Sec. 3. Rebuilding of enterprise retained capital
550 words·~3 min read·
/bill/114/hr/4913/ih/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Notwithstanding any other provision of law or any provision of the Senior Preferred Stock Purchase Agreement for an enterprise, the provisions of this section shall apply to each enterprise, including during the term of any conservatorship of an enterprise pursuant to section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617 ). At any time that an enterprise is not fully capitalized (as such term is defined in subsection (c)(3))— section 1337 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 42 U.S.C. 4567 ) shall not apply to the enterprise; and the Director shall require that, in each fiscal year, the net income of each enterprise, as determined by the Director, for such fiscal year shall be retained and maintained by the enterprise as retained capital reserves.
At any time that an enterprise is fully capitalized, as determined by the Director, subsection
(b)shall not apply to the enterprise and section 1337 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 shall apply to the enterprise. An enterprise may not, unless the enterprise is fully capitalized, declare or pay any dividend (whether common or preferred) with respect to any equity interests of the enterprise. For purposes of this subsection, the term fully capitalized means, with respect to an enterprise, that the enterprise maintains an amount of total capital, as such term is defined in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4502 ), that is equal to or exceeds 10 percent of the risk-weighted assets of the enterprise. Not later than the expiration of the 45-day period beginning on the date of the enactment of this Act, the Director shall prepare and submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a capital restoration plan for each enterprise that complies with section 1369C(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4622(a) ). After submission of a capital restoration plan for an enterprise pursuant to paragraph (1), during any period that an enterprise remains not fully capitalized (as such term is defined in subsection (c)(3)), the Director shall update the plan for such enterprise on an annual basis and submit such updated plan to the Committees referred to in paragraph (1), together with a report describing any progress made toward restoring the capital of the enterprise during the preceding 1-year period. The Director shall make publicly available each capital restoration plan prepared pursuant to paragraph
(1)and each updated plan prepared pursuant to paragraph (2). The Director shall terminate the conservatorship of an enterprise under section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617 ) at such time that the enterprise attains, as determined by the Director, an amount of capital that is equal to or exceeds 5 percent of the risk-weighted assets of the enterprise. Not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, the Director shall issue regulations necessary to carry out this section and the amendments made by this section.
Connectionstraces to 3
Traces to 3 documents
1 reference not yet in our index
- 42 USC 4567
Citation graph
cites case law
Cites 4Cited by 0 across 0 sources