# 12 C.F.R. § 354.5 (2026): Restrictions on industrial bank subsidiaries of Covered Companies

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_5

## Section

- **Citation:** 12 C.F.R. § 354.5 (2026)
- **Heading:** Restrictions on industrial bank subsidiaries of Covered Companies
- **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 354: INDUSTRIAL BANKS / § 354.5: § 354.5   Restrictions on industrial bank subsidiaries of Covered Companies.

## Text

Without the FDIC's prior written approval, an industrial bank that is controlled by a Covered Company shall not:
(a) Make a material change in its business plan after becoming a subsidiary of such Covered Company;
(b) Add or replace a member of the board of directors, board of managers, or a managing member, as the case may be, of the subsidiary industrial bank during the first three years after becoming a subsidiary of such Covered Company;
(c) Add or replace a senior executive officer during the first three years after becoming a subsidiary of such Covered Company;
(d) Employ a senior executive officer who is, or during the past three years has been, associated in any manner (
e.g.,
as a director, officer, employee, agent, owner, partner, or consultant) with an affiliate of the industrial bank; or
(e) Enter into any contract for services material to the operations of the industrial bank (for example, loan servicing function) with such Covered Company or any subsidiary thereof.

## Nearby sections

- [12 C.F.R. § 354.1 (2026) § 354.1   Scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_1.md)
- [12 C.F.R. § 354.2 (2026) § 354.2   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_2.md)
- [12 C.F.R. § 354.3 (2026) § 354.3   Written agreement.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_3.md)
- [12 C.F.R. § 354.4 (2026) § 354.4   Required commitments and provisions of written agreement.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_4.md)
- [12 C.F.R. § 354.5 (2026) § 354.5   Restrictions on industrial bank subsidiaries of Covered Companies.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_5.md)
- [12 C.F.R. § 354.6 (2026) § 354.6   Reservation of authority.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_6.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P354_S354_5. Check the current official text before relying on it. Not legal advice.