12 CFR 340.3 - What are the restrictions on the sale of assets by the FDIC if the buyer wants to finance the purchase with a loan from the FDIC?

Regulations last checked for updates: May 05, 2024

Title 12 - Banks and Banking last revised: Apr 23, 2024

View all text of Part 340 [§ 340.1 - § 340.8]

§ 340.3 - What are the restrictions on the sale of assets by the FDIC if the buyer wants to finance the purchase with a loan from the FDIC?

A person may not borrow money or accept credit from the FDIC in connection with the purchase of any assets of a failed institution from the FDIC if:

(a) There has been a default with respect to one or more obligations totaling in excess of $1,000,000 owed by that person or its associated person; and

(b) The person or its associated person made any fraudulent misrepresentations in connection with any such obligation(s).

authority: 12 U.S.C. 1819 (Tenth), 1821(p)

source: 80 FR 22889, Apr. 24, 2015, unless otherwise noted.

cite as: 12 CFR 340.3