Page:United States Statutes at Large Volume 112 Part 2.djvu/46

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112 STAT. 930 PUBLIC LAW 105-219—AUG. 7, 1998 (b) CONSERVATORSHIP AND LIQUIDATION AMENDMENTS TO FACILITATE PROMPT CORRECTIVE ACTION.— (1) CONSERVATORSHIP.— Section 206(h) of the Federal Credit Union Act (12 U.S.C. 1786(h)) is amended— (A) in paragraph (1)— (i) in subparagraph (D), by striking "or" at the end; (ii) in subparagraph (E), by striking the period at the end and inserting a semicolon; and (iii) by adding at the end the following new subparagraphs: "(F) the credit union is significantly undercapitalized, as defined in section 216, and has no reasonable prospect of becoming adequately capitalized, as defined in section 216; or "(G) the credit union is critically undercapitalized, as defined in section 216."; and (B) in paragraph (2)— (i) in subparagraph (A), by striking "In the case" and inserting "Except as provided in subparagraph (C), in the case"; and (ii) by adding at the end the following new subparagraph: "(C) In the case of a State-chartered insured credit union, the authority conferred by subparagraphs (F) and (G) of paragraph (1) may not be exercised unless the Board has complied with section 216(1).". (2) LIQUIDATION.— Section 207(a) of the Federal Credit Union Act (12 U.S.C. 1787(a)) is amended— (A) in paragraph (1)(A), by striking "himself" and inserting "itself"; and (B) by adding at the end the following new paragraph: "(3) LIQUIDATION TO FACILITATE PROMPT CORRECTIVE ACTION.—The Board may close any credit union for liquidation, and appoint itself or another (including, in the case of a Statechartered insured credit union, the State official having jurisdiction over the credit union) as liquidating agent of that credit union, if— "(A) the Board determines that— "(i) the credit union is significantly undercapitalized, as defined in section 216, and has no reasonable prospect of becoming adequately capitalized, as defined in section 216; or "(ii) the credit union is critically undercapitalized, as defined in section 216; and "(B) in the case of a State-chartered insured credit union, the Board has complied with section 216(1).". I2 USC i790d (c) CONSULTATION REQUIRED. —In developing regulations to note. implement section 216 of the Federal Credit Union Act (as added by subsection (a) of this section), the Board shall consult with the Secretary, the Federal banking agencies, and the State officials having jurisdiction over State-chartered insured credit unions. 12 USC i790d (d) DEADLINES FOR REGULATIONS.— note. (1) IN GENERAL.— Except as provided in paragraph (2), the Board shall— Federal Register, (A) publish in the Federal Register proposed regulapublication. tions to implement section 216 of the Federal Credit Union Act (as added by subsection (a) of this section) not later