{"identifier":"/us/usc/t12/s2279bb\u20132","title":12,"num":"\u00a7\u202f2279bb\u20132.","heading":"Minimum capital level","text":"\u00a7\u202f2279bb\u20132.\nMinimum capital level\n(a)\nIn general\nExcept as provided in subsection (b), for purposes of this part, the minimum capital level for the Corporation shall be an amount of core capital equal to the sum of\n(1) 2.75 percent of the aggregate on-balance sheet assets of the Corporation, as determined in accordance with generally accepted accounting principles; and\n(2) 0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this part, shall include\n(A) the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans;\n(B) instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and\n(C) other off-balance sheet obligations of the Corporation.\n(b)\nTransition period\n(1)\nIn general\nFor purposes of this part, the minimum capital level for the Corporation\u2014\n(A) prior to\n(i) 0.45 percent of aggregate off-balance sheet obligations of the Corporation;\n(ii) 0.45 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and\n(iii) 2.50 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);\n(B) during the 1-year period ending\n(i) 0.55 percent of aggregate off-balance sheet obligations of the Corporation;\n(ii) 1.20 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and\n(iii) 2.55 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);\n(C) during the 1-year period ending\n(i) if the Corporation\u2019s core capital is not less than $25,000,000 on\n(I) 0.65 percent of aggregate off-balance sheet obligations of the Corporation;\n(II) 1.95 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and\n(III) 2.65 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); or\n(ii) if the Corporation\u2019s core capital is less than $25,000,000 on\nJanuary 1, 1998\n(D) on and after\nJanuary 1, 1999\n(2)\nDesignated on-balance sheet assets\nFor purposes of this subsection, the designated on-balance sheet assets of the Corporation shall be\u2014\n(A) the aggregate on-balance sheet assets of the Corporation acquired under\nsection 2279aa\u20136(d) of this title\n(B) the aggregate amount of qualified loans purchased and held by the Corporation under\nsection 2279aa\u20133(c)(13) of this title","url":"https://projectusc.org/usc/t12/s2279bb\u20132.html","content":[{"t":"sec","id":"/us/usc/t12/s2279bb\u20132","children":[{"t":"num","text":"\u00a7\u202f2279bb\u20132."},{"t":"heading","text":"Minimum capital level"},{"t":"subsec","id":"/us/usc/t12/s2279bb\u20132/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"Except as provided in subsection (b), for purposes of this part, the minimum capital level for the Corporation shall be an amount of core capital equal to the sum of"},{"t":"para","id":"/us/usc/t12/s2279bb\u20132/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" 2.75 percent of the aggregate on-balance sheet assets of the Corporation, as determined in accordance with generally accepted accounting principles; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279bb\u20132/a/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" 0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this part, shall include"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/a/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" other off-balance sheet obligations of the Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s2279bb\u20132/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Transition period"},{"t":"para","id":"/us/usc/t12/s2279bb\u20132/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"For purposes of this part, the minimum capital level for the Corporation\u2014"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" prior to ","children":[{"t":"text","text":"January 1, 1997","tail":", shall be the amount of core capital equal to the sum of\u2014"}]},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 0.45 percent of aggregate off-balance sheet obligations of the Corporation;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 0.45 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" 2.50 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" during the 1-year period ending ","children":[{"t":"text","text":"December 31, 1997","tail":", shall be the amount of core capital equal to the sum of\u2014"}]},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 0.55 percent of aggregate off-balance sheet obligations of the Corporation;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 1.20 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" 2.55 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/b/1/C","children":[{"t":"num","text":"(C)"},{"t":"chapeau","text":" during the 1-year period ending ","children":[{"t":"text","text":"December 31, 1998","tail":", shall be the amount of core capital equal to\u2014"}]},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/C/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" if the Corporation\u2019s core capital is not less than $25,000,000 on ","children":[{"t":"text","text":"January 1, 1998","tail":", the sum of\u2014"}]},{"t":"subclause","id":"/us/usc/t12/s2279bb\u20132/b/1/C/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" 0.65 percent of aggregate off-balance sheet obligations of the Corporation;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s2279bb\u20132/b/1/C/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" 1.95 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s2279bb\u20132/b/1/C/i/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" 2.65 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); or","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s2279bb\u20132/b/1/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" if the Corporation\u2019s core capital is less than $25,000,000 on ","children":[{"t":"text","text":"January 1, 1998","tail":", the amount determined under subsection (a); and"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/b/1/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" on and after ","children":[{"t":"text","text":"January 1, 1999","tail":", shall be the amount determined under subsection (a)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279bb\u20132/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Designated on-balance sheet assets"},{"t":"chapeau","text":"For purposes of this subsection, the designated on-balance sheet assets of the Corporation shall be\u2014"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the aggregate on-balance sheet assets of the Corporation acquired under ","children":[{"t":"ref","text":"section 2279aa\u20136(d) of this title","href":"/us/usc/t12/s2279aa\u20136/d","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20132/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the aggregate amount of qualified loans purchased and held by the Corporation under ","children":[{"t":"ref","text":"section 2279aa\u20133(c)(13) of this title","href":"/us/usc/t12/s2279aa\u20133/c/13","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}