# 12 C.F.R. § 303.206 (2026): Application for payment of principal or interest on subordinated debt

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_206

## Section

- **Citation:** 12 C.F.R. § 303.206 (2026)
- **Heading:** Application for payment of principal or interest on subordinated debt
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter III: FEDERAL DEPOSIT INSURANCE CORPORATION / Part 303: FILING PROCEDURES / Subpart K: Prompt Corrective Action / § 303.206: § 303.206   Application for payment of principal or interest on subordinated debt.

## Text

(a)
Scope.
Any critically undercapitalized insured depository institution shall submit an application to pay principal or interest on subordinated debt.
(b)
Content of filing.
Applications shall describe the proposed payment and provide an explanation of action taken under section 38(h)(3)(A)(ii) of the FDI Act (action other than receivership or conservatorship). The application also shall explain how such payments would further the purposes of section 38 of the FDI Act (12 U.S.C. 1831
o
). Existing approvals pursuant to requests filed under section 18(i)(1) of the FDI Act (12 U.S.C. 1828(i)(1)) (capital stock reductions or retirements) shall not be deemed to be the permission needed pursuant to section 38.

## Nearby sections

- [12 C.F.R. § 303.200 (2026) § 303.200   Scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_200.md)
- [12 C.F.R. § 303.201 (2026) § 303.201   Filing procedures.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_201.md)
- [12 C.F.R. § 303.202 (2026) § 303.202   Processing.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_202.md)
- [12 C.F.R. § 303.203 (2026) § 303.203   Applications for capital distributions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_203.md)
- [12 C.F.R. § 303.204 (2026) § 303.204   Applications for acquisitions, branching, and new lines of business.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_204.md)
- [12 C.F.R. § 303.205 (2026) § 303.205   Applications for bonuses and increased compensation for senior executive officers.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_205.md)
- [12 C.F.R. § 303.206 (2026) § 303.206   Application for payment of principal or interest on subordinated debt.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_206.md)
- [12 C.F.R. § 303.207 (2026) § 303.207   Restricted activities for critically undercapitalized institutions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_207.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P303_S303_206. Check the current official text before relying on it. Not legal advice.