Title 12, Banks and BankingRelease 119-73not60

§2279bb–5 Mandatory Actions Applicable to Level Ii

Title 12 › Chapter 23— FARM CREDIT SYSTEM › Subchapter VIII— AGRICULTURAL MORTGAGE SECONDARY MARKET › Part B— Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation › § 2279bb–5

Last updated Apr 3, 2026|Official source

Summary

If the Corporation is put in level II, it must send a capital restoration plan to the Director within the time the Director sets and, after the Director approves it, carry out that plan. The Corporation may not pay dividends if doing so would move it into level III or IV. The Director must immediately move the Corporation to level III if it is in level II and either does not have an approved plan or the Director finds it did not make reasonable, good-faith efforts to follow an approved plan and its schedule. These requirements take effect when the 30-month period that began on December 13, 1991 ends.

Full Legal Text

Title 12, §2279bb–5

Banks and Banking, Source: USLM XML via OLRC

(a)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.

(b)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.

(c)The Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of section 2279bb–6 of this title), if—

(1)the Corporation is within level II; and

(2)(A)the Corporation does not submit a capital restoration plan that is approved by the Director; or

(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.

(d)This section shall take effect upon the expiration of the 30-month period beginning on December 13, 1991.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2279bb–5

Title 12, Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60