§4622 — Title 12 Banks and Banking | U.S. Code

Summary

A regulated entity must file a workable plan to restore its core capital to at least the minimum level and its total capital to at least the risk-based level. The plan must name the capital target, describe steps to become adequately capitalized, give a timeline, list the main activities it will carry out while the plan is in effect, and explain how it will meet any required or optional conditions under this law. The Director will set a filing deadline no more than 45 days after written notice and can extend that deadline in writing. The Director will approve or reject the plan within 30 days (one extra 30-day extension allowed) and must notify the entity in writing, saying why if rejected. If rejected, the entity must submit an amended plan acceptable to the Director within 30 days or a longer time the Director allows for the public interest.

Title 12, §4622

Banks and Banking — Source: USLM XML via OLRC

(a)Each capital restoration plan submitted under this subchapter shall set forth a feasible plan for restoring the core capital of the regulated entity subject to the plan to an amount not less than the minimum capital level for the regulated entity and for restoring the total capital of the regulated entity to an amount not less than the risk-based capital level for the regulated entity. Each capital restoration plan shall—

(1)specify the level of capital the regulated entity will achieve and maintain;

(2)describe the actions that the regulated entity will take to become classified as adequately capitalized;

(3)establish a schedule for completing the actions set forth in the plan;

(4)specify the types and levels of activities (including existing and new programs) in which the regulated entity will engage during the term of the plan; and

(5)describe the actions that the regulated entity will take to comply with any mandatory and discretionary requirements imposed under this subchapter.

(b)The Director shall, by regulation, establish a deadline for submission of a capital restoration plan, which may not be more than 45 days after the regulated entity is notified in writing that a plan is required. The regulations shall provide that the Director may extend the deadline to the extent that the Director determines it necessary. Any extension of the deadline shall be in writing and for a time certain.

(c)The Director shall review each capital restoration plan submitted under this section and, not later than 30 days after submission of the plan, approve or disapprove the plan. The Director may extend the period for approval or disapproval for any plan for a single additional 30-day period if the Director determines it necessary. The Director shall provide written notice to any regulated entity submitting a plan of the approval or disapproval of the plan (which shall include the reasons for any disapproval of the plan) and of any extension of the period for approval or disapproval.

(d)If the Director disapproves the initial capital restoration plan submitted by the regulated entity, the regulated entity shall submit an amended plan acceptable to the Director within 30 days or such longer period that the Director determines is in the public interest.

Editorial Notes

Amendments

2008—Pub. L. 110–289 substituted “regulated entity” for “enterprise” wherever appearing.

§4622 Capital restoration plans

Summary

Title 12, §4622

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata