---
kind: "section"
citation: "12 U.S.C. § 2279bb–5"
title: "12"
title_heading: "Banks and Banking"
number: "2279bb–5"
heading: "Mandatory actions applicable to level II"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279bb-5"
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–5. Mandatory actions applicable to level II

- (a) **Capital restoration plan—** If the [Corporation](/usc/12/2279aa.md?p=4) is classified as within level II, the [Corporation](/usc/12/2279aa.md?p=4) shall, within the time period determined by the [Director](/usc/12/2279bb.md?p=3), submit to the [Director](/usc/12/2279bb.md?p=3) a capital restoration plan and, after approval, carry out the plan.
- (b) **Restriction on dividends—** If the [Corporation](/usc/12/2279aa.md?p=4) is classified as within level II, the [Corporation](/usc/12/2279aa.md?p=4) may not make any payment of dividends that would result in the [Corporation](/usc/12/2279aa.md?p=4) being reclassified as within level III or IV.
- (c) **Reclassification from level II to level III—** The [Director](/usc/12/2279bb.md?p=3) shall immediately reclassify the [Corporation](/usc/12/2279aa.md?p=4) as within level III (and the [Corporation](/usc/12/2279aa.md?p=4) shall be subject to the provisions of [section 2279bb–6 of this title](/usc/12/2279bb–6.md)), if—
  - (1) the [Corporation](/usc/12/2279aa.md?p=4) is within level II; and
  - (2)
    - (A) the [Corporation](/usc/12/2279aa.md?p=4) does not submit a capital restoration plan that is approved by the [Director](/usc/12/2279bb.md?p=3); or
    - (B) the [Director](/usc/12/2279bb.md?p=3) determines that the [Corporation](/usc/12/2279aa.md?p=4) has failed to make, in good faith, reasonable efforts necessary to comply with such a capital restoration plan and fulfill the schedule for the plan approved by the [Director](/usc/12/2279bb.md?p=3).
- (d) **Effective date—** This section shall take effect upon the expiration of the 30-month period beginning on December 13, 1991.

## Source credit

(Pub. L. 92–181, title VIII, § 8.36, as added Pub. L. 102–237, title V, § 503(b)(2), Dec. 13, 1991, 105 Stat. 1876.)