Page:United States Statutes at Large Volume 105 Part 2.djvu/924

 105 STAT. 1876 PUBLIC LAW 102-237—DEC. 13, 1991 12 USC 2279bb-5. 12 USC 2279bb-6. "SEC. 8.36. MANDATORY ACTIONS APPLICABLE TO LEVEL II. "(a) CAPITAL RESTORATION PLAN.— I f the Corporation is classified as within level II, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the plan. "(b) RESTRICTION ON DIVIDENDS. — If the Corporation is classified as within level II, the Corporation may not make any payment of dividends that would result in the Corporation being reclassified as within level III or IV. "(c) RECLASSIFICATION FROM LEVEL II TO LEVEL III.— The Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of section 8.37), if— "(1) the Corporation is within level II; and "(2)(A) the Corporation does not submit a capital restoration plan that is approved by the Director; or "(B) 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. "(d) EFFECTIVE DATE.—This section shall take effect upon the expiration of the 30-month period beginning on the date of the enactment of this section. "SEC. 8.37. SUPERVISORY ACTIONS APPLICABLE TO LEVEL III. " (a) MANDATORY SUPERVISORY ACTIONS.— "(1) CAPITAL RESTORATION PLAN. —If the Corporation is classified as within level III, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the 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 pay- ment. "(B) STANDARD FOR APPROVAL.— If the Corporation is classified as within level III, the Director may approve a payment of dividends by the Corporation only if the Director determines that the payment (i) will enhance the ability of the Corporation to meet the risk-based capital level and the minimum capital level promptly, (ii) will contribute to the long-term safety and soundness of the Corporation, or (iii) is otherwise in the public interest. "(3) RECLASSIFICATION FROM LEVEL HI 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

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