12 U.S.C. § 2279bb–4 — Enforcement levels

(a) The Director classifies the Corporation as follows. (1) Level I: regulatory capital is at least the section 2279bb–1 risk-based level and capital is at least the section 2279bb–2 minimum. (2) Level II: regulatory capital is below the risk-based level but at least the minimum, or the Corporation is classified under (b). (3) Level III: capital is below the minimum but at least the section 2279bb–3 critical level, or classified under (b). (4) Level IV: capital is below the critical level, or classified under (b). (b) If the Director determines in writing, and notifies the Corporation and Farm Credit Administration in writing, that the Corporation is taking an unapproved action that could rapidly deplete core capital, or that property securing its securitized mortgages or guaranteed securities has significantly lost value, the Director may classify it one level worse: Level II instead of I, Level III instead of II, or Level IV instead of III. (c) The Director must determine the classification at least quarterly and as appropriate under (b); the first determination was for the quarter ending March 31, 1992. (d) When determining under (b) or (c) that the Corporation is Level II or III, the Director must notify Congress and the Corporation in writing of the level, applicable section 2279bb–5 or –6, and reasons.