12 U.S.C. § 4614: Capital classifications

maintains an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise under section 4611 of this title ; and maintains an amount of core capital that is equal to or exceeds the minimum capital level established for the enterprise under section 4612 of this title . does not maintain an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise; and maintains an amount of core capital that is equal to or exceeds the minimum capital level established for the enterprise; or the enterprise is otherwise classified as undercapitalized under subsection (b)(1) of this section. does not maintain an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise; does not maintain an amount of core capital that is equal to or exceeds the minimum capital level established for the enterprise; and maintains an amount of core capital that is equal to or exceeds the critical capital level established for the enterprise under section 4613 of this title ; or the enterprise is otherwise classified as significantly undercapitalized under subsection (b)(2) of this section or section 4615(b) of this title . does not maintain an amount of total capital that is equal to or exceeds the risk-based capital level established for the enterprise; and does not maintain an amount of core capital that is equal to or exceeds the critical capital level for the enterprise; or is otherwise classified as critically undercapitalized under subsection (b)(3) of this section or section 4616(b)(5) 1 of this title. 1 See References in Text note below. establish the capital classifications specified under paragraph (2) for the Federal Home Loan Banks; establish criteria for each such capital classification based on the amount and types of capital held by a bank and the risk-based, minimum, and critical capital levels for the banks and taking due consideration of the capital classifications established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises; and shall classify the Federal Home Loan Banks according to such capital classifications. adequately capitalized; undercapitalized; significantly undercapitalized; and critically undercapitalized. at any time, the Director determines in writing that the regulated entity is engaging in conduct that could result in a rapid depletion of core or total capital or the value of collateral pledged as security has decreased significantly or that the value of the property subject to mortgages held by the regulated entity (or securitized in the case of an enterprise) has decreased significantly; after notice and an opportunity for hearing, the Director determines that the regulated entity is in an unsafe or unsound condition; or pursuant to section 4631(b) of this title , the Director deems the regulated entity to be engaging in an unsafe or unsound practice. as undercapitalized, if the regulated entity is otherwise classified as adequately capitalized; as significantly undercapitalized, if the regulated entity is otherwise classified as undercapitalized; and as critically undercapitalized, if the regulated entity is otherwise classified as significantly undercapitalized. The Director shall determine the capital classification of the regulated entities for purposes of this subchapter on not less than a quarterly basis (and as appropriate under subsection (c)). A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized. is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity. Notwithstanding any other provision of this section, during the period beginning on October 28, 1992 , and ending upon the effective date of section 4615 of this title (as provided in section 4615(c) 1 of this title), an enterprise shall be classified as adequately capitalized if the enterprise maintains an amount of core capital that is equal to or exceeds the minimum capital level for the enterprise under section 4612 of this title .