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§ 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.



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