to a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment obtaining lines of credit from the Federal Reserve Bank’s needs and sources of liquidity;
(b) an assessment obtaining lines of the ability of the parent, credit from correspondent ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding;
(c) recovering charged-off assets; and
(cd) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board Bank shall require immediately revise and reduce its liquidity policy limits for wholesale funding to a level that is in accordance with guidance from the written liquidity report be prepared on at least a monthly basis, and more frequently if any event has occurred that might significantly affect the ability of the parent to continue to fund the daily purchase of receivablesComptroller.
(3) The Board Bank shall immediately take any measures indicated by the revise its liquidity assessment contingency plan to assure that the Bank has adequate specifically address alternate sources of liquidity, including contingent sources, for liquidity to meet its funding needs in light of the Bank’s needs“troubled condition” status and resulting restrictions on “brokered deposits” imposed by 12 C.F.R. § 337.6.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank The Board shall document in the written liquidity report facts that demonstrate review the Bank’s compliance with 12 C.F.R. §§ 223.3(j's liquidity on a monthly basis. Such reviews shall consider:
(a) a maturity schedule of certificates of deposit, including large uninsured deposits;
(b) the volatility of demand deposits including escrow deposits;
(c) the amount and 223.42(ltype of loan commitments and standby letters of credit;
(d) an analysis of Regulation W.the continuing availability and volatility of present funding sources;
(e) an analysis of the impact of decreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(f) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(g) geographic disbursement of and risk from brokered deposits.
(5) The Bank Board shall provide take appropriate action to ensure adequate sources of liquidity in relation to the OCC copies of the monthly servicing Bank's needs. Monthly reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities shall set forth liquidity requirements and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies sources and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by incorporate the Bank.
(6) The Board ’s revised contingency plan. Copies of these monthly reports shall by the fifteenth (15th) of each month forward be forwarded to the OCC Assistant Deputy Comptroller on a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Articlequarterly basis for review.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Formal Agreement
Liquidity. (1) Within thirty sixty (3060) days, the Board shall establish review and revise as necessary, and thereafter ensure Bank adherence, to a written process to assess the adequacy of the Bank’s funding sources on an ongoing basisLiquidity Policy. This process shall produce a written liquidity report that includesThe Liquidity Policy shall:
(a) an assessment of ensure adequate liquidity reports that accurately and effectively identify, measure, monitor and control the Bank’s needs liquidity position, including:
(i) a sources and uses report that shows the volume and timing of expected sources and uses of liquidity;funds and related trends over a reasonable time horizon (e.g., 30, 60, and 90 days); and
(ii) a rollover risk report that focuses on those funds with contractual maturities (e.g., Fed Funds Purchased, Correspondent Lines, Repos, Certificates of Deposit, Federal Home Loan Bank (FHLB) advances); and
(b) an assessment set limits on key liquidity measures including, but not limited to, wholesale funding, FHLB advances, and non-agency mortgage related securities (e.g., CMOs, MBS), regardless of the ability of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding; and
(c) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketstheir involvement in any leverage transaction.
(2) The Within sixty (60) days, the Board shall require that the written liquidity report be prepared on at least a monthly basisreview and revise as necessary, and more frequently if any event has occurred that might significantly affect the ability thereafter ensure Bank adherence to, a written Liquidity Plan. The Liquidity Plan shall, at a minimum:
(a) implement a sources and uses statement to accurately identify actual and anticipated sources and uses of the parent bank's funds over short time periods; and
(b) include important factors detailed in an extensive Contingency Funding Plan, such as removing brokered deposits as a source of funds from the crisis scenario to continue to fund the daily purchase of receivablespaint a more realistic scenario during a crisis situation.
(3) The Board A copy of the Board’s revised written Liquidity Policy and Liquidity Plan shall immediately take any measures indicated by be submitted to the liquidity assessment to assure that Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank has adequate sources of liquidity, including contingent sources, for shall implement and adhere to the Bank’s needsprogram.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W Notwithstanding paragraphs (12 C.F.R. Part 2231), the Bank shall document in the written liquidity report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j(2) and 223.42(l) of Regulation W.
(5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the Bank.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) orthe bank shall not exceed the level of brokered deposits, as measured by the bank’s total dollar volume of brokered
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty (30) days, the The Board shall establish a written process to assess ensure the adequacy liquidity of the Bank is maintained at a level that is sufficient to sustain the Bank’s 's current operations and to withstand any anticipated or extraordinary demand against its funding sources on an ongoing basisbase. This process shall produce a written liquidity report that includesSuch actions may include, but are not necessarily limited to:
(a) an assessment of the Bank’s needs and sources of liquidityselling assets;
(b) an assessment obtaining lines of credit from the ability Federal Reserve Bank;
(c) obtaining lines of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of fundingcredit from correspondent banks;
(d) recovering charged-off assets; and
(ce) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketsinjecting additional equity capital.
