(a) Resolving problems to protect Deposit Insurance Fund.
(1) The purpose of this section is to resolve
the problems of insured depository institutions at the least possible
long-term loss to the Deposit Insurance Fund.
(2) Each appropriate Federal banking agency
and the Corporation (acting in the Corporation’s capacity as the insurer
of depository institutions under this Act) shall carry out the purpose
of this section by taking prompt corrective action to resolve the
problems of insured depository institutions.
1-400.41
(b) Definitions. For purposes of this
section:
(1) Capital categories.
(A) An insured depository institution
is “well capitalized” if it significantly exceeds the required
minimum level for each relevant capital measure.
(B) An insured depository institution
is “adequately capitalized” if it meets the required minimum
level for each relevant capital measure.
(C) An insured depository institution
is “undercapitalized” if it fails to meet the required minimum
level for any relevant capital measure.
(D) An insured depository institution
is “significantly undercapitalized” if it is significantly
below the required minimum level for any relevant capital measure.
(E) An insured depository
institution is “critically undercapitalized” if it fails to
meet any level specified under subsection (c)(3)(A).
1-400.42
(2) Other definitions.
(A) (i) The “average” of an accounting item (such as total assets or tangible
equity) during a given period means the sum of that item at the close
of business on each business day during that period divided by the total number of business
days in that period.
(ii)
In the case of insured depository institutions that have total assets
of less than $300,000,000 and normally file reports of condition reflecting
weekly (rather than daily) averages of accounting items, the appropriate
Federal banking agency may provide that the “average” of an accounting
item during a given period means the sum of that item at the close
of business on the relevant business day each week during that period
divided by the total number of weeks in that period.
1-400.43
(B) The term “capital
distribution” means—
(i) a distribution of cash or other property
by any insured depository institution or company to its owners made
on account of that ownership, but not including—
(I) any dividend consisting only of shares
of the institution or company or rights to purchase such shares; or
(II) any amount paid on
the deposits of a mutual or cooperative institution that the appropriate
Federal banking agency determines is not a distribution for purposes
of this section;
(ii) a payment by an insured depository institution
or company to repurchase, redeem, retire, or otherwise acquire any
of its shares or other ownership interests, including any extension
of credit to finance an affiliated company’s acquisition of those
shares or interests; or
(iii) a transaction that the appropriate Federal banking agency or
the Corporation determines, by order or regulation, to be in substance
a distribution of capital to the owners of the insured depository
institution or company.
1-400.44
(C) The term “capital restoration
plan” means a plan submitted under subsection (e)(2).
(D) The term “company” has the same meaning as in section 2 of the Bank Holding Company
Act of 1956.
(E)
The term “compensation” includes any payment of money or provision
of any other thing of value in consideration of employment.
(F) The term “relevant
capital measure” means the measures described in subsection (c).
(G) The term “required
minimum level” means, with respect to each relevant capital measure,
the minimum acceptable capital level specified by the appropriate
Federal banking agency by regulation.
(H) The term “senior executive officer” has the same meaning as the “executive officer” in section
22(h) of the Federal Reserve Act.
(I) The term “subordinated debt” means debt subordinated to the claims of general creditors.
1-400.45
(c) Capital
standards.
(1) (A) Except
as provided in subparagraph (B)(ii), the capital standards prescribed
by each appropriate Federal banking agency shall include—
(i) a leverage
limit; and
(ii) a risk-based
capital requirement.
(B) An appropriate Federal banking agency
may, by regulation—
(i) establish any additional relevant capital
measures to carry out the purpose of this section; or
(ii) rescind any relevant capital
measure required under subparagraph (A) upon determining (with the
concurrence of the other Federal banking agencies) that the measure
is no longer an appropriate means for carrying out the purpose of
this section.
(2) Each appropriate Federal banking agency
shall, by regulation, specify for each relevant capital measure the
levels at which an insured depository institution is well capitalized,
adequately capitalized, under capitalized, and significantly under-capitalized.
1-400.46
(3) (A)(i) Each appropriate
Federal banking agency shall, by regulation, in consultation with
the Corporation, specify the ratio of tangible equity to total assets
at which an insured depository institution is critically undercapitalized.
(ii) The agency may, by regulation,
specify for 1 or more other relevant capital measures, the level at
which an insured depository institution is critically undercapitalized.
(B)
The level specified under subparagraph (A)(i) shall require tangible
equity in an amount—
(i) not less than 2 percent of total assets;
and
(ii) except as provided
in clause (i), not more than 65 percent of the required minimum level
of capital under the leverage limit.
(C) The appropriate Federal banking
agency shall not, without the concurrence of the Corporation, specify
a level under subparagraph (A)(i) lower than that specified by the
Corporation for State nonmember insured banks.
1-400.47
(d) Provisions applicable
to all institutions.
(1) (A) An insured
depository institution shall make no capital distribution if, after
making the distribution, the institution would be undercapitalized.
(B) Notwithstanding
subparagraph (A), the appropriate Federal banking agency may permit,
after consultation with the Corporation, an insured depository institution
to repurchase, redeem, retire, or otherwise acquire shares or ownership
interests if the repurchase, redemption, retirement, or other acquisition—
(i) is made in connection with the issuance of additional shares
or obligations of the institution in at least an equivalent amount;
and
(ii) will reduce the
institution’s financial obligations or otherwise improve the insititution’s
financial condition.
1-400.48
(2) An insured depository insitution shall
pay no management fee to any person having control of that institution
if, after making the payment, the institution would be undercapitalized.
1-400.49
(e) Provisions applicable
to undercapitalized institutions.
(1) Each appropriate Federal banking agency
shall—
(A) closely monitor the condition of
any undercapitalized insured depository institution;
(B) closely monitor compliance with
capital restoration plans, restrictions, and requirements imposed
under this section; and
(C) periodically review the plan, restrictions,
and requirements applicable to any undercapitalized insured depository
institution to determine whether the plan, restrictions, and requirements
are achieving the purpose of this section.
1-400.5
(2) (A)
Any undercapitalized insured depository institution shall submit an
acceptable capital restoration plan to the appropriate Federal banking
agency within the time allowed by the agency under subparagraph (D).
(B) The capital restoration
plan shall—
(i) specify—
(I) the steps the insured depository institution will take to become
adequately capitalized;
(II) the levels of capital to be attained during each year in which
the plan will be in effect;
(III) how the institution will comply with the restrictions or requirements
then in effect under this section; and
(IV) the types and levels of activities in
which the institution will engage; and
(ii) contain such other information as the appropriate Federal
banking agency may require.
1-400.51
(C) The appropriate Federal banking
agency shall not accept a capital restoration plan unless the agency
determines that—
(i) the plan—
(I) complies with subparagraph (B);
(II) is based on realistic assumptions, and
is likely to succeed in restoring the institution’s capital; and
(III) would not appreciably
increase the risk (including credit risk, interest-rate risk, and
other types of risk) to which the institution is exposed; and
(ii) if the insured depository
institution is undercapitalized, each company having control of the
institution has—
(I) guaranteed that the institution will comply with the plan until
the institution has been adequately capitalized on average during
each of 4 consecutive calendar quarters; and
(II) provided appropriate assurances of performance.
1-400.52
(D) The appropriate Federal banking
agency shall by regulation establish deadlines that—
(i) provide insured
depository institutions with reasonable time to submit capital restoration
plans, and generally require an institution to submit a plan not later
than 45 days after the institution becomes undercapitalized;
(ii) require the agency to act
on capital restoration plans expeditiously, and generally not later
than 60 days after the plan is submitted; and
(iii) require the agency to submit a copy
of any plan approved by the agency to the Corporation before the end
of the 45-day period beginning on the date such approval is granted.
