105 STAT. 2262 PUBLIC LAW 102-242—DEC. 19, 1991 . determination is made and a conservator or receiver shall be appointed for that institution under subparagraph (A)(i) unless the agency makes a new determination under • subparagraph (A)(ii) at the end of the effective period of the prior determination. "(C) APPOINTMENT OF RECEIVER REQUIRED IF OTHER ACTION FAILS TO RESTORE CAPITAL.— "(i) IN GENERAL. — Notwithstanding subparagraphs (A) and (B), the appropriate Federal banking agency shall appoint a receiver for the insured depository institution if the institution is critically undercapitalized on average during the calendar quar- • ter beginning 270 days after the date on which the institution became critically undercapitalized. " (ii) EXCEPTION.— Notwithstanding clause (i), the appropriate Federal banking agency may continue to take such other action as the agency determines to be appropriate in lieu of such appointment if— "(I) the agency determines, with the concurrence of the Corporation, that (aa) the insured depository institution has positive net worth, (bb) the insured depository institution has been in substantial ' compliance with an approved capital restoration plan which requires consistent improvement in the institution's capital since the date of the approval of the plan, (cc) the insured depository institution is profitable or has an upward trend in earnings the agency projects as sustainable, and (dd) the insured depository institution is reducing the ratio of nonperforming loans to total loans; and "(II) the head of the appropriate Federal banking agency and the Chairperson of the Board of Directors both certify that the institution is viable and not expected to fail. Regulations. "(i) RESTRICTING ACTIVITIES OF CRITICALLY UNDERCAPITALIZED INSTITUTIONS.— To carry out the purpose of this section, the Corporation shall, by regulation or order— "(1) restrict the activities of any critically undercapitalized insured depository institution; and "(2) at a minimum, prohibit any such institution from doing any of the following without the Corporation's prior written approval: "(A) Entering into any material transaction other than in the usual course of business, including any investment, expansion, acquisition, sale of assets, or other similar action with respect to which the depository institution is required to provide notice to the appropriate Federal banking agency. "(B) Extending credit for any highly leveraged transaction. "(C) Amending the institution's charter or bylaws, except to the extent necessary to carry out any other requirement of any law, regulation, or order. "(D) Making any material change in accounting methods. "(E) Engaging in any covered transaction (as defined in section 23A(b) of the Federal Reserve Act). "(F) Paying excessive compensation or bonuses.
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