(2) The Board shall require that continue to review the written Bank's liquidity report be prepared on at least a monthly basis. Such reviews shall consider:
(a) a maturity schedule of certificates of deposit, including large uninsured deposits;
(b) the volatility of demand deposits including escrow deposits;
(c) the amount and more frequently if any event has occurred that might significantly affect the ability type of loan commitments and standby letters of credit;
(d) an analysis of the parent to continue to fund continuing availability and volatility of present funding sources;
(e) an analysis of the daily purchase impact of receivablesdecreased cash flow from the Bank's loan portfolio resulting from delinquent and non-performing loans;
(f) an analysis of the impact of decreased cash flow from the sale of loans or loan participations; and
(g) geographic disbursement of and risk from brokered deposits.
(3) The Within ninety (90) days, the Board shall immediately take any measures indicated by develop and implement a formal Liquidity Contingency Funding Plan. At a minimum, the liquidity assessment Contingency Funding Plan should include:
(a) identification of loans that could be sold;
(b) potential buyers and volumes they are willing to assure that acquire;
(c) use of the CDARS program;
(d) expansion of the ALCO policy to set limits on total deposits from the CDARS program, including maximum limits for the aggregate reciprocal deposits and individual depositors in the reciprocal placement program;
(e) the role of wholesale funding;
(f) actions the Bank has adequate sources will take if a single or multiple wholesale lines become unavailable;
(g) trigger points for implementing the plan or escalating liquidity oversight by management, ALCO, or the Board in anything less than a crisis situation; and
(h) specifically identified benchmarks where oversight of liquidity, including contingent sources, for liquidity is increased to ensure that timely actions are taken before the Bank’s needsBank is in a crisis situation.
(4) To The Board shall take appropriate action to maintain adequate sources of liquidity in relation to the extent that Bank's needs. Monthly reports shall set forth liquidity requirements and sources. Copies of these reports shall be forwarded to the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W (12 C.F.R. Part 223), the Bank shall document Assistant Deputy Comptroller in the written liquidity report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j) and 223.42(l) of Regulation W.
(5) The Bank shall provide report to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the BankAssistant Deputy Comptroller.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (5) of this Article.
(7) Within thirty (30) days, the Bank shall make good faith, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇, Inc., in a form to which the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as of the date of the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined in paragraph (13) of this Article, in an amount (for Liquid Assets in Categories (IV) or
Appears in 1 contract
Sources: Banking Agreement
Liquidity. (1) Within thirty sixty (3060) days, the Board shall establish review and revise as necessary, and thereafter ensure Bank adherence, to a written process to assess the adequacy of the Bank’s funding sources on an ongoing basisLiquidity Policy. This process shall produce a written liquidity report that includesThe Liquidity Policy shall:
(a) an assessment of ensure adequate liquidity reports that accurately and effectively identify, measure, monitor and control the Bank’s needs liquidity position, including:
(i) a sources and uses report that shows the volume and timing of expected sources and uses of liquidity;funds and related trends over a reasonable time horizon (e.g., 30, 60, and 90 days); and
(ii) a rollover risk report that focuses on those funds with contractual maturities (e.g., Fed Funds Purchased, Correspondent Lines, Repos, Certificates of Deposit, Federal Home Loan Bank (FHLB) advances); and
(b) an assessment set limits on key liquidity measures including, but not limited to, wholesale funding, FHLB advances, and non-agency mortgage related securities (e.g., CMOs, MBS), regardless of the ability of the parent, ▇▇▇▇▇▇▇’▇, Inc., to continue to fund the daily purchase of receivables, including an analysis of the parent’s access to current sources of funding and the parent’s access to contingency sources of funding; and
(c) an assessment of the performance of the receivables originated and serviced by the Bank, with an analysis of its impact on the parent’s funding sources, such as access to the securitization marketstheir involvement in any leverage transaction.
(2) The Within sixty (60) days, the Board shall require that the written liquidity report be prepared on at least a monthly basisreview and revise as necessary, and more frequently if any event has occurred that might significantly affect the ability thereafter ensure Bank adherence to, a written Liquidity Plan. The Liquidity Plan shall, at a minimum:
(a) implement a sources and uses statement to accurately identify actual and anticipated sources and uses of the parent bank’s funds over short time periods; and
(b) include important factors detailed in an extensive Contingency Funding Plan, such as removing brokered deposits as a source of funds from the crisis scenario to continue to fund the daily purchase of receivablespaint a more realistic scenario during a crisis situation.
