golden parachute payment

(1) Golden parachute payment The term “golden parachute payment”— (A) means a payment (or any agreement to make a payment) in the nature of compensation for the benefit of any institution-related party under an obligation of any Farm Credit System institution that— (i) is contingent on the termination of the party’s relationship with the institution; and (ii) is received on or after the date on which— (I) the institution is insolvent; (II) a conservator or receiver is appointed for the institution; (III) the institution has been assigned by the Farm Credit Administration a composite CAMEL rating of 4 or 5 under the Farm Credit Administration Rating System, or an equivalent rating; or (IV) the Corporation otherwise determines that the institution is in a troubled condition (as defined in regulations issued by the Corporation); and (B) includes a payment that would be a golden parachute payment but for the fact that the payment was made before the date referred to in subparagraph (A)(ii) if the payment was made in contemplation of the occurrence of an event described in any subclause of subparagraph (A); but (C) does not include— (i) a payment made under a retirement plan that is qualified (or is intended to be qualified) under section 401 of title 26 or other nondiscriminatory benefit plan; (ii) a payment made under a bona fide supplemental executive retirement plan, deferred compensation plan, or other arrangement that the Corporation determines, by regulation or order, to be permissible; or (iii) a payment made by reason of the death or disability of an institution-related party.

Source

12 USC § 2277a-10b(a)(1)


Scoping language

In this section
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