{"identifier":"/us/usc/t12/s2279bb\u20135","title":12,"num":"\u00a7\u202f2279bb\u20135.","heading":"Mandatory actions applicable to level II","text":"\u00a7\u202f2279bb\u20135.\nMandatory actions applicable to level II\n(a)\nCapital restoration plan\nIf the Corporation is classified as within level II, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the plan.\n(b)\nRestriction on dividends\nIf the Corporation is classified as within level II, the Corporation may not make any payment of dividends that would result in the Corporation being reclassified as within level III or IV.\n(c)\nReclassification from level II to level III\nThe Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of\n(1) the Corporation is within level II; and\n(2)\n(A) the Corporation does not submit a capital restoration plan that is approved by the Director; or\n(B) the Director determines that the Corporation has failed to make, in good faith, reasonable efforts necessary to comply with such a capital restoration plan and fulfill the schedule for the plan approved by the Director.\n(d)\nEffective date\nThis section shall take effect upon the expiration of the 30-month period beginning on\nDecember 13, 1991","url":"https://projectusc.org/usc/t12/s2279bb\u20135.html","content":[{"t":"sec","id":"/us/usc/t12/s2279bb\u20135","children":[{"t":"num","text":"\u00a7\u202f2279bb\u20135."},{"t":"heading","text":"Mandatory actions applicable to level II"},{"t":"subsec","id":"/us/usc/t12/s2279bb\u20135/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Capital restoration plan"},{"t":"content","children":[{"t":"p","text":"If the Corporation is classified as within level II, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s2279bb\u20135/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Restriction on dividends"},{"t":"content","children":[{"t":"p","text":"If the Corporation is classified as within level II, the Corporation may not make any payment of dividends that would result in the Corporation being reclassified as within level III or IV.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s2279bb\u20135/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Reclassification from level II to level III"},{"t":"chapeau","text":"The Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of ","children":[{"t":"ref","text":"section 2279bb\u20136 of this title","href":"/us/usc/t12/s2279bb\u20136","tail":"), if\u2014"}]},{"t":"para","id":"/us/usc/t12/s2279bb\u20135/c/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the Corporation is within level II; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s2279bb\u20135/c/2","children":[{"t":"num","text":"(2)"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20135/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the Corporation does not submit a capital restoration plan that is approved by the Director; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s2279bb\u20135/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the Director determines that the Corporation has failed to make, in good faith, reasonable efforts necessary to comply with such a capital restoration plan and fulfill the schedule for the plan approved by the Director.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s2279bb\u20135/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Effective date"},{"t":"content","children":[{"t":"p","text":"This section shall take effect upon the expiration of the 30-month period beginning on ","children":[{"t":"text","text":"December 13, 1991","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"}]}]}