### Question
How does FEDERAL DEPOSIT INSURANCE CORPORATION define indemnification payment?


### Answer
Under *12 U.S.C. § 1828*, **indemnification payment** is defined as:

> any payment (or any agreement to make any payment) by any insured depository institution or covered company for the benefit of any person who is or was an institution-affiliated party, to pay or reimburse such person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the appropriate Federal banking agency which results in a final order under which such person—


(i) is assessed a civil money penalty

#### Citation:
  - *12 U.S.C. § 1828*
  - Heading: **CHAPTER 16-FEDERAL DEPOSIT INSURANCE CORPORATION**

