Discretionary actions applicable to significantly undercapitalized Banks.

CFR · 2024-01-01 · US · Title 12

(a) (1) Limit the increase in any obligations or class of obligations of the Bank, including any off-balance sheet obligations. Such limitation may be stated in an absolute dollar amount, as a percentage of current obligations or in any other form chosen by the Director; (2) Reduce the amount of any obligations or class of obligations held by the Bank, including any off-balance sheet obligations. Such reduction may be stated in an absolute dollar amount, as a percentage of current obligations or in any other form chosen by the Director; (3) Limit the increase in, or prohibit the growth of any asset or class of assets held by the Bank. Such limitation may be stated in an absolute dollar amount, as a percentage of current assets or in any other form chosen by the Director; (4) Reduce the amount of any asset or class of asset held by the Bank. Such reduction may be stated in an absolute dollar amount, as a percentage of current obligations or in any other form chosen by the Director; (5) Acquire new capital in the form and amount determined by the Director, which specifically may include requiring a Bank to increase its level of retained earnings; (6) Modify, limit or terminate any activity of the Bank that the Director determines creates excessive risk; (7) Take steps to improve the management at the Bank by: (i) Ordering a new election for the Bank's board of directors in accordance with procedures established by the Director; (ii) Dismissing particular directors or executive

official document · source cfr-2024 · id 12:§ 1229.9