Supervisory actions applicable to level III

If the Corporation is classified as within level III, 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. If the Corporation is classified as within level III, the Corporation— If the Corporation is classified as within level III, the Director may approve a payment of dividends by the Corporation only if the Director determines that the payment (i) will enhance the ability of the Corporation to meet the risk-based capital level and the minimum capital level promptly, (ii) will contribute to the long-term safety and soundness of the Corporation, or (iii) is otherwise in the public interest. The Director shall immediately reclassify the Corporation as within level IV if— In addition to any other actions taken by the Director (including actions under subsection (a)), the Director may, at any time, take any of the following actions if the Corporation is classified as within level III: Limit any increase in, or order the reduction of, any obligations of the Corporation, including off-balance sheet obligations. Limit or prohibit the growth of the assets of the Corporation or require contraction of the assets of the Corporation. Prohibit the Corporation from making any payment of dividends. Require the Corporation to acquire new capital in any form and in any amount sufficient to provide for the reclassification of the Corporation as within level II. Require the Corporation to terminate, reduce, or modify any activity that the Director determines creates excessive risk to the Corporation. Appoint a conservator for the Corporation consistent with this chapter. This section shall take effect on January 1, 1992.