(a) In general. The Board and Corporation may jointly determine that a covered company
or any subsidiary of a covered company shall be subject to more stringent
capital, leverage, or liquidity requirements, or restrictions on the
growth, activities, or operations of the covered company or the subsidiary
if:
(1) The covered company
fails to submit a revised resolution plan under section 243.8(c) within
the required time period; or
(2)
The Board and the Corporation jointly determine that a revised resolution
plan submitted under section 243.8(c) does not adequately remedy the
deficiencies jointly identified by the Board and the Corporation under
section 243.8(b).
(b) Duration
of requirements or restrictions. Any requirements or restrictions
imposed on a covered company or a subsidiary thereof pursuant to paragraph
(a) of this section shall cease to apply to the covered company or
subsidiary, respectively, on the date that the Board and the Corporation
jointly determine the covered company has submitted a revised resolution
plan that adequately remedies the deficiencies jointly identified
by the Board and the Corporation under section 243.8(b).
(c) Divestiture. The Board and Corporation,
in consultation with the Council, may jointly, by order, direct the
covered company to divest such assets or operations as are jointly
identified by the Board and Corporation if:
(1) The Board and Corporation have jointly
determined that the covered company or a subsidiary thereof shall
be subject to requirements or restrictions pursuant to paragraph (a)
of this section; and
(2) The covered
company has failed, within the 2-year period beginning on the date
on which the determination to impose such requirements or restrictions
under paragraph (a) of this section was made, to submit a revised
resolution plan that adequately remedies the deficiencies jointly
identified by the Board and the Corporation under section 243.8(b);
and
(3) The Board and Corporation
jointly determine that the divestiture of such assets or operations
is necessary to facilitate an orderly resolution of the covered company
under the Bankruptcy Code in the event the company was to fail.
