Application Guidelines for Small Bank Extension of the 

TARP Capital Purchase Program

This application is used to request participation in the Treasury Capital Purchase Program (CPP). 

Under the CPP, the U.S. Department of the Treasury (Treasury) may purchase qualifying capital in 

U.S. banking organizations. 

The application must be submitted to the appropriate Federal banking agency (FBA) for the 

applicant. If the applicant is a bank holding company, the application should be submitted to both 

the applicant's holding company supervisor and the supervisor of the largest insured depository 

institution controlled by the applicant. All inquiries regarding preparation of the application should 

be directed to the appropriate FBA for the applicant. All applications must be submitted no later 

than 5pm (EST), November 21, 2009. 

More detailed information, including submission instructions, can be found at the applicable FBA’s 

website: 

1. For the Federal Deposit Insurance Corporation: www.fdic.gov

2. For the Federal Reserve: www.federalreserve.gov 

3. For the Office of the Comptroller of the Currency: www.occ.treas.gov

4. For the Office of Thrift Supervision: www.ots.treas.gov

The terms of the CPP are described generally in this application. However, this description is not 

binding on the Treasury and is intended to provide general information only. The actual terms and 

conditions of the CPP are contained in documentation that will be available from the Treasury 

Department on its web site at http://www.treas.gov/initiatives/eesa/. 

Eligible Institutions

The CPP is available to bank holding companies, financial holding companies, insured depository 

institutions and savings and loan holding companies that engage solely or predominately in 

activities that are permissible for financial holding companies under relevant law. To qualify, the 

applicant must be established and operating in the United States and may not be controlled by a 

foreign bank or company. 

Institutions must consult with their appropriate FBA prior to submitting this application. 
 

Certain Conditions for Participation in the CPP

To be eligible for the CPP, the applicant must receive the approval of the Treasury. In addition, the 

applicant must agree to certain terms and conditions and make certain representations and 

warranties described in various agreements prepared by the Treasury and available on Treasury’s 

website. A summary term sheet is currently available on Treasury’s website and a detailed 

investment agreement and associated documentation will be posted soon. Each applicant must 

obtain and review a copy of these agreements and agree to all of the terms and conditions, including 

representations and warranties, contained in these agreements. In the event the applicant files an 

application with the appropriate FBA prior to the availability of the investment agreement, the 

applicant must file an amended application which includes updated responses to any items in the 

application that required prior review of the investment agreement. 

In the event that an applicant cannot, by November 21, 2009, take action to be in compliance with 

all of the terms and conditions, including the representations and warranties, contained in the 

Treasury agreements, the applicant must provide an explanation of the condition or conditions that 

cannot be met and the reasons the condition or conditions cannot be met. This explanation must be 

attached to the application. Failure to agree to all terms and conditions may result in 

disqualification from the CPP. 

If the applicant receives preliminary approval to participate in the CPP from the Treasury, the 

applicant will have 30 days from the date of notification to submit the investment agreements and 

related documentation. 

Among the conditions to participation in the CPP is the requirement that, for so long as the Treasury 

owns shares or warrants in the applicant, certain senior officers of the applicant meet standards 

established by the Treasury for executive compensation in certain circumstances. These standards 

are explained on the Treasury web site at: 

http://www.treas.gov/initiatives/eesa/executivecompensation.shtml. 

For the first three years that the Treasury owns shares or warrants in the applicant, the applicant 

may not increase its dividend payments on common shares without the permission of the Treasury. 

In addition, the applicant may not repurchase or redeem any junior preferred shares, preferred 

shares ranking pari passu with the Senior Preferred, trust preferred, or common shares (other than 

in connection with certain employee benefit programs) during the first three years of the investment 

without the permission of the Treasury. 

Form of Capital Qualifying for Purchase

All capital purchases will occur at the highest-tier holding company in cases in which the banking 

organization has a bank holding company or a savings and loan holding company. In these cases, 

the capital eligible for purchase by the Treasury under the CPP is cumulative perpetual preferred 

stock of the highest tier holding company. The shares must be pari passu with the most senior 

perpetual preferred shares available by the applicant. 

In the case of an insured depository institution that is not controlled by a company, the capital 

eligible for purchase by the Treasury under the CPP is non-cumulative perpetual preferred stock of 
 

the insured depository institution. The shares must be pari passu with the most senior perpetual 

preferred shares available by the applicant. 

