12 U.S. Code § 2279bb–4 - Enforcement levels
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(a) In general
The Director shall classify the Corporation, for purposes of this part, according to the following enforcement levels:
(1) Level I
The Corporation shall be classified as within level I if the Corporation—
(A) maintains an amount of regulatory capital that is equal to or exceeds the risk-based capital level established under section 2279bb–1 of this title; and
(B) equals or exceeds the minimum capital level established under section 2279bb–2 of this title.
(2) Level II
The Corporation shall be classified as within level II if—
(A) the Corporation—
(3) Level III
The Corporation shall be classified as within level III if—
(A) the Corporation—
(ii) equals or exceeds the critical capital level established under section 2279bb–3 of this title; or
(b) Discretionary classification
If at any time the Director determines in writing (and provides written notification to the Corporation and the Farm Credit Administration) that the Corporation is taking any action not approved by the Director that could result in a rapid depletion of core capital or that the value of the property subject to mortgages securitized by the Corporation or property underlying securities guaranteed by the Corporation, has decreased significantly, the Director may classify the Corporation—
(c) Quarterly determination
The Director shall determine the classification of the Corporation for purposes of this part on not less than a quarterly basis (and as appropriate under subsection (b) of this section). The first such determination shall be made for the quarter ending March 31, 1992.
Upon determining under subsection (b) or (c) of this section that the Corporation is within level II or III, the Director shall provide written notice to the Congress and to the Corporation—
(2) that the Corporation is subject to the provisions of section 2279bb–5 or 2279bb–6 of this title, as applicable; and
Notwithstanding paragraphs (1) and (2) of subsection (a) of this section, during the period beginning on December 13, 1991, and ending on the effective date of the risk based capital regulation issued by the Director under section 2279bb–1 of this title, the Corporation shall be classified as within level I if the Corporation equals or exceeds the minimum capital level established under section 2279bb–2 of this title.
Source(Pub. L. 92–181, title VIII, § 8.35, as added Pub. L. 102–237, title V, § 503(b)(2),Dec. 13, 1991, 105 Stat. 1874; amended Pub. L. 104–105, title I, § 116,Feb. 10, 1996, 110 Stat. 168.)