Page:United States Statutes at Large Volume 112 Part 2.djvu/43

 PUBLIC LAW 105-219—AUG. 7, 1998 112 STAT. 927 "(B) any increase in total assets is consistent with the net worth restoration plan; and "(C) the net worth ratio of the credit union increases at a rate that is consistent with the net worth restoration plan. "(2) RESTRICTION ON MEMBER BUSINESS LOANS. —Notwithstanding section 107A(a), an insured credit union that is undercapitalized may not make any increase in the total amount of member business loans (as defined in section 107A(c)) outstanding at that credit union at any one time, until such time as the credit union becomes adequately capitalized. "(h) MORE STRINGENT TREATMENT BASED ON OTHER SUPER- VISORY CRITERIA. —With respect to the exercise of authority by the Board under regulations comparable to section 38(g) of the Federal Deposit Insurance Act— "(1) the Board may not reclassify an insured credit union into a lower net worth category, or treat an insured credit, union as if it were in a lower net worth category, for reasons not pertaining to the safety and soundness of that credit union; and "(2) the Board may not delegate its authority to reclassify an insured credit union into a lower net worth category or to treat an insured credit union as if it were in a lower net worth category. " (i) ACTION REQUIRED REGARDING CRITICALLY UNDER- CAPITALIZED CREDIT UNIONS.— "(1) IN GENERAL. —The Board shall, not later than 90 days after the date on which an insured credit union becomes critically undercapitalized— "(A) appoint a conservator or liquidating agent for the credit union; or "(B) take such other action as the Board determines would better achieve the purpose of this section, after documenting why the action would better achieve that purpose. "(2) PERIODIC REDETERMINATIONS REQUIRED.—Any determination by the Board under paragraph (1)(B) to take any action with respect to an insured credit union in lieu of appointing a conservator or liquidating agent shall cease to be effective not later than the end of the 180-day period beginning on the date on which the determination is made, and a conservator or liquidating agent shall be appointed for that credit union under paragraph (1)(A), unless the Board makes a new determination under paragraph (1)(B) before the end of the effective period of the prior determination. " (3) APPOINTMENT OF LIQUIDATING AGENT REQUIRED IF OTHER ACTION FAILS TO RESTORE NET WORTH.— "(A) IN GENERAL. —Notwithstanding paragraphs (1) and (2), the Board shall appoint a liquidating agent for an insured credit union if the credit union is critically undercapitalized on average during the calendar quarter beginning 18 months after the date on which the credit union became critically undercapitalized. "(B) EXCEPTION. —Notwithstanding subparagraph (A), the Board may continue to take such other action as the Board determines to be appropriate in lieu of appointment of a liquidating agent if— "(i) the Board determines that— Deadline. Termination date.

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