§ 4615. Supervisory actions applicable to undercapitalized regulated entities

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1992

   Federal Housing Enterprises Financial Safety and Soundness Act of 1992

   Pub. L. 102–550 title XIII § 1365 · 106 Stat. 3672

   Enacted · 12 U.S.C. § 4615

   Pub. L. 102–550, title XIII, § 1365, Oct. 28, 1992, 106 Stat. 3978

   Source evidence

   Code source credit
   Pub. L. 102–550, title XIII, § 1365, Oct. 28, 1992, 106 Stat. 3978

   Enacted provision · exact public law section
   SEC. 1365. SUPERVISORY ACTIONS APPLICABLE TO UNDERCAPITALIZED ENTERPRISES. (a) Mandatory Actions.— (1) Capital restoration plan.— An enterprise that is classified as undercapitalized shall, within the time period provided in section 1369C (b) and (d), submit to the Director a capital restoration plan that complies with section 1369C and carry out the plan after approval. (2) Restriction on capital distributions.— An enterprise that is classified as undercapitalized may not make any capital distribution that would result in the enterprise being re-classified as significantly undercapitalized or critically undercapitalized. (b) Discretionary Reclassification From Undercapitalized to Significantly Undercapitalized.— The Director may reclassify as significantly undercapitalized an enterprise that is classified as undercapitalized (and the enterprise shall be subject to the provisions of section 1366) if— (1) the enterprise does not submit a capital restoration plan that is substantially in compliance with section 1369C within the applicable period or the Director does not approve the capital restoration plan submitted by the enterprise; or (2) the Director determines that the enterprise has failed to make, in good faith, reasonable efforts necessary to comply with the capital restoration plan and fulfill the schedule for the plan approved by the Director. (c) Effective Date.— This section shall take effect upon the expiration of the 1-year period beginning on the date of the effectiveness of the regulations issued under section 1361(e) establishing the risk-based capital test.

2. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(4)(B) · 122 Stat. 2654

   Redesignated · 12 U.S.C. § 4615(a)(1)

   Pub. L. 110–289, § 1143(4)(B), added par. (1). Former par. (1) redesignated (2)

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 110–289, § 1143(4)(B), added par. (1). Former par. (1) redesignated (2).

   Enacted provision · exact public law section
   (B) by inserting before paragraph (2), as redesignated, the following: “(1) Required monitoring.— The Director shall— “(A) closely monitor the condition of any undercapitalized regulated entity; “(B) closely monitor compliance with the capital restoration plan, restrictions, and requirements imposed on an undercapitalized regulated entity under this section; and “(C) periodically review the plan, restrictions, and requirements applicable to an undercapitalized regulated entity to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.” ; and

3. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(2) · 122 Stat. 2654

   Substituted · 12 U.S.C. § 4615(a)(1)

   Pub. L. 110–289, § 1143(2), substituted “A regulated entity” for “An enterprise”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1143(2), substituted “A regulated entity” for “An enterprise”.

   Enacted provision · exact public law section
   (2) by striking “An enterprise” each place that term appears and inserting “A regulated entity”;

4. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(4)(A) · 122 Stat. 2654

   Redesignated · 12 U.S.C. § 4615(a)(2)

   Pub. L. 110–289, § 1143(4)(A), redesignated par. (1) as (2). Former par. (2) redesignated (3)

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 110–289, § 1143(4)(A), redesignated par. (1) as (2). Former par. (2) redesignated (3).

   Enacted provision · exact public law section
   (A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;

5. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(1) · 122 Stat. 2654

   1. Substituted · 12 U.S.C. § 4615(a)(2)

      Pub. L. 110–289, § 1143(1), (2), substituted “the regulated entity” for “the enterprise”

   2. Substituted · 12 U.S.C. § 4615(a)(2)

      Pub. L. 110–289, § 1143(1), (2), substituted “A regulated entity” for “An enterprise”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1143(1), (2), substituted “the regulated entity” for “the enterprise” and “A regulated entity” for “An enterprise”.

   Enacted provision · exact public law section
   (1) by striking “the enterprise” each place that term appears and inserting “the regulated entity”;

6. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(4)(A) · 122 Stat. 2654

   Redesignated · 12 U.S.C. § 4615(a)(3)

   Pub. L. 110–289, § 1143(4)(A), redesignated par. (2) as (3)

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 110–289, § 1143(4)(A), redesignated par. (2) as (3).

   Enacted provision · exact public law section
   (A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;

7. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(4)(C) · 122 Stat. 2654

   Added · 12 U.S.C. § 4615(a)(4); 12 U.S.C. § 4615(a)(5)

   Pub. L. 110–289, § 1143(4)(C), added pars. (4) and (5)

   Source evidence

   Code amendment note
   Subsec. (a)(4), (5). Pub. L. 110–289, § 1143(4)(C), added pars. (4) and (5).

