Summary:
The final rule prohibits any insured savings association from acquiring or retaining a corporate debt security unless the savings association makes a determination that the issuer has adequate capacity to meet all financial commitments under the security for the projected life of the investment. The requirement may be met if the issuer presents a low risk of default and is likely to make full and timely repayment of principal and interest. This final rule revises the proposed creditworthiness standard to more closely align with the language in the OCC's final rule that was published on June 13, 2012 (77 FR 35253). The FDIC's proposed rule was published in the Federal Register on December 15, 2011 (76 FR 78086).