in danger of default

(B) In danger of default The term “in danger of default” means a regulated entity with respect to which, in the opinion of the Agency— (i) the regulated entity is not likely to be able to pay the obligations of the regulated entity in the normal course of business; or (ii) the regulated entity— (I) has incurred or is likely to incur losses that will deplete all or substantially all of its capital; and (II) there is no reasonable prospect that the capital of the regulated entity will be replenished.

Source

12 USC § 4502(8)(B)


Scoping language

For purposes of this chapter
Is this correct? or