12 U.S.C. § 4613 — Critical capital levels
submitted 34 years ago by Pub. L. 102-550 to r/title-12-BANKS-AND-BANKING · 234 words · no verdicts yet
For enterprises, the critical capital level is calculated from specified percentages of assets and obligations. For Federal Home Loan Banks, the Director sets the level by regulation while considering the enterprise calculation.
(a) Enterprises. The critical capital level is the sum of (1) 1.25% of aggregate on-balance-sheet assets determined under generally accepted accounting principles; (2) 0.25% of unpaid principal on outstanding mortgage-backed securities and substantially equivalent instruments issued or guaranteed by the enterprise* and not included in (1); and (3) 0.25% of other off-balance-sheet obligations not included in (2), excluding commitments above 50% of the average dollar amount of commitments outstanding each quarter during the prior 4 quarters. The Director* must adjust the percentage to reflect differences in credit* risk compared with the instruments in (2). This section does not define the quoted technical terms.
(b) Federal Home Loan Banks. (1) The critical capital level for each Bank is the amount the Director requires by regulation. (2) In setting it, the Director must consider the enterprise level in (a), with appropriate changes for differences between bank and enterprise operations.
For purposes of this subchapter, the critical capital level for each enterprise* shall be the sum of—
1.25 percent of the aggregate on-balance sheet assets of the enterprise, as determined in accordance with generally accepted accounting principles;
0.25 percent of the unpaid principal balance of outstanding mortgage-backed securities and substantially equivalent instruments issued or guaranteed by the enterprise that are not included in paragraph (1); and
0.25 percent of other off-balance sheet obligations of the enterprise not included in paragraph (2) (excluding commitments in excess of 50 percent of the average dollar amount of the commitments outstanding each quarter over the preceding 4 quarters), except that the Director* shall adjust such percentage to reflect differences in the credit* risk of such obligations in relation to the instruments included in paragraph (2).
For purposes of this subchapter, the critical capital level for each Federal Home Loan Bank shall be such amount of capital as the Director shall, by regulation, require.
In establishing the critical capital level under paragraph (1) for the Federal Home Loan Banks, the Director shall take due consideration of the critical capital level established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises.
Source credit: (Pub. L. 102–550, title XIII, § 1363, Oct. 28, 1992, 106 Stat. 3976; Pub. L. 110–289, div. A, title I, § 1141(a), July 30, 2008, 122 Stat. 2730.)
- 1992Enacted · Pub. L. 102-550 · 106 Stat. 3976
- 2008Amended · Pub. L. 110-289 · 122 Stat. 2730
A history note hasn’t been published yet. The record shows enactment by Pub. L. 102-550 on 1992-10-28.
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