Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 3295

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the total amount of outstanding mandatory convertible debt, net of any proceeds from the issuance of common or perpetual preferred stock dedicated (in accordance with guidelines issued or established by the bank's primary federal bank supervisory authority) to wholly or partially redeem the debt or otherwise satisfy its funding requirements.

Mandatory convertible debt is a form of subordinated debt. It may take the form of (a) equity contract notes which obligates the holder to take the common or perpetual preferred stock of the issuer in lieu of cash for repayment of principal, or (b) for national and state member banks, equity commitment notes which were issued prior to April 15, 1985, and which are redeemable only with the proceeds from the sale of common or perpetual preferred stock. Later issues of equity commitment notes do not qualify as mandatory convertible debt. Equity commitment notes issued by state nonmember banks do not qualify as mandatory convertible debt, regardless of when issued.

COMPARABILITY:

Prior to 3/31/95, includes the total of "Total Equity Contract Notes, Gross (3290)" minus "Common or Perpetual Preferred Stock Dedicated to Redeem Equity Contract Notes (3291)" plus "Total Equity Commitment Notes, Gross (3293)" minus "Common or Perpetual Preferred Stock Dedicated to Redeem Equity Commitment Notes (3294)".

NOTE:

Reported in Schedule RC-M for the FFIEC 031, 032, 033 and 034 reports.