(3) The Board A copy of the Board’s revised written Liquidity Policy and Liquidity Plan shall immediately take any measures indicated by be submitted to the liquidity assessment to assure that Assistant Deputy Comptroller for review and prior written determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Bank has adequate sources of liquidity, including contingent sources, for shall implement and adhere to the Bank’s needsprogram.
(4) To the extent that the Bank relies on the exemption for “intraday” extensions of credit to comply with 12 U.S.C. § 371c, as implemented by Regulation W Notwithstanding paragraphs (12 C.F.R. Part 2231), the Bank shall document in the written liquidity report facts that demonstrate the Bank’s compliance with 12 C.F.R. §§ 223.3(j(2) and 223.42(l) of Regulation W.
(5) The Bank shall provide to the OCC copies of the monthly servicing reports for ▇▇▇▇▇▇▇’▇, Inc.’s securitization activities and credit quality reports for off-book credit card receivables. The reports to be provided under this paragraph also include reports providing credit performance metrics, for example delinquencies and charge-offs, and any other asset quality reports that management uses to monitor the performance of the credit card receivables serviced by the Bank.
(6) The Board shall by the fifteenth (15th) of each month forward to the OCC a copy of the liquidity report, and a description of any actions to be taken in response to that report, along with copies of the reports described in paragraph (53) of this Article.
(7) Within thirty (30) days, the Bank bank shall make good faithnot exceed the level of brokered deposits, reasonable efforts to enter into a Capital Assurance and Liquidity Maintenance Agreement (“CALMA”) with ▇▇▇▇▇▇▇’▇as measured by the bank’s total dollar volume of brokered deposits, Inc., in a form to which on the OCC has no supervisory objection, that: (i) ensures that the Bank establishes and maintains the minimum capital required pursuant to 12 C.F.R. Part 3, Appendix A; and (ii) ensures that the Bank establishes and maintains the Liquidity Reserve Deposit (“LRD”) Requirement described in paragraph (9) of this Article. The Bank shall immediately provide the OCC with a copy of all board minutes, notes, correspondence, and e-mails evidencing its good faith, reasonable efforts to enter into a CALMA with ▇▇▇▇▇▇▇’▇, Inc., including all communications, in any form, received from ▇▇▇▇▇▇▇’▇, Inc.
(8) The Bank shall be required to comply with the requirements of paragraph (9) of this Article upon the occurrence of any of the following (hereinafter “Liquidity Triggering Events”):
(i) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A3 or higher assigned by ▇▇▇▇▇’▇; (ii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Standard & Poor’s; (iii) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a long-term unsecured debt rating of A- or higher assigned by Fitch Ratings; (iv) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of P-1 from ▇▇▇▇▇’▇; (v) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of A-1 from Standard & Poor’s; (vi) ▇▇▇▇▇▇▇’▇, Inc. does not maintain a short-term debt rating of F-1 from Fitch Ratings; or (vii) any event related to declining performance in the receivables that results in an early amortization event or the reallocation of excess spread for the benefit of the certificate holders in a spread account or cash collateral account. Subject to prior written supervisory non-objection, a Liquidity Triggering Event may be cured when: the relevant debt ratings of ▇▇▇▇▇▇▇’▇, Inc. have sufficiently improved and are sustained for a consecutive six (6) month period; there has been no early amortization or reallocation of excess spread occurring for a consecutive six (6) month period; and no other Liquidity Triggering Event has occurred for a consecutive six (6) month period, after which the Bank is not required to comply with the requirements of paragraph (9) of this Article. In the case of a Liquidity Triggering Event under item (vii) above, the Bank shall comply with the requirements of paragraph (9) of this Article prior to the placement or setting aside of funds for a spread account or cash collateral account. Due to the debt rating of ▇▇▇▇▇▇▇’▇, Inc. as of the effective date of this Agreement, a Liquidity Triggering Event has occurred and has not been cured.
(9) Within twenty (20) days, because a Liquidity Triggering Event has occurred as without obtaining the prior written determination of no supervisory objection from the date of Assistant Deputy Comptroller. “Brokered deposit” shall have the Agreement and has not been cured, and within ten (10) days after the occurrence of any subsequent Liquidity Triggering Event, the Bank shall enter into an agreement (hereinafter the “LRD Agreement”) with a third party insured depository institution or a Federal Reserve Bank (“Depository Bank”) and the OCC, whereby the Bank will maintain Liquid Assets, as defined meaning set forth in paragraph (13) 12 C.F.R. § 337.6(a)(2). The limitation of this Articleparagraph shall include the acquisition of Brokered Deposits through any transfer, in an amount (for Liquid Assets in Categories (IV) orpurchase, or sale of assets, including Federal funds transactions administered through a deposit broker.
Appears in 1 contract