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12 U.S.C. § 3907 — Capital adequacy
Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) Each appropriate Federal banking agency shall cause banking institutions to achieve and maintain adequate capital by establishing minimum levels of capital for such banking institutions and by using such other methods as the appropriate Federal banking agency deems appropriate. Each appropriate Federal banking agency shall seek to make the capital standards required under this section or other provisions of Federal law for insured depository institutions countercyclical so that the amount of capital required to be maintained by an insured depository institution increases in times of economic expansion and decreases in times of economic contraction, consistent with the safety and soundness of the insured depository institution.
(2) Each appropriate Federal banking agency shall have the authority to establish such minimum level of capital for a banking institution as the appropriate Federal banking agency, in its discretion, deems to be necessary or appropriate in light of the particular circumstances of the banking institution.
**(b)**
(1) Failure of a banking institution to maintain capital at or above its minimum level as established pursuant to subsection (a) may be deemed by the appropriate Federal banking agency, in its discretion, to constitute an unsafe and unsound practice within the meaning of [section 1818 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1818&num=0&edition=prelim).
(2)
(A) In addition to, or in lieu of, any other action authorized by law, including paragraph (1), the appropriate Federal banking agency may issue a directive to a banking institution that fails to maintain captial 11 So in original. Probably should be “capital”. at or above its required level as established pursuant to
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Source location: Title 12, Chapter 40, § 3907; chapter-040-international-lending-supervision.md
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**(a)**
(1) Each appropriate Federal banking agency shall cause banking institutions to achieve and maintain adequate capital by establishing minimum levels of capital for such banking institutions and by using such other methods as the appropriate Federal banking agency deems appropriate. Each appropriate Federal banking agency shall seek to make the capital standards required under this section or other provisions of Federal law for insured depository institutions countercyclical so that the amount of capital required to be maintained by an insured depository institution increases in times of economic expansion and decreases in times of economic contraction, consistent with the safety and soundness of the insured depository institution.
(2) Each appropriate Federal banking agency shall have the authority to establish such minimum level of capital for a banking institution as the appropriate Federal banking agency, in its discretion, deems to be necessary or appropriate in light of the particular circumstances of the banking institution.
**(b)**
(1) Failure of a banking institution to maintain capital at or above its minimum level as established pursuant to subsection (a) may be deemed by the appropriate Federal banking agency, in its discretion, to constitute an unsafe and unsound practice within the meaning of [section 1818 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1818&num=0&edition=prelim).
(2)
(A) In addition to, or in lieu of, any other action authorized by law, including paragraph (1), the appropriate Federal banking agency may issue a directive to a banking institution that fails to maintain captial 11 So in original. Probably should be “capital”. at or above its required level as established pursuant to subsection (a).
(B)
(i) Such directive may require the banking institution to submit and adhere to a plan acceptable to the appropriate Federal banking agency describing the means and timing by which the banking institution shall achieve its required capital level.
(ii) Any such directive issued pursuant to this paragraph, including plans submitted pursuant thereto, shall be enforceable under the provisions of [section 1818(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1818/i&num=0&edition=prelim) to the same extent as an effective and outstanding order issued pursuant to [section 1818(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1818/b&num=0&edition=prelim) which has become final.
(3)
(A) Each appropriate Federal banking agency may consider such banking institution’s progress in adhering to any plan required under this subsection whenever such banking institution, or an affiliate thereof, or the holding company which controls such banking institution, seeks the requisite approval of such appropriate Federal banking agency for any proposal which would divert earnings, diminish capital, or otherwise impede such banking institution’s progress in achieving its minimum capital level.
(B) Such appropriate Federal banking agency may deny such approval where it determines that such proposal would adversely affect the ability of the banking institution to comply with such plan.
(C) The Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury shall encourage governments, central banks, and regulatory authorities of other major banking countries to work toward maintaining and, where appropriate, strengthening the capital bases of banking institutions involved in international lending.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Termination of insurance**
(1) **Voluntary termination** — Any insured depository institution which is not—
(A) a national member bank;
(B) a State member bank;
(C) a Federal branch;
(D) a Federal savings association; or
(E) an insured branch which is required to be insured under subsection (a) or (b) 11 See References in Text note below. of [section 3104 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3104&num=0&edition=prelim),
may terminate such depository institution’s status as an insured depository institution if such insured institution provides written notice to the Corporation of the institution’s intent to terminate such status not less than 90 days before the effective date of such termination.
(2) **Involuntary termination**
(A) *Notice to primary regulator* — If the Board of Directors determines that—
(i) an insured depository institution or the directors or trustees of an insured depository institution have engaged or are engaging in unsafe or unsound practices in conducting the business of the depository institution;
(ii) an insured depository institution is in an unsafe or unsound condition to continue operations as an insured institution; or
(iii) an insured depository institution or the directors or trustees of the insured institution have violated any applicable law, regulation, order, condition imposed in writing by the Corporation in connection with the approval of any application or other request by the insured depository institution, or written agreement entered into between the insured depository institution and the Corporation,
the Board of Directors shall notify the appropriate Federal banking agency with respect to such institution (if other than the Corp
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1818
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions**
(1) **In general** — As used in this section, unless the context otherwise requires—
(A) *Savings association* — The term “savings association” includes a savings bank or cooperative bank which is deemed by the appropriate Federal banking agency to be a savings association under subsection (l).
(B) *Uninsured institution* — The term “uninsured institution” means any depository institution the deposits of which are not insured by the Federal Deposit Insurance Corporation.
