---
kind: "section"
citation: "12 C.F.R. § 1240.4"
title: "12"
number: "1240.4"
heading: "Transition."
url: "https://uscodex.org/cfr/12/1240.4"
---

# §1240.4. Transition.

- (a) **Compliance dates.** An Enterprise will not be subject to any requirement under this part until the compliance date for the requirement under this section.
- (b) **Reporting requirements.**
  - (1) For any reporting requirement under [§ 1240.1(f)](/cfr/12/1240.1.md?p=f) or [§ 1240.41](/cfr/12/1240.41.md), the compliance date will be January 1, 2022.
  - (2) For any reporting requirement under [§§ 1240.61 through 1240.63](/cfr/12/1240.61..1240.63.md), the compliance date will be no later than 10 business days after an Enterprise files its Annual Report on SEC Form 10-K for the fiscal year ending December 31, 2022.
  - (3) For any reporting requirement under [§ 1240.205](/cfr/12/1240.205.md), the compliance date will be no later than 10 business days after an Enterprise files its Annual Report on SEC Form 10-K for the fiscal year ending December 31, 2022.
- (c) **Advanced approaches requirements.** Any requirement under subpart [E](/cfr/12/subpartE.md) or [F](/cfr/12/subpartF.md) (other than [§ 1240.162(d)](/cfr/12/1240.162.md?p=d) or any requirement to calculate the standardized measure for spread risk under [§ 1240.204](/cfr/12/1240.204.md)) will have a compliance date of the later of January 1, 2028 and any later compliance date for that requirement provided in a transition order applicable to the Enterprise.
- (d) **Capital requirements and buffers—**
  - (1) **Requirements.** The compliance date of any requirement under [§ 1240.10](/cfr/12/1240.10.md) will be the later of:
    - (i) The date of the termination of the conservatorship of the Enterprise (or, if later, the effective date of this part); and
    - (ii) Any later compliance date for [§ 1240.10](/cfr/12/1240.10.md) provided in a transition order applicable to the Enterprise.
  - (2) **Buffers.** The compliance date of any requirement under [§ 1240.11](/cfr/12/1240.11.md) will be the date of the termination of the conservatorship of the Enterprise (or, if later, the effective date of this part).
  - (3) **Capital restoration plan.** If a transition order of an Enterprise provides a compliance date for [§ 1240.10](/cfr/12/1240.10.md), the Director may determine that, for the period between the compliance date for [§ 1240.11](/cfr/12/1240.11.md) under [paragraph (d)(2)](#d-2) of this section and any later compliance date for [§ 1240.10](/cfr/12/1240.10.md) provided in the transition order—
    - (i) The prescribed capital conservation buffer amount of the Enterprise will be the amount equal to the sum of—
      - (A) The common equity tier 1 capital that would otherwise be required under [§ 1240.10(d)](/cfr/12/1240.10.md?p=d); and
      - (B) The prescribed capital conservation buffer amount that would otherwise apply under [§ 1240.11(a)(5)](/cfr/12/1240.11.md?p=a-5); and
    - (ii) The prescribed leverage buffer amount of the Enterprise will be equal to 4.0 percent of the adjusted total assets of the Enterprise.
  - (4) **Prudential standard.** If the Director makes a determination under [paragraph (d)(3)](#d-3) of this section, [§ 1240.11](/cfr/12/1240.11.md) will be a prudential standard adopted under [section 1313B](/cfr/12/1313B.md) of the Safety and Soundness Act ([12 U.S.C. 4513b](/usc/12/4513b.md)) until the compliance date of [§ 1240.10](/cfr/12/1240.10.md).

## Notes

### Amendments

[85 FR 82198, Dec. 17, 2020, as amended at 87 FR 33429, June 2, 2022; 88 FR 83476, Nov. 30, 2023]

### Authority

Authority: 12 U.S.C. 4511, 4513, 4513b, 4514, 4515, 4517, 4526, 4611-4612, 4631-36.

### Source

Source: 85 FR 82198, Dec. 17, 2020, unless otherwise noted.

### Amendments

[85 FR 82198, Dec. 17, 2020, as amended at 87 FR 33429, June 2, 2022; 88 FR 83476, Nov. 30, 2023]