1-400.53
(E) (i) The aggregate liability under subparagraph (C)(ii) of all
companies having control of an insured depository institution shall
be the lesser of —
(I) an amount equal to 5 percent of the institution’s total assets
at the time the institution became under-capitalized; or
(II) the amount which is necessary
(or would have been necessary) to bring the institution into compliance
with all capital standards applicable with respect to such institution
as of the time the institution fails to comply with a plan under this
subsection.
(ii) This paragraph may not be construed as—
(I) requiring any company not having control
of an undercapitalized insured depository institution to guarantee,
or otherwise be liable on, a capital restoration plan;
(II) requiring any person other
than an insured depository institution to submit a capital restoration
plan; or
(III) affecting
compliance by brokers, dealers, government securities brokers, and
government securities dealers with the financial responsibility requirements
of the Securities Exchange Act of 1934 and regulations and orders
thereunder.
1-400.54
(3) An undercapitalized insured depository
institution shall not permit its average total assets during any calendar
quarter to exceed its average total assets during the preceding calendar
quarter unless—
(A) the appropriate Federal banking
agency has accepted the institution’s capital restoration plan;
(B) any increase in
total assets is consistent with the plan; and
(C) the institution’s ratio of tangible
equity to assets increases during the calendar quarter at a rate sufficient
to enable the institution to become adequately capitalized within
a reasonable time.
1-400.55
(4)
An undercapitalized insured depository institution shall not, directly
or indirectly, acquire any interest in any company or insured depository
institution, establish or acquire any additional branch office, or
engage in any new line of business unless—
(A) the appropriate
Federal banking agency has accepted the insured depository institution’s
capital restoration plan, the institution is implementing the plan,
and the agency determines that the proposed action is consistent with
and will further the achievement of the plan; or
(B) the Board of Directors determines
that the proposed action will further the purpose of this section.
(5) The
appropriate Federal banking agency may, with respect to any undercapitalized
insured depository institution, take actions described in any subparagraph
of subsection (f)(2) if the agency determines that those actions are
necessary to carry out the purpose of this section.
1-400.56
(f) Provisions applicable
to significantly undercapitalized institutions and undercapitalized
institutions that fail to submit and implement capital restoration
plans.
(1) This subsection shall
apply with respect to any insured depository institution that—
(A) is significantly undercapitalized; or
(B) is undercapitalized and—
(i) fails to submit
an acceptable capital restoration plan within the time allowed by
the appropriate Federal banking agency under subsection (e)(2)(D);
or
(ii) fails in any material
respect to implement a plan accepted by the agency.
1-400.57
(2) The appropriate Federal
banking agency shall carry out this section by taking 1 or more of
the following actions:
(A) Doing 1 or more of the following:
(i) Requiring the institution to sell enough shares or obligations
of the institution so that the institution will be adequately capitalized
after the sale.
(ii) Further
requiring that instruments sold under clause (i) be voting shares.
(iii) Requiring the institution
to be acquired by a depository institution holding company, or to
combine with another insured depository institution, if 1 or more
grounds exist for appointing a conservator or receiver for the institution.
(B) (i) Requiring the institution to comply
with section 23A of the Federal Reserve Act as if subsection (d)(1)
of that section (exempting transactions with certain affiliated institutions)
did not apply.
(ii) Further
restricting the institution’s transactions with affiliates.
1-400.58
(C) (i) Restricting the interest rates that the institution pays
on deposits to the prevailing rates of interest on deposits of comparable
amounts and maturities in the region where the institution is located,
as determined by the agency.
(ii) This subparagraph does not authorize the agency to restrict
interest rates paid on time deposits made before (and not renewed
or renegotiated after) the agency acted under this subparagraph.
(D)
Restricting the institution’s asset growth more stringently than subsection
(e)(3), or requiring the institution to reduce its total assets.
(E) Requiring the
institution or any of its subsidiaries to alter, reduce, or terminate
any activity that the agency determines poses excessive risk to the
institution.
