12 USC 4612 - Minimum capital levels

U.S Code last checked for updates: Nov 26, 2024

§ 4612.

Minimum capital levels

(a)

Enterprises

For purposes of this subchapter, the minimum capital level for each enterprise shall be the sum of—

(1)

2.50 percent of the aggregate on-balance sheet assets of the enterprise, as determined in accordance with generally accepted accounting principles;

(2)

0.45 percent of the unpaid principal balance of outstanding mortgage-backed securities and substantially equivalent instruments issued or guaranteed by the enterprise that are not included in paragraph (1); and

(3)

0.45 percent of other off-balance sheet obligations of the enterprise not included in paragraph (2) (excluding commitments in excess of 50 percent of the average dollar amount of the commitments outstanding each quarter over the preceding 4 quarters), except that the Director shall adjust such percentage to reflect differences in the credit risk of such obligations in relation to the instruments included in paragraph (2).

(b)

Federal Home Loan Banks

(c)

Establishment of revised minimum capital levels

(d)

Authority to require temporary increase

(1)

In general

(2)

Rescission

(3)

Regulations required

The Director shall issue regulations establishing—

(A)

standards for the imposition of a temporary increase in minimum capital under paragraph (1);

(B)

the standards and procedures that the Director will use to make the determination referred to in paragraph (2); and

(C)

a reasonable time frame for periodic review of any temporary increase in minimum capital for the purpose of making the determination referred to in paragraph (2).

(e)

Authority to establish additional capital and reserve requirements for particular purposes

(f)

Periodic review

(Pub. L. 102–550, title XIII, § 1362, Oct. 28, 1992, 106 Stat. 3975; Pub. L. 110–289, div. A, title I, § 1111, July 30, 2008, 122 Stat. 2676.)

cite as: 12 USC 4612