Page:United States Statutes at Large Volume 106 Part 5.djvu/341

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3979 prise may not make any other capital distribution unless the Director approves the distribution. (B) STANDARD FOR APPROVAL. —The Director may approve a capital distribution by an enterprise classified as significantly imdeircapitalized only if the Director determines that the distribution (i) wili enhance the ability of the enterprise to meet the risk-based capital level and the minimum capital level for the enterprise promptly, (ii) will contribute to the long-term financial safety and soundness of the enterprise, or (iii) is otherwise in the public interest. (b) DISCRETIONARY SUPERVISORY ACTIONS. —In addition to any other actions taken by the Director (including actions \mder subsection (a)), the Director may, at any time, take any of the following actions with respect to an enterprise that is classified as significantly undercapitalized: (1) LIMITATION ON INCREASE IN OBLIGATIONS. — Limit any increase in, or order the reduction of, any obligations of the enterprise, including off-balance sheet obligations. (2) LIMITATION ON GROWTH. — Limit or prohibit the growth of the assets of the enterprise or require contraction of the assets of the enterprise. (3) ACQUISITION OF NEW CAPITAL.— Require the enterprise to acquire new capital in a form and amount determined by the Director. (4) RESTRICTION OF ACTIVITIES. —Require the enterprise to terminate, reduce, or modify any activity that the Director determines creates excessive risk to the enterprise. (5) RECLASSIFICATION FROM SIGNIFICANTLY TO CRITICALLY UNDERCAPITALIZED.— The Director may reclassify as critically undercapitalized an enterprise that is classified as significantly undercapitalized (and the enterprise shall be subject to the provisions of section 1367) if— (A) 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 (B) 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. (6) CONSERVATORSHIP. —Appoint a conservator for the enterprise in accordance with the provisions of section 1369 (excluding subsection (a)(1) and (2)), but only if the Director determines— (A) that the amovmt of core capital of the enterprise is less than the minimum capital level established for the enterprise under section 1362; and (B) that alternative remedies available to the Director under this title are not satisfactory. (c) EFFECTIVE DATE.— -T his section shall take effect upon the first classification of the enterprises within capital classifications that occurs under section 1364.

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