1-400.59
(F) Doing 1 or more
of the following:
(i) Ordering a new election for the institution’s
board of directors.
(ii)
Requiring the institution to dismiss from office any director or senior
executive officer who had held office for more than 180 days immediately
before the institution became under
capitalized. Dismissal under this clause shall
not be construed to be a removal under section 8.
*(iii) Requiring the institution
to employ qualified senior executive officers (who, if the agency
so specifies, shall be subject to approval by the agency).
1-400.6
(G) Prohibiting the acceptance
by the institution of deposits from correspondent depository institutions,
including renewals and rollovers of prior deposits.
(H) Prohibiting any bank holding company
having control of the insured depository institution from making any
capital distribution without the prior approval of the Board of Governors
of the Federal Reserve System.
1-400.61
(I) Doing one or more of the following:
(i) Requiring the institution to divest itself of or liquidate any
subsidiary if the agency determines that the subsidiary is in danger
of becoming insolvent and poses a significant risk to the institution,
or is likely to cause a significant dissipation of the institution’s
assets or earnings.
(ii)
Requiring any company having control of the institution to divest
itself of or liquidate any affiliate other than an insured depository
institution if the appropriate Federal banking agency for that company
determines that the affiliate is in danger of becoming insolvent and
poses a significant risk to the institution, or is likely to cause
a significant dissipation of the institution’s assets or earnings.
(iii) Requiring any company
having control of the institution to divest itself of the institution
if the appropriate Federal banking agency for that company determines
that divestiture would improve the institution’s financial condition
and future prospectus.
1-400.62
(J) Requiring the institution to take
any other action that the agency determines will better carry out
the purpose of this section than any of the actions described in this
paragraph.
1-400.63
(3) In complying with paragraph (2), the
agency shall take the following actions, unless the agency determines
that the actions would not further the purpose of this section:
(A) The action described in clause (i) or (iii) of paragraph (2)(A)
(relating to requiring the sale of shares or obligations, or requiring
the institution to be acquired by or combine with another institution).
(B) The action described
in paragraph (2)(B)(i) (relating to restricting transactions with
affiliates).
(C)
The action described in paragraph (2)(C) (relating to restricting
interest rates).
1-400.64
(4) (A) The insured
depository institution shall not do any of the following without the
prior written approval of the appropriate Federal banking agency:
(i) Pay any bonus to any senior executive officer.
(ii) Provide compensation to any senior executive
officer at a rate exceeding that officer’s average rate of compensation
(excluding bonuses, stock options, and profit-sharing) during the 12 calendar months
preceding the calendar month in which the institution became undercapitalized.
(B)
The appropriate Federal banking agency shall not grant any approval
under subparagraph (A) with respect to an institution that has failed
to submit an acceptable capital restoration plan.
†1-400.65
(5) The agency may impose
1 or more of the restrictions prescribed by regulation under subsection
(i) if the agency determines that those restrictions are necessary
to carry out the purpose of this section.
(6) Before the agency or Corporation makes
a determination under paragraph (2)(I) with respect to an affiliate
that is a broker, dealer, government securities broker, government
securities dealer, investment company, or investment adviser, the
agency or Corporation shall consult with the Securities and Exchange
Commission and, in the case of any other affiliate which is subject
to any financial responsibility or capital requirement, any other
appropriate regulator of such affiliate with respect to the proposed
determination of the agency or the Corporation and actions pursuant
to such determination.
1-400.66
(g) More stringent treatment based on other supervisory
criteria.
(1) If the appropriate Federal banking
agency determines (after notice and an opportunity for hearing) that
an insured depository institution is in an unsafe or unsound condition
or, pursuant to section 8(b)(8), deems the institution to be engaging
in an unsafe or unsound practice, the agency may —
(A) if the
institution is well capitalized, reclassify the institution as adequately
capitalized;
(B)
if the institution is adequately capitalized (but not well capitalized),
require the institution to comply with 1 or more provisions of subsections
(d) and (e), as if the institution were undercapitalized; or
(C) if the institution
is undercapitalized, take any 1 or more actions authorized under subsection
(f)(2) as if the institution were significantly undercapitalized.
