12 2 STA T . 2 73 3 PUBLIC LA W 11 0– 2 89—J UL Y 30 , 2008 ratesuf f ic ie n tt o ena bl et h ere g ulate d entit y to beco m e ade q uately ca p itali z ed w ithin a reasonable time .‘ ‘ (5)PRIO R AP PRO V A L O F A CQU I S I T IO N SAN D N EW ACTIVI - TIES. —A n undercapitalized regulated entity shall not , directly or indirectly, acquire any interest in any entity or engage in any new acti v ity, unless— ‘‘(A) the D irector has accepted the capital restoration plan of the regulated entity, the regulated entity is imple- menting the plan, and the Director determines that the proposed action is consistent with and will further the achievement of the plan
or ‘‘( B ) the Director determines that the proposed action will further the purpose of this subtitle. ’ ’; (5) in subsection (b)— (A) in the subsection heading, by stri k ing ‘‘DISCRE- TIONAR Y ’’; (B) in the matter preceding paragraph ( 1 ), by striking ‘‘may’’ and inserting ‘‘shall’’; and ( C ) in paragraph ( 2 )— (i) by striking ‘‘make, in good faith, reasonable efforts necessary to’’; and (ii) by striking the period at the end and inserting ‘‘in any material respect.’’; and ( 6 ) by striking subsection (c) and inserting the following
‘‘(c) O T H ER DISCRETIONARY S AFE G UARDS.— T he Director may take, with respect to an undercapitalized regulated entity, any of the actions authorized to be taken under section 1 3 66 with respect to a significantly undercapitalized regulated entity, if the Director determines that such actions are necessary to carry out the purpose of this subtitle.’’. SEC.1 1 4 4.S UP E RVI S O R YA C T IO N S APP L ICA B LETOSI G NI F ICANTLY UN D ERCAPITALI Z ED REGULATED ENTITIES. Section 1366 of the F ederal H ousing E nterprises Financial Safety and Soundness Act of 1 9 92 (12 U .S.C. 4 616) is amended— (1) in subsection (a)(2), by striking ‘‘undercapitalized enter- prise’’ and inserting ‘‘undercapitalized’’; (2) by striking ‘‘the enterprise’’ each place that term appears and inserting ‘‘the regulated entity’’; (3) by striking ‘‘An enterprise’’ each place that term appears and inserting ‘‘A regulated entity’’; (4) by striking ‘‘an enterprise’’ each place that term appears and inserting ‘‘a regulated entity’’; (5) in subsection (b)— (A) in the subsection heading, by striking ‘‘DISCRE- TIONARY SUPERVISORY’’ and inserting ‘‘SPECIFIC’’; (B) in the matter preceding paragraph (1), by striking ‘‘may, at any time, take any’’ and inserting ‘‘shall carry out this section by taking, at any time, 1 or more’’; (C) by striking paragraph (6); (D) by redesignating paragraph (5) as paragraph (6); (E) by inserting after paragraph (4) the following: ‘‘(5) IM PROVEMENT OF MANAGEMENT.—Take 1 or more of the following actions: ‘‘(A) N EW ELECTION OF B OARD.—Order a new election for the board of directors of the regulated entity.
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