Huntington National Bank 2009 Annual Report Download - page 10

Because we are a public compan
y
, we are also sub
j
ect to re
g
ulation b
y
the Securities and Exchan
ge
Commission (SEC). The SEC has established three cate
g
ories of issuers for the purpose of filin
g
periodic an
d
annual reports. Under these re
g
ulations, we are considered to be a “lar
g
e accelerated filer” and, as such, mus
t
compl
y
with SEC accelerated reportin
g
requirements
.
The Bank is sub
j
ect to examination and supervision b
y
the Office of the Comptroller of the Currenc
y
(OCC). Its
d
omest
i
c
d
epos
i
ts are
i
nsure
dby
t
h
e Depos
i
t Insurance Fun
d
(DIF) o
f
t
h
eFe
d
era
l
Depos
i
t
Insurance Corporat
i
on (FDIC), w
hi
c
h
a
l
so
h
as certa
i
nre
g
u
l
ator
y
an
d
superv
i
sor
y
aut
h
or
i
t
y
over
i
t. Our non
-
b
an
k
su
b
s
idi
ar
i
es are a
l
so su
bj
ect to exam
i
nat
i
on an
d
superv
i
s
i
on
by
t
h
eFe
d
era
l
Reserve or,
i
nt
h
e case o
f
non-bank subsidiaries of the Bank, b
y
the OCC. Our subsidiaries are also sub
j
ect to examination b
y
othe
r
f
e
d
era
l
an
d
state a
g
enc
i
es,
i
nc
l
u
di
n
g
,
i
nt
h
e case o
f
certa
i
n secur
i
t
i
es an
di
nvestment mana
g
ement act
i
v
i
t
i
es
,
re
g
u
l
at
i
on
by
t
h
e SEC an
d
t
h
eF
i
nanc
i
a
l
In
d
ustr
y
Re
g
u
l
ator
y
Aut
h
or
i
t
y.
In connect
i
on w
i
t
h
emer
g
enc
y
econom
i
c sta
bili
zat
i
on pro
g
rams a
d
opte
di
n
l
ate 2008 as
d
escr
ib
e
db
e
l
o
w
un
d
er “Recent Re
g
u
l
ator
y
Deve
l
opments,” we are a
l
so su
bj
ect
f
or t
h
e
f
oreseea
bl
e
f
uture to certa
i
n
di
rec
t
oversi
g
ht b
y
the U.S. Treasur
y
Department and to certain non-traditional oversi
g
ht b
y
our normal bankin
g
regu
l
ators
.
In addition to the impact of federal and state re
g
ulation, the Bank and our non-bank subsidiaries ar
e
a
ff
ecte
d
s
ig
n
ifi
cant
ly by
t
h
e act
i
ons o
f
t
h
eFe
d
era
l
Reserve as
i
t attempts to contro
l
t
h
e mone
y
supp
ly
an
d
cre
di
tava
il
a
bili
t
yi
nor
d
er to
i
n
fl
uence t
h
e econom
y.
H
olding Com
p
an
y
Structur
e
We
h
ave one nat
i
ona
lb
an
k
su
b
s
idi
ar
y
an
d
numerous non-
b
an
k
su
b
s
idi
ar
i
es. Ex
hibi
t 21.1 o
f
t
hi
s report
l
ists all of our subsidiaries
.
The Bank is sub
j
ect to affiliate transaction restrictions under federal laws, which limit the transfer o
f
f
un
d
s
by
asu
b
s
idi
ar
yb
an
k
or
i
ts su
b
s
idi
ar
i
es to
i
ts parent corporat
i
on or an
y
non-
b
an
k
su
b
s
idi
ar
y
o
fi
ts parent
cor
p
orat
i
on, w
h
et
h
er
i
nt
h
e
f
orm o
fl
oans, extens
i
ons o
f
cre
di
t,
i
nvestments, or asset
p
urc
h
ases. Suc
h
trans
f
er
s
by
asu
b
s
idi
ar
yb
an
k
are
li
m
i
te
d
to
:
• 10% o
f
t
h
esu
b
s
idi
ar
yb
an
k
’s cap
i
ta
l
an
d
surp
l
us
f
or trans
f
ers to
i
ts parent corporat
i
on or to an
y
individual non-bank subsidiar
y
of the parent, an
d
•Ana
gg
re
g
ate of 20% of the subsidiar
y
bank’s capital and surplus for transfers to such parent to
g
ethe
r
with all such non-bank subsidiaries of the
p
arent
.
Furthermore, such loans and extensions of credit must be secured within s
p
ecified amounts. In addition
,
all affiliate transactions must be conducted on terms and under circumstances that are substantiall
y
the same
as suc
h
transact
i
ons
wi
t
h
una
ffili
ate
d
ent
i
t
i
es.
A
s a matter o
f
po
li
c
y
,t
h
eFe
d
era
l
Reserve expects a
b
an
kh
o
ldi
n
g
compan
y
to act as a source o
ffi
nanc
i
a
l
an
d
mana
g
er
i
a
l
stren
g
t
h
to eac
h
o
fi
ts su
b
s
idi
ar
yb
an
k
san
d
to comm
i
t resources to support eac
h
suc
h
subsidiar
y
bank. Under this source of stren
g
th doctrine, the Federal Reserve ma
y
require a bank holdin
g
compan
y
to ma
k
e cap
i
ta
li
n
j
ect
i
ons
i
nto a trou
bl
e
d
su
b
s
idi
ar
yb
an
k
.T
h
e
y
ma
y
c
h
ar
g
et
h
e
b
an
kh
o
ldi
n
g
compan
y
w
i
t
h
en
g
a
gi
n
gi
n unsa
f
ean
d
unsoun
d
pract
i
ces
if i
t
f
a
il
s to comm
i
t resources to suc
h
asu
b
s
idi
ar
y
b
an
k
or
if i
tun
d
erta
k
es act
i
ons t
h
at t
h
eFe
d
era
l
Reserve
b
e
li
eves m
igh
t
j
eopar
di
ze
i
ts a
bili
t
y
to comm
it
resources to such subsidiar
y
bank. A capital in
j
ection ma
y
be required at times when the holdin
g
compan
y
d
oes not
h
ave t
h
e resources to prov
id
e
i
t.
A
n
y
loans b
y
a holdin
g
compan
y
to a subsidiar
y
bank are subordinate in ri
g
ht of pa
y
ment to deposits an
d
to certa
i
not
h
er
i
n
d
e
b
te
d
ness o
f
suc
h
su
b
s
idi
ar
yb
an
k
.Int
h
e event o
f
a
b
an
kh
o
ldi
n
g
compan
y
’s
b
an
k
ruptc
y,
t
h
e
b
an
k
ruptc
y
trustee w
ill
assume an
y
comm
i
tment
by
t
h
e
h
o
ldi
n
g
compan
y
to a
f
e
d
era
lb
an
k
re
g
u
l
ator
y
a
g
enc
y
to maintain the capital of a subsidiar
y
bank. Moreover, the bankruptc
y
law provides that claims based
on an
y
suc
h
comm
i
tment w
ill b
e ent
i
t
l
e
d
to a pr
i
or
i
t
y
o
f
pa
y
ment over t
h
ec
l
a
i
ms o
f
t
h
e
i
nst
i
tut
i
on’s
g
enera
l
unsecure
d
cre
di
tors,
i
nc
l
u
di
n
g
t
h
e
h
o
ld
ers o
fi
ts note o
blig
at
i
ons
.
2