PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 307 "(iii) FDIC'S DISCRETION TO PRESCRIBE LESSER PERCENT- AGE. — The Corporation may prescribe by order, with respect to a particular savings association, an ap- plicable percentage less than that provided in clause (ii) if the Corporation determines, in its sole discretion, that the use of a greater percentage would, under the circumstances, constitute an unsafe or unsound prac- tice or be likely to result in the association's being in an unsafe or unsound condition. "(E) CONSOLIDATION OF SUBSIDIARIES NOT SEPARATELY CAPiTAUZED.— In determining compliance with capital standards prescribed under paragraph (1), the assets and liabilities of each of a savings association's subsidiaries (other than any subsidiary described in subparagraph (C)(ii)) shall be consolidated with the savings association's assets and liabilities, unless all of the savings association's investments in and extensions of credit to the subsidiary are deducted from the savings association's capital pursu- ant to subparagraph (A). "(6) CONSEQUENCES OF FAILING TO COMPLY WITH CAPITAL STANDARDS. — "(A) PRIOR TO JANUARY i, I99i.— Prior to January 1, 1991, the Director— "(i) may restrict the asset growth of any savings association not in compliance with capital standards; and " (ii) shall, beginning 60 days following the promulga- tion of final regulations under this subsection, require any savings association not in compliance with capital standards to submit a plan under subsection (s)(4)(A) that— "(I) addresses the savings association's need for increased capital; "(II) describes the manner in which the savings association will increase its capital so as to achieve compliance with capital standards; "(III) specifies the types and levels of activities in which the savings association will engage; "(IV) requires any increase in assets to be accom- panied by an increase in tangible capital not less in percentage amount than the leverage limit then applicable; "(V) requires any increase in assets to be accom- panied by an increase in capital not less in percent- age amount than required under the risk-based capital standard then applicable; and "(VI) is acceptable to the Director. "(B) ON OR AFTER JANUARY i, 1991. —On or after Jan- uary 1, 1991, the Director— "(i) shall prohibit any asset growth by any savings association not in compliance with capital standards, except as provided in subparagraph (C); and "(ii) shall require any savings association not in compliance with capital standards to comply with a capital directive issued by the Director (which may
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