Page:United States Statutes at Large Volume 122.djvu/2757

 12 2 STA T . 2 734PUBLIC LA W 11 0– 2 89—J UL Y 30, 2008 ‘ ‘ (B)DISM ISS ALOFD I RECT ORSORE X EC U TI V E OFFI - CERS .—Requir e th ere g u la te d e n tit y t o di sm iss f rom offi c e any director or e x ecuti v e officer w ho had held office for more than 180 days immediately b efore the date on which the regulated entity became underca p itali z ed. Dismissal under this subparagraph shall not be construed to be a removal pursuant to the enforcement powers of the Director under section 1 37 7. ‘‘( C ) E M P LO YQ UALIFIED EXECUTIVE OFFICERS.—Require the regulated entity to employ qualified executive officers (who, if the Director so specifies, shall be sub j ect to approval by the Director). ’ ’ and ( F ) by adding at the end the following

‘‘(7) O T H ER ACTIO N .—Require the regulated entity to ta k e any other action that the Director determines will better carry out the purpose of this section than any of the other actions specified in this subsection.’’; and ( 6 ) by striking subsection (c) and inserting the following: ‘‘(c) RESTRICTION ON COMPENSATION OF EXECUTIVE OFFICERS.— A regulated entity that is classified as significantly undercapitalized in accordance with section 136 4 may not, without prior written approval by the Director— ‘‘(1) pay any bonus to any executive officer; or ‘‘( 2 ) provide compensation to any executive officer at a rate exceeding the average rate of compensation of that officer (excluding bonuses, stock options, and profit sharing) during the 12 calendar months preceding the calendar month in which the regulated entity became significantly undercapitalized.’’. SEC.1 1 45 . AUTHORI T Y O V ER CRITICA L LYU ND ERCA P ITALI Z ED RE G U - LATED ENTITIES. (a) I N G ENERAL.— S ection 1367 of the Federal H ousing Enter- prises Financial Safety and Soundness Act of 1 9 92 (12 U .S.C. 4617) is amended to read as follows: ‘ ‘SEC. 1 367 . AUTHORITY OVER CRITICALLY UNDERCAPITALIZED REGU- LATED ENTITIES. ‘‘(a) APPOINTMENT OF THE A G ENCY AS CONSERVATOR OR RECEIVER.— ‘‘(1) IN GENERAL.— N otwithstanding any other provision of Federal or State law, the Director may appoint the Agency as conservator or receiver for a regulated entity in the manner provided under paragraph (2) or (4). All references to the conser- vator or receiver under this section are references to the Agency acting as conservator or receiver. ‘‘(2) DISCRETIONARY APPOINTMENT.— T he Agency may, at the discretion of the Director, be appointed conservator or receiver for the purpose of reorganizing, rehabilitating, or winding up the affairs of a regulated entity. ‘‘(3) GROUNDS FOR DISCRETIONARY APPOINTMENT OF CONSER- VATOR OR RECEIVER.—The grounds for appointing conservator or receiver for any regulated entity under paragraph (2) are as follows: ‘‘(A) ASSETS INSUFFICIENT FOR O B LIGATIONS.—The assets of the regulated entity are less than the obligations of the regulated entity to its creditors and others. ‘‘(B) SUBSTANTIAL DISSIPATION.—Substantial dissipa- tion of assets or earnings due to—

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