Common use of Regulatory Restrictions on Payments Clause in Contracts

Regulatory Restrictions on Payments. Notwithstanding the foregoing, the termination payments due under Section 8.1, Section 8.2 and (a “Restricted Payment”) of the Agreement shall not be paid to Executive, and Executive shall not be entitled to the Restricted Payment, unless, and then only to the extent that, the Restricted Payment is approved by the FDIC and any other regulatory body which has the authority to comment on the request for approval for the Restricted Payment. The Restricted Payment shall be made only in accordance with applicable law, including, without limitation, 12 C.F.R. Part 359. The Restricted Payment shall be subject to applicable federal, state, and local taxes and withholding and paid in accordance with normal payroll procedures of the Bank. In the event that the Bank determines at any time after payment of any portion of the Restricted Payment that Executive has committed or is substantially responsible for, or has violated, the respective acts or omissions, conditions or offenses outlined under 12 C.F.R. 359.4(a) (4), then the Bank shall have the right to demand the return of all or any portion of the Restricted Payment made to Executive, and Executive agrees to immediately return all such amounts of the Restricted Payment upon and in accordance with the Bank’s demand. Other than with respect to the Restricted Payment, this Agreement shall remain in full force and effect regardless of whether or not the Restricted Payment is approved or denied by any regulatory body.