§ 4615. Supervisory actions applicable to undercapitalized regulated entities
(a)
Mandatory actions
(1)
Required monitoring
The Director shall—
(3)
Restriction on capital distributions
A regulated entity that is classified as undercapitalized may not make any capital distribution that would result in the regulated entity being reclassified as significantly undercapitalized or critically undercapitalized.
(4)
Restriction of asset growth
An undercapitalized regulated entity shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter, unless—
(5)
Prior approval of acquisitions and new activities
An undercapitalized regulated entity shall not, directly or indirectly, acquire any interest in any entity or engage in any new activity, unless—
(b)
Reclassification from undercapitalized to significantly undercapitalized
The Director shall reclassify as significantly undercapitalized a regulated entity that is classified as undercapitalized (and the regulated entity shall be subject to the provisions of section
4616 of this title) if—
(1)
the regulated entity does not submit a capital restoration plan that is substantially in compliance with section
4622 of this title within the applicable period or the Director does not approve the capital restoration plan submitted by the regulated entity; or
(c)
Other discretionary safeguards
The Director may take, with respect to an undercapitalized regulated entity, any of the actions authorized to be taken under section
4616 of this title with respect to a significantly undercapitalized regulated entity, if the Director determines that such actions are necessary to carry out the purpose of this subchapter.