Page:United States Statutes at Large Volume 106 Part 1.djvu/591

 PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 559 "(7) ACTIONS BY SECRETARY OF THE TREASURY. —If the capital ratio of the Association does not equal or exceed 1.75 percent at the end of the Association's most recent calendar quarter, the Secretary of the Treasury may, until the capital ratio equals or exceeds 1.75 percent, take any one or more of the following actions: "(A) LIMIT INCREASE IN LIABILITIES. — Limit any increase in, or order the reduction of, any liabilities of the Association, except as necessary to fund student loan purchases and warehousing advances. "(B) RESTRICT GROWTH. — Restrict or eliminate growth of the Association's assets, other than student loans purchases and warehousing advances. "(C) RESTRICT DISTRIBUTIONS.— Restrict the Association from making any capited distribution. "(D) REQUIRE ISSUANCE OF NEW CAPITAL.— Require the Association to issue new capital in any form and in any amount sufficient to restore at least a 1.75 percent capital ratio. "(E) LIMIT EXECUTIVE COMPENSATION.— Prohibit the Association from increasing for any executive officer any compensation including bonuses at a rate exceeding that officer's average rate of compensation during the previous 12 calendar months and prohibiting the Board from adopting any new employment severance contracts. "(8) CRITICAL CAPITAL STANDARD.—(A) If the capital ratio is less than 1 percent at the end of the Association's most recent calendar quarter and the Association has already submitted a capital restoration plan to the Secretary of the Treasury pursuant to paragraph (4) or (6)(A), the Association shall forthwith proceed with diligence to implement the most recently proposed plan with such modifications as the Secretary of the Treasury determines are necessary to cause the capital ratio to equal or exceed 2 percent within 60 months. "(B) If the capitsu ratio is less than 1 percent at the end of the Association's most recent calendar quarter and the Association has not submitted a capital restoration plan to the Secretary of the Treasury pursuant to paragraph (4) or (6)(A), the Association shall— "(i) within 14 days of such occurrence submit a capital restoration plan to the Secretary of the Treasury which the Association believes is adequate to cause the capital ratio to equal or exceed 2 percent within 60 months; and "(ii) forthwith proceed with diligence to implement such plan with such modifications as the Secretary of the Treasury determines are necessary to cause the capital ratio to equal or exceed 2 percent within 60 months. "(C) Immediately upon a determination under subparagraph (A) or (B) to implement a capital restoration plan, the Secretary of the Treasury shall submit the capital restoration plan to be implemented to the Chairman and ranking minority member of the Committee on Labor and Human Resources of the Senate, the Chairman and ranking minority member of the Committee on Education and Labor of the House of Representatives, and the Secretary of Education. "(9) ADDITIONAL REPORTS TO COMMITTEES. — The Association shall submit a copy of its capital restoration plan, modifications

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