TeachMeFinance.com - explain supervisory agreement
supervisory agreement -- a formal, written agreement between the board of directors of a savings institution and the Office of Thrift Supervision. The provisions of the agreement may require the institution to cease any statutory or regulatory violations or unsafe or unsound practice, and the agreement may require affirmative corrective action by the institution to correct any existing violations, management or operational deficiencies, or other unsound practices. Violation of a supervisory agreement is cause for the Office of Thrift Supervision to initiate cease and desist proceedings against the institution or against an officer, board member or employee of the institution. See consent merger agreement.
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.