{"identifier":"/us/usc/t12/s1831o","title":12,"num":"\u00a7\u202f1831o.","heading":"Prompt corrective action","text":"\u00a7\u202f1831o.\nPrompt corrective action\n(a)\nResolving problems to protect Deposit Insurance Fund\n(1)\nPurpose\nThe purpose of this section is to resolve the problems of insured depository institutions at the least possible long-term loss to the Deposit Insurance Fund.\n(2)\nPrompt corrective action required\nEach appropriate Federal banking agency and the Corporation (acting in the Corporation\u2019s capacity as the insurer of depository institutions under this chapter) shall carry out the purpose of this section by taking prompt corrective action to resolve the problems of insured depository institutions.\n(b)\nDefinitions\nFor purposes of this section:\n(1)\nCapital categories\n(A)\nWell capitalized\nAn insured depository institution is \u201cwell capitalized\u201d if it significantly exceeds the required minimum level for each relevant capital measure.\n(B)\nAdequately capitalized\nAn insured depository institution is \u201cadequately capitalized\u201d if it meets the required minimum level for each relevant capital measure.\n(C)\nUndercapitalized\nAn insured depository institution is \u201cundercapitalized\u201d if it fails to meet the required minimum level for any relevant capital measure.\n(D)\nSignificantly undercapitalized\nAn insured depository institution is \u201csignificantly undercapitalized\u201d if it is significantly below the required minimum level for any relevant capital measure.\n(E)\nCritically undercapitalized\nAn insured depository institution is \u201ccritically undercapitalized\u201d if it fails to meet any level specified under subsection (c)(3)(A).\n(2)\nOther definitions\n(A)\nAverage\n(i)\nIn general\nThe \u201caverage\u201d of an accounting item (such as total assets or tangible equity) during a given period means the sum of that item at the close of business on each business day during that period divided by the total number of business days in that period.\n(ii)\nAgency may permit weekly averaging for certain institutions\nIn the case of insured depository institutions that have total assets of less than $300,000,000 and normally file reports of condition reflecting weekly (rather than daily) averages of accounting items, the appropriate Federal banking agency may provide that the \u201caverage\u201d of an accounting item during a given period means the sum of that item at the close of business on the relevant business day each week during that period divided by the total number of weeks in that period.\n(B)\nCapital distribution\nThe term \u201ccapital distribution\u201d means\u2014\n(i) a distribution of cash or other property by any insured depository institution or company to its owners made on account of that ownership, but not including\u2014\n(I) any dividend consisting only of shares of the institution or company or rights to purchase such shares; or\n(II) any amount paid on the deposits of a mutual or cooperative institution that the appropriate Federal banking agency determines is not a distribution for purposes of this section;\n(ii) a payment by an insured depository institution or company to repurchase, redeem, retire, or otherwise acquire any of its shares or other ownership interests, including any extension of credit to finance an affiliated company\u2019s acquisition of those shares or interests; or\n(iii) a transaction that the appropriate Federal banking agency or the Corporation determines, by order or regulation, to be in substance a distribution of capital to the owners of the insured depository institution or company.\n(C)\nCapital restoration plan\nThe term \u201ccapital restoration plan\u201d means a plan submitted under subsection (e)(2).\n(D)\nCompany\nThe term \u201ccompany\u201d has the same meaning as in\nsection 1841 of this title\n(E)\nCompensation\nThe term \u201ccompensation\u201d includes any payment of money or provision of any other thing of value in consideration of employment.\n(F)\nRelevant capital measure\nThe term \u201crelevant capital measure\u201d means the measures described in subsection (c).\n(G)\nRequired minimum level\nThe term \u201crequired minimum level\u201d means, with respect to each relevant capital measure, the minimum acceptable capital level specified by the appropriate Federal banking agency by regulation.\n(H)\nSenior executive officer\nThe term \u201csenior executive officer\u201d has the same meaning as the term \u201cexecutive officer\u201d in\nsection 375b of this title\n(I)\nSubordinated debt\nThe term \u201csubordinated debt\u201d means debt subordinated to the claims of general creditors.\n(c)\nCapital standards\n(1)\nRelevant capital measures\n(A)\nIn general\nExcept as provided in subparagraph (B)(ii), the capital standards prescribed by each appropriate Federal banking agency shall include\u2014\n(i) a leverage limit; and\n(ii) a risk-based capital requirement.\n(B)\nOther capital measures\nAn appropriate Federal banking agency may, by regulation\u2014\n(i) establish any additional relevant capital measures to carry out the purpose of this section; or\n(ii) rescind any relevant capital measure required under subparagraph (A) upon determining (with the concurrence of the other Federal banking agencies) that the measure is no longer an appropriate means for carrying out the purpose of this section.\n(2)\nCapital categories generally\nEach appropriate Federal banking agency shall, by regulation, specify for each relevant capital measure the levels at which an insured depository institution is well capitalized, adequately capitalized, undercapitalized, and significantly undercapitalized.\n(3)\nCritical capital\n(A)\nAgency to specify level\n(i)\nLeverage limit\nEach appropriate Federal banking agency shall, by regulation, in consultation with the Corporation, specify the ratio of tangible equity to total assets at which an insured depository institution is critically undercapitalized.\n(ii)\nOther relevant capital measures\nThe agency may, by regulation, specify for 1 or more other relevant capital measures, the level at which an insured depository institution is critically undercapitalized.\n(B)\nLeverage limit range\nThe level specified under subparagraph (A)(i) shall require tangible equity in an amount\u2014\n(i) not less than 2 percent of total assets; and\n(ii) except as provided in clause (i), not more than 65 percent of the required minimum level of capital under the leverage limit.\n(C)\nFDIC\u2019s concurrence required\nThe appropriate Federal banking agency shall not, without the concurrence of the Corporation, specify a level under subparagraph (A)(i) lower than that specified by the Corporation for State nonmember insured banks.\n(d)\nProvisions applicable to all institutions\n(1)\nCapital distributions restricted\n(A)\nIn general\nAn insured depository institution shall make no capital distribution if, after making the distribution, the institution would be undercapitalized.\n(B)\nException\nNotwithstanding subparagraph (A), the appropriate Federal banking agency may permit, after consultation with the Corporation, an insured depository institution to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition\u2014\n(i) is made in connection with the issuance of additional shares or obligations of the institution in at least an equivalent amount; and\n(ii) will reduce the institution\u2019s financial obligations or otherwise improve the institution\u2019s financial condition.\n(2)\nManagement fees restricted\nAn insured depository institution shall pay no management fee to any person having control of that institution if, after making the payment, the institution would be undercapitalized.\n(e)\nProvisions applicable to undercapitalized institutions\n(1)\nMonitoring required\nEach appropriate Federal banking agency shall\u2014\n(A) closely monitor the condition of any undercapitalized insured depository institution;\n(B) closely monitor compliance with capital restoration plans, restrictions, and requirements imposed under this section; and\n(C) periodically review the plan, restrictions, and requirements applicable to any undercapitalized insured depository institution to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.\n(2)\nCapital restoration plan required\n(A)\nIn general\nAny undercapitalized insured depository institution shall submit an acceptable capital restoration plan to the appropriate Federal banking agency within the time allowed by the agency under subparagraph (D).\n(B)\nContents of plan\nThe capital restoration plan shall\u2014\n(i) specify\u2014\n(I) the steps the insured depository institution will take to become adequately capitalized;\n(II) the levels of capital to be attained during each year in which the plan will be in effect;\n(III) how the institution will comply with the restrictions or requirements then in effect under this section; and\n(IV) the types and levels of activities in which the institution will engage; and\n(ii) contain such other information as the appropriate Federal banking agency may require.\n(C)\nCriteria for accepting plan\nThe appropriate Federal banking agency shall not accept a capital restoration plan unless the agency determines that\u2014\n(i) the plan\u2014\n(I) complies with subparagraph (B);\n(II) is based on realistic assumptions, and is likely to succeed in restoring the institution\u2019s capital; and\n(III) would not appreciably increase the risk (including credit risk, interest-rate risk, and other types of risk) to which the institution is exposed; and\n(ii) if the insured depository institution is undercapitalized, each company having control of the institution has\u2014\n(I) guaranteed that the institution will comply with the plan until the institution has been adequately capitalized on average during each of 4 consecutive calendar quarters; and\n(II) provided appropriate assurances of performance.\n(D)\nDeadlines for submission and review of plans\nThe appropriate Federal banking agency shall by regulation establish deadlines that\u2014\n(i) provide insured depository institutions with reasonable time to submit capital restoration plans, and generally require an institution to submit a plan not later than 45 days after the institution becomes undercapitalized;\n(ii) require the agency to act on capital restoration plans expeditiously, and generally not later than 60 days after the plan is submitted; and\n(iii) require the agency to submit a copy of any plan approved by the agency to the Corporation before the end of the 45-day period beginning on the date such approval is granted.\n(E)\nGuarantee liability limited\n(i)\nIn general\nThe aggregate liability under subparagraph (C)(ii) of all companies having control of an insured depository institution shall be the lesser of\u2014\n(I) an amount equal to 5 percent of the institution\u2019s total assets at the time the institution became undercapitalized; or\n(II) the amount which is necessary (or would have been necessary) to bring the institution into compliance with all capital standards applicable with respect to such institution as of the time the institution fails to comply with a plan under this subsection.\n(ii)\nCertain affiliates not affected\nThis paragraph may not be construed as\u2014\n(I) requiring any company not having control of an undercapitalized insured depository institution to guarantee, or otherwise be liable on, a capital restoration plan;\n(II) requiring any person other than an insured depository institution to submit a capital restoration plan; or\n(III) affecting compliance by brokers, dealers, government securities brokers, and government securities dealers with the financial responsibility requirements of the Securities Exchange Act of 1934 [\n15 U.S.C. 78a\n(3)\nAsset growth restricted\nAn undercapitalized insured depository institution shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter unless\u2014\n(A) the appropriate Federal banking agency has accepted the institution\u2019s capital restoration plan;\n(B) any increase in total assets is consistent with the plan; and\n(C) the institution\u2019s ratio of tangible equity to assets increases during the calendar quarter at a rate sufficient to enable the institution to become adequately capitalized within a reasonable time.