[Code of Federal Regulations]
[Title 12, Volume 4]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR366.4]

[Page 558-559]
 
                       TITLE 12--BANKS AND BANKING
 
           CHAPTER III--FEDERAL DEPOSIT INSURANCE CORPORATION
 
PART 366_MINIMUM STANDARDS OF INTEGRITY AND FITNESS FOR AN FDIC CONTRACTOR--Table of Contents
 
Sec. 366.4  When is there a pattern or practice of defalcation?

    (a) You have a pattern or practice of defalcation under Sec. 
366.3(c) when you, any person that owns or controls you, or any entity 
you own or control has a legal responsibility for the payment on at 
least two obligations that are:
    (1) To one or more insured depository institutions;
    (2) More than 90 days delinquent in the payment of principal, 
interest, or a combination thereof; and
    (3) More than $50,000 each.
    (b) The following are examples of when you have or do not have a 
pattern or practice of defalcation. These examples are not inclusive.
    (1) You have five loans at insured depository institutions. Three of 
them are 90 days past due. Two of the three loans have outstanding 
balances of more than $50,000 each. You have a pattern or practice of 
defalcation.

[[Page 559]]

    (2) You have five loans at insured depository institutions. Two of 
them are 90 days past due. One of the two is with ABC Bank for $170,000. 
The other one is with XYZ bank for $60,000. You have a pattern or 
practice of defalcation.
    (3) You have five loans at insured depository institutions. Three of 
them are 90 days past due. One of the three has an outstanding balance 
of more than $50,000. The other two have outstanding balances of less 
than $50,000. You do not have a pattern or practice of defalcation.
    (4) You have five loans at insured depository institutions. Three of 
them have outstanding balances of more than $50,000. Two of those three 
were 90 days past due but are now current. You do not have a pattern or 
practice of defalcation.