Whether and what you must file with the OTS depends on whether you and your proposed capital distribution fall within certain criteria.
(a) Application required. ------------------------------------------------------------------------
(1) You are not eligible for Must file an application with the OTS.
expedited treatment under
Sec. 516.5 of this chapter.------------------------------------------------------------------------(2) The total amount of all Must file an application with the OTS.
of your capital
distributions (including the
proposed capital
distribution) for the
applicable calendar year
exceeds your net income for
that year to date plus your
retained net income for the
preceding two years.------------------------------------------------------------------------(3) You would not be at least Must file an application with the OTS.
adequately capitalized, as
set forth in Sec.
565.4(b)(2) of this chapter,
following the distribution.------------------------------------------------------------------------(4) Your proposed capital Must file an application with the OTS.
distribution would violate a
prohibition contained in any
applicable statute,
regulation, or agreement
between you and the OTS (or
the Corporation), or violate
a condition imposed on you
in an OTS-approved
application or notice.------------------------------------------------------------------------
(b) Notice required. ------------------------------------------------------------------------
If you are not required to
file an application under
paragraph (a) of this Then you:
(1) You would not be well Must file a notice with the OTS.
capitalized, as set forth
under Sec. 565.4(b)(1),
following the distribution.------------------------------------------------------------------------(2) Your proposed capital Must file a notice with the OTS.
distribution would reduce
the amount of or retire any
part of your common or
preferred stock or retire
any part of debt instruments
such as notes or debentures
included in capital under
part 567 of this chapter
(other than regular payments
required under a debt
instrument approved under
Sec. 563.81).------------------------------------------------------------------------(3) You are a subsidiary of a Must file a notice with the OTS.
savings and loan holding
company.------------------------------------------------------------------------
(c) No prior notice required. ------------------------------------------------------------------------
------------------------------------------------------------------------If neither you nor your Then you do not need to file a notice or
proposed capital an application with the OTS before
distribution meet any of the making a capital distribution.
criteria listed in
paragraphs (a) and (b) of
this section.------------------------------------------------------------------------ [64 FR 2809, Jan. 19, 1999, as amended at 66 FR 13008, Mar. 2, 2001]