YEAROF
ESTABLISHMENT
(SEPT. 1985)
CHANGES (SEPT. 1985~PRESENT)
Exemption
fromOpen
Tender, Price
Comparison,
Price
Negotiation, and
theProvisionsof
Articles25~27of
the
BudgetAct
WhenDisposing
of Problem
Financial
Institutions
None
Added inJanuary1999
Recipient
andMethod
of Financial
Assistance
Limited to loansor the
purchasesof assets
toenableproblem
financial institutions
to resumeoperation,
when such resumption
isdeemednecessary.
•
The following revisionswereeffective inJanuary1999:
1. Insured institutions under guidance, superintendence, or
conservatorship,maybeextended loansordeposits.
2.Other insured institutions that acquire or assume insured
institutions that are under guidance, superintendence, or
conservatorship,or thathave failed,maybeassistedby theCDIC
withprovisionof loans, deposits, funds or guarantees to their
debts.
•
Revised inJanuary2007as follows:
1. Ifan insured institutionhasaseriouslydeficientnetworth,or there
isconcern that it seriously threatens thecreditorderand financial
stability,and thecompetent authorityhasdeterminedaneed for
the institution’s liquidationormarketwithdrawal,personnelmay
bedispatchedtoassumeconservatorshiportakeoverthepowers
of theboardof directors and supervisorsof the institutionprior
to liquidationormarketwithdrawal. In suchcases, theCDICmay
provide loans,depositsorother financial assistance to theabove
mentioned insured institution.
2.Beforeproviding financial assistance, theCDIC shall request the
fullamountofcollateral fromthe financialholdingcompanyof the
insured institutionor fromanyother insured institution that hasa
dominantshareholdingof the insured institution.
3. Incaseswherethecompetentauthorityhasdispatchedpersonnel
toassumeconservatorshipor takeover thepowersof theboard
of directors and supervisorsof an insured institution, theCDIC
mayencourage theacquisitionor assumptionof the institution
by theother insured institutionsor financial holdingcompanies,
byproviding funds, arranging loans,depositsor guarantees, or
purchasing thesubordinatedsecurities issuedby theacquiringor
assuming insured institutionsor financialholdingcompanies.
70
Central Deposit Insurance Corporation 30Years inRetrospect
