Mandatory actions applicable to undercapitalized Banks.

CFR · 2024-01-01 · US · Title 12

(a) (1) Submit to the Director for approval a capital restoration plan that complies with the requirements and procedures established by § 1229.11 of this part and receive approval from the Director for such plan; (2) Fulfill all terms, conditions and obligations contained in the capital restoration plan as approved by the Director; (3) Not make any capital distribution unless: (i) The distribution meets the requirements of § 1229.5(b) and paragraphs (a)(3)(ii) and (iii) of this section and the Director has provided permission for such distribution as set forth in § 1229.5(b); (ii) The capital distribution will not result in the Bank being reclassified as significantly undercapitalized or critically undercapitalized; and (iii) The capital distribution does not violate any restriction on the redemption or repurchase of capital stock or the declaration or payment of a dividend set forth in section 6 of the Bank Act (12 U.S.C. 1426) or in any other applicable regulation; (4) Not permit its average total assets in any calendar quarter to exceed its average total assets during the preceding calendar quarter, where such average is calculated based on the total amount of assets held by the Bank for each day in a quarter, unless: (i) The Director has approved the Bank's capital restoration plan; and (ii) The Director determines that: (A) The increase in total assets is consistent with the approved capital restoration plan; and (B) The ratio of tangible equity to the Bank's total asse

official document · source cfr-2024 · id 12:§ 1229.6