Section 308.120 - Grounds for termination of insurance(a)General rule. The following are grounds for involuntary termination of insurance pursuant to section 8(a) of the FDIA: (1) An insured depository institution or its directors or trustees have engaged or are engaging in unsafe or unsound practices in conducting the business of such depository institution;(2) An insured depository institution is in an unsafe or unsound condition such that it should not continue operations as an insured depository institution; or(3) An insured depository institution or its directors or trustees have violated an applicable law, rule, regulation, order, condition imposed in writing by the FDIC in connection with the granting of any application or other request by the insured depository institution or have violated any written agreement entered into between the insured depository institution and the FDIC.(b)Extraterritorial acts of foreign banks. An act or practice committed outside the United States by a foreign bank or its directors or trustees which would otherwise be a ground for termination of insured status under this section shall be a ground for termination if the Board of Directors finds: (1) The act or practice has been, is, or is likely to be a cause of, or carried on in connection with or in furtherance of, an act or practice committed within any state, territory, or possession of the United States or the District of Columbia that, in and of itself, would be an appropriate basis for action by the FDIC; or(2) The act or practice committed outside the United States, if proven, would adversely affect the insurance risk of the FDIC.(c)Failure of foreign bank to secure removal of personnel. The failure of a foreign bank to comply with any order of removal or prohibition issued by the Board of Directors or the failure of any person associated with a foreign bank to appear promptly as a party to a proceeding pursuant to section 8(e) of the FDIA ( 12 U.S.C. 1818(e) ), shall be a ground for termination of insurance of deposits in any branch of the bank.