Term: Clearance to Bid Letter
Definition: Letter issued to PCIs advising them that RMS has cleared them to bid on failing insured depository institutions. The letter includes any caps on the total assets of the institutions that the PCIs are cleared to bid on, as well as any geographic regions. The letter also includes a notification to the PCI that they must abide by the SOP. All covered investors must return to RMS a signed copy of the Clearance to Bid Letter before they will be permitted to purchase a failed institution.

Term: Covered Investors
Definition: Covered Investors are investors who have been determined by the Legal Division to be subject to the SOP. At least one third of a PCI group must be covered investors. Additionally, all investors who own in excess of 5% of the voting equity of a PCI group are covered investors.

Term: De Novo
Definition: A de novo institution is a newly chartered bank.

Term: Inflatable Charter
Definition: Inflatable Charters involve the injection of significant capital into existing institutions for the purpose of acquiring a failed bank.

Term: PCI/PCI Institutions
Definition: In this report, we use "PCI" to refer to the private entities and individuals who propose to invest in either a newly chartered depository institution or an existing depository institution for the purpose of using that institution to submit a bid on the assets and deposits of a failed insured depository institution. Furthermore, we use "PCI Institution" to refer to the institution in which the PCI invests, and which will be used to submit the bid.

Term: Pending
Definition: Pending applications are those where the PCI is in the process of being qualified.

Term: Returned
Definition: FDIC returned the application to the PCI and it is no longer being considered for qualification.

Term: Risk Management Manual of Examination Policies
Definition: The manual contains RMS' policies and procedures in relation to risk management activities and examinations.