Page:United States Statutes at Large Volume 110 Part 4.djvu/449

 PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009 -286 (A) by adding at the end of paragraph (2) (as amended in paragraph (3)(B)(ii)) the following new subparagraph: " (E) OBLIGATION TO OBTAIN, MAINTAIN, AND REPORT INFORMATION.— "(i) IN GENERAL.—The Association shall obtain such information and make and keep such records as the Secretary of the Treasury may from time to time prescribe concerning— "(I) the financial risk to the Association resulting from the activities of any associated person, to the extent such activities are reasonably likely to have a material impact on the financial condition of the Association, including the Association's capital ratio, the Association's liquidity, or the Association's ability to conduct and finance the Association's operations; and "(II) the Association's policies, procedures, and systems for monitoring and controlling any such financial risk. "(ii) SUMMARY REPORTS.— The Secretary of the Treasury may require summary reports of such information to be filed no more frequently than quarterly. If, as a result of adverse market conditions or based on reports provided pursuant to this subparagraph or other available information, the Secretary of the Treasury has concerns regarding the financial or operational condition of the Association, the Secretary of the Treasury may, notwithstanding the preceding sentence and clause (i), require the Association to make reports concerning the activities of any associated person, whose business activities are reasonably likely to have a material impact on the financial or operational condition of the Association. "(iii) DEFINITION.— For purposes of this subparagraph, the term 'associated person' means any person, other than a natural person, directly or indirectly controlling, controlled by, or under common control with the Association."; and (B) by adding at the end the following new paragraphs: "(16) DIVIDENDS. —The Association may pay dividends in the form of cash or noncash distributions so long as at the time of the declaration of such dividends, after giving effect to the payment of such dividends as of the date of such declaration by the Board of Directors of the Association, the Association's capital would be in compliance with the capital standards set forth in this section. "(17) CERTIFICATION PRIOR TO PAYMENT OF DIVIDEND.— Prior to the payment of any dividend under paragraph (16), the Association shall certify to the Secretary of the Treasury that the payment of the dividend will be made in compliance with paragraph (16) and shall provide copies of all calculations needed to make such certification.". (c) SUNSET OF THE ASSOCIATION'S CHARTER IF NO REORGANIZA- TION PLAN OCCURS.—Section 439 of the Higher Education Act of 1965 (20 U.S.C. 1087-2) is amended by adding at the end the following new subsection: "(s) CHARTER SUNSET. — 29-194O-96 -15:QL3Part4

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