\n(4)\nPrior approval required for acquisitions, branching, and new lines of business\nAn undercapitalized insured depository institution shall not, directly or indirectly, acquire any interest in any company or insured depository institution, establish or acquire any additional branch office, or engage in any new line of business unless\u2014\n(A) the appropriate Federal banking agency has accepted the insured depository institution\u2019s capital restoration plan, the institution is implementing the plan, and the agency determines that the proposed action is consistent with and will further the achievement of the plan; or\n(B) the Board of Directors determines that the proposed action will further the purpose of this section.\n(5)\nDiscretionary safeguards\nThe appropriate Federal banking agency may, with respect to any undercapitalized insured depository institution, take actions described in any subparagraph of subsection (f)(2) if the agency determines that those actions are necessary to carry out the purpose of this section.\n(f)\nProvisions applicable to significantly undercapitalized institutions and undercapitalized institutions that fail to submit and implement capital restoration plans\n(1)\nIn general\nThis subsection shall apply with respect to any insured depository institution that\u2014\n(A) is significantly undercapitalized; or\n(B) is undercapitalized and\u2014\n(i) fails to submit an acceptable capital restoration plan within the time allowed by the appropriate Federal banking agency under subsection (e)(2)(D); or\n(ii) fails in any material respect to implement a plan accepted by the agency.\n(2)\nSpecific actions authorized\nThe appropriate Federal banking agency shall carry out this section by taking 1 or more of the following actions:\n(A)\nRequiring recapitalization\nDoing 1 or more of the following:\n(i) Requiring the institution to sell enough shares or obligations of the institution so that the institution will be adequately capitalized after the sale.\n(ii) Further requiring that instruments sold under clause (i) be voting shares.\n(iii) Requiring the institution to be acquired by a depository institution holding company, or to combine with another insured depository institution, if 1 or more grounds exist for appointing a conservator or receiver for the institution.\n(B)\nRestricting transactions with affiliates\n(i) Requiring the institution to comply with\nsection 371c of this title\n(ii) Further restricting the institution\u2019s transactions with affiliates.\n(C)\nRestricting interest rates paid\n(i)\nIn general\nRestricting the interest rates that the institution pays on deposits to the prevailing rates of interest on deposits of comparable amounts and maturities in the region where the institution is located, as determined by the agency.\n(ii)\nRetroactive restrictions prohibited\nThis subparagraph does not authorize the agency to restrict interest rates paid on time deposits made before (and not renewed or renegotiated after) the agency acted under this subparagraph.\n(D)\nRestricting asset growth\nRestricting the institution\u2019s asset growth more stringently than subsection (e)(3), or requiring the institution to reduce its total assets.\n(E)\nRestricting activities\nRequiring the institution or any of its subsidiaries to alter, reduce, or terminate any activity that the agency determines poses excessive risk to the institution.\n(F)\nImproving management\nDoing 1 or more of the following:\n(i)\nNew election of directors\nOrdering a new election for the institution\u2019s board of directors.\n(ii)\nDismissing directors or senior executive officers\nRequiring the institution to dismiss from office any director or senior executive officer who had held office for more than 180 days immediately before the institution became undercapitalized. Dismissal under this clause shall not be construed to be a removal under\nsection 1818 of this title\n(iii)\nEmploying qualified senior executive officers\nRequiring the institution to employ qualified senior executive officers (who, if the agency so specifies, shall be subject to approval by the agency).\n(G)\nProhibiting deposits from correspondent banks\nProhibiting the acceptance by the institution of deposits from correspondent depository institutions, including renewals and rollovers of prior deposits.\n(H)\nRequiring prior approval for capital distributions by bank holding company\nProhibiting any bank holding company having control of the insured depository institution from making any capital distribution without the prior approval of the Board of Governors of the Federal Reserve System.\n(I)\nRequiring divestiture\nDoing one or more of the following:\n(i)\nDivestiture by the institution\nRequiring the institution to divest itself of or liquidate any subsidiary if the agency determines that the subsidiary is in danger of becoming insolvent and poses a significant risk to the institution, or is likely to cause a significant dissipation of the institution\u2019s assets or earnings.\n(ii)\nDivestiture by parent company of nondepository affiliate\nRequiring any company having control of the institution to divest itself of or liquidate any affiliate other than an insured depository institution if the appropriate Federal banking agency for that company determines that the affiliate is in danger of becoming insolvent and poses a significant risk to the institution, or is likely to cause a significant dissipation of the institution\u2019s assets or earnings.\n(iii)\nDivestiture of institution\nRequiring any company having control of the institution to divest itself of the institution if the appropriate Federal banking agency for that company determines that divestiture would improve the institution\u2019s financial condition and future prospects.\n(J)\nRequiring other action\nRequiring the institution to take any other action that the agency determines will better carry out the purpose of this section than any of the actions described in this paragraph.\n(3)\nPresumption in favor of certain actions\nIn complying with paragraph (2), the agency shall take the following actions, unless the agency determines that the actions would not further the purpose of this section:\n(A) The action described in clause (i) or (iii) of paragraph (2)(A) (relating to requiring the sale of shares or obligations, or requiring the institution to be acquired by or combine with another institution).\n(B) The action described in paragraph (2)(B)(i) (relating to restricting transactions with affiliates).\n(C) The action described in paragraph (2)(C) (relating to restricting interest rates).\n(4)\nSenior executive officers\u2019 compensation restricted\n(A)\nIn general\nThe insured depository institution shall not do any of the following without the prior written approval of the appropriate Federal banking agency:\n(i) Pay any bonus to any senior executive officer.\n(ii) Provide compensation to any senior executive officer at a rate exceeding that officer\u2019s average rate of compensation (excluding bonuses, stock options, and profit-sharing) during the 12 calendar months preceding the calendar month in which the institution became undercapitalized.\n(B)\nFailing to submit plan\nThe appropriate Federal banking agency shall not grant any approval under subparagraph (A) with respect to an institution that has failed to submit an acceptable capital restoration plan.\n(5)\nDiscretion to impose certain additional restrictions\nThe agency may impose 1 or more of the restrictions prescribed by regulation under subsection (i) if the agency determines that those restrictions are necessary to carry out the purpose of this section.\n(6)\nConsultation with other regulators\nBefore the agency or Corporation makes a determination under paragraph (2)(I) with respect to an affiliate that is a broker, dealer, government securities broker, government securities dealer, investment company, or investment adviser, the agency or Corporation shall consult with the Securities and Exchange Commission and, in the case of any other affiliate which is subject to any financial responsibility or capital requirement, any other appropriate regulator of such affiliate with respect to the proposed determination of the agency or the Corporation and actions pursuant to such determination.\n(g)\nMore stringent treatment based on other supervisory criteria\n(1)\nIn general\nIf the appropriate Federal banking agency determines (after notice and an opportunity for hearing) that an insured depository institution is in an unsafe or unsound condition or, pursuant to\n(A) if the institution is well capitalized, reclassify the institution as adequately capitalized;\n(B) if the institution is adequately capitalized (but not well capitalized), require the institution to comply with 1 or more provisions of subsections (d) and (e), as if the institution were undercapitalized; or\n(C) if the institution is undercapitalized, take any 1 or more actions authorized under subsection (f)(2) as if the institution were significantly undercapitalized.\n(2)\nContents of plan\nAny plan required under paragraph (1) shall specify the steps that the insured depository institution will take to correct the unsafe or unsound condition or practice. Capital restoration plans shall not be required under paragraph (1)(B).\n(h)\nProvisions applicable to critically undercapitalized institutions\n(1)\nActivities restricted\nAny critically undercapitalized insured depository institution shall comply with restrictions prescribed by the Corporation under subsection (i).\n(2)\nPayments on subordinated debt prohibited\n(A)\nIn general\nA critically undercapitalized insured depository institution shall not, beginning 60 days after becoming critically undercapitalized, make any payment of principal or interest on the institution\u2019s subordinated debt.\n(B)\nExceptions\nThe Corporation may make exceptions to subparagraph (A) if\u2014\n(i) the appropriate Federal banking agency has taken action with respect to the insured depository institution under paragraph (3)(A)(ii); and\n(ii) the Corporation determines that the exception would further the purpose of this section.\n(C)\nLimited exemption for certain subordinated debt\nUntil\nJuly 15, 1996\nJuly 15, 1991\nJuly 15, 1991\n(D)\nAccrual of interest\nSubparagraph (A) does not prevent unpaid interest from accruing on subordinated debt under the terms of that debt, to the extent otherwise permitted by law.\n(3)\nConservatorship, receivership, or other action required\n(A)\nIn general\nThe appropriate Federal banking agency shall, not later than 90 days after an insured depository institution becomes critically undercapitalized\u2014\n(i) appoint a receiver (or, with the concurrence of the Corporation, a conservator) for the institution; or\n(ii) take such other action as the agency determines, with the concurrence of the Corporation, would better achieve the purpose of this section, after documenting why the action would better achieve that purpose.\n(B)\nPeriodic redeterminations required\nAny determination by an appropriate Federal banking agency under subparagraph (A)(ii) to take any action with respect to an insured depository institution in lieu of appointing a conservator or receiver shall cease to be effective not later than the end of the 90-day period beginning on the date that the determination is made and a conservator or receiver shall be appointed for that institution under subparagraph (A)(i) unless the agency makes a new determination under subparagraph (A)(ii) at the end of the effective period of the prior determination.