2015 US Code
Title 12 - Banks and Banking (Sections 1 - 5710)
Chapter 23 - Farm Credit System (Sections 2001 - 2279cc)
Subchapter VIII - Agricultural Mortgage Secondary Market (Sections 2279aa - 2279cc)
Part B - Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation (Sections 2279bb - 2279bb-7)
Sec. 2279bb-6 - Supervisory actions applicable to level III
Publication Title | United States Code, 2012 Edition, Supplement 3, Title 12 - BANKS AND BANKING |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 12 - BANKS AND BANKING CHAPTER 23 - FARM CREDIT SYSTEM SUBCHAPTER VIII - AGRICULTURAL MORTGAGE SECONDARY MARKET Part B - Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation Sec. 2279bb-6 - Supervisory actions applicable to level III |
Contains | section 2279bb-6 |
Date | 2015 |
Laws In Effect As Of Date | January 3, 2016 |
Positive Law | No |
Disposition | standard |
Source Credit | Pub. L. 92-181, title VIII, §8.37, as added Pub. L. 102-237, title V, §503(b)(2), Dec. 13, 1991, 105 Stat. 1876. |
Statutes at Large Reference | 105 Stat. 1876 |
Public and Private Law | Public Law 92-181, Public Law 102-237 |
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If the Corporation is classified as within level III, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the plan.
(2) Restrictions on dividends(A) Prior approvalIf the Corporation is classified as within level III, the Corporation—
(i) may not make any payment of dividends that would result in the Corporation being reclassified as within level IV; and
(ii) may make any other payment of dividends only if the Director approves the payment before the payment.
(B) Standard for approvalIf the Corporation is classified as within level III, the Director may approve a payment of dividends by the Corporation only if the Director determines that the payment (i) will enhance the ability of the Corporation to meet the risk-based capital level and the minimum capital level promptly, (ii) will contribute to the long-term safety and soundness of the Corporation, or (iii) is otherwise in the public interest.
(3) Reclassification from level III to level IVThe Director shall immediately reclassify the Corporation as within level IV if—
(A) the Corporation is classified as within level III; and
(B)(i) the Corporation does not submit a capital restoration plan that is approved by the Director; or
(ii) the Director determines that the Corporation has failed to make, in good faith, reasonable efforts necessary to comply with such a capital restoration plan and fulfill the schedule for the plan approved by the Director.
(b) Discretionary supervisory actionsIn addition to any other actions taken by the Director (including actions under subsection (a)), the Director may, at any time, take any of the following actions if the Corporation is classified as within level III:
(1) Limitation on increase in obligationsLimit any increase in, or order the reduction of, any obligations of the Corporation, including off-balance sheet obligations.
(2) Limitation on growthLimit or prohibit the growth of the assets of the Corporation or require contraction of the assets of the Corporation.
(3) Prohibition on dividendsProhibit the Corporation from making any payment of dividends.
(4) Acquisition of new capitalRequire the Corporation to acquire new capital in any form and in any amount sufficient to provide for the reclassification of the Corporation as within level II.
(5) Restriction of activitiesRequire the Corporation to terminate, reduce, or modify any activity that the Director determines creates excessive risk to the Corporation.
(6) ConservatorshipAppoint a conservator for the Corporation consistent with this chapter.
(c) Effective dateThis section shall take effect on January 1, 1992.
(Pub. L. 92–181, title VIII, §8.37, as added Pub. L. 102–237, title V, §503(b)(2), Dec. 13, 1991, 105 Stat. 1876.)
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