Previous Document Previous DocumentNext Document Next DocumentList of Statutes List of Statutes

Type: Statute
Statute: 1971 ACT AS AMENDED
Title: Title VIII Agricultural Mortgage Secondary Market
Part:
Subtitle: Subtitle B-Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation
Chapter Name:
U.S. Code Citation: 12 U.S.C. 2279bb-5


12 U.S.C. 2279bb-5 SEC. 8.36. MANDATORY ACTIONS APPLICABLE TO LEVEL II.
(a) CAPITAL RESTORATION PLAN. If the Corporation is classified as within level II, 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.
(b) RESTRICTION ON DIVIDENDS. If the Corporation is classified as within level II, the Corporation may not make any payment of dividends that would result in the Corporation being reclassified as within level III or IV.
(c) RECLASSIFICATION FROM LEVEL II TO LEVEL III. The Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of section 8.37), if--
(1) the Corporation is within level II; and
(2)(A) the Corporation does not submit a capital restoration plan that is approved by the Director; or
(B) the Director determines that the Corporation has failed to make, in good faith, reasonable efforts necessary to comply with such a capital restoration plan and fulfill the schedule for the plan approved by the Director.
(d) EFFECTIVE DATE. This section shall take effect upon the expiration of the 30-month period beginning on the date of the enactment of this section.

[FCA Home | FCA Handbook]