12 U.S.C. § 2279bb–5 — Mandatory actions applicable to level II
submitted 35 years ago by Pub. L. 92-181 to r/title-12-BANKS-AND-BANKING · 194 words · no verdicts yet
A Level II Corporation must submit and follow a capital-restoration plan and may not pay dividends that would cause Level III or IV status. Failure to obtain or follow an approved plan causes immediate Level III classification.
(a) A Level II Corporation* must submit a capital-restoration plan to the Director* within the Director’s deadline and carry it out after approval. (b) It may not pay dividends that would make it Level III or IV. (c) The Director must immediately reclassify it as Level III if it is Level II and either (1) does not submit a plan approved by the Director, or (2) the Director finds it has not made, in good faith, reasonable efforts to follow the plan and its approved schedule. (d) This section took effect after the 30-month period beginning December 13, 1991.
If the Corporation* is classified as within level II, 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.
If the Corporation is classified as within level II, the Corporation may not make any payment of dividends that would result in the Corporation being reclassified as within level III or IV.
The Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of section 2279bb–6 of this title), if—
the Corporation is within level II; and
the Corporation does not submit a capital restoration plan that is approved by the Director; or
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.
This section shall take effect upon the expiration of the 30-month period beginning on December 13, 1991.
Source credit: (Pub. L. 92–181, title VIII, § 8.36, as added Pub. L. 102–237, title V, § 503(b)(2), Dec. 13, 1991, 105 Stat. 1876.)
- 1991Enacted · Pub. L. 92-181 · 105 Stat. 1876
A history note hasn’t been published yet. The record shows enactment by Pub. L. 92-181 on 1991-12-13.
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