Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 18

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 18
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the
other
hand,
and
that
impose
collateralization
requirements
on
such
credit 
extensions. A bank may not engage in any covered transaction if the aggregate amount of the bank’s covered transactions with that 
affiliate would exceed 10% of
the bank’s capital stock and
surplus or the aggregate amount of
the bank’s covered transactions with 
all non-bank affiliates would exceed 20%
of the bank’s capital stock and
surplus. In addition, any transaction between BPPR
or PB, 
on the one
hand, and Popular,
PNA or any
of our other
non-banking subsidiaries, on
the other,
is required to
be carried out
on an 
arm’s length basis. 
Source of Financial Strength
The
Dodd-Frank Act
requires bank
holding companies,
such
as Popular
and
PNA, to
act
as
a source
of
financial
and 
managerial strength to their subsidiary banks. Popular
and PNA are expected to commit resources
to support their subsidiary banks, 
including at times when Popular
and PNA may not be
in a financial position to
provide such resources. Any capital loans
by a bank 
holding company
to any
of its
subsidiary depository
institutions are
subordinated in
right of
payment to
depositors and
to certain 
other indebtedness of such subsidiary depository institution. In the
event of a bank holding company’s bankruptcy,
any commitment 
by
the
bank
holding
company
to
a
federal
banking
agency
to
maintain
the
capital
of
a
subsidiary
depository
institution
will
be 
assumed by
the bankruptcy
trustee and
entitled to
a priority
of payment.
BPPR and
PB are
currently the
only insured
depository 
institution subsidiaries of Popular and PNA. 
Resolution Planning and Resolution-Related Requirements 
A 
bank holding
company with
$250 billion
or more
in total
consolidated assets
(or that
is a
Category III
firm based
on 
certain risk-based indicators described in the Tailoring
Rules) is required to report periodically to the FDIC
and the Federal Reserve 
Board
such
company’s
plan
for
its
rapid
and
orderly
resolution