Page:United States Statutes at Large Volume 105 Part 3.djvu/387

 PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2271 » tion to become adequately capitalized (as defined in section 38(b)) without Federal assistance. "(H) VIOLATIONS OF LAW. —Any violation of any law or regulation, or any unsafe or unsound practice or condition that is likely to— "(i) cause insolvency or substantial dissipation of assets or earnings; "(ii) weaken the institution's condition; or "(iii) otherwise seriously prejudice the interests of the institution's depositors or the deposit insurance fund. "(I) CONSENT. —The institution, by resolution of its board of directors or its shareholders or members, consents to the appointment. "(J) CESSATION OF INSURED STATUS. —The institution ceases to be an insured institution. " (K) UNDERCAPITALIZATION.— The institution -is undercapitalized (as defined in section 38(b)), and— "(i) has no reasonable prospect of becoming adequately capitalized (as defined in that section); "(ii) fails to become adequately capitalized when required to do so under section 38(f)(2)(A); "(iii) fails to submit a capital restoration plan acceptable to that agency within the time prescribed under section 38(e)(2)(D); or "(iv) materially fails to implement a capital restoration plan submitted and accepted under section 38(e)(2). "(L) The institution— "(i) is critically undercapitalized, as defined in section 38(b); or "(ii) otherwise has substantially insufficient capital.". (b) CONFORMING AMENDMENT TO AUTHORITY TO APPOINT RECEIVER FOR NATIONAL BANK. —Section 1 of the Act of June 30, 1876 (12 U.S.C. 191) is amended to read as follows: "SECTION 1. The Comptroller of the Currency may, without prior notice or hearings, appoint the Federal Deposit Insurance Corporation as receiver for any national banking association if the Comptroller determines, in the Comptroller's discretion, that— "(1) 1 or more of the grounds specified in section 11(c)(5) of the Federal Deposit Insurance Act exist; or "(2) the association's board of directors consists of fewer than 5 members.". (c) CONFORMING AMENDMENT TO THE BANK CONSERVATION ACT.— Section 203(a) of the Bank Conservation Act (12 U.S.C. 203(a)) is amended to read as follows: "(a) APPOINTMENT.— The Comptroller of the Currency may, without prior notice or hearings, appoint a conservator (which may be the Federal Deposit Insurance Corporation) to the possession and control of a bank whenever the Comptroller of the Currency determines that 1 or more of the grounds specified in section 11(c)(5) of the Federal Deposit Insurance Act exist.". (d) CONFORMING AMENDMENTS TO THE HOME OWNERS' LOAN ACT.— Section 5(d)(2) of the Home Owners' Loan Act (12 U.S.C. 1464(d)(2)) is amended— (1) by striking subparagraphs (A) through (D) and inserting the following:

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