
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2279bb-4]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
         SUBCHAPTER VIII--AGRICULTURAL MORTGAGE SECONDARY MARKET
 
    Part B--Regulation of Financial Safety and Soundness of Federal 
                    Agricultural Mortgage Corporation
 
Sec. 2279bb-4. Enforcement levels


(a) In general

    The Director shall classify the Corporation, for purposes of this 
part, according to the following enforcement levels:

                             (1) Level I

        The Corporation shall be classified as within level I if the 
    Corporation--
            (A) maintains an amount of regulatory capital that is equal 
        to or exceeds the risk-based capital level established under 
        section 2279bb-1 of this title; and
            (B) equals or exceeds the minimum capital level established 
        under section 2279bb-2 of this title.

                            (2) Level II

        The Corporation shall be classified as within level II if--
            (A) the Corporation--
                (i) maintains an amount of regulatory capital that is 
            less than the risk-based capital level; and
                (ii) equals or exceeds the minimum capital level; or

            (B) the Corporation is otherwise classified as within level 
        II under subsection (b) of this section.

                            (3) Level III

        The Corporation shall be classified as within level III if--
            (A) the Corporation--
                (i) does not equal or exceed the minimum capital level; 
            and
                (ii) equals or exceeds the critical capital level 
            established under section 2279bb-3 of this title; or

            (B) the Corporation is otherwise classified as within level 
        III under subsection (b) of this section.

                            (4) Level IV

        The Corporation shall be classified as within level IV if the 
    Corporation--
            (A) does not equal or exceed the critical capital level; or
            (B) is otherwise classified as within level IV under 
        subsection (b) of this section.

(b) Discretionary classification

    If at any time the Director determines in writing (and provides 
written notification to the Corporation and the Farm Credit 
Administration) that the Corporation is taking any action not approved 
by the Director that could result in a rapid depletion of core capital 
or that the value of the property subject to mortgages securitized by 
the Corporation or property underlying securities guaranteed by the 
Corporation, has decreased significantly, the Director may classify the 
Corporation--
        (1) as within level II, if the Corporation is otherwise within 
    level I;
        (2) as within level III, if the Corporation is otherwise within 
    level II; or
        (3) as within level IV, if the Corporation is otherwise within 
    level III.

(c) Quarterly determination

    The Director shall determine the classification of the Corporation 
for purposes of this part on not less than a quarterly basis (and as 
appropriate under subsection (b) of this section). The first such 
determination shall be made for the quarter ending March 31, 1992.

(d) Notice

    Upon determining under subsection (b) or (c) of this section that 
the Corporation is within level II or III, the Director shall provide 
written notice to the Congress and to the Corporation--
        (1) that the Corporation is within such level;
        (2) that the Corporation is subject to the provisions of section 
    2279bb-5 or 2279bb-6 of this title, as applicable; and
        (3) stating the reasons for the classification of the 
    Corporation within such level.

(e) Implementation

    Notwithstanding paragraphs (1) and (2) of subsection (a) of this 
section, during the period beginning on December 13, 1991, and ending on 
the effective date of the risk based capital regulation issued by the 
Director under section 2279bb-1 of this title, the Corporation shall be 
classified as within level I if the Corporation equals or exceeds the 
minimum capital level established under section 2279bb-2 of this title.

(Pub. L. 92-181, title VIII, Sec. 8.35, as added Pub. L. 102-237, title 
V, Sec. 503(b)(2), Dec. 13, 1991, 105 Stat. 1874; amended Pub. L. 104-
105, title I, Sec. 116, Feb. 10, 1996, 110 Stat. 168.)


                               Amendments

    1996--Subsec. (e). Pub. L. 104-105 substituted ``during the period 
beginning on December 13, 1991, and ending on the effective date of the 
risk based capital regulation issued by the Director under section 
2279bb-1 of this title,'' for ``during the 30-month period beginning on 
December 13, 1991,''.

                  Section Referred to in Other Sections

    This section is referred to in sections 2279bb-1, 2279cc of this 
title.
