Page:United States Statutes at Large Volume 106 Part 5.djvu/340

 106 STAT. 3978 PUBLIC LAW 102-550—OCT. 28, 1992 subtitle on not less than a quarterly basis (and as appropriate under subsection (b)). The first such determination shall be made during the 3-month period beginning on the appointment of the Director. (d) IMPLEMENTATION.— Notwithstanding any other provision of this section, during the period beginning on the date of the enactment of this Act and ending upon the effective date of section 1365 (as provided in section 1365(c)), an enterprise shall be classified as adequately capitalized if the enterprise maintains an amount of core capital that is equal to or exceeds the minimum capital level for the enterprise under section 1362. 12 USC 4615. SEC. 1366. SUPERVISORY ACTIONS APPLICABLE TO UNDERCAPITAL- IZED ENTERPRISES. (a) MANDATORY ACTIONS.— (1) CAPITAL RESTORATION PLAN. —An enterprise that is classified as undercapitalized shall, within the time period provided in section 1369C (b) and (d), submit to the Director a capital restoration plan that complies with section 1369C and carry out the plan after approval. (2) RESTRICTION ON CAPITAL DISTRIBUTIONS.— An enterprise that is classified as undercapitalized may not make any capital distribution that would result in the enterprise being reclassified as significantly undercapitalizea or critically undercapitalized. (b) DISCRETIONARY RECLASSIFICATION FROM UNDERCAPITALIZED TO SIGNIFICANTLY UNDERCAPITALIZED. —The Director may reclassify as significantly undercapitalized an enterprise that is classified as undercapitalized (and the enterprise snail be subject to the provisions of section 1366) if— (1) the enterprise does not submit a capital restoration plan that is substantially in compliance with section 1369C within the applicable period or the Director does not approve the capital restoration plan submitted by the enterprise; or (2) the Director determines that the enterprise has failed to make, in good faith, reasonable efforts necessary to comply with the capital restoration plan and fulfill the schedule for the plan approved by the Director. (c) EFFECTIVE DATE.—This section shall take effect upon the expiration of the 1-year period beginning on the date of the effectiveness of the regulations issued under section 1361(e) establishing the risk-based capital test. 12 USC 4616. SEC. 1366. SUPERVISORY ACTIONS APPLICABLE TO SIGNIFICANTLY UNDERCAPITALIZED ENTERPRISES. (a) MANDATORY SUPERVISORY ACTIONS. — (1) CAPITAL RESTORATION PLAN. —An enterprise that is classified as significantly undercapitalized shall, within the time period under section 1369C (b) and (d), submit to the Director a capital restoration plan that complies with section 1369C and carry out the plan after approval. (2) RESTRICTIONS ON CAPITAL DISTRIBUTIONS.— (A) PRIOR APPROVAL. — An enterprise that is classified as si^ificantly undercapitalized may not make any capital distribution that would result in the enterprise being reclassified as critically undercapitalized. An enterprise that is classified as significantly undercapitalized enter-

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