Page:United States Statutes at Large Volume 103 Part 1.djvu/336

 103 STAT. 308 PUBLIC LAW 101-73—AUG. 9, 1989 include such restrictions, including restrictions on the payment of dividends and on compensation, as the Director determines to be appropriate). "(C) LIMITED GROWTH EXCEPTION.— The Director may permit any savings association that is subject to subpara- graph (B) to increase its assets in an amount not exceeding the amount of net interest credited to the savings associa- tion's deposit liabilities if— "(i) the savings association obtains the Director's prior approval; "(ii) any increase in assets is accompanied by an increase in tangible capital in an amount not less than 6 percent of the increase in assets (or, in the Director's discretion if the leverage limit then applicable is less than 6 percent, in an amount equal to the increase in assets multiplied by the percentage amount of the leverage limit); "(iii) any increase in assets is accompanied by an increase in capital not less in percentage amount than required under the risk-based capital standard then applicable; "(iv) any increase in assets is invested in low-risk assets, such as first mortgage loans secured by 1- to 4- family residences and fully secured consumer loans; and "(v) the savings association's ratio of core capital to total assets is not less than the ratio existing on Janu- ary 1, 1991. "(D) ADDITIONAL RESTRICTIONS IN CASE OF EXCESSIVE RISKS OR RATES. —The Director may restrict the asset growth of any savings association that the Director determines is taking excessive risks or paying excessive rates for deposits. "(E) FAILURE TO COMPLY WITH PLAN, REGULATION, OR ORDER. —The Director shall treat as an unsafe and unsound practice any material failure by a savings association to comply with any plan, regulation, or order under this para- graph. "(F) EFFECT ON OTHER REGULATORY AUTHORITY. —This paragraph does not limit any authority of the Director under other provisions of law. "(7) EXEMPTION FROM CERTAIN SANCTIONS. — "(A) APPLICATION FOR EXEMPTION.— Any savings associa- tion not in compliance with the capital standards pre- scribed under paragraph (1) may apply to the Director for an exemption from any applicable sanction or penalty for noncompliance which the Director may impose. "(B) EFFECT OF GRANT OF EXEMPTION. — If the Director approves any savings association's application under subparagraph (A), the only sanction or penalty to be im- posed by the Director for the savings association's failure to comply with the capital standards prescribed under para- graph (1) is the growth limitation contained in paragraph (6)(B) or paragraph (6)(C), whichever is applicable. " (C) STANDARDS FOR APPROVAL OR DISAPPROVAL. — "(i) APPROVAL.— The Director may approve an ap- plication for an exemption if the Director determines that—

