Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 127 - MINIMUM CAPITAL STANDARDS › Section 029-127-3 - DEFINITIONS

Current through 2024-29, July 17, 2024
A. "Allowance for loan and lease losses"
				means those general valuation allowances that have been established through
				charges against earnings to absorb losses on loans and lease financing
				receivables. Allowances for loan and lease losses exclude allocated transfer
				risk reserves relating to international lending and specific reserves created
				against identified losses.
B.
				"Common stockholders' equity" means the sum of common stock and related
				surplus, undivided profits, disclosed capital reserves that represent a
				segregation of undivided profits, and foreign currency translation adjustments;
				less net unrealized losses on marketable equity securities.
C. "Financial institution" has the same
				meaning that is set forth in 9-B MRSA13117.
D. "Intangible assets" means those assets
				that are required to be reported as intangible assets in a banking
				institution's "Consolidated Reports of Condition and Income" (Call Report) or
				"Thrift Financial Report," as these reports may from time to time be
				revised.
E. "Minority interests in
				consolidated subsidiaries" means minority interests in equity capital accounts
				of those subsidiaries that have been consolidated for the purpose of computing
				regulatory capital under this regulation, except that minority interests which
				fail to provide meaningful capital support are excluded from this
				definition.
F. "Mortgage servicing
				rights" means those assets that represent the purchased rights to perform the
				servicing function for a specific group of mortgage loans that are owned by
				others. For purposes of determining regulatory capital under this regulation,
				purchased mortgage servicing rights will be recognized only to the extent the
				rights meet the conditions, limitations and restrictions described in Section
				4(F)(2) of this
				regulation.
G. "Noncumulative
				perpetual preferred stock" means perpetual preferred stock (and related
				surplus) where the issuer has the option to waive payment of dividends and
				where the dividends so waived do not accumulate to future periods nor do they
				represent a contingent claim on the issuer.
H. "Perpetual preferred stock" means a
				preferred stock that does not have a maturity date, that cannot be redeemed at
				the option of the holder, and that has no other provisions that will
				automatically require future redemption of the issue. It includes those issues
				of preferred stock that automatically convert into common stock at a stated
				date. It excludes those issues, the rate on which increases, or can increase,
				in such a manner that would effectively require the issuer to redeem the
				issue.
I. "Tier 1 capital" or "core
				capital" means the sum of common stockholders' equity, noncumulative perpetual
				preferred stock, and minority interests in consolidated subsidiaries, minus
				identified losses and minus all intangible assets (other than mortgage
				servicing rights eligible for inclusion in core capital pursuant to paragraph F
				of this section).
J. "Total assets"
				means the average of total assets required to be included in a financial
				institution's Call Report or in a savings and loan association's Thrift
				Financial Report, minus intangible assets (other than mortgage servicing rights
				eligible for inclusion in core capital pursuant to Section
				4(F)(2) ), and less
				assets classified loss and any other assets that are deducted in determining
				Tier 1 capital.