12 U.S. Code § 2279bb–6 - Supervisory actions applicable to level III
(a) Mandatory supervisory actions
(1) Capital restoration plan
If the Corporation is classified as within level III, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the plan.
(2) Restrictions on dividends
(A) Prior approval
If the Corporation is classified as within level III, the Corporation—
(i) may not make any payment of dividends that would result in the Corporation being reclassified as within level IV; and
(B) Standard for approval
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,
(3) Reclassification from level III to level IV
The Director shall immediately reclassify the Corporation as within level IV if—
(b) Discretionary supervisory actions
In addition to any other actions taken by the Director (including actions under subsection (a) of this section), the Director may, at any time, take any of the following actions if the Corporation is classified as within level III:
(1) Limitation on increase in obligations
Limit any increase in, or order the reduction of, any obligations of the Corporation, including off-balance sheet obligations.
(2) Limitation on growth
Limit or prohibit the growth of the assets of the Corporation or require contraction of the assets of the Corporation.
(4) Acquisition of new capital
Require the Corporation to acquire new capital in any form and in any amount sufficient to provide for the reclassification of the Corporation as within level II.
(5) Restriction of activities
Require the Corporation to terminate, reduce, or modify any activity that the Director determines creates excessive risk to the Corporation.