The Prompt Corrective Action Program of the FDIC Improvement Act

question 34

True/False

The prompt corrective action program of the FDIC Improvement Act allows a bank or thrift to be placed into receivership when the book value of capital to assets falls below 2 percent.

---

Definitions:

Tort Liability

Legal responsibility arising from a civil wrong not based on a contractual obligation, leading to compensation for damages or injuries.

Assignment

is the transfer of rights, property, or obligations from one party to another under a contract.

Transfers

The act of moving or passing assets, property, titles, or rights from one person to another.

Remaining Rights

Remaining rights refer to those rights retained by a party after some rights have been waived or transferred to another party.