(C) *Company* — The term “company” means any corporation, partnership, trust, joint-stock company, or similar organization, but does not include the Federal Deposit Insurance Corporation, the Resolution Trust Corporation, any Federal home loan bank, or any company the majority of the shares of which is owned by the United States or any State, or by an instrumentality of the United States or any State.
(D) *Savings and loan holding company*
(i) *In general* — Except as provided in clause (ii), the term “savings and loan holding company” means any company that directly or indirectly controls a savings association or that controls any other company that is a savings and loan holding company.
(ii) *Exclusion* — The term “savings and loan holding company” does not include—
(I) a bank holding company that is registered under, and subject to, the Bank Holding Company Act of 1956 ([12 U.S.C. 1841](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841&num=0&edition=prelim) et seq.), or to any company directly or indirectly controlled by such company (other than a savings association);
(II) a company that controls a savings association that functions solely in a trust or fiduciary capacity as described in section 2(c)(2)(D) of the
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1467a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** In order to provide thrift institutions for the deposit of funds and for the extension of credit for homes and other goods and services, the Comptroller of the Currency is authorized, under such regulations as the Comptroller of the Currency may prescribe—
(1) to provide for the organization, incorporation, examination, operation, and regulation of associations to be known as Federal savings associations (including Federal savings banks), and
(2) to issue charters therefor,
giving primary consideration of the best practices of thrift institutions in the United States. The lending and investment powers conferred by this section are intended to encourage such institutions to provide credit for housing safely and soundly.
**(b) Deposits and related powers**
(1) **Deposit accounts**
(A) Subject to the terms of its charter and regulations of the Comptroller of the Currency, a Federal savings association may—
(i) raise funds through such deposit, share, or other accounts, including demand deposit accounts (hereafter in this section referred to as “accounts”); and
(ii) issue passbooks, certificates, or other evidence of accounts.
(B) A Federal savings association may not permit any overdraft (including an intraday overdraft) on behalf of an affiliate, or incur any such overdraft in such savings association’s account at a Federal reserve bank or Federal home loan bank on behalf of an affiliate.All savings accounts and demand accounts shall have the same priority upon liquidation. Holders of accounts and obligors of a Federal savings association shall, to such extent as may be provided by its charter or by regulations of the Comptroller of the Currency, be members of the savings association, and shall have such voting rights and such other
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment and maintenance of special reserves**
(1) Each appropriate Federal banking agency shall require a banking institution to establish and maintain a special reserve whenever, in the judgment of such appropriate Federal banking agency—
(A) the quality of such banking institution’s assets has been impaired by a protracted inability of public or private borrowers in a foreign country to make payments on their external indebtedness as indicated by such factors, among others, as—
(i) a failure by such public or private borrowers to make full interest payments on external indebtedness;
(ii) a failure to comply with the terms of any restructured indebtedness; or
(iii) a failure by the foreign country to comply with any International Monetary Fund or other suitable adjustment program; or
(B) no definite prospects exist for the orderly restoration of debt service.
(2) Such reserves shall be charged against current income and shall not be considered as part of capital and surplus or allowances for possible loan losses for regulatory, supervisory, or disclosure purposes.
**(b) Accommodation of potential losses on foreign loans by United States banks** The appropriate Federal banking agencies shall analyze the results of foreign loan rescheduling negotiations, assess the loan loss risk reflected in rescheduling agreements, and, using the powers set forth in [section 3907 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3907&num=0&edition=prelim) (regarding capital adequacy), ensure that the capital and reserve positions of United States banks are adequate to accommodate potential losses on their foreign loans.
**(c) Regulations and orders of Federal banking agencies** The appropriate Federal banking
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 3904
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Federal law — U.S. Code and appendices · legal_authorities
Page 1576
TITLE 12—BANKS AND BANKING
§ 3905
1 See References in Text note below.
(4) shall consider as indicators of risk, where
appropriate, the average reserve levels main-
tained by or required of banking institutions
in foreign countries and secondary market
prices for such loans.
(c) Timing and report
(1) Determined by agency
Except as provided in paragraph (3), each ap-
propriate Federal banking agency shall deter-
mine the timing of any addition to reserves re-
quired by subsection (a).
(2) Report
Each appropriate Federal banking agency
shall include in each report required to be
made under section 3912(d) 1 of this title after
1989 a report on the actions taken pursuant to
this section.
(3) Deadline
Each Federal agency required to undertake
a review described in subsection (a) shall com-
plete the review not later than December 31,
1990.
(d) ‘‘Highly indebted country’’ defined
As used in this section, the term ‘‘highly in-
debted country’’ means any country designated
as a ‘‘Highly Indebted Country’’ in the annual
World Debt Tables most recently published by
the International Bank for Reconstruction and
Development before December 19, 1989.
(Pub. L. 98–181, title I [title IX, § 905A], as added
Pub. L. 101–240, title IV, § 402(b), Dec. 19, 1989, 103
Stat. 2501.)
Editorial Notes
REFERENCES IN TEXT
Section 3912(d) of this title, referred to in subsec.
(c)(2), was repealed by Pub. L. 104–208, div. A, title II,
§ 2224(c), Sept. 30, 1996, 110 Stat. 3009–415.
Statutory Notes and Related Subsidiaries
CONGRESSIONAL FINDINGS
Pub. L. 101–240, title IV, § 402(a), Dec. 19, 1989, 103 Stat.
2501, provided that: ‘‘The Congress finds that—
‘‘(1) since the adoption of the International Lending
Supervision Act of 1983 [12 U.S.C. 3901 et seq.], the
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