§2279bb–5 Mandatory actions applicable to level II

Summary

When the Corporation is in level II, it must give the Director a capital restoration plan within the time the Director sets and, once the Director approves the plan, carry it out. The Corporation may not pay any dividends that would cause it to be moved down to level III or IV. The Director must immediately move the Corporation to level III if the Corporation is in level II and either fails to submit an approved plan or the Director finds it did not, in good faith, make reasonable efforts to follow the approved plan and its schedule. These rules took effect when the 30-month period that began on December 13, 1991 ended.