   Enacted provision · exact public law section
   (C) by adding at the end the following: “(4) Restriction of asset growth.— An undercapitalized regulated entity shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter, unless— “(A) the Director has accepted the capital restoration plan of the regulated entity; “(B) any increase in total assets is consistent with the capital restoration plan; and “(C) the ratio of tangible equity to assets of the regulated entity increases during the calendar quarter at a rate sufficient to enable the regulated entity to become adequately capitalized within a reasonable time. “(5) Prior approval of acquisitions and new activities.— An undercapitalized regulated entity shall not, directly or indirectly, acquire any interest in any entity or engage in any new activity, unless— “(A) the Director has accepted the capital restoration plan of the regulated entity, the regulated entity is implementing the plan, and the Director determines that the proposed action is consistent with and will further the achievement of the plan; or “(B) the Director determines that the proposed action will further the purpose of this subtitle.” ;

8. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(5)(A) · 122 Stat. 2654

   1. Substituted · 12 U.S.C. § 4615(b)

      Pub. L. 110–289, § 1143(5)(A), (B), substituted “Reclassification” for “Discretionary reclassification” in introductory provisions

   2. Substituted · 12 U.S.C. § 4615(b)

      Pub. L. 110–289, § 1143(5)(A), (B), substituted “shall” for “may” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 110–289, § 1143(5)(A), (B), substituted “Reclassification” for “Discretionary reclassification” in heading and “shall” for “may” in introductory provisions.

   Enacted provision · exact public law section
   (A) in the subsection heading, by striking “Discretionary”;

9. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1143(1) · 122 Stat. 2654

   1. Substituted · 12 U.S.C. § 4615(b)

      Pub. L. 110–289, § 1143(1), (3), substituted “a regulated entity” for “an enterprise” in introductory provisions

   2. Substituted · 12 U.S.C. § 4615(b)

      Pub. L. 110–289, § 1143(1), (3), substituted “the regulated entity” for “the enterprise” in introductory provisions

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1143(1), (3), substituted “a regulated entity” for “an enterprise” and “the regulated entity” for “the enterprise” in introductory provisions.

   Enacted provision · exact public law section
   (1) by striking “the enterprise” each place that term appears and inserting “the regulated entity”;

10. 2008

    Federal Housing Finance Regulatory Reform Act of 2008

    Pub. L. 110–289 § 1143(1) · 122 Stat. 2654

    Substituted · 12 U.S.C. § 4615(b)(1)

    Pub. L. 110–289, § 1143(1), substituted “the regulated entity” for “the enterprise” in two places

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 110–289, § 1143(1), substituted “the regulated entity” for “the enterprise” in two places.

    Enacted provision · exact public law section
    (1) by striking “the enterprise” each place that term appears and inserting “the regulated entity”;

11. 2008

    Federal Housing Finance Regulatory Reform Act of 2008

    Pub. L. 110–289 § 1143(5)(C) · 122 Stat. 2654

    Struck and inserted · 12 U.S.C. § 4615(b)(2)

    Pub. L. 110–289, § 1143(5)(C), struck out “make, in good faith, reasonable efforts necessary to” before “comply with” and inserted “in any material respect” before period at end

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 110–289, § 1143(5)(C), struck out “make, in good faith, reasonable efforts necessary to” before “comply with” and inserted “in any material respect” before period at end.

    Enacted provision · exact public law section
    (C) in paragraph (2)— (i) by striking “make, in good faith, reasonable efforts necessary to”; and (ii) by striking the period at the end and inserting “in any material respect.”; and

12. 2008

    Federal Housing Finance Regulatory Reform Act of 2008

    Pub. L. 110–289 § 1143(1) · 122 Stat. 2654

    Substituted · 12 U.S.C. § 4615(b)(2)

    Pub. L. 110–289, § 1143(1), substituted “the regulated entity” for “the enterprise”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 110–289, § 1143(1), substituted “the regulated entity” for “the enterprise”.

    Enacted provision · exact public law section
    (1) by striking “the enterprise” each place that term appears and inserting “the regulated entity”;

13. 2008

    Federal Housing Finance Regulatory Reform Act of 2008

    Pub. L. 110–289 § 1143(6) · 122 Stat. 2654

    1. Added · 12 U.S.C. § 4615(c)

       Pub. L. 110–289, § 1143(6), added subsec. (c)

    2. Struck · 12 U.S.C. § 4615(c)

       Pub. L. 110–289, § 1143(6), struck out former subsec. (c). Prior to amendment, text read as follows: “This section shall take effect upon the expiration of the 1-year period beginning on the date of the effectiveness of the regulations issued under section 4611(e) of this title establishing the risk-based capital test.”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 110–289, § 1143(6), added subsec. (c) and struck out former subsec. (c). Prior to amendment, text read as follows: “This section shall take effect upon the expiration of the 1-year period beginning on the date of the effectiveness of the regulations issued under section 4611(e) of this title establishing the risk-based capital test.”

    Enacted provision · exact public law section
    (6) by striking subsection (c) and inserting the following: “(c) Other Discretionary Safeguards.— The Director may take, with respect to an undercapitalized regulated entity, any of the actions authorized to be taken under section 1366 with respect to a significantly undercapitalized regulated entity, if the Director determines that such actions are necessary to carry out the purpose of this subtitle.” .

17 of 17 references resolved to an enrolled provision