(2) Any plan
required under paragraph (1) shall specify the steps that the insured
depository institution will take to correct the unsafe or unsound
condition or practice. Capital restoration plans shall not be required
under paragraph (1)(B).
1-400.67
(h) Provisions applicable to critically undercapitalized
institutions.
(1) Any critically undercapitalized insured
depository institution shall comply with restrictions prescribed by
the Corporation under subsection (i).
(2) (A) A critically
undercapitalized insured depositary institution shall not, beginning
60 days after becoming critically undercapitalized, make any payment
of principal or interest on the institution’s subordinated debt.
(B) The Corporation
may make exceptions to subparagraph (A) if—
(i) the appropriate
Federal banking agency has taken action with respect to the insured
depository institution under paragraph (3)(A)(ii); and
(ii) the Corporation determines
that the exception would further the purpose of this section.
(C) Until July 15,
1996, subparagraph (A) shall not apply with respect to any subordinated
debt outstanding on July 15, 1991, and not extended or otherwise renegotiated
after July 15, 1991.
(D) Subparagraph (A) does not prevent unpaid interest from accruing
on subordinated debt under the terms of that debt, to the extent otherwise
permitted by law.
1-400.68
(3) (A) The appropriate
Federal banking agency shall, not later than 90 days after an insured
depository institution becomes critically undercapitalized —
(i) appoint a
receiver (or, with the concurrence of the Corporation, a conservator)
for the institution; or
(ii) take such other action as the agency determines, with the concurrence
of the Corporation, would better achieve the purpose of this section,
after documenting why the action would better achieve that purpose.
(B)
Any determination by an appropriate Federal banking agency under subparagraph
(A)(ii) to take any action with respect to an insured depository institution
in lieu of appointing a conservator or receiver shall cease to be
effective not later than the end of the 90-day period beginning on
the date that the determination is made and a conservator or receiver
shall be appointed for that institution under subparagraph (A)(i)
unless the agency makes a new determination under subparagraph (A)(ii)
at the end of the effective period of the prior determination.
1-400.69
(C) (i) Notwithstanding subparagraphs (A) and (B), the appropriate
Federal banking agency shall appoint a receiver for the insured depository
institution if the institution is critically undercapitalized on average
during the calendar quarter beginning 270 days after the date on which
the institution became critically undercapitalized.
(ii) Notwithstanding clause (i), the appropriate
Federal banking agency may continue to take such other action as the
agency determines to be appropriate in lieu of such appointment if—
(I) the agency determines, with the concurrence
of the Corporation, that (aa) the insured depository institution has
positive net worth, (bb) the insured depository institution has been
in substantial compliance with an approved capital restoration plan
which requires consistent improvement in the institution’s capital
since the date of the approval of the plan, (cc) the insured depository
institution is profitable or has an upward trend in earnings the agency
projects as sustainable, and (dd) the insured depository institution
is reducing the ratio of nonperforming loans to total loans; and
(II) the head of the appropriate
Federal banking agency and the Chairperson of the Board of Directors
both certify that the institution is viable and not expected to fail.
1-400.7
(i) Restricting activities of critically
undercapitalized institutions. To carry out the purpose of this
section, the Corporation shall, by regulation or order—
(1) restrict the activities of any critically
undercapitalized insured depository institution; and
(2) at a minimum, prohibit any such institution
from doing any of the following without the Corporation’s prior written
approval:
(A) Entering into any material transaction
other than in the usual course of business, including any investment,
expansion, acquisition, sale of assets, or other similar action with
respect to which the depository institution is required to provide
notice to the appropriate Federal banking agency.
(B) Extending credit for any highly
leveraged transaction.
(C) Amending the institution’s charter or bylaws, except to the extent
necessary to carry out any other requirement of any law, regulation,
or order.
