---
kind: "section"
citation: "12 U.S.C. § 2279bb–4"
title: "12"
title_heading: "Banks and Banking"
number: "2279bb–4"
heading: "Enforcement levels"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279bb-4"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part B — Regulation of Financial Safety and Soundness of Federal Agricultural Mortgage Corporation"
---

# §2279bb–4. Enforcement levels

- (a) **In general—** The [Director](/usc/12/2279bb.md?p=3) shall classify the [Corporation](/usc/12/2279aa.md?p=4), for purposes of this part, according to the following enforcement levels:
  - (1) **Level I—** The [Corporation](/usc/12/2279aa.md?p=4) shall be classified as within level I if the [Corporation](/usc/12/2279aa.md?p=4)—
    - (A) maintains an amount of [regulatory capital](/usc/12/2279bb.md?p=5) that is equal to or exceeds the risk-based capital level established under [section 2279bb–1 of this title](/usc/12/2279bb–1.md); and
    - (B) equals or exceeds the minimum capital level established under [section 2279bb–2 of this title](/usc/12/2279bb–2.md).
  - (2) **Level II—** The [Corporation](/usc/12/2279aa.md?p=4) shall be classified as within level II if—
    - (A) the [Corporation](/usc/12/2279aa.md?p=4)—
      - (i) maintains an amount of [regulatory capital](/usc/12/2279bb.md?p=5) that is less than the risk-based capital level; and
      - (ii) equals or exceeds the minimum capital level; or
    - (B) the [Corporation](/usc/12/2279aa.md?p=4) is otherwise classified as within level II under [subsection (b)](#b) of this section.
  - (3) **Level III—** The [Corporation](/usc/12/2279aa.md?p=4) shall be classified as within level III if—
    - (A) the [Corporation](/usc/12/2279aa.md?p=4)—
      - (i) does not equal or exceed the minimum capital level; and
      - (ii) equals or exceeds the critical capital level established under [section 2279bb–3 of this title](/usc/12/2279bb–3.md); or
    - (B) the [Corporation](/usc/12/2279aa.md?p=4) is otherwise classified as within level III under [subsection (b)](#b) of this section.
  - (4) **Level IV—** The [Corporation](/usc/12/2279aa.md?p=4) shall be classified as within level IV if the [Corporation](/usc/12/2279aa.md?p=4)—
    - (A) does not equal or exceed the critical capital level; or
    - (B) is otherwise classified as within level IV under [subsection (b)](#b) of this section.
- (b) **Discretionary classification—** If at any time the [Director](/usc/12/2279bb.md?p=3) determines in writing (and provides written notification to the [Corporation](/usc/12/2279aa.md?p=4) and the Farm [Credit](/usc/12/5481.md?p=7) Administration) that the [Corporation](/usc/12/2279aa.md?p=4) is taking any action not approved by the [Director](/usc/12/2279bb.md?p=3) that could result in a rapid depletion of [core capital](/usc/12/2279bb.md?p=2) or that the value of the property subject to [mortgages](/usc/12/1707.md?p=a) securitized by the [Corporation](/usc/12/2279aa.md?p=4) or property underlying securities guaranteed by the [Corporation](/usc/12/2279aa.md?p=4), has decreased significantly, the [Director](/usc/12/2279bb.md?p=3) may classify the [Corporation](/usc/12/2279aa.md?p=4)—
  - (1) as within level II, if the [Corporation](/usc/12/2279aa.md?p=4) is otherwise within level I;
  - (2) as within level III, if the [Corporation](/usc/12/2279aa.md?p=4) is otherwise within level II; or
  - (3) as within level IV, if the [Corporation](/usc/12/2279aa.md?p=4) is otherwise within level III.
- (c) **Quarterly determination—** The [Director](/usc/12/2279bb.md?p=3) shall determine the classification of the [Corporation](/usc/12/2279aa.md?p=4) for purposes of this part on not less than a quarterly basis (and as appropriate under [subsection (b)](#b)). The first such determination shall be made for the quarter ending March 31, 1992.
- (d) **Notice—** Upon determining under subsection [(b)](#b) or [(c)](#c) that the [Corporation](/usc/12/2279aa.md?p=4) is within level II or III, the [Director](/usc/12/2279bb.md?p=3) shall provide written notice to the Congress and to the [Corporation](/usc/12/2279aa.md?p=4)—
  - (1) that the [Corporation](/usc/12/2279aa.md?p=4) is within such level;
  - (2) that the [Corporation](/usc/12/2279aa.md?p=4) is subject to the provisions of section [2279bb–5](/usc/12/2279bb–5.md) or [2279bb–6](/usc/12/2279bb–6.md) of this title, as applicable; and
  - (3) stating the reasons for the classification of the [Corporation](/usc/12/2279aa.md?p=4) within such level.

## Source credit

(Pub. L. 92–181, title VIII, § 8.35, as added Pub. L. 102–237, title V, § 503(b)(2), Dec. 13, 1991, 105 Stat. 1874; amended Pub. L. 104–105, title I, § 116, Feb. 10, 1996, 110 Stat. 168; Pub. L. 115–334, title V, § 5411(50), Dec. 20, 2018, 132 Stat. 4685.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (e). Pub. L. 115–334 struck out subsec. (e). Text read as follows: “Notwithstanding paragraphs (1) and (2) of subsection (a), during the period beginning on December 13, 1991, and ending on the effective date of the risk based capital regulation issued by the Director under section 2279bb–1 of this title, the Corporation shall be classified as within level I if the Corporation equals or exceeds the minimum capital level established under section 2279bb–2 of this title.”

1996—Subsec. (e). Pub. L. 104–105 substituted “during the period beginning on December 13, 1991, and ending on the effective date of the risk based capital regulation issued by the Director under section 2279bb–1 of this title,” for “during the 30-month period beginning on December 13, 1991,”.