PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2253 Subtitle D—Prompt Regulatory Action SEC. 131. PROMPT REGULATORY ACTION. (a) ESTABLISHING SYSTEM OF PROMPT CORRECTIVE ACTION.—The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding after section 37 (as added by section 121 of this Act) the following new section: "SEC. 38. PROMPT CORRECTIVE ACTION. 12 USC 1831o. " (a) RESOLVING PROBLEMS TO PROTECT DEPOSIT INSURANCE FUNDS.— "(1) PURPOSE.— The purpose of this section is to resolve the problems of insured depository institutions at the least possible long-term loss to the deposit insurance fund. "(2) PROMPT CORRECTIVE ACTION REQUIRED. —Each appropriate Federal banking agency and the Corporation (acting in the Corporation's capacity as the insurer of depository institutions under this Act) shall carry out the purpose of this section by taking prompt corrective action to resolve the problems of insured depository institutions. "(b) DEFINITIONS.—For purposes of this section: " (1) CAPITAL CATEGORIES.— "(A) WELL CAPITALIZED.— An insured depository institution is 'well capitalized' if it significantly exceeds the required minimum level for each relevant capital measure. "(B) ADEQUATELY CAPITALIZED. —An insured depository institution is 'adequately capitalized' if it meets the required minimum level for each relevant capital measure. "(C) UNDERCAPITALIZED. —An insured depository institution is 'undercapitalized' if it fails to meet the required minimum level for any relevant capital measure. " (D) SIGNIFICANTLY UNDERCAPITALIZED.— An insured depository institution is 'significantly undercapitalized' if it is significantly below the required minimum level for any relevant capital measure. "(E) CRITICALLY UNDERCAPITALIZED. —An insured depository institution is 'critically undercapitalized' if it fails to meet any level specified under subsection (c)(3)(A). "(2) OTHER DEFINITIONS. — " (A) AVERAGE.— "(i) IN GENERAL.—The 'average' of an accounting item (such as total assets or tangible equity) during a given period means the sum of that item at the close of business on each business day during that period divided by the total number of business days in that period. " (ii) AGENCY MAY PERMIT WