Page:United States Statutes at Large Volume 122.djvu/2755

 12 2 STA T . 2 73 2 PUBLIC LA W 11 0– 2 89—J UL Y 30, 2008 ‘ ‘ (2)EXCEPTION.—Notwi t hs t and in gp a r agraph ( 1 ) , th eD ire c tor m a y permit a reg ul ated entity, to the e x tent appro - priate or applica b le, to repurchase, redeem, retire, or otherwise ac q uire shares or ownership interests i f the repurchase, redemption, retirement, or other acquisition— ‘‘( A ) is made in connection with the issuance of addi- tional shares or obligations of the regulated entity in at least an equi v alent amount and ‘‘( B ) will reduce the financial obligations of the regu- lated entity or otherwise improve the financial condition of the entity. ’ ’. (b) R E GULA TION S .—Not later than the expiration of the 1 80 - day period beginning on the date of enactment of this Act, the Director of the F ederal H ousing Finance Agency shall issue regula- tions to carry out section 1 364 (b) of the Federal Housing Enterprises Financial S afety and Soundness Act of 1 9 92 (as added by this section), relating to capital classifications for the Federal Home L oan Ban k s. SEC.1 1 43 .S UP E RVI S O R YA C T IO N S APP L ICA B LETOUN D ERCAPITAL - I Z ED RE G ULATED ENTITIES. Section 136 5 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U .S. C . 4615) is amended— (1) by striking ‘‘the enterprise’’ each place that term appears and inserting ‘‘the regulated entity’’; (2) by striking ‘‘An enterprise’’ each place that term appears and inserting ‘‘A regulated entity’’; (3) by striking ‘‘an enterprise’’ each place that term appears and inserting ‘‘a regulated entity’’; (4) in subsection (a)— (A) by redesignating paragraphs (1) and (2) as para- graphs (2) and (3), respectively; (B) by inserting before paragraph (2), as redesignated, the following

‘‘(1) RE Q UI R E DM ONITORING.— T he Director shall— ‘‘(A) closely monitor the condition of any undercapital- i z ed regulated entity; ‘‘(B) closely monitor compliance with the capital res- toration plan, restrictions, and requirements imposed on an undercapitalized regulated entity under this section; and ‘‘(C) periodically review the plan, restrictions, and requirements applicable to an undercapitalized regulated entity to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.’’; and (C) by adding at the end the following: ‘‘(4) RESTRICTION O F ASSET GRO W T H .—An undercapitalized regulated entity shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter, unless— ‘‘(A) the Director has accepted the capital restoration plan of the regulated entity; ‘‘(B) any increase in total assets is consistent with the capital restoration plan; and ‘‘(C) the ratio of tangible equity to assets of the regu- lated entity increases during the calendar quarter at a Revi e w.D e adl i n e.

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