§ 4615. — Supervisory actions applicable to undercapitalized enterprises.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4615]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
SUBCHAPTER II--REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL
ENFORCEMENT POWERS
Sec. 4615. Supervisory actions applicable to undercapitalized
enterprises
(a) Mandatory actions
(1) Capital restoration plan
An enterprise that is classified as undercapitalized shall,
within the time period provided in section 4622(b) and (d) of this
title, submit to the Director a capital restoration plan that
complies with section 4622 of this title and carry out the plan
after approval.
(2) Restriction on capital distributions
An enterprise that is classified as undercapitalized may not
make any capital distribution that would result in the enterprise
being reclassified as significantly undercapitalized or critically
undercapitalized.
(b) Discretionary reclassification from undercapitalized to
significantly undercapitalized
The Director may reclassify as significantly undercapitalized an
enterprise that is classified as undercapitalized (and the enterprise
shall be subject to the provisions of section 4616 of this title) if--
(1) the enterprise does not submit a capital restoration plan
that is substantially in compliance with section 4622 of this title
within the applicable period or the Director does not approve the
capital restoration plan submitted by the enterprise; or
(2) the Director determines that the enterprise has failed to
make, in good faith, reasonable efforts necessary to comply with the
capital restoration plan and fulfill the schedule for the plan
approved by the Director.
(c) Effective date
This section shall take effect upon the expiration of the 1-year
period beginning on the date of the effectiveness of the regulations
issued under section 4611(e) of this title establishing the risk-based
capital test.
(Pub. L. 102-550, title XIII, Sec. 1365, Oct. 28, 1992, 106 Stat. 3978.)
Section Referred to in Other Sections
This section is referred to in sections 4614, 4617, 4618, 4636 of
this title.
