12 U.S.C. § 2279bb–2: Minimum capital level

Summary

The Corporation must keep a minimum amount of core capital equal to 2.75 percent of its on‑balance sheet assets plus 0.75 percent of its off‑balance sheet obligations. Off‑balance sheet obligations include the unpaid principal on securities the Corporation guarantees that are backed by pools of qualified loans, similar guaranteed instruments, and other off‑balance commitments. There was a transition schedule for earlier years. Before January 1, 1997 the rates were 0.45% of off‑balance obligations, 0.45% of designated on‑balance assets, and 2.50% of other on‑balance assets. For the year ending December 31, 1997 the rates were 0.55%, 1.20%, and 2.55% respectively. For the year ending December 31, 1998, if the Corporation had at least $25,000,000 of core capital on January 1, 1998 the rates were 0.65%, 1.95%, and 2.65%; if it had less than $25,000,000 on that date the Corporation must use the 2.75%/0.75% formula above. On and after January 1, 1999 the 2.75%/0.75% formula applies. Designated on‑balance sheet assets: assets acquired under 2279aa–6(d) and qualified loans purchased and held under 2279aa–3(c)(13).

Title 12, §2279bb–2

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(a)In general

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 (1)

(2)0.75 percent of the aggregate off-balance sheet obligations of the Corporation, which, for the purposes of this part, shall include

(A)the unpaid principal balance of outstanding securities that are guaranteed by the Corporation and backed by pools of qualified loans;

(B)instruments that are issued or guaranteed by the Corporation and are substantially equivalent to instruments described in subparagraph (A); and

(C)other off-balance sheet obligations of the Corporation.

(b)Transition period

(1)In general

For purposes of this part, the minimum capital level for the Corporation—

(A)prior to January 1, 1997, shall be the amount of core capital equal to the sum of—

(i)0.45 percent of aggregate off-balance sheet obligations of the Corporation;

(ii)0.45 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and

(iii)2.50 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);

(B)during the 1-year period ending December 31, 1997, shall be the amount of core capital equal to the sum of—

(i)0.55 percent of aggregate off-balance sheet obligations of the Corporation;

(ii)1.20 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and

(iii)2.55 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2);

(C)during the 1-year period ending December 31, 1998, shall be the amount of core capital equal to—

(i)if the Corporation’s core capital is not less than $25,000,000 on January 1, 1998, the sum of—

(I)0.65 percent of aggregate off-balance sheet obligations of the Corporation;

(II)1.95 percent of designated on-balance sheet assets of the Corporation, as determined under paragraph (2); and

(III)2.65 percent of on-balance sheet assets of the Corporation other than assets designated under paragraph (2); or

(ii)if the Corporation’s core capital is less than $25,000,000 on January 1, 1998, the amount determined under subsection (a); and

(D)on and after January 1, 1999, shall be the amount determined under subsection (a).

(2)Designated on-balance sheet assets

For purposes of this subsection, the designated on-balance sheet assets of the Corporation shall be—

(A)the aggregate on-balance sheet assets of the Corporation acquired under section 2279aa–6(d) of this title; and

(B)the aggregate amount of qualified loans purchased and held by the Corporation under section 2279aa–3(c)(13) of this title.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsec. (b)(2)(A). Pub. L. 115–334 substituted “section 2279aa–6(d)” for “section 2279aa–6(e)”. 1996—Pub. L. 104–105 amended section generally, substituting present provisions for provisions relating to minimum capital level, including general provisions, provisions relating to 18-month transition, and provisions relating to linked portfolio assets.

§2279bb–2 Minimum Capital Level

Summary

Title 12, §2279bb–2

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata