12 CFR § 303.203 - Applications for capital distributions.

---
identifier: "/us/cfr/t12/s303.203"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 303.203 - Applications for capital distributions."
title_number: 12
title_name: "Banks and Banking"
section_number: "303.203"
section_name: "Applications for capital distributions."
chapter_name: "FEDERAL DEPOSIT INSURANCE CORPORATION"
subchapter_number: "A"
subchapter_name: "PROCEDURE AND RULES OF PRACTICE"
part_number: "303"
part_name: "FILING PROCEDURES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 378, 1464, 1813, 1815, 1817, 1818, 1819(a) (Seventh and Tenth), 1820, 1823, 1828, 1829, 1831a, 1831e, 1831 1831p-1, 1831w, 1835a, 1843(l), 3104, 3105, 3108, 3207, 5414, 5415, and 15 U.S.C. 1601-1607."
regulatory_source: "67 FR 79247, Dec. 27, 2002, unless otherwise noted."
cfr_part: "303"
---


# 303.203 Applications for capital distributions.

(a) *Scope.* An FDIC-supervised institution shall submit an application for a capital distribution if, after having made a capital distribution, the institution would be undercapitalized, significantly undercapitalized, or critically undercapitalized.

(b) *Content of filing.* An application to repurchase, redeem, retire, or otherwise acquire shares or ownership interests of the FDIC-supervised institution shall describe the proposal, the shares or obligations that are the subject thereof, and the additional shares or obligations of the institution that will be issued in at least an amount equivalent to the distribution. The application also shall explain how the proposal will reduce the institution's financial obligations or otherwise improve its financial condition. If the proposed action also requires an application under § 303.241 of this part regarding prior consent to retire capital, such application should be filed concurrently with, or made a part of, the application filed pursuant to section 38 of the FDI Act (12 U.S.C. 1831*o*).

[85 FR 3245, Jan. 21, 2020]