Page:United States Statutes at Large Volume 103 Part 1.djvu/519

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 491 "(A) IN GENERAL. — If the Board of Directors initiates a termination proceeding under paragraph (2), and the Board of Directors, after consultation with the appropriate Fed- eral banking agency, finds that an insured depository institution (other than a savings association to which subparagraph (B) applies) has no tangible capital under the capital guidelines or regulations of the appropriate Federal banking agency, the Corporation may issue a temporary order suspending deposit insurance on all deposits received by the institution. "(B) SPECIAL RULE FOR CERTAIN SAVINGS INSTITUTIONS.— " (i) CERTAIN GOODWILL INCLUDED IN TANGIBLE CAP- ITAL.—In determining the tangible capital of a savings association for purposes of this paragraph, the Board of Directors shall include goodwill to the extent it is considered a component of capital under section 5(t) of the Home Owners' Loan Act. Any savings association which would be subject to a suspension order under subparagraph (A) but for the operation of this subpara- graph, shall be considered by the Corporation to be a Special supervisory association'. "(ii) SUSPENSION ORDER. — The Corporation may issue a temporary order suspending deposit insurance on all deposits received by a special supervisory association whenever the Board of Directors determines that— "(I) the capital of such association, as computed utilizing applicable accounting standards, has suf- fered a material decline; "(II) that such association (or its directors or officers) is engaging in an unsaJFe or unsound prac- tice in conducting the business of the association; "(III) that such association is in an unsafe or unsound condition to continue operating as an in- sured association; or "(IV) that such association (or its directors or officers) has violated any applicable law, rule, regu- lation, or order, or any condition imposed in writ- ing by a Federal banking agency, or any written agreement including a capital improvement plan entered into with any Federal banking agency, or that the association has failed to enter into a cap- ital improvement plan which is acceptable to the Corporation within the time period set forth in section 5(t) of the Home Owners' Loan Act. Nothing in this paragraph limits the right of the Cor- poration or the Director of the Office of Thrift Super- vision to enforce a contractual provision which au- thorizes the Corporation or the Director of the Office of Thrift Supervision, as a successor to the Federal Sav- ings and Loan Insurance dlorporation or the Federal Home Loan Bank Board, to require a savings associa- tion to write down or amortize goodwill at a faster rate than otherwise required under this Act or under ap- plicable accounting standards. "(C) EFFECTIVE PERIOD OF TEMPORARY ORDER. —Any order issued under subparagraph (A) shall become effective not earlier than 10 days from the date of service upon the

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