Common use of Prior Notice to Appropriate Federal Banking Agency of Sanctions Clause in Contracts

Prior Notice to Appropriate Federal Banking Agency of Sanctions. Prior to imposing or exercising any sanction(s) under Section 6.2 herein, the CDFI Fund will provide the Appropriate Federal Banking Agency with written notice of the proposed remedy (or remedies). Moreover, the CDFI Fund will not impose or exercise any proposed remedy (or remedies) if the Appropriate Federal Banking Agency, in writing, not later than 30 calendar days after receiving the notice from the CDFI Fund of any proposed remedy (or remedies) against the Recipient, takes all of the following actions: (i) Objects to the proposed remedy (or remedies); (ii) Determines that the remedy (or remedies) would: a. Have a material adverse effect on the safety and soundness of the Recipient; or b. Impede or interfere with an enforcement action against the Recipient by the Appropriate Federal Banking Agency; (iii) Proposes a comparable alternative action; and (iv) Specifically explains: a. The basis for the determination made pursuant to this section, and, if appropriate, provides documentation to support the determination; and b. How the alternative action proposed would be as effective as the remedy (or remedies) proposed by the CDFI Fund in securing compliance and deterring future noncompliance.