§2279bb–4 Enforcement Levels

Summary

The Director must put the Corporation into one of four enforcement levels based on its capital. Level I means the Corporation has at least the required risk-based capital and at least the minimum capital. Level II means it has less than the risk-based amount but still at or above the minimum, or the Director otherwise moves it there. Level III means it is below the minimum but at or above the critical capital level, or the Director otherwise moves it there. Level IV means it is below the critical level or the Director otherwise moves it there. If the Director finds in writing that the Corporation is doing unapproved things that could quickly drain core capital or that mortgage or guaranteed property values fell a lot, the Director may move the Corporation up one level and must notify the Corporation and the Farm Credit Administration in writing. The Director must decide the Corporation’s level at least once every quarter. The first required quarterly check was for the quarter ending March 31, 1992. If the Director places the Corporation in level II or III, the Director must send written notice to Congress and to the Corporation saying it is in that level, that it is subject to section 2279bb–5 or 2279bb–6 as appropriate, and explaining why.