### Question
How does the law define indemnification payment?


### Answer
Under *12 U.S.C. § 1786*, **indemnification payment** is defined as:

> any payment (or any agreement to make any payment) by any credit union 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 Board which results in a final order under which such person—


(i) is assessed a civil money penalty

#### Citation:
  - *12 U.S.C. § 1786*
  - Heading: **CHAPTER 14-FEDERAL CREDIT UNIONS > SUBCHAPTER II-SHARE INSURANCE**