The maximum amount of capital eligible for purchase by the Treasury under the CPP is the lesser of 

(i) an amount equal to 5 percent of the Total Risk-Weighted Assets of the applicant or (ii) $25 

billion. The minimum amount eligible for purchase under the CPP is the amount equal to 1 percent 

of the Total Risk-Weighted Assets of the applicant. All measurements will be based on the 

information contained in the latest quarterly supervisory report filed by the applicant with its 

appropriate FBA, updated to reflect events materially affecting the financial condition of the 

applicant occurring since the filing of such report. 

The shares purchased by the Treasury will have a dividend rate of 5 percent per year until the fifth 

anniversary of the date of the investment and a dividend rate of 9 percent per year thereafter. 

Dividends not paid must cumulate over the life of the investment in the case of shares purchased 

from a holding company for an insured depository institution. 

In all cases, the Treasury also must obtain warrants for common stock of the applicant. The terms 

of the warrants are explained in the Treasury agreements available on the Treasury web site. In 

general, the warrants must be convertible into an amount of common stock of the applicant 

equivalent in value to 15 percent of the amount of the capital purchased by the Treasury from the 

applicant under the CPP, calculated based on the average of closing prices of the common stock on 

the 20 trading days ending on and including the last trading day prior to the date on which the 

applicant is granted preliminary approval by the Investment Committee.

Other Information

The applicant must identify and describe any mergers, acquisitions, or other capital raisings that are 

currently pending or are under negotiation and the expected consummation date. 

Confidentiality

Any applicant desiring confidential treatment of specific portions of the application must submit a 

request in writing with the application. The request must discuss the justification for the requested 

treatment. The applicant's reasons for requesting confidentiality should specifically demonstrate the 

harm (for example, loss of competitive position, invasion of privacy) that would result from public 

release of information (5 U.S.C. 552). Information for which confidential treatment is requested 

should be: (1) specifically identified in the public portion of the application (by reference to the 

confidential section); (2) separately bound; and (3) labeled "Confidential." The applicant should 

follow the same procedure when requesting confidential treatment for the subsequent filing of 

supplemental information to the application. 

The applicant should contact the appropriate regulatory agency for specific instructions regarding 

requests for confidential treatment. The appropriate regulatory agency will determine whether the 

information will be treated as confidential and will advise the applicant of any decision to make 

available to the public information labeled as "Confidential." 
 

OMB Control No. 1505-0205 

 (Expires 3/31/2009)

 

Application for TARP Capital Purchase Program (CPP)

Please complete the following information and follow the submission instructions as described on 

your Federal banking agency’s website. In addition to completing the information on this form, 

please provide a description of any mergers, acquisitions, or other capital raisings that are currently 

pending or are under negotiation and the expected consummation date (no longer than 1 page). 

In the event the applicant files an application with the appropriate Federal banking agency prior to 

the availability of the investment agreement, the applicant must file an amended application which 

includes updated responses to any items in the application that required prior review of the 

investment agreement. 

Institution Name: 

Address of Institution: 

Primary Contact Name: 

Primary Contact Phone Number: 

Primary Contact Fax Number: 

Primary Contact Email Address: 

Secondary Contact Name: 

Secondary Contact Phone Number: 

Secondary Contact Fax Number: 

Secondary Contact Email Address: 

RSSD, Holding Company Docket 

Number and / or FDIC Certificate 

Number, As Relevant: 
 

OMB Control No. 1505-0205 

 (Expires 3/31/2009)

Amount of Preferred Shares 

Requested: 

Amount Of Institution’s Authorized 

But Unissued Perpetual Preferred 

Stock Available For Purchase: 

Amount Of Institution’s Authorized 

But Unissued Common Stock: 

Amount Of Total Risk-Weighted 

Assets As Reported On The 

Holding Company’s Or Applicable 

Institution’s Most Recent FR-Y9, 

Call Report, Or TFR, As Relevant: 

Institution Has Reviewed The 

Investment Agreements And 

Related Documentation On 

Treasury’s Website (Yes/No): 

Describe Any Condition, Including 

A Representation Or Warranty, 

Contained In The Investment 

Agreements And Related 

Documentation, The Institution 

Believes it Cannot Comply With By 

November 21, 2009 And Provide A 

Timeline For Reaching 

Compliance1: 

Type of Company2: 

Signature of Chief Executive 

Officer (or Authorized Designee): 

Date of Signature: 

 

1

 May be provided as an attachment, no longer than 1 page 

2

 Publicly Traded Stock Company; Stock Company Without Publicly Traded Shares; Other (please specify)