58.22 FINANCIAL CONDITION.

276 words·~1 min read·/mn/chapter-58/58-22

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Subdivision 1. Compliance required.

A covered institution must maintain capital and liquidity in compliance with this section.

Subd. 2. Generally accepted accounting principles.

For the purposes of complying with the capital and liquidity requirements of this section, all financial data must be determined in accordance with generally accepted accounting principles.

Subd. 3. Federal Housing Finance Agency eligibility requirements; policies and procedures.

(a)A covered institution that meets the Federal Housing Finance Agency eligibility requirements for enterprise single-family sellers and servicers with respect to capital, net worth ratio, and liquidity meets the requirements of subdivisions 1 and 2, regardless of whether the servicer is approved for government-sponsored enterprise servicing.

(b)A covered institution must maintain written policies and procedures that implement the capital and servicing liquidity requirements of this section. The policies and procedures implemented pursuant to this paragraph must include a sustainable written methodology to satisfy the requirements of paragraph

(a)and must be made available to the commissioner upon request.

Subd. 4. Operating liquidity.

(a)A covered institution must maintain sufficient allowable assets for liquidity, in addition to the amounts required for servicing liquidity, to cover normal business operations.

(b)Covered institutions must have sound cash management and business operating plans that

(1)match the complexity of the institution; and

(2)ensure normal business operations.

(c)Management must develop, establish, and implement plans, policies, and procedures to maintain operating liquidity sufficient for the ongoing needs of the covered institution. Plans, policies, and procedures implemented pursuant to this paragraph must contain sustainable, written methodologies to maintain sufficient operating liquidity and must be made available to the commissioner upon request.