The purpose of this part is to implement section 1318(e) of the Safety and Soundness Act (12 U.S.C. § 4518(e)) by setting forth the factors that the Director will take into consideration in determining whether to limit or prohibit golden parachute payments and agreements and by setting forth conditions for prohibited and permissible indemnification payments that regulated entities and the Office of Finance (OF) may make to affiliated parties.

Terms Used In 12 CFR 1231.1

  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC

[83 FR 65289, Dec. 20, 2018]

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