(D) Making
any material change in accounting methods.
(E) Engaging in any covered transaction
(as defined in section 23A(b) of the Federal Reserve Act).
(F) Paying excessive compensation
or bonuses.
(G)
Paying interest on new or renewed liabilities at a rate that would
increase the institution’s weighted average cost of funds to a level
significantly exceeding the prevailing rates of interest on insured
deposits in the institution’s normal market areas.
1-400.71
(j) Certain government-controlled
institutions exempted . Subsections (e) through (i) (other than
paragraph (3) of subsection (e)) shall not apply—
(1) to an insured depository institution
for which the Corporation or the Resolution Trust Corporation is conservator;
or
(2) to a bridge bank,
none of the voting securities of which are owned by a person or agency
other than the Corporation or the Resolution Trust Corporation.
1-400.72
(k) Reviews required when
Deposit Insurance Fund incurs losses.
(1) If the Deposit Insurance Fund incurs
a material loss with respect to an insured depository institution
on or after July 1, 1993, the inspector general of the appropriate
Federal banking agency shall—
(A) make a written report
to that agency reviewing the agency’s supervision of the institution
(including the agency’s implementation of this section), which shall—
(i) ascertain why the institution’s problems resulted in a material
loss to the Deposit Insurance Fund; and
(ii) make recommendations for preventing any
such loss in the future; and
(B) provide a copy of the report to—
(i) the Comptroller General of the United States;
(ii) the Corporation (if the agency is not
the Corporation);
(iii)
in the case of a State depository institution, the appropriate State
banking supervisor; and
(iv) upon request by any Member of Congress, to that Member.
1-400.73
(2) For purposes of this
subsection:
(A) the Deposit Insurance Fund incurs
a loss with respect to an insured depository institution—
(i) if the Corporation
provides any assistance under section 13(c) with respect to that institution;
and—
(I) it is not substantially
certain that the assistance will be fully repaid not later than 24
months after the date on which the Corporation initiated the assistance;
or
(II) the institution
ceases to repay the assistance in accordance with its terms; or
(ii) if the
Corporation is appointed receiver of the institution, and it is or
becomes apparent that the present value of the outlays of the Deposit
Insurance Fund with respect to that institution will exceed the present
value of receivership dividends or other payments on the claims held
by the Corporation.
(B) A loss is material if it exceeds
the greater of—
(i) $25,000,000; or
(ii) 2 percent of the institution’s total
assets at the time the Corporation initiated assistance under section
13(c) or was appointed receiver.
1-400.74
(3) The inspector general of the appropriate
Federal banking agency shall comply with paragraph (1) expeditiously,
and in any event (except with respect to paragraph (1)(B)(iv)) as
follows:
(A) If the institution is described
in paragraph (2)(A)(i), during the 6-month period beginning on the
earlier of—
(i) the date on which the institution ceases
to repay assistance under section 13(c) in accordance with its terms,
or
(ii) the date on which
it becomes apparent that the assistance will not be fully repaid during
the 24-month period described in paragraph (2)(A)(i).
(B) If the institution
is described in paragraph (2)(A)(ii), during the 6-month period beginning
on the date on which it becomes apparent that the present value of
the outlays of the Deposit Insurance Fund with respect to that institution
will exceed the present value of receivership dividends or other payments
on the claims held by the Corporation.
1-400.75
(4) (A)
The appropriate Federal banking agency shall disclose the report upon
request under section 552 of title 5, United States Code, without
excising—
(i) any portion under section 552(b)(5) of
that title; or
(ii) any
information about the insured depository institution under paragraph
(4) (other than trade secrets) or paragraph (8) of section 552(b)
of that title.
(B) Subparagraph (A) does not require
the agency to disclose the name of any customer of the insured depository
institution (other than an institution-affiliated party), or information
from which such a person’s identity could reasonably be ascertained.
