§1831o. Prompt corrective action — Inbound Citations
12 U.S.C. § 1831o
Cited by 49 provisions in release 119-102.
Citations to 12 U.S.C. § 1831o as a whole
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Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power—
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(5) The term “well capitalized” has the meaning given the term in section 1831o of this title.
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(B) The term “critically undercapitalized” has the same meaning as in section 1831o of this title.
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(i) is undercapitalized, as defined in section 1831o of this title; or
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(ii) comparable to section 1831o of this title.
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(A) If, for purposes of section 1831o(c) of this title, the Federal banking agencies increase or decrease the required minimum level for the leverage limit (as those terms are used in section 1831o of this title), the Board may, by regulation, and subject to subparagraph (B) of this paragraph, correspondingly increase or decrease 1 or more of the net worth ratios specified in subparagraphs (A) through (D) of paragraph (1) of this subsection in an amount that is equal to not more than the difference between the required minimum level most recently established by the Federal banking agencies and 4 percent of total assets (with respect to institutions regulated by those agencies).
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(9) In addition to or in connection with any other report required under this subsection, the Corporation shall take such action as may be necessary to ensure that—(A) each insured depository institution maintains; and(B) the Corporation receives on a regular basis from such institution,information on the total amount of all insured deposits, preferred deposits, and uninsured deposits at the institution. In prescribing reporting and other requirements for the collection of actual and accurate information pursuant to this paragraph, the Corporation shall minimize the regulatory burden imposed upon insured depository institutions that are well capitalized (as defined in section 1831o of this title) while taking into account the benefit of the information to the Corporation, including the use of the information to enable the Corporation to more accurately determine the total amount of insured deposits in each insured depository institution for purposes of compliance with this chapter.
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(II) In the case of insured depository institutions that are well capitalized (as defined in section 1831o of this title) and, in the most recent examination, were found to be well managed, the consultation under subclause (I) concerning the assessment of the risk of loss posed by such institutions may be made on an aggregate basis.
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(E) In the case of an insured depository institution that exhibits financial, operational, or compliance weaknesses ranging from moderately severe to unsatisfactory, or is not adequately capitalized (as defined in section 1831o of this title) at the beginning of an assessment period, the amount of any credit allowed under this paragraph against the assessment on that depository institution for such period may not exceed the amount calculated by applying to that depository institution the average assessment rate on all insured depository institutions for such assessment period.
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(1) The appropriate Federal banking agency may in its discretion apply to the United States district court, or the United States court of any territory, within the jurisdiction of which the home office of the depository institution is located, for the enforcement of any effective and outstanding notice or order issued under this section or under section 1831o or 1831p–1 of this title, and such courts shall have jurisdiction and power to order and require compliance herewith; but except as otherwise provided in this section or under section 1831o or 1831p–1 of this title no court shall have jurisdiction to affect by injunction or otherwise the issuance or enforcement of any notice or order under any such section, or to review, modify, suspend, terminate, or set aside any such notice or order.
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(B) the institution is well capitalized, as defined in section 1831o of this title;
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(I) The terms “well capitalized” and “adequately capitalized” have the same meanings as in section 1831o of this title.
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(ii) the appointment is necessary to carry out the purpose of section 1831o of this title.
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(A) An undercapitalized insured depository institution (as defined in section 1831o of this title) shall notify the Corporation in writing before entering into an agreement to sell credit card accounts receivable.
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(p) Each appropriate Federal banking agency shall, in consultation with the other Federal banking agencies, biennially review its capital standards for insured depository institutions to determine whether those standards require sufficient capital to facilitate prompt corrective action to prevent or minimize loss to the Deposit Insurance Fund, consistent with section 1831o of this title.
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(3) Notwithstanding paragraph (2), the term “deposit broker” includes any insured depository institution that is not well capitalized (as defined in section 1831o of this title), and any employee of such institution, which engages, directly or indirectly, in the solicitation of deposits by offering rates of interest which are significantly higher than the prevailing rates of interest on deposits offered by other insured depository institutions in such depository institution’s normal market area.
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(h) An insured depository institution that is undercapitalized, as defined in section 1831o of this title, shall not solicit deposits by offering rates of interest that are significantly higher than the prevailing rates of interest on insured deposits—(1) in such institution’s normal market areas; or(2) in the market area in which such deposits would otherwise be accepted.
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(2) the agency determines, in connection with the review by the agency of the plan required under section 1831o of this title or otherwise, that such prior notice is appropriate.
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(3) Paragraph (1) shall not affect the authority of any appropriate Federal banking agency to restrict compensation paid to any senior executive officer of an undercapitalized insured depository institution pursuant to section 1831o of this title.
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(iv) Require the institution to take any other action that the agency determines will better carry out the purpose of section 1831o of this title than any of the actions described in this subparagraph.
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(f) For purposes of this section, the terms “average” and “capital restoration plan” have the same meanings as in section 1831o of this title.
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(1) The term “adequately capitalized” has the same meaning as in section 1831o of this title.
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(f) The capital of an insured depository institution shall be computed without regard to this section in determining whether the institution is adequately capitalized, undercapitalized, significantly undercapitalized, or critically undercapitalized under section 1831o of this title.
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(A) With respect to insured depository institutions, the terms “well capitalized”, “adequately capitalized”, and “undercapitalized” have the same meanings as in section 38 of the Federal Deposit Insurance Act [12 U.S.C. 1831o].
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(II) the bank is adequately capitalized (as defined in section 1831o of this title);
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(B) does not include a determination by a Federal banking agency or the National Credit Union Administration Board to appoint a conservator or receiver for an insured depository institution or a liquidating agent for an insured credit union, as the case may be, or a decision to take action pursuant to section 1831o of this title or section 1790a of this title, as appropriate.
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(A) the minimum ratios of tier 1 capital to average total assets, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regulations implementing section 1831o of this title, regardless of total consolidated asset size or foreign financial exposure; and
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(A) the risk-based capital requirements, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regulations implementing section 1831o of this title, regardless of total consolidated asset size or foreign financial exposure; and
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(F) The process provided in this paragraph shall not apply to a determination by a prudential regulator to appoint a conservator or receiver for an insured depository institution or a liquidating agent for an insured credit union, as the case may be, or a decision to take action pursuant to section 1831o of this title or section 1790a of this title, as applicable.
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(ii) require the full adjustment, but permit the creditor to make the required adjustment in partial payments over an extended period of time which the agency considers to be reasonable, if (in the case of an agency referred to in paragraph (1), (2), or (3) of subsection (a)), the agency determines that a partial adjustment or making partial payments over an extended period is necessary to avoid causing the creditor to become undercapitalized pursuant to section 38 of the Federal Deposit Insurance Act [12 U.S.C. 1831o];
Citations to §1831o(b)
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(2) the term “well capitalized” has the same meaning as in section 1831o(b) of this title.
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(G) The institution has incurred or is likely to incur losses that will deplete all or substantially all of its capital, and there is no reasonable prospect for the institution to become adequately capitalized (as defined in section 1831o(b) of this title) without Federal assistance.
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(K) The institution is undercapitalized (as defined in section 1831o(b) of this title), and—(i) has no reasonable prospect of becoming adequately capitalized (as defined in that section);(ii) fails to become adequately capitalized when required to do so under section 1831o(f)(2)(A) of this title;(iii) fails to submit a capital restoration plan acceptable to that agency within the time prescribed under section 1831o(e)(2)(D) of this title; or(iv) materially fails to implement a capital restoration plan submitted and accepted under section 1831o(e)(2) of this title.
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(i) is critically undercapitalized, as defined in section 1831o(b) of this title; or
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(E) The term “well capitalized” has the meaning given the term in section 1831o(b) of this title.
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(1) the term “adequately capitalized” has the same meaning as in section 1831o(b) of this title;
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(9) the term “well capitalized” has the same meaning as in section 1831o(b) of this title.
Citations to §1831o(b)(1)
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(F) The term “well capitalized” has the meaning given the term in section 1831o(b)(1) of this title.
Citations to §1831o(c)
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(A) If, for purposes of section 1831o(c) of this title, the Federal banking agencies increase or decrease the required minimum level for the leverage limit (as those terms are used in section 1831o of this title), the Board may, by regulation, and subject to subparagraph (B) of this paragraph, correspondingly increase or decrease 1 or more of the net worth ratios specified in subparagraphs (A) through (D) of paragraph (1) of this subsection in an amount that is equal to not more than the difference between the required minimum level most recently established by the Federal banking agencies and 4 percent of total assets (with respect to institutions regulated by those agencies).
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(3) the term “capital standards” has the same meaning as in section 1831o(c) of this title;
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(6) the term “other capital measures” has the meaning as in section 1831o(c) of this title;
Citations to §1831o(e)(2)
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(iv) materially fails to implement a capital restoration plan submitted and accepted under section 1831o(e)(2) of this title.
Citations to §1831o(e)(2)(D)
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(iii) fails to submit a capital restoration plan acceptable to that agency within the time prescribed under section 1831o(e)(2)(D) of this title; or
Citations to §1831o(e)(2)(E)(i)
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(a) Notwithstanding clause (i) or (ii) of section 1818(b)(6)(A) of this title or section 1831o(e)(2)(E)(i) of this title, the appropriate Federal banking agency for a depository institution may enforce, under section 1818 of this title, the terms of—(1) any condition imposed in writing by the agency on the depository institution or an institution-affiliated party in connection with any action on any application, notice, or other request concerning the depository institution; or(2) any written agreement entered into between the agency and the depository institution or an institution-affiliated party.
Citations to §1831o(f)(2)(A)
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(ii) fails to become adequately capitalized when required to do so under section 1831o(f)(2)(A) of this title;
Citations to §1831o(f)(2)(A)(iii)
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(B) an acquisition or combination under section 1831o(f)(2)(A)(iii) of this title.
Citations to §1831o(f)(2)(C)
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(iii) Take the action described in section 1831o(f)(2)(C) of this title.
Citations to §1831o(g)
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(h) With respect to the exercise of authority by the Board under regulations comparable to section 1831o(g) of this title—(1) the Board may not reclassify an insured credit union into a lower net worth category, or treat an insured credit union as if it were in a lower net worth category, for reasons not pertaining to the safety and soundness of that credit union; and(2) the Board may not delegate its authority to reclassify an insured credit union into a lower net worth category or to treat an insured credit union as if it were in a lower net worth category.