Acting in concert refers to the coordinated efforts of two or more parties who knowingly participate in a joint activity or parallel action aimed at achieving a common goal, specifically acquiring control of an insured state nonmember bank or its parent company. This can occur even without a formal agreement between the parties involved.
This term is primarily used in banking law and regulations, particularly concerning the acquisition of control over financial institutions. It is significant in contexts such as mergers and acquisitions, regulatory compliance, and shareholder actions. Individuals or entities considering a joint effort to acquire a bank should be aware of the legal implications and procedures involved, which can often be managed using legal templates from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: Two investment firms collaborate to acquire a controlling interest in a local bank. They coordinate their purchase strategies to ensure they meet regulatory requirements and achieve their goal of control.
Example 2: A group of shareholders works together to increase their voting power in a bank's upcoming board election, intending to influence management decisions. (hypothetical example)
Acting in concert is defined under 12 CFR 303.81, which outlines the procedures for changes in bank control. This regulation is part of the broader framework governing financial institutions and their oversight by the Federal Deposit Insurance Corporation (FDIC).
| Term | Definition | Key Differences |
|---|---|---|
| Control | The ability to influence or direct the management and policies of a bank. | Control can exist without acting in concert, but acting in concert typically leads to control. |
| Joint Venture | A business arrangement where two or more parties agree to pool resources for a specific goal. | Joint ventures are formal agreements, while acting in concert can occur informally. |
If you believe you are acting in concert with others to acquire control of a bank, it's crucial to understand the legal implications. Consider consulting with a legal professional to ensure compliance with relevant regulations. Additionally, explore US Legal Forms for templates that can assist in your acquisition efforts.
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It means participating knowingly in a coordinated effort to achieve a common goal, such as acquiring control of a bank.