Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 - BUREAU OF FINANCIAL INSTITUTIONS
Chapter 127 - MINIMUM CAPITAL STANDARDS
Section 029-127-3 - DEFINITIONS

A. "Allowance for loan and lease losses" means those general valuation allowances that have been established through charges against earnings to absorb losses on loans and lease financing receivables. Allowances for loan and lease losses exclude allocated transfer risk reserves relating to international lending and specific reserves created against identified losses.

B. "Common stockholders' equity" means the sum of common stock and related surplus, undivided profits, disclosed capital reserves that represent a segregation of undivided profits, and foreign currency translation adjustments; less net unrealized losses on marketable equity securities.

C. "Financial institution" has the same meaning that is set forth in 9-B MRSA13117.

D. "Intangible assets" means those assets that are required to be reported as intangible assets in a banking institution's "Consolidated Reports of Condition and Income" (Call Report) or "Thrift Financial Report," as these reports may from time to time be revised.

E. "Minority interests in consolidated subsidiaries" means minority interests in equity capital accounts of those subsidiaries that have been consolidated for the purpose of computing regulatory capital under this regulation, except that minority interests which fail to provide meaningful capital support are excluded from this definition.

F. "Mortgage servicing rights" means those assets that represent the purchased rights to perform the servicing function for a specific group of mortgage loans that are owned by others. For purposes of determining regulatory capital under this regulation, purchased mortgage servicing rights will be recognized only to the extent the rights meet the conditions, limitations and restrictions described in Section 4(F)(2) of this regulation.

G. "Noncumulative perpetual preferred stock" means perpetual preferred stock (and related surplus) where the issuer has the option to waive payment of dividends and where the dividends so waived do not accumulate to future periods nor do they represent a contingent claim on the issuer.

H. "Perpetual preferred stock" means a preferred stock that does not have a maturity date, that cannot be redeemed at the option of the holder, and that has no other provisions that will automatically require future redemption of the issue. It includes those issues of preferred stock that automatically convert into common stock at a stated date. It excludes those issues, the rate on which increases, or can increase, in such a manner that would effectively require the issuer to redeem the issue.

I. "Tier 1 capital" or "core capital" means the sum of common stockholders' equity, noncumulative perpetual preferred stock, and minority interests in consolidated subsidiaries, minus identified losses and minus all intangible assets (other than mortgage servicing rights eligible for inclusion in core capital pursuant to paragraph F of this section).

J. "Total assets" means the average of total assets required to be included in a financial institution's Call Report or in a savings and loan association's Thrift Financial Report, minus intangible assets (other than mortgage servicing rights eligible for inclusion in core capital pursuant to Section 4(F)(2)) , and less assets classified loss and any other assets that are deducted in determining Tier 1 capital.