Common use of Category II Clause in Contracts

Category II. A Bank shall be in Category II if it (a) has an Average Net Composite Score of 35.0 or more, but less than 50.0, for the most recent calendar quarter for which an Average Net Composite Score is available, (b) has a Net Composite Score of 30.0 or more, but less than 45.0, for the most recent calendar quarter for which a Net Composite Score is available,(c) has a Tier 1 Leverage Ratio of 3.00% or more, but less than 4.00% for the last day of the most recent month, (d) has a Total Capital Ratio of 7.00% or more, but less than 8.00% for the period ending on the last day of the most recent month, or (e) is in Category I and has failed to provide information to the Committee as required by Article III within two Business Days after receipt of written notice from the Committee of such failure.

Category II. A Bank shall be in Category II if it (a) has an Average Net Composite Score of 35.0 or more, but less than 50.0, for the most recent calendar quarter for which an Average Net Composite Score is available, (b) has a Net Composite Score of 30.0 or more, but less than 45.0, for the most recent calendar quarter for which a Net Composite Score is available,(c) has a Tier 1 Leverage Net Collateral Ratio of 3.00102.00% or more, but less than 4.00% 103.00%, for the last day of the most recent month, (d) has a Total Permanent Capital Ratio of 7.005.00% or more, but less than 8.00% 7.00%, for the period ending on the last day of the most recent month, or (e) is in Category I and has failed to provide information to the Committee as required by Article III within two Business Days after receipt of written notice from the Committee of such failure.