Mandatory actions applicable to level II

12 U.S.C. § 2279bb–5
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
(a) Capital restoration planIf the Corporation is classified as within level II, the Corporation shall, within the time period determined by the Director, submit to the Director a capital restoration plan and, after approval, carry out the plan. (b) Restriction on dividendsIf the Corporation is classified as within level II, the Corporation may not make any payment of dividends that would result in the Corporation being reclassified as within level III or IV. (c) Reclassification from level II to level IIIThe Director shall immediately reclassify the Corporation as within level III (and the Corporation shall be subject to the provisions of section 2279bb–6 of this title), if—(1) the Corporation is within level II; and (2)(A) the Corporation does not submit a capital restoration plan that is approved by the Director; or (B) the Director determines that the Corporation 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. (d) Effective dateThis section shall take effect upon the expiration of the 30-month period beginning on December 13, 1991.

Starting a business? Corpus forms LLCs in all 50 states and DC.