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

Summary

Requires a regulated entity to file a capital restoration plan showing how it will raise core capital to at least the minimum level and total capital to at least the risk-based level. The plan must state the target capital level, list the steps the entity will take to become adequately capitalized, include a schedule for those steps, describe the kinds and amounts of activities it will carry out, and explain how it will meet any required rules. The Director sets a filing deadline no more than 45 days after the entity gets written notice and can extend that deadline in writing for a set time. The Director has 30 days after the plan is filed to approve or reject it and may add one extra 30-day extension. The Director must give written notice and reasons for any rejection. If rejected, the entity must submit an acceptable revised plan within 30 days or a longer time the Director allows.

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