\n(C)\nAppointment of receiver required if other action fails to restore capital\n(i)\nIn general\nNotwithstanding subparagraphs (A) and (B), the appropriate Federal banking agency shall appoint a receiver for the insured depository institution if the institution is critically undercapitalized on average during the calendar quarter beginning 270 days after the date on which the institution became critically undercapitalized.\n(ii)\nException\nNotwithstanding clause (i), the appropriate Federal banking agency may continue to take such other action as the agency determines to be appropriate in lieu of such appointment if\u2014\n(I) the agency determines, with the concurrence of the Corporation, that (aa) the insured depository institution has positive net worth, (bb) the insured depository institution has been in substantial compliance with an approved capital restoration plan which requires consistent improvement in the institution\u2019s capital since the date of the approval of the plan, (cc) the insured depository institution is profitable or has an upward trend in earnings the agency projects as sustainable, and (dd) the insured depository institution is reducing the ratio of nonperforming loans to total loans; and\n(II) the head of the appropriate Federal banking agency and the Chairperson of the Board of Directors both certify that the institution is viable and not expected to fail.\n(i)\nRestricting activities of critically undercapitalized institutions\nTo carry out the purpose of this section, the Corporation shall, by regulation or order\u2014\n(1) restrict the activities of any critically undercapitalized insured depository institution; and\n(2) at a minimum, prohibit any such institution from doing any of the following without the Corporation\u2019s prior written approval:\n(A) Entering into any material transaction other than in the usual course of business, including any investment, expansion, acquisition, sale of assets, or other similar action with respect to which the depository institution is required to provide notice to the appropriate Federal banking agency.\n(B) Extending credit for any highly leveraged transaction.\n(C) Amending the institution\u2019s charter or bylaws, except to the extent necessary to carry out any other requirement of any law, regulation, or order.\n(D) Making any material change in accounting methods.\n(E) Engaging in any covered transaction (as defined in\nsection 371c(b) of this title\n(F) Paying excessive compensation or bonuses.\n(G) Paying interest on new or renewed liabilities at a rate that would increase the institution\u2019s weighted average cost of funds to a level significantly exceeding the prevailing rates of interest on insured deposits in the institution\u2019s normal market areas.\n(j)\nCertain Government-controlled institutions exempted\nSubsections (e) through (i) (other than paragraph (3) of subsection (e)) shall not apply\u2014\n(1) to an insured depository institution for which the Corporation or the Resolution Trust Corporation is conservator; or\n(2) to a bridge depository institution, none of the voting securities of which are owned by a person or agency other than the Corporation or the Resolution Trust Corporation.\n(k)\nReviews required when Deposit Insurance Fund incurs losses\n(1)\nIn general\nIf the Deposit Insurance Fund incurs a material loss with respect to an insured depository institution on or after\n(A) make a written report to that agency reviewing the agency\u2019s supervision of the institution (including the agency\u2019s implementation of this section), which shall\u2014\n(i) ascertain why the institution\u2019s problems resulted in a material loss to the Deposit Insurance Fund; and\n(ii) make recommendations for preventing any such loss in the future; and\n(B) provide a copy of the report to\u2014\n(i) the Comptroller General of the United States;\n(ii) the Corporation (if the agency is not the Corporation);\n(iii) in the case of a State depository institution, the appropriate State banking supervisor; and\n(iv) upon request by any Member of Congress, to that Member.\n(2)\nMaterial loss incurred\nFor purposes of this subsection:\n(A)\nLoss incurred\nThe Deposit Insurance Fund incurs a loss with respect to an insured depository institution\u2014\n(i) if the Corporation provides any assistance under\n(I) it is not substantially certain that the assistance will be fully repaid not later than 24 months after the date on which the Corporation initiated the assistance; or\n(II) the institution ceases to repay the assistance in accordance with its terms; or\n(ii) if the Corporation is appointed receiver of the institution, and it is or becomes apparent that the present value of the outlays of the Deposit Insurance Fund with respect to that institution will exceed the present value of receivership dividends or other payments on the claims held by the Corporation.\n(B)\nMaterial loss defined\nThe term \u201cmaterial loss\u201d means any estimated loss in excess of\u2014\n(i) $200,000,000, if the loss occurs during the period beginning on\nJanuary 1, 2010\nDecember 31, 2011\n(ii) $150,000,000, if the loss occurs during the period beginning on\nJanuary 1, 2012\nDecember 31, 2013\n(iii) $50,000,000, if the loss occurs on or after\nJanuary 1, 2014\n(3)\nDeadline for report\nThe inspector general of the appropriate Federal banking agency shall comply with paragraph (1) expeditiously, and in any event (except with respect to paragraph (1)(B)(iv)) as follows:\n(A) If the institution is described in paragraph (2)(A)(i), during the 6-month period beginning on the earlier of\u2014\n(i) the date on which the institution ceases to repay assistance under\nsection 1823(c) of this title\n(ii) the date on which it becomes apparent that the assistance will not be fully repaid during the 24-month period described in paragraph (2)(A)(i).\n(B) If the institution is described in paragraph (2)(A)(ii), during the 6-month period beginning on the date on which it becomes apparent that the present value of the outlays of the Deposit Insurance Fund with respect to that institution will exceed the present value of receivership dividends or other payments on the claims held by the Corporation.\n(4)\nPublic disclosure required\n(A)\nIn general\nThe appropriate Federal banking agency shall disclose any report on losses required under this subsection, upon request under\n(i) any portion under section 552(b)(5) of that title; or\n(ii) any information about the insured depository institution under paragraph (4) (other than trade secrets) or paragraph (8) of section 552(b) of that title.\n(B)\nException\nSubparagraph (A) does not require the agency to disclose the name of any customer of the insured depository institution (other than an institution-affiliated party), or information from which such a person\u2019s identity could reasonably be ascertained.\n(5)\nLosses that are not material\n(A)\nSemiannual report\nFor the 6-month period ending on\n(i) identify losses that the Inspector General estimates have been incurred by the Deposit Insurance Fund during that 6-month period, with respect to the insured depository institutions supervised by the Federal banking agency;\n(ii) for each loss incurred by the Deposit Insurance Fund that is not a material loss, determine\u2014\n(I) the grounds identified by the Federal banking agency or State bank supervisor for appointing the Corporation as receiver under\nsection 1821(c)(5) of this title\n(II) whether any unusual circumstances exist that might warrant an in-depth review of the loss; and\n(iii) prepare and submit a written report to the appropriate Federal banking agency and to Congress on the results of any determination by the Inspector General, including\u2014\n(I) an identification of any loss that warrants an in-depth review, together with the reasons why such review is warranted, or, if the Inspector General determines that no review is warranted, an explanation of such determination; and\n(II) for each loss identified under subclause (I) that warrants an in-depth review, the date by which such review, and a report on such review prepared in a manner consistent with reports under paragraph (1)(A), will be completed and submitted to the Federal banking agency and Congress.\n(B)\nDeadline for semiannual report\nThe Inspector General of each Federal banking agency shall\u2014\n(i) submit each report required under paragraph (A) expeditiously, and not later than 90 days after the end of the 6-month period covered by the report; and\n(ii) provide a copy of the report required under paragraph (A) to any Member of Congress, upon request.\n(6)\nGAO review\nThe Comptroller General of the United States shall, under such conditions as the Comptroller General determines to be appropriate, review reports made under paragraph (1) and recommend improvements in the supervision of insured depository institutions (including the implementation of this section).\n(l)\nImplementation\n(1)\nRegulations and other actions\nEach appropriate Federal banking agency shall prescribe such regulations (in consultation with the other Federal banking agencies), issue such orders, and take such other actions as are necessary to carry out this section.\n(2)\nWritten determination and concurrence required\nAny determination or concurrence by an appropriate Federal banking agency or the Corporation required under this section shall be written.\n(m)\nOther authority not affected\nThis section does not limit any authority of an appropriate Federal banking agency, the Corporation, or a State to take action in addition to (but not in derogation of) that required under this section.\n(n)\nAdministrative review of dismissal orders\n(1)\nTimely petition required\nA director or senior executive officer dismissed pursuant to an order under subsection (f)(2)(F)(ii) may obtain review of that order by filing a written petition for reinstatement with the appropriate Federal banking agency not later than 10 days after receiving notice of the dismissal.\n(2)\nProcedure\n(A)\nHearing required\nThe agency shall give the petitioner an opportunity to\u2014\n(i) submit written materials in support of the petition; and\n(ii) appear, personally or through counsel, before 1 or more members of the agency or designated employees of the agency.\n(B)\nDeadline for hearing\nThe agency shall\u2014\n(i) schedule the hearing referred to in subparagraph (A)(ii) promptly after the petition is filed; and\n(ii) hold the hearing not later than 30 days after the petition is filed, unless the petitioner requests that the hearing be held at a later time.\n(C)\nDeadline for decision\nNot later than 60 days after the date of the hearing, the agency shall\u2014\n(i) by order, grant or deny the petition;\n(ii) if the order is adverse to the petitioner, set forth the basis for the order; and\n(iii) notify the petitioner of the order.\n(3)\nStandard for review of dismissal orders\nThe petitioner shall bear the burden of proving that the petitioner\u2019s continued employment would materially strengthen the insured depository institution\u2019s ability\u2014\n(A) to become adequately capitalized, to the extent that the order is based on the institution\u2019s capital level or failure to submit or implement a capital restoration plan; and\n(B) to correct the unsafe or unsound condition or unsafe or unsound practice, to the extent that the order is based on subsection (g)(1).\n(o)\nTransition rules for savings associations\nSubsections (e)(2), (f), and (h) shall not apply before\n(1) before\n(A) the savings association had submitted a plan meeting the requirements of\nsection 1464(t)(6)(A)(ii) of this title\n(B) the Director of the Office of Thrift Supervision had accepted the plan;\n(2) the plan remains in effect; and\n(3) the savings association remains in compliance with the plan or is operating under a written agreement with the appropriate Federal banking agency.","url":"https://projectusc.org/usc/t12/s1831o.html","content":[{"t":"sec","id":"/us/usc/t12/s1831o","children":[{"t":"num","text":"\u00a7\u202f1831o."