12 USC 2279bb-6 - Supervisory actions applicable to level III

U.S Code last checked for updates: Nov 23, 2024

§ 2279bb–6.

Supervisory actions applicable to level III

(a)

Mandatory supervisory actions

(1)

Capital restoration plan

(2)

Restrictions on dividends

(A)

Prior approval

If the Corporation is classified as within level III, the Corporation—

(i)

may not make any payment of dividends that would result in the Corporation being reclassified as within level IV; and

(ii)

may make any other payment of dividends only if the Director approves the payment before the payment.

(B)

Standard for approval

(3)

Reclassification from level III to level IV

The Director shall immediately reclassify the Corporation as within level IV if—

(A)

the Corporation is classified as within level III; and

(B)

(i)

the Corporation does not submit a capital restoration plan that is approved by the Director; or

(ii)

the Director determines that the Corporation has failed to make, in good faith, reasonable efforts necessary to comply with such a capital restoration plan and fulfill the schedule for the plan approved by the Director.

(b)

Discretionary supervisory actions

In addition to any other actions taken by the Director (including actions under subsection (a)), the Director may, at any time, take any of the following actions if the Corporation is classified as within level III:

(1)

Limitation on increase in obligations

(2)

Limitation on growth

(3)

Prohibition on dividends

(4)

Acquisition of new capital

(5)

Restriction of activities

(6)

Conservatorship

(c)

Effective date

(Pub. L. 92–181, title VIII, § 8.37, as added Pub. L. 102–237, title V, § 503(b)(2), Dec. 13, 1991, 105 Stat. 1876.)

cite as: 12 USC 2279bb-6