### Question
How is the "in danger of default" defined?


### Answer
The term **in danger of default** is defined in *12 U.S.C. § 1813* as follows -

> an insured depository institution with respect to which (or in the case of a foreign bank having an insured branch, with respect to such insured branch) the appropriate Federal banking agency or State chartering authority has advised the Corporation (or, if the appropriate Federal banking agency is the Corporation, the Corporation has determined) that—


(A) in the opinion of such agency or authority—


(i) the depository institution or insured branch is not likely to be able to meet the demands of the institution's or branch's depositors or pay the institution's or branch's obligations in the normal course of business

#### Citation:
  - *12 U.S.C. § 1813*
  - Heading: **CHAPTER 16-FEDERAL DEPOSIT INSURANCE CORPORATION**

