12 U.S. Code § 2279bb–6 - Supervisory actions applicable to level III
If the Corporation is classified as within level III, the Director may approve a payment of dividends by the Corporation only if the Director determines that the payment (i) will enhance the ability of the Corporation to meet the risk-based capital level and the minimum capital level promptly, (ii) will contribute to the long-term safety and soundness of the Corporation, or (iii) is otherwise in the public interest.
Limit any increase in, or order the reduction of, any obligations of the Corporation, including off-balance sheet obligations.
Prohibit the Corporation from making any payment of dividends.
Appoint a conservator for the Corporation consistent with this chapter.
LII has no control over and does not endorse any external Internet site that contains links to or references LII.