What is the process an entity must follow to establish or increase its limit on guaranteed senior unsecured debt?
The procedures to establish or increase a cap (or limit) under the Debt Guarantee Program are outlined in 12 CFR 370.3(h). That section requires written application to the FDIC and the appropriate Federal banking agency of the entity or the entity’s lead affiliated insured depository institution. The letter application must describe the details of the request, provide a summary of the applicant’s strategic operating plan, and describe the proposed use of the debt proceeds. Applications must be in letter form and addressed to the Director, Division of Supervision and Consumer Protection, Federal Deposit Insurance Corporation, 550 17th Street, N.W., Washington, DC 20429. In evaluating applications from eligible entities to either increase or establish a cap, the FDIC will consider: the financial condition and supervisory history of the eligible entity. In evaluating applications from a non-bank affiliate to participate in the Debt Guarantee Program, the FDIC will consider: the extent of
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