CA-2.1.4A
Subordinated term capital instruments agreed to on a case by case basis by CBB, must meet the following conditions. They must be:
(a) Issued and fully paid;
(b) Neither be secured nor covered by a guarantee of the issuer or related entity or other arrangement that legally or economically enhances the seniority of the claim vis-à-vis bank creditors;
(c) The main features of such instruments must be easily understood and publicly disclosed;
(d) Proceeds must be immediately available without limitation to the issuing bank; and
(e) The bank must have discretion over the amount and timing of distributions, subject only to prior waiver of distributions on the bank's common stock, and banks must have full access to waived payments.
Added: October 2013