§ 4614. — Capital classifications.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4614]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
SUBCHAPTER II--REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL
ENFORCEMENT POWERS
Sec. 4614. Capital classifications
(a) In general
For purposes of this subchapter, the Director shall classify the
enterprises according to the following capital classifications:
(1) Adequately capitalized
An enterprise shall be classified as adequately capitalized if
the enterprise--
(A) maintains an amount of total capital that is equal to or
exceeds the risk-based capital level established for the
enterprise under section 4611 of this title; and
(B) maintains an amount of core capital that is equal to or
exceeds the minimum capital level established for the enterprise
under section 4612 of this title.
(2) Undercapitalized
An enterprise shall be classified as undercapitalized if--
(A) the enterprise--
(i) does not maintain an amount of total capital that is
equal to or exceeds the risk-based capital level established
for the enterprise; and
(ii) maintains an amount of core capital that is equal
to or exceeds the minimum capital level established for the
enterprise; or
(B) the enterprise is otherwise classified as
undercapitalized under subsection (b)(1) of this section.
(3) Significantly undercapitalized
An enterprise shall be classified as significantly
undercapitalized if--
(A) the enterprise--
(i) does not maintain an amount of total capital that is
equal to or exceeds the risk-based capital level established
for the enterprise;
(ii) does not maintain an amount of core capital that is
equal to or exceeds the minimum capital level established
for the enterprise; and
(iii) maintains an amount of core capital that is equal
to or exceeds the critical capital level established for the
enterprise under section 4613 of this title; or
(B) the enterprise is otherwise classified as significantly
undercapitalized under subsection (b)(2) of this section or
section 4615(b) of this title.
(4) Critically undercapitalized
An enterprise shall be classified as critically undercapitalized
if--
(A) the enterprise--
(i) does not maintain an amount of total capital that is
equal to or exceeds the risk-based capital level established
for the enterprise; and
(ii) does not maintain an amount of core capital that is
equal to or exceeds the critical capital level for the
enterprise; or
(B) is otherwise classified as critically undercapitalized
under subsection (b)(3) of this section or section 4616(b)(5) of
this title.
(b) Discretionary classification
If at any time the Director determines in writing that an enterprise
is engaging in conduct not approved by the Director that could result in
a rapid depletion of core capital or that the value of the property
subject to mortgages held or securitized by the enterprise has decreased
significantly, the Director may classify the enterprise--
(1) as undercapitalized, if the enterprise is otherwise
classified as adequately capitalized;
(2) as significantly undercapitalized, if the enterprise is
otherwise classified as undercapitalized; and
(3) as critically undercapitalized, if the enterprise is
otherwise classified as significantly undercapitalized.
(c) Quarterly determination
The Director shall determine the capital classification of the
enterprises for purposes of this subchapter on not less than a quarterly
basis (and as appropriate under subsection (b) of this section). The
first such determination shall be made during the 3-month period
beginning on the appointment of the Director.
(d) Implementation
Notwithstanding any other provision of this section, during the
period beginning on October 28, 1992, and ending upon the effective date
of section 4615 of this title (as provided in section 4615(c) of this
title), an enterprise shall be classified as adequately capitalized if
the enterprise maintains an amount of core capital that is equal to or
exceeds the minimum capital level for the enterprise under section 4612
of this title.
(Pub. L. 102-550, title XIII, Sec. 1364, Oct. 28, 1992, 106 Stat. 3976.)
Section Referred to in Other Sections
This section is referred to in sections 4616, 4617, 4618, 4623 of
this title.