Page:United States Statutes at Large Volume 106 Part 5.djvu/339

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PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3977 (A) maintains an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise under section 1361; and (B) maintains an amount of core capital that is equal to or exceeds the minimum capital level established for the enterprise under section 1362. (2) UNDERCAPITAL]:ZED. — An enterprise shall be classified as undercapitalized if—- (A) the enterprise— (i) does not maintain an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise; and (ii) maintains an amount of core capital that is equal to or exceeds the minimum capital level established for the enterprise; or (B) the enterprise is otherwise classified as undercapitalized under subsection (b)(1) of this section. (3) SIGNIFICANTLY UNDERCAPITALIZED.—An enterprise shall be classified as significantly undercapitalized if— (A) the enterprise— (i) does not maintain an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise; (ii) does not maintain an amount of core capital that is equal to or exceeds the minimum capital level established for the enterprise; and (iii) maintains an amount of core capital that is equal to or exceeds the critical capital level established for the enterprise under section 1363; or (B) the enterprise is otherwise classified as significantly undercapitalized under subsection (b)(2) of this section or section 1365(b). (4) CRITICALLY UNDERCAPITALIZED.—An enterprise shall be classified as critically undercapitalized if— (A) the enterprise— (i) does not maintain an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise; and (ii) does not maintain an amount of core capital that is equal to or exceeds the critical capital level for the enterprise; or (B) is otherwise classified as critically undercapitalized under subsection (b)(3) of this section or section 1366(b)(5). (b) DISCRETIONARY CLASSIFICATION. —If at any time the Director determines in writing that an enterprise is engaging in conduct not approved by the Director that could result in a rapid depletion of core capital or that the value of the property subject to mortgages held or securitized by the enterprise has decreased significantly, the Director may classify the enterprise— (1) as undercapitalized, if the enterprise is otherwise classified as adequately capitalized; (2) as significantly undercapitalized, if the enterprise is otherwise classified as undercapitialized; and (3) as critically undercapitalized, if the enterprise is otherwise classified as significantly undercapitalized. (c) QUARTERLY DETERMINATION.—The Director shall determine the capital classification of the enterprises for purposes of this