§ 1237.12. Capital distributions while in conservatorship.
136 words·~1 min read·
/us/cfr/t12/s§ 1237.12·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Except as provided in paragraph
(b)of this section, a regulated entity shall make no capital distribution while in conservatorship.
(b)The Director may authorize, or may delegate the authority to authorize, a capital distribution that would otherwise be prohibited by paragraph
(a)of this section if he or she determines that such capital distribution:
(1)Will enhance the ability of the regulated entity to meet the risk-based capital level and the minimum capital level for the regulated entity;
(2)Will contribute to the long-term financial safety and soundness of the regulated entity;
(3)Is otherwise in the interest of the regulated entity; or
(4)Is otherwise in the public interest.
(c)This section is intended to supplement and shall not replace or affect any other restriction on capital distributions imposed by statute or regulation.