---
kind: "section"
citation: "12 C.F.R. § 1237.12"
title: "12"
number: "1237.12"
heading: "Capital distributions while in conservatorship."
url: "https://uscodex.org/cfr/12/1237.12"
---

# §1237.12. Capital distributions while in conservatorship.

- (a) Except as provided in [paragraph (b)](#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)](#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.

## Notes

### Authority

Authority: 12 U.S.C. 4513b, 4526, 4617.

### Source

Source: 76 FR 35733, June 20, 2011, unless otherwise noted.