615.5270—Retirement of other equities.
(b)
No equities shall be retired, except pursuant to §§ 615.5280 and 615.5290, or term stock at its stated maturity unless after the retirement the institution would continue to meet the minimum permanent capital standards established under subpart H of this part.
(c)
A bank, association, or service corporation board of directors may delegate authority to retire at-risk stock to institution management if:
(2)
All retirements are in accordance with the institution's capital adequacy plan or capital restoration plan;
(4)
The institution will continue to satisfy all applicable minimum surplus and collateral standards after any retirements; and
(5)
Management reports the aggregate amount and net effect of stock purchases and retirements to the board of directors each quarter.
(d)
Each board of directors of a bank, association, or service corporation that issues preferred stock must adopt a written policy covering the retirement of preferred stock. The policy must, at a minimum:
(1)
Establish any delegations of authority to retire preferred stock and the conditions of delegation, which must meet the requirements of paragraph (c) of this section and include minimum levels for total surplus and core surplus commensurate with the volatility of the preferred stock.
(2)
Identify limitations on the amount of stock that may be retired during a single quarterly (or shorter) time period;
(4)
Prohibit any insider, including institution officers, directors, employees, or agents, from retiring any preferred stock in advance of the release of material non-public information concerning the institution to other stockholders; and
(e)
The institution's board must review its policy at least annually to ensure that it continues to be appropriate for the institution's current financial condition and consistent with its long-term goals established in its capital adequacy plan.