Reclassification by the Director.

CFR · 2024-01-01 · US · Title 12

(a) (1) Undercapitalized, if it is otherwise classified as adequately capitalized; (2) Significantly undercapitalized, if it is otherwise classified as undercapitalized; or (3) Critically undercapitalized if it is otherwise classified as significantly undercapitalized. (b) (1) The Director determines in writing that: (i) The Bank is engaging in conduct that could result in the rapid depletion of permanent or total capital; (ii) The value of collateral pledged to the Bank has decreased significantly; or (iii) The value of property subject to mortgages owned by the Bank has decreased significantly. (2) The Director determines, after notice to the Bank and opportunity for an informal hearing before the Director, that a Bank is in an unsafe and unsound condition; or (3) The Director finds, under § 1371(b) of Safety and Soundness Act (12 U.S.C. 4631(b)), that the Bank is engaging in an unsafe and unsound practice because the Bank's asset quality, management, earnings or liquidity were found to be less than satisfactory during the most recent examination, and any deficiency has not been corrected. (c) (d) (e)

official document · source cfr-2024 · id 12:§ 1229.4