(5) The Comptroller
General of the United States shall, under such conditions as the Comptroller
General determines to be appropriate, review reports made under paragraph
(1) and recommend improvements in the supervision of insured depository
institutions (including the implementation of this section).
1-400.76
(6) During the period beginning on July
1, 1993, and ending on June 30, 1997, a loss incurred by the Corporation
with respect to an insured depository institution—
(A) with
respect to which the Corporation initiates assistance under section
13(c) during the period in question, or
(B) for which the Corporation was appointed
receiver during the period in question,
is material for purposes of this subsection only if that
loss exceeds the greater of $25,000,000 or the applicable percentage
of the institution’s total assets at that time, set forth in the following
table:
Applicable Percentage
of the Institution’s Total Assets
| For the following period: |
The applicable percentage is: |
| July 1, 1993-June
30, 1994 |
7 percent |
| July 1, 1994-June
30, 1995 |
5 percent |
| July 1, 1995-June
30, 1996 |
4 percent |
| July 1, 1996-June
30, 1997 |
3 percent |
1-400.77
(l) Implementation.
(1) Each appropriate Federal banking agency
shall prescribe such regulations (in consultation with the other Federal
banking agencies), issue such orders, and take such other actions
as are necessary to carry out this section.
(2) Any determination or concurrence by
an appropriate Federal banking agency or the Corporation required
under this section shall be written.
1-400.78
(m) Other authority not affected. This
section does not limit any authority of an appropriate Federal banking
agency, the Corporation, or a State to take action in addition to
(but not in derogation of) that required under this section.
1-400.79
(n) Administrative review of dismissal
orders.
(1) A director or senior executive officer
dismissed pursuant to an order under subsection (f)(2)(F)(ii) may
obtain review of that order by filing a written petition for reinstatement
with the appropriate Federal banking agency not later than 10 days
after receiving notice of the dismissal.
1-400.8
(2) (A) The agency
shall give the petitioner an opportunity to—
(i) submit written
materials in support of the petition; and
(ii) appear, personally or through counsel,
before 1 or more members of the agency or designated employees of
the agency.
(B) The agency shall—
(i) schedule the
hearing referred to in subparagraph (A)(ii) promptly after the petition
is filed; and
(ii) hold
the hearing not later than 30 days after the petition is filed, unless
the petitioner requests that the hearing be held at a later time.
(C)
Not later than 60 days after the date of the hearing, the agency shall—
(i) by order, grant or deny the petition;
(ii) if the order is adverse to the petitioner,
set forth the basis for the order; and
(iii) notify the petitioner of the order.
1-400.81
(3) The petitioner shall bear the burden
of proving that the petitioner’s continued employment would materially
strengthen the insured depository institution’s ability—
(A) to become
adequately capitalized, to the extent that the order is based on the
institution’s capital level or failure to submit or implement a capital
restoration plan; and
(B) to correct the unsafe or unsound condition or unsafe or unsound
practice, to the extent that the order is based on subsection (g)(1).
1-400.82
(o) Transition
rules for savings associations. Subsections (e)(2), (f), and
(h) of this section shall not apply before July 1, 1994, to any insured
savings association if—
(1) before December 19, 1991—
(A) the
savings association had submitted a plan meeting the requirements
of section 5(t)(6)(A)(ii) of the Home Owners’ Loan Act; and
(B) the Director of the
Office of Thrift Supervision had accepted the plan;
(2) the plan remains in
effect; and
(3) the
savings association remains in compliance with the plan or is operating
under a written agreement with the appropriate Federal banking agency.
[12
USC 1831o. As added by act of Dec. 19, 1991 (105 Stat. 2253) and amended
by acts of Oct. 28, 1992 (106 Stat. 4079); Sept. 23, 1994 (108 Stat.
2291); Oct. 19, 1996 (110 Stat. 3831); Feb. 15, 2006 (119 Stat. 3615,
3616); and July 21, 2010 (124 Stat. 1938).]
