Common use of Prompt Corrective Action Clause in Contracts

Prompt Corrective Action. Under certain net worth classifications (see 12 CFR 702.204(b)(11), 702.304(b) and 702.305(b), as the case may be), the NCUA Board may prohibit [name of Credit Union] from paying principal, dividends or interest on its uninsured secondary capital accounts established after August 7, 2000, except that unpaid dividends or interest will continue to accrue under the terms of the account to the extent permitted by law. ACKNOWLEDGED AND AGREED TO this day of , 2010 by: Name: Title: United States Department of the Treasury 0000 Xxxxxxxxxxxx Xxxxxx, XX Xxxxxxxxxx, X.X. 00000 Attention: Chief Counsel, Office of Financial Stability Name: Title: [CREDIT UNION] In connection with that certain letter agreement, dated [ ], 2010 (the “Agreement”) by and between [CREDIT UNION] (the “Credit Union”) and the United States Department of the Treasury (“Investor”) which incorporates that certain Securities Purchase Agreement – Standard Terms referred to therein (the “Standard Terms”), the undersigned does hereby certify as follows: 1. I am a duly elected/appointed [ ] of the Credit Union.

Prompt Corrective Action. Under certain net worth classifications (see 12 CFR 702.204(b)(11), 702.304(b) and 702.305(b), as the case may be), the NCUA Board may prohibit [name of Credit Union] from paying principal, dividends or interest on its uninsured secondary capital accounts established after August 7, 2000, except that unpaid dividends or interest will continue to accrue under the terms of the account to the extent permitted by law. ACKNOWLEDGED AND AGREED TO this day of , 2010 by: By: Name: Title: United States Department of the Treasury 0000 Xxxxxxxxxxxx Xxxxxx, XX Xxxxxxxxxx, X.X. 00000 Attention: Chief Counsel, Office of Financial Stability By: Name: Title: [CREDIT UNION] In connection with that certain letter agreement, dated [ ], 2010 (the “Agreement”) by and between [CREDIT UNION] (the “Credit Union”) and the United States Department of the Treasury (“Investor”) which incorporates that certain Securities Purchase Agreement – Standard Terms referred to therein (the “Standard Terms”), the undersigned does hereby certify as follows: 1. I am a duly elected/appointed [ ] of the Credit Union.

Prompt Corrective Action. Under certain net worth classifications (see 12 CFR 702.204(b)(11), 702.304(b) and 702.305(b), as the case may be), the NCUA Board may prohibit [name of Credit Union] from paying principal, dividends or interest on its uninsured secondary capital accounts established after August 7, 2000, except that unpaid dividends or interest will continue to accrue under the terms of the account to the extent permitted by law. ACKNOWLEDGED AND AGREED TO this _day of _, 2010 by: Name: Title: United States Department of the Treasury 0000 Xxxxxxxxxxxx Xxxxxx, XX Xxxxxxxxxx, X.X. 00000 Attention: Chief Counsel, Office of Financial Stability Name: Title: [CREDIT UNION] In connection with that certain letter agreement, dated [ ], 2010 (the “Agreement”) by and between [CREDIT UNION] (the “Credit Union”) and the United States Department of the Treasury (“Investor”) which incorporates that certain Securities Purchase Agreement – Standard Terms referred to therein (the “Standard Terms”), the undersigned does hereby certify as follows: 1. I am a duly elected/appointed [ ] of the Credit Union.

Prompt Corrective Action. Under certain net worth classifications (see 12 CFR 702.204(b)(11), 702.304(b) and 702.305(b), as the case may be), the NCUA Board may prohibit [name of Brooklyn Cooperative Federal Credit Union] Union from paying principal, dividends or interest on its uninsured secondary capital accounts established after August 7, 2000, except that unpaid dividends or interest will continue to accrue under the terms of the account to the extent permitted by law. ACKNOWLEDGED AND AGREED TO this day of , 2010 by: Name: Title: United States Department of the Treasury 0000 Xxxxxxxxxxxx Xxxxxx, XX Xxxxxxxxxx, X.X. 00000 Attention: Chief Counsel, Office of Financial Stability Name: Title: [CREDIT UNION] In connection with that certain letter agreement, dated [ ], 2010 (the “Agreement”) by and between [CREDIT UNION] Brooklyn Cooperative Federal Credit Union (the “Credit Union”) and the United States Department of the Treasury (“Investor”) which incorporates that certain Securities Purchase Agreement – Standard Terms referred to therein (the “Standard Terms”), the undersigned does hereby certify as follows: 1. I am a duly elected/appointed [ ] of the Credit Union.

Prompt Corrective Action. Under certain net worth classifications (see 12 CFR 702.204(b)(11), 702.304(b) and 702.305(b), as the case may be), the NCUA Board may prohibit [name of Credit Union] from paying principal, dividends or interest on its uninsured secondary capital accounts established after August 7, 2000, except that unpaid dividends or interest will continue to accrue under the terms of the account to the extent permitted by law. [SIGNATURE PAGE FOLLOWS] ACKNOWLEDGED AND AGREED TO this day of , 2010 by: Name: Title: United States Department of the Treasury 0000 Xxxxxxxxxxxx Xxxxxx, XX Xxxxxxxxxx, X.X. 00000 Attention: Chief Counsel, Office of Financial Stability Name: Title: [CREDIT UNION] In connection with that certain letter agreement, dated [ ], 2010 (the “Agreement”) by and between [CREDIT UNION] (the “Credit Union”) and the United States Department of the Treasury (“Investor”) which incorporates that certain Securities Purchase Agreement – Standard Terms referred to therein (the “Standard Terms”), the undersigned does hereby certify as follows: 1. I am a duly elected/appointed [ ] of the Credit Union.

Prompt Corrective Action. Under certain net worth classifications (see 12 CFR 702.204(b)(11), 702.304(b) and 702.305(b), as the case may be), the NCUA Board may prohibit [name of Credit Union] from paying principal, dividends or interest on its uninsured secondary capital accounts established after August 7, 2000, except that unpaid dividends or interest will continue to accrue under the terms of the account to the extent permitted by law. ACKNOWLEDGED AND AGREED TO this day of , 2010 by: Name: Title: United States Department of the Treasury 0000 Xxxxxxxxxxxx Xxxxxx, XX Xxxxxxxxxx, X.X. 00000 Attention: Chief Counsel, Office of Financial Stability Name: Title: UST Sequence No. 1441 [CREDIT UNION] In connection with that certain letter agreement, dated [ ], 2010 (the “Agreement”) by and between [CREDIT UNION] (the “Credit Union”) and the United States Department of the Treasury (“Investor”) which incorporates that certain Securities Purchase Agreement – Standard Terms referred to therein (the “Standard Terms”), the undersigned does hereby certify as follows: 1. I am a duly elected/appointed [ ] of the Credit Union.