},{"t":"heading","text":"Prompt corrective action"},{"t":"subsec","id":"/us/usc/t12/s1831o/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Resolving problems to protect Deposit Insurance Fund"},{"t":"para","id":"/us/usc/t12/s1831o/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Purpose"},{"t":"content","children":[{"t":"p","text":"The purpose of this section is to resolve the problems of insured depository institutions at the least possible long-term loss to the Deposit Insurance Fund.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Prompt corrective action required"},{"t":"content","children":[{"t":"p","text":"Each appropriate Federal banking agency and the Corporation (acting in the Corporation\u2019s capacity as the insurer of depository institutions under this chapter) shall carry out the purpose of this section by taking prompt corrective action to resolve the problems of insured depository institutions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of this section:"},{"t":"para","id":"/us/usc/t12/s1831o/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Capital categories"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Well capitalized"},{"t":"content","children":[{"t":"p","text":"An insured depository institution is \u201cwell capitalized\u201d if it significantly exceeds the required minimum level for each relevant capital measure.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Adequately capitalized"},{"t":"content","children":[{"t":"p","text":"An insured depository institution is \u201cadequately capitalized\u201d if it meets the required minimum level for each relevant capital measure.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Undercapitalized"},{"t":"content","children":[{"t":"p","text":"An insured depository institution is \u201cundercapitalized\u201d if it fails to meet the required minimum level for any relevant capital measure.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/1/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Significantly undercapitalized"},{"t":"content","children":[{"t":"p","text":"An insured depository institution is \u201csignificantly undercapitalized\u201d if it is significantly below the required minimum level for any relevant capital measure.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/1/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Critically undercapitalized"},{"t":"content","children":[{"t":"p","text":"An insured depository institution is \u201ccritically undercapitalized\u201d if it fails to meet any level specified under subsection (c)(3)(A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Other definitions"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Average"},{"t":"clause","id":"/us/usc/t12/s1831o/b/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The \u201caverage\u201d of an accounting item (such as total assets or tangible equity) during a given period means the sum of that item at the close of business on each business day during that period divided by the total number of business days in that period.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/b/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Agency may permit weekly averaging for certain institutions"},{"t":"content","children":[{"t":"p","text":"In the case of insured depository institutions that have total assets of less than $300,000,000 and normally file reports of condition reflecting weekly (rather than daily) averages of accounting items, the appropriate Federal banking agency may provide that the \u201caverage\u201d of an accounting item during a given period means the sum of that item at the close of business on the relevant business day each week during that period divided by the total number of weeks in that period.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Capital distribution"},{"t":"chapeau","text":"The term \u201ccapital distribution\u201d means\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/b/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" a distribution of cash or other property by any insured depository institution or company to its owners made on account of that ownership, but not including\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/b/2/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" any dividend consisting only of shares of the institution or company or rights to purchase such shares; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/b/2/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" any amount paid on the deposits of a mutual or cooperative institution that the appropriate Federal banking agency determines is not a distribution for purposes of this section;","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/b/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a payment by an insured depository institution or company to repurchase, redeem, retire, or otherwise acquire any of its shares or other ownership interests, including any extension of credit to finance an affiliated company\u2019s acquisition of those shares or interests; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/b/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" a transaction that the appropriate Federal banking agency or the Corporation determines, by order or regulation, to be in substance a distribution of capital to the owners of the insured depository institution or company.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Capital restoration plan"},{"t":"content","children":[{"t":"p","text":"The term \u201ccapital restoration plan\u201d means a plan submitted under subsection (e)(2).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Company"},{"t":"content","children":[{"t":"p","text":"The term \u201ccompany\u201d has the same meaning as in ","children":[{"t":"ref","text":"section 1841 of this title","href":"/us/usc/t12/s1841","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Compensation"},{"t":"content","children":[{"t":"p","text":"The term \u201ccompensation\u201d includes any payment of money or provision of any other thing of value in consideration of employment.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/F","children":[{"t":"num","text":"(F)"},{"t":"heading","text":"Relevant capital measure"},{"t":"content","children":[{"t":"p","text":"The term \u201crelevant capital measure\u201d means the measures described in subsection (c).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/G","children":[{"t":"num","text":"(G)"},{"t":"heading","text":"Required minimum level"},{"t":"content","children":[{"t":"p","text":"The term \u201crequired minimum level\u201d means, with respect to each relevant capital measure, the minimum acceptable capital level specified by the appropriate Federal banking agency by regulation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/H","children":[{"t":"num","text":"(H)"},{"t":"heading","text":"Senior executive officer"},{"t":"content","children":[{"t":"p","text":"The term \u201csenior executive officer\u201d has the same meaning as the term \u201cexecutive officer\u201d in ","children":[{"t":"ref","text":"section 375b of this title","href":"/us/usc/t12/s375b","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/b/2/I","children":[{"t":"num","text":"(I)"},{"t":"heading","text":"Subordinated debt"},{"t":"content","children":[{"t":"p","text":"The term \u201csubordinated debt\u201d means debt subordinated to the claims of general creditors.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Capital standards"},{"t":"para","id":"/us/usc/t12/s1831o/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Relevant capital measures"},{"t":"subpara","id":"/us/usc/t12/s1831o/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"Except as provided in subparagraph (B)(ii), the capital standards prescribed by each appropriate Federal banking agency shall include\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/c/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a leverage limit; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/c/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a risk-based capital requirement.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Other capital measures"},{"t":"chapeau","text":"An appropriate Federal banking agency may, by regulation\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/c/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" establish any additional relevant capital measures to carry out the purpose of this section; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/c/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" rescind any relevant capital measure required under subparagraph (A) upon determining (with the concurrence of the other Federal banking agencies) that the measure is no longer an appropriate means for carrying out the purpose of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Capital categories generally"},{"t":"content","children":[{"t":"p","text":"Each appropriate Federal banking agency shall, by regulation, specify for each relevant capital measure the levels at which an insured depository institution is well capitalized, adequately capitalized, undercapitalized, and significantly undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Critical capital"},{"t":"subpara","id":"/us/usc/t12/s1831o/c/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Agency to specify level"},{"t":"clause","id":"/us/usc/t12/s1831o/c/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Leverage limit"},{"t":"content","children":[{"t":"p","text":"Each appropriate Federal banking agency shall, by regulation, in consultation with the Corporation, specify the ratio of tangible equity to total assets at which an insured depository institution is critically undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/c/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Other relevant capital measures"},{"t":"content","children":[{"t":"p","text":"The agency may, by regulation, specify for 1 or more other relevant capital measures, the level at which an insured depository institution is critically undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/c/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Leverage limit range"},{"t":"chapeau","text":"The level specified under subparagraph (A)(i) shall require tangible equity in an amount\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/c/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" not less than 2 percent of total assets; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/c/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" except as provided in clause (i), not more than 65 percent of the required minimum level of capital under the leverage limit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/c/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"FDIC\u2019s concurrence required"},{"t":"content","children":[{"t":"p","text":"The appropriate Federal banking agency shall not, without the concurrence of the Corporation, specify a level under subparagraph (A)(i) lower than that specified by the Corporation for State nonmember insured banks.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Provisions applicable to all institutions"},{"t":"para","id":"/us/usc/t12/s1831o/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Capital distributions restricted"},{"t":"subpara","id":"/us/usc/t12/s1831o/d/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"An insured depository institution shall make no capital distribution if, after making the distribution, the institution would be undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/d/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception"},{"t":"chapeau","text":"Notwithstanding subparagraph (A), the appropriate Federal banking agency may permit, after consultation with the Corporation, an insured depository institution to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/d/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is made in connection with the issuance of additional shares or obligations of the institution in at least an equivalent amount; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/d/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" will reduce the institution\u2019s financial obligations or otherwise improve the institution\u2019s financial condition.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Management fees restricted"},{"t":"content","children":[{"t":"p","text":"An insured depository institution shall pay no management fee to any person having control of that institution if, after making the payment, the institution would be undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Provisions applicable to undercapitalized institutions"},{"t":"para","id":"/us/usc/t12/s1831o/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Monitoring required"},{"t":"chapeau","text":"Each appropriate Federal banking agency shall\u2014"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" closely monitor the condition of any undercapitalized insured depository institution;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" closely monitor compliance with capital restoration plans, restrictions, and requirements imposed under this section; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/1/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" periodically review the plan, restrictions, and requirements applicable to any undercapitalized insured depository institution to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Capital restoration plan required"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Any undercapitalized insured depository institution shall submit an acceptable capital restoration plan to the appropriate Federal banking agency within the time allowed by the agency under subparagraph (D).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Contents of plan"},{"t":"chapeau","text":"The capital restoration plan shall\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" specify\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the steps the insured depository institution will take to become adequately capitalized;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the levels of capital to be attained during each year in which the plan will be in effect;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/B/i/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" how the institution will comply with the restrictions or requirements then in effect under this section; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/B/i/IV","children":[{"t":"num","text":"(IV)"},{"t":"content","text":" the types and levels of activities in which the institution will engage; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" contain such other information as the appropriate Federal banking agency may require.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Criteria for accepting plan"},{"t":"chapeau","text":"The appropriate Federal banking agency shall not accept a capital restoration plan unless the agency determines that\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" the plan\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/C/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" complies with subparagraph (B);","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/C/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" is based on realistic assumptions, and is likely to succeed in restoring the institution\u2019s capital; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/C/i/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" would not appreciably increase the risk (including credit risk, interest-rate risk, and other types of risk) to which the institution is exposed; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" if the insured depository institution is undercapitalized, each company having control of the institution has\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" guaranteed that the institution will comply with the plan until the institution has been adequately capitalized on average during each of 4 consecutive calendar quarters; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" provided appropriate assurances of performance.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Deadlines for submission and review of plans"},{"t":"chapeau","text":"The appropriate Federal banking agency shall by regulation establish deadlines that\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/D/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" provide insured depository institutions with reasonable time to submit capital restoration plans, and generally require an institution to submit a plan not later than 45 days after the institution becomes undercapitalized;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" require the agency to act on capital restoration plans expeditiously, and generally not later than 60 days after the plan is submitted; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/D/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" require the agency to submit a copy of any plan approved by the agency to the Corporation before the end of the 45-day period beginning on the date such approval is granted.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/2/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Guarantee liability limited"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/E/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The aggregate liability under subparagraph (C)(ii) of all companies having control of an insured depository institution shall be the lesser of\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/E/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" an amount equal to 5 percent of the institution\u2019s total assets at the time the institution became undercapitalized; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/E/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the amount which is necessary (or would have been necessary) to bring the institution into compliance with all capital standards applicable with respect to such institution as of the time the institution fails to comply with a plan under this subsection.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/e/2/E/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Certain affiliates not affected"},{"t":"chapeau","text":"This paragraph may not be construed as\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/E/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" requiring any company not having control of an undercapitalized insured depository institution to guarantee, or otherwise be liable on, a capital restoration plan;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/E/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" requiring any person other than an insured depository institution to submit a capital restoration plan; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/e/2/E/ii/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" affecting compliance by brokers, dealers, government securities brokers, and government securities dealers with the financial responsibility requirements of the Securities Exchange Act of 1934 [","children":[{"t":"ref","text":"15 U.S.C. 78a","href":"/us/usc/t15/s78a","tail":" et seq.] and regulations and orders thereunder."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Asset growth restricted"},{"t":"chapeau","text":"An undercapitalized insured depository institution shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter unless\u2014"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the appropriate Federal banking agency has accepted the institution\u2019s capital restoration plan;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any increase in total assets is consistent with the plan; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the institution\u2019s ratio of tangible equity to assets increases during the calendar quarter at a rate sufficient to enable the institution to become adequately capitalized within a reasonable time.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/e/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Prior approval required for acquisitions, branching, and new lines of business"},{"t":"chapeau","text":"An undercapitalized insured depository institution shall not, directly or indirectly, acquire any interest in any company or insured depository institution, establish or acquire any additional branch office, or engage in any new line of business unless\u2014"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the appropriate Federal banking agency has accepted the insured depository institution\u2019s capital restoration plan, the institution is implementing the plan, and the agency determines that the proposed action is consistent with and will further the achievement of the plan; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/e/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the Board of Directors determines that the proposed action will further the purpose of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/e/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Discretionary safeguards"},{"t":"content","children":[{"t":"p","text":"The appropriate Federal banking agency may, with respect to any undercapitalized insured depository institution, take actions described in any subparagraph of subsection (f)(2) if the agency determines that those actions are necessary to carry out the purpose of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Provisions applicable to significantly undercapitalized institutions and undercapitalized institutions that fail to submit and implement capital restoration plans"},{"t":"para","id":"/us/usc/t12/s1831o/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"This subsection shall apply with respect to any insured depository institution that\u2014"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" is significantly undercapitalized; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" is undercapitalized and\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/f/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" fails to submit an acceptable capital restoration plan within the time allowed by the appropriate Federal banking agency under subsection (e)(2)(D); or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" fails in any material respect to implement a plan accepted by the agency.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Specific actions authorized"},{"t":"chapeau","text":"The appropriate Federal banking agency shall carry out this section by taking 1 or more of the following actions:"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Requiring recapitalization"},{"t":"chapeau","text":"Doing 1 or more of the following:"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" Requiring the institution to sell enough shares or obligations of the institution so that the institution will be adequately capitalized after the sale.","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" Further requiring that instruments sold under clause (i) be voting shares.","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" Requiring the institution to be acquired by a depository institution holding company, or to combine with another insured depository institution, if 1 or more grounds exist for appointing a conservator or receiver for the institution.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Restricting transactions with affiliates"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" Requiring the institution to comply with ","children":[{"t":"ref","text":"section 371c of this title","href":"/us/usc/t12/s371c","tail":" as if subsection (d)(1) of that section (exempting transactions with certain affiliated institutions) did not apply."}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" Further restricting the institution\u2019s transactions with affiliates.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Restricting interest rates paid"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Restricting the interest rates that the institution pays on deposits to the prevailing rates of interest on deposits of comparable amounts and maturities in the region where the institution is located, as determined by the agency.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Retroactive restrictions prohibited"},{"t":"content","children":[{"t":"p","text":"This subparagraph does not authorize the agency to restrict interest rates paid on time deposits made before (and not renewed or renegotiated after) the agency acted under this subparagraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Restricting asset growth"},{"t":"content","children":[{"t":"p","text":"Restricting the institution\u2019s asset growth more stringently than subsection (e)(3), or requiring the institution to reduce its total assets.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Restricting activities"},{"t":"content","children":[{"t":"p","text":"Requiring the institution or any of its subsidiaries to alter, reduce, or terminate any activity that the agency determines poses excessive risk to the institution.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/F","children":[{"t":"num","text":"(F)"},{"t":"heading","text":"Improving management"},{"t":"chapeau","text":"Doing 1 or more of the following:"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/F/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"New election of directors"},{"t":"content","children":[{"t":"p","text":"Ordering a new election for the institution\u2019s board of directors.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/F/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Dismissing directors or senior executive officers"},{"t":"content","children":[{"t":"p","text":"Requiring the institution to dismiss from office any director or senior executive officer who had held office for more than 180 days immediately before the institution became undercapitalized. Dismissal under this clause shall not be construed to be a removal under ","children":[{"t":"ref","text":"section 1818 of this title","href":"/us/usc/t12/s1818","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/F/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Employing qualified senior executive officers"},{"t":"content","children":[{"t":"p","text":"Requiring the institution to employ qualified senior executive officers (who, if the agency so specifies, shall be subject to approval by the agency).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/G","children":[{"t":"num","text":"(G)"},{"t":"heading","text":"Prohibiting deposits from correspondent banks"},{"t":"content","children":[{"t":"p","text":"Prohibiting the acceptance by the institution of deposits from correspondent depository institutions, including renewals and rollovers of prior deposits.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/H","children":[{"t":"num","text":"(H)"},{"t":"heading","text":"Requiring prior approval for capital distributions by bank holding company"},{"t":"content","children":[{"t":"p","text":"Prohibiting any bank holding company having control of the insured depository institution from making any capital distribution without the prior approval of the Board of Governors of the Federal Reserve System.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/I","children":[{"t":"num","text":"(I)"},{"t":"heading","text":"Requiring divestiture"},{"t":"chapeau","text":"Doing one or more of the following:"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/I/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Divestiture by the institution"},{"t":"content","children":[{"t":"p","text":"Requiring the institution to divest itself of or liquidate any subsidiary if the agency determines that the subsidiary is in danger of becoming insolvent and poses a significant risk to the institution, or is likely to cause a significant dissipation of the institution\u2019s assets or earnings.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/I/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Divestiture by parent company of nondepository affiliate"},{"t":"content","children":[{"t":"p","text":"Requiring any company having control of the institution to divest itself of or liquidate any affiliate other than an insured depository institution if the appropriate Federal banking agency for that company determines that the affiliate is in danger of becoming insolvent and poses a significant risk to the institution, or is likely to cause a significant dissipation of the institution\u2019s assets or earnings.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/2/I/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Divestiture of institution"},{"t":"content","children":[{"t":"p","text":"Requiring any company having control of the institution to divest itself of the institution if the appropriate Federal banking agency for that company determines that divestiture would improve the institution\u2019s financial condition and future prospects.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/2/J","children":[{"t":"num","text":"(J)"},{"t":"heading","text":"Requiring other action"},{"t":"content","children":[{"t":"p","text":"Requiring the institution to take any other action that the agency determines will better carry out the purpose of this section than any of the actions described in this paragraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Presumption in favor of certain actions"},{"t":"chapeau","text":"In complying with paragraph (2), the agency shall take the following actions, unless the agency determines that the actions would not further the purpose of this section:"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" The action described in clause (i) or (iii) of paragraph (2)(A) (relating to requiring the sale of shares or obligations, or requiring the institution to be acquired by or combine with another institution).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" The action described in paragraph (2)(B)(i) (relating to restricting transactions with affiliates).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" The action described in paragraph (2)(C) (relating to restricting interest rates).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/f/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Senior executive officers\u2019 compensation restricted"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The insured depository institution shall not do any of the following without the prior written approval of the appropriate Federal banking agency:"},{"t":"clause","id":"/us/usc/t12/s1831o/f/4/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" Pay any bonus to any senior executive officer.","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/f/4/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" Provide compensation to any senior executive officer at a rate exceeding that officer\u2019s average rate of compensation (excluding bonuses, stock options, and profit-sharing) during the 12 calendar months preceding the calendar month in which the institution became undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/f/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Failing to submit plan"},{"t":"content","children":[{"t":"p","text":"The appropriate Federal banking agency shall not grant any approval under subparagraph (A) with respect to an institution that has failed to submit an acceptable capital restoration plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/f/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Discretion to impose certain additional restrictions"},{"t":"content","children":[{"t":"p","text":"The agency may impose 1 or more of the restrictions prescribed by regulation under subsection (i) if the agency determines that those restrictions are necessary to carry out the purpose of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/f/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Consultation with other regulators"},{"t":"content","children":[{"t":"p","text":"Before the agency or Corporation makes a determination under paragraph (2)(I) with respect to an affiliate that is a broker, dealer, government securities broker, government securities dealer, investment company, or investment adviser, the agency or Corporation shall consult with the Securities and Exchange Commission and, in the case of any other affiliate which is subject to any financial responsibility or capital requirement, any other appropriate regulator of such affiliate with respect to the proposed determination of the agency or the Corporation and actions pursuant to such determination.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"More stringent treatment based on other supervisory criteria"},{"t":"para","id":"/us/usc/t12/s1831o/g/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"If the appropriate Federal banking agency determines (after notice and an opportunity for hearing) that an insured depository institution is in an unsafe or unsound condition or, pursuant to ","children":[{"t":"ref","text":"section 1818(b)(8) of this title","href":"/us/usc/t12/s1818/b/8","tail":", deems the institution to be engaging in an unsafe or unsound practice, the agency may\u2014"}]},{"t":"subpara","id":"/us/usc/t12/s1831o/g/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" if the institution is well capitalized, reclassify the institution as adequately capitalized;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/g/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" if the institution is adequately capitalized (but not well capitalized), require the institution to comply with 1 or more provisions of subsections (d) and (e), as if the institution were undercapitalized; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/g/1/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" if the institution is undercapitalized, take any 1 or more actions authorized under subsection (f)(2) as if the institution were significantly undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/g/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Contents of plan"},{"t":"content","children":[{"t":"p","text":"Any plan required under paragraph (1) shall specify the steps that the insured depository institution will take to correct the unsafe or unsound condition or practice. Capital restoration plans shall not be required under paragraph (1)(B).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Provisions applicable to critically undercapitalized institutions"},{"t":"para","id":"/us/usc/t12/s1831o/h/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Activities restricted"},{"t":"content","children":[{"t":"p","text":"Any critically undercapitalized insured depository institution shall comply with restrictions prescribed by the Corporation under subsection (i).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/h/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Payments on subordinated debt prohibited"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"A critically undercapitalized insured depository institution shall not, beginning 60 days after becoming critically undercapitalized, make any payment of principal or interest on the institution\u2019s subordinated debt.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exceptions"},{"t":"chapeau","text":"The Corporation may make exceptions to subparagraph (A) if\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/h/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the appropriate Federal banking agency has taken action with respect to the insured depository institution under paragraph (3)(A)(ii); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/h/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the Corporation determines that the exception would further the purpose of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Limited exemption for certain subordinated debt"},{"t":"content","children":[{"t":"p","text":"Until ","children":[{"t":"text","text":"July 15, 1996","tail":", subparagraph (A) shall not apply with respect to any subordinated debt outstanding on "},{"t":"text","text":"July 15, 1991","tail":", and not extended or otherwise renegotiated after "},{"t":"text","text":"July 15, 1991","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Accrual of interest"},{"t":"content","children":[{"t":"p","text":"Subparagraph (A) does not prevent unpaid interest from accruing on subordinated debt under the terms of that debt, to the extent otherwise permitted by law.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/h/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Conservatorship, receivership, or other action required"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The appropriate Federal banking agency shall, not later than 90 days after an insured depository institution becomes critically undercapitalized\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/h/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" appoint a receiver (or, with the concurrence of the Corporation, a conservator) for the institution; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/h/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" take such other action as the agency determines, with the concurrence of the Corporation, would better achieve the purpose of this section, after documenting why the action would better achieve that purpose.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Periodic redeterminations required"},{"t":"content","children":[{"t":"p","text":"Any determination by an appropriate Federal banking agency under subparagraph (A)(ii) to take any action with respect to an insured depository institution in lieu of appointing a conservator or receiver shall cease to be effective not later than the end of the 90-day period beginning on the date that the determination is made and a conservator or receiver shall be appointed for that institution under subparagraph (A)(i) unless the agency makes a new determination under subparagraph (A)(ii) at the end of the effective period of the prior determination.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/h/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Appointment of receiver required if other action fails to restore capital"},{"t":"clause","id":"/us/usc/t12/s1831o/h/3/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Notwithstanding subparagraphs (A) and (B), the appropriate Federal banking agency shall appoint a receiver for the insured depository institution if the institution is critically undercapitalized on average during the calendar quarter beginning 270 days after the date on which the institution became critically undercapitalized.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/h/3/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Exception"},{"t":"chapeau","text":"Notwithstanding clause (i), the appropriate Federal banking agency may continue to take such other action as the agency determines to be appropriate in lieu of such appointment if\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/h/3/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the agency determines, with the concurrence of the Corporation, that (aa) the insured depository institution has positive net worth, (bb) the insured depository institution has been in substantial compliance with an approved capital restoration plan which requires consistent improvement in the institution\u2019s capital since the date of the approval of the plan, (cc) the insured depository institution is profitable or has an upward trend in earnings the agency projects as sustainable, and (dd) the insured depository institution is reducing the ratio of nonperforming loans to total loans; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/h/3/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the head of the appropriate Federal banking agency and the Chairperson of the Board of Directors both certify that the institution is viable and not expected to fail.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Restricting activities of critically undercapitalized institutions"},{"t":"chapeau","text":"To carry out the purpose of this section, the Corporation shall, by regulation or order\u2014"},{"t":"para","id":"/us/usc/t12/s1831o/i/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" restrict the activities of any critically undercapitalized insured depository institution; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/i/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" at a minimum, prohibit any such institution from doing any of the following without the Corporation\u2019s prior written approval:"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" Entering into any material transaction other than in the usual course of business, including any investment, expansion, acquisition, sale of assets, or other similar action with respect to which the depository institution is required to provide notice to the appropriate Federal banking agency.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" Extending credit for any highly leveraged transaction.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" Amending the institution\u2019s charter or bylaws, except to the extent necessary to carry out any other requirement of any law, regulation, or order.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" Making any material change in accounting methods.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" Engaging in any covered transaction (as defined in ","children":[{"t":"ref","text":"section 371c(b) of this title","href":"/us/usc/t12/s371c/b","tail":")."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/F","children":[{"t":"num","text":"(F)"},{"t":"content","text":" Paying excessive compensation or bonuses.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/i/2/G","children":[{"t":"num","text":"(G)"},{"t":"content","text":" Paying interest on new or renewed liabilities at a rate that would increase the institution\u2019s weighted average cost of funds to a level significantly exceeding the prevailing rates of interest on insured deposits in the institution\u2019s normal market areas.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"Certain Government-controlled institutions exempted"},{"t":"chapeau","text":"Subsections (e) through (i) (other than paragraph (3) of subsection (e)) shall not apply\u2014"},{"t":"para","id":"/us/usc/t12/s1831o/j/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" to an insured depository institution for which the Corporation or the Resolution Trust Corporation is conservator; or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/j/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" to a bridge depository institution, none of the voting securities of which are owned by a person or agency other than the Corporation or the Resolution Trust Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/k","children":[{"t":"num","text":"(k)"},{"t":"heading","text":"Reviews required when Deposit Insurance Fund incurs losses"},{"t":"para","id":"/us/usc/t12/s1831o/k/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"If the Deposit Insurance Fund incurs a material loss with respect to an insured depository institution on or after ","children":[{"t":"text","text":"July 1, 1993","tail":", the inspector general of the appropriate Federal banking agency shall\u2014"}]},{"t":"subpara","id":"/us/usc/t12/s1831o/k/1/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" make a written report to that agency reviewing the agency\u2019s supervision of the institution (including the agency\u2019s implementation of this section), which shall\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/k/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" ascertain why the institution\u2019s problems resulted in a material loss to the Deposit Insurance Fund; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" make recommendations for preventing any such loss in the future; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" provide a copy of the report to\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/k/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the Comptroller General of the United States;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the Corporation (if the agency is not the Corporation);","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/1/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" in the case of a State depository institution, the appropriate State banking supervisor; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/1/B/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" upon request by any Member of Congress, to that Member.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/k/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Material loss incurred"},{"t":"chapeau","text":"For purposes of this subsection:"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Loss incurred"},{"t":"chapeau","text":"The Deposit Insurance Fund incurs a loss with respect to an insured depository institution\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/k/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" if the Corporation provides any assistance under ","children":[{"t":"ref","text":"section 1823(c) of this title","href":"/us/usc/t12/s1823/c","tail":" with respect to that institution; and\u2014"}]},{"t":"subclause","id":"/us/usc/t12/s1831o/k/2/A/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" it is not substantially certain that the assistance will be fully repaid not later than 24 months after the date on which the Corporation initiated the assistance; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/k/2/A/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the institution ceases to repay the assistance in accordance with its terms; or","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" if the Corporation is appointed receiver of the institution, and it is or becomes apparent that the present value of the outlays of the Deposit Insurance Fund with respect to that institution will exceed the present value of receivership dividends or other payments on the claims held by the Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Material loss defined"},{"t":"chapeau","text":"The term \u201cmaterial loss\u201d means any estimated loss in excess of\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/k/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" $200,000,000, if the loss occurs during the period beginning on ","children":[{"t":"text","text":"January 1, 2010","tail":", and ending on "},{"t":"text","text":"December 31, 2011","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" $150,000,000, if the loss occurs during the period beginning on ","children":[{"t":"text","text":"January 1, 2012","tail":", and ending on "},{"t":"text","text":"December 31, 2013","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" $50,000,000, if the loss occurs on or after ","children":[{"t":"text","text":"January 1, 2014","tail":", provided that if the inspector general of a Federal banking agency certifies to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that the number of projected failures of depository institutions that would require material loss reviews for the following 12 months will be greater than 30 and would hinder the effectiveness of its oversight functions, then the definition of \u201cmaterial loss\u201d shall be $75,000,000 for a duration of 1 year from the date of the certification."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/k/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Deadline for report"},{"t":"chapeau","text":"The inspector general of the appropriate Federal banking agency shall comply with paragraph (1) expeditiously, and in any event (except with respect to paragraph (1)(B)(iv)) as follows:"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/3/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" If the institution is described in paragraph (2)(A)(i), during the 6-month period beginning on the earlier of\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/k/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the date on which the institution ceases to repay assistance under ","children":[{"t":"ref","text":"section 1823(c) of this title","href":"/us/usc/t12/s1823/c","tail":" in accordance with its terms, or"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the date on which it becomes apparent that the assistance will not be fully repaid during the 24-month period described in paragraph (2)(A)(i).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" If the institution is described in paragraph (2)(A)(ii), during the 6-month period beginning on the date on which it becomes apparent that the present value of the outlays of the Deposit Insurance Fund with respect to that institution will exceed the present value of receivership dividends or other payments on the claims held by the Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/k/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Public disclosure required"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The appropriate Federal banking agency shall disclose any report on losses required under this subsection, upon request under ","children":[{"t":"ref","text":"section 552 of title 5","href":"/us/usc/t5/s552","tail":" without excising\u2014"}]},{"t":"clause","id":"/us/usc/t12/s1831o/k/4/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" any portion under section 552(b)(5) of that title; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/4/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" any information about the insured depository institution under paragraph (4) (other than trade secrets) or paragraph (8) of section 552(b) of that title.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception"},{"t":"content","children":[{"t":"p","text":"Subparagraph (A) does not require the agency to disclose the name of any customer of the insured depository institution (other than an institution-affiliated party), or information from which such a person\u2019s identity could reasonably be ascertained.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/k/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Losses that are not material"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Semiannual report"},{"t":"chapeau","text":"For the 6-month period ending on ","children":[{"t":"text","text":"March 31, 2010","tail":", and each 6-month period thereafter, the Inspector General of each Federal banking agency shall\u2014"}]},{"t":"clause","id":"/us/usc/t12/s1831o/k/5/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" identify losses that the Inspector General estimates have been incurred by the Deposit Insurance Fund during that 6-month period, with respect to the insured depository institutions supervised by the Federal banking agency;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/5/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" for each loss incurred by the Deposit Insurance Fund that is not a material loss, determine\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/k/5/A/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the grounds identified by the Federal banking agency or State bank supervisor for appointing the Corporation as receiver under ","children":[{"t":"ref","text":"section 1821(c)(5) of this title","href":"/us/usc/t12/s1821/c/5","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/k/5/A/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" whether any unusual circumstances exist that might warrant an in-depth review of the loss; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/5/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"chapeau","text":" prepare and submit a written report to the appropriate Federal banking agency and to Congress on the results of any determination by the Inspector General, including\u2014"},{"t":"subclause","id":"/us/usc/t12/s1831o/k/5/A/iii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" an identification of any loss that warrants an in-depth review, together with the reasons why such review is warranted, or, if the Inspector General determines that no review is warranted, an explanation of such determination; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1831o/k/5/A/iii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" for each loss identified under subclause (I) that warrants an in-depth review, the date by which such review, and a report on such review prepared in a manner consistent with reports under paragraph (1)(A), will be completed and submitted to the Federal banking agency and Congress.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/k/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Deadline for semiannual report"},{"t":"chapeau","text":"The Inspector General of each Federal banking agency shall\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/k/5/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" submit each report required under paragraph (A) expeditiously, and not later than 90 days after the end of the 6-month period covered by the report; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/k/5/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" provide a copy of the report required under paragraph (A) to any Member of Congress, upon request.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/k/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"GAO review"},{"t":"content","children":[{"t":"p","text":"The Comptroller General of the United States shall, under such conditions as the Comptroller General determines to be appropriate, review reports made under paragraph (1) and recommend improvements in the supervision of insured depository institutions (including the implementation of this section).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/l","children":[{"t":"num","text":"(l)"},{"t":"heading","text":"Implementation"},{"t":"para","id":"/us/usc/t12/s1831o/l/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Regulations and other actions"},{"t":"content","children":[{"t":"p","text":"Each appropriate Federal banking agency shall prescribe such regulations (in consultation with the other Federal banking agencies), issue such orders, and take such other actions as are necessary to carry out this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/l/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Written determination and concurrence required"},{"t":"content","children":[{"t":"p","text":"Any determination or concurrence by an appropriate Federal banking agency or the Corporation required under this section shall be written.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/m","children":[{"t":"num","text":"(m)"},{"t":"heading","text":"Other authority not affected"},{"t":"content","children":[{"t":"p","text":"This section does not limit any authority of an appropriate Federal banking agency, the Corporation, or a State to take action in addition to (but not in derogation of) that required under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/n","children":[{"t":"num","text":"(n)"},{"t":"heading","text":"Administrative review of dismissal orders"},{"t":"para","id":"/us/usc/t12/s1831o/n/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Timely petition required"},{"t":"content","children":[{"t":"p","text":"A director or senior executive officer dismissed pursuant to an order under subsection (f)(2)(F)(ii) may obtain review of that order by filing a written petition for reinstatement with the appropriate Federal banking agency not later than 10 days after receiving notice of the dismissal.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/n/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Procedure"},{"t":"subpara","id":"/us/usc/t12/s1831o/n/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Hearing required"},{"t":"chapeau","text":"The agency shall give the petitioner an opportunity to\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" submit written materials in support of the petition; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" appear, personally or through counsel, before 1 or more members of the agency or designated employees of the agency.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/n/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Deadline for hearing"},{"t":"chapeau","text":"The agency shall\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" schedule the hearing referred to in subparagraph (A)(ii) promptly after the petition is filed; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" hold the hearing not later than 30 days after the petition is filed, unless the petitioner requests that the hearing be held at a later time.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/n/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Deadline for decision"},{"t":"chapeau","text":"Not later than 60 days after the date of the hearing, the agency shall\u2014"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" by order, grant or deny the petition;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" if the order is adverse to the petitioner, set forth the basis for the order; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1831o/n/2/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" notify the petitioner of the order.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/n/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Standard for review of dismissal orders"},{"t":"chapeau","text":"The petitioner shall bear the burden of proving that the petitioner\u2019s continued employment would materially strengthen the insured depository institution\u2019s ability\u2014"},{"t":"subpara","id":"/us/usc/t12/s1831o/n/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" to become adequately capitalized, to the extent that the order is based on the institution\u2019s capital level or failure to submit or implement a capital restoration plan; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/n/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" to correct the unsafe or unsound condition or unsafe or unsound practice, to the extent that the order is based on subsection (g)(1).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1831o/o","children":[{"t":"num","text":"(o)"},{"t":"heading","text":"Transition rules for savings associations"},{"t":"chapeau","text":"Subsections (e)(2), (f), and (h) shall not apply before ","children":[{"t":"text","text":"July 1, 1994","tail":", to any insured savings association if\u2014"}]},{"t":"para","id":"/us/usc/t12/s1831o/o/1","children":[{"t":"num","text":"(1)"},{"t":"chapeau","text":" before ","children":[{"t":"text","text":"December 19, 1991","tail":"\u2014"}]},{"t":"subpara","id":"/us/usc/t12/s1831o/o/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the savings association had submitted a plan meeting the requirements of ","children":[{"t":"ref","text":"section 1464(t)(6)(A)(ii) of this title","href":"/us/usc/t12/s1464/t/6/A/ii","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1831o/o/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the Director of the Office of Thrift Supervision had accepted the plan;","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/o/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the plan remains in effect; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1831o/o/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" the savings association remains in compliance with the plan or is operating under a written agreement with the appropriate Federal banking agency.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}