Page:United States Statutes at Large Volume 105 Part 3.djvu/377

 PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2261 "(A) if the institution is well capitalized, reclassify the institution as adequately capitalized; "(B) if the institution is adequately capitalized, require the institution to comply with 1 or more provisions of subsections (d) and (e), as if the institution were undercapitalized; or "(C) if the institution is undercapitalized, take any 1 or more actions authorized under subsection (f)(2) as if the institution were significantly undercapitalized. "(2) CONTENTS OF PLAN.— Any plan required under paragraph (1) shall specify the steps that the insured depository institution will take to correct the unsafe or unsound condition or practice. Capital restoration plans shall not be required under paragraph (1)(B). "(h) PROVISIONS APPLICABLE TO CRITICALLY UNDERCAPITALIZED INSTITUTIONS. — "(1) ACTIVITIES RESTRICTED. — Any critically undercapitalized insured depository institution shall comply with restrictions prescribed by the Corporation under subsection (i). " (2) PAYMENTS ON SUBORDINATED DEBT PROHIBITED. — "(A) IN GENERAL.— A critically undercapitalized insured depository institution shall not, beginning 60 days after becoming critically undercapitalized, make any payment of principal or interest on the institution's subordinated debt. "(B) EXCEPTIONS.—The Corporation may make exceptions to subparagraph (A) if— "(i) the appropriate Federal banking agency has taken action with respect to the insured depository institution under paragraph (3)(A)(ii); and "(ii) the Corporation determines that the exception would further the purpose of this section. " (C) LIMITED EXEMPTION FOR CERTAIN SUBORDINATED DEBT.—Until July 15, 1996, subparagraph (A) shall not apply with respect to any subordinated debt outstanding on t July 15, 1991, and not extended or otherwise renegotiated after July 15, 1991. "(D) ACCRUAL OF INTEREST. —Subparagraph (A) does not prevent unpaid interest from accruing on subordinated debt under the terms of that debt, to the extent otherwise permitted by law. " (3) CONSERVATORSHIP, RECEIVERSHIP, OR OTHER ACTION RE- QUIRED. — " (A) IN GENERAL.—The appropriate Federal banking agency shall, not later than 90 days after an insured depository institution becomes critically undercapitalized— "(i) appoint a receiver (or, with the concurrence of the Corporation, a conservator) for the institution; or "(ii) take such other action as the agency determines, with the concurrence of the Corporation, would better achieve the purpose of this section, after documenting why the action would better achieve that purpose. "(B) PERIODIC REDETERMINATIONS REQUIRED. —Any deter- Termination mination by an appropriate Federal banking agency under <*^*®- subparagraph (A)(ii) to take any action with respect to an insured depository institution in lieu of appointing a conservator or receiver shall cease to be effective not later than the end of the 90-day period beginning on the date that the

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