Page:United States Statutes at Large Volume 105 Part 3.djvu/374

 105 STAT. 2258 PUBLIC LAW 102-242 —DEC. 19, 1991 establish or acquire any additional branch office, or engage in any new line of business unless— "(A) the appropriate Federal banking agency has accepted the insured depository institution's capital restoration plan, the institution is implementing the plan, and the agency determines that the proposed action is consistent with and will further the achieveiiient of the plan; or "(B) the Board of Directors determines that the proposed action will further the purpose of this section. "(5) DISCRETIONARY SAFEGUARDS. — The appropriate Federal banking agency may, with respect to any undercapitalized insured depository institution, take actions described in any subparagraph of subsection (f)(2) if the agency determines that those actions are necessary to carry out the purpose of this section. " (f) PROVISIONS APPLICABLE TO SIGNIFICANTLY UNDERCAPITAUZED INSTITUTIONS AND UNDERCAPITALIZED INSTITUTIONS THAT FAIL TO SUBMIT AND IMPLEMENT CAPITAL RESTORATION PLANS.— "(1) IN GENERAL.—T his subsection shall apply with respect to any insured depository institution that— "(A) is significantly undercapitalized; or "(B) is undercapitalized and— "(i) fails to submit an acceptable capital restoration plan within the time allowed by the appropriate Federal banking agency under subsection (e)(2)(D); or "(ii) fails in any material respect to implement a plan accepted by the agency. "(2) SPECIFIC ACTIONS AUTHORIZED. — The appropriate Federal banking agency shall carry out this section by taking 1 or more of the following actions: "(A) REQUIRING RECAPITALIZATION. —Doing 1 or more of the following: "(i) Requiring the institution to sell enough shares or obligations of the institution so that the institution will be adequately capitalized after the sale. "(ii) Further requiring that instruments sold under clause (i) be voting shares. "(iii) Requiring the institution to be acquired by a depository institution holding company, or to combine with another insured depository institution, if 1 or more grounds exist for appointing a conservator or receiver for the institution. " (B) RESTRICTING TRANSACTIONS WITH AFFILIATES. — "(i) Requiring the institution to comply with section 23A of the Federal Reserve Act as if subsection (d)(1) of that section (exempting transactions with certain affiliated institutions) did not apply. "(ii) Further restricting the institution's transactions with affiliates. "(C) RESTRICTING INTEREST RATES PAID. — "(i) IN GENERAL.— Restricting the interest rates that the institution pays on deposits to the prevailing rates of interest on deposits of comparable amounts and maturities in the region where the institution is located, as determined by the agency. "(ii) RETROACTIVE RESTRICTIONS PROHIBITED.— Th is subparagraph does not authorize the agency to restrict

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