§ 4617. — Appointment of conservators for critically 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: 12USC4617]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
SUBCHAPTER II--REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL
ENFORCEMENT POWERS
Sec. 4617. Appointment of conservators for critically
undercapitalized enterprises
(a) Appointment
(1) In general
Upon a determination and notice under section 4618(d) of this
title that an enterprise is critically undercapitalized and not
later than 30 days after providing notice under section 4619(a)(3)
of this title, the Director shall appoint a conservator for the
enterprise in accordance with the provisions of section 4619 of this
title (excluding subsections \1\ (a)(1) and (2)).
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\1\ So in original. Probably should be ``subsection''.
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(2) Exception
Notwithstanding paragraph (1), the Director may determine not to
appoint a conservator for an enterprise classified as critically
undercapitalized, but only pursuant to a written finding by the
Director, with the written concurrence of the Secretary of the
Treasury, that--
(A) the appointment of a conservator would have serious
adverse effects on economic conditions of national financial
markets or on the financial stability of the housing finance
market; and
(B) the public interest would be better served by taking
some other enforcement action authorized under this chapter.
(b) Authority
The Director shall have the authority to take any actions under
sections 4615 and 4616 of this title with respect to an enterprise under
conservatorship.
(c) Approval of activities
(1) Conservator
The conservator of any enterprise classified as critically
undercapitalized may undertake an activity subject to the approval
of the Secretary under section 4542 of this title only with the
additional approval of the Director.
(2) No conservator
If the Director determines under subsection (a)(2) of this
section not to appoint a conservator for an enterprise classified as
critically undercapitalized, the provisions of section 4616 of this
title shall apply with respect to the enterprise.
(d) Effective date
This section shall take effect upon the first classification of the
enterprises within capital classifications that occurs under section
4614 of this title.
(Pub. L. 102-550, title XIII, Sec. 1367, Oct. 28, 1992, 106 Stat. 3980.)
References in Text
This chapter, referred to in subsec. (a)(2)(B), was in the original
``this title'', meaning title XIII of Pub. L. 102-550, Oct. 28, 1992,
106 Stat. 3941, which is classified principally to this chapter. For
complete classification of title XIII to the Code, see Short Title note
set out under section 4501 of this title and Tables.
Section Referred to in Other Sections
This section is referred to in sections 4616, 4619, 4620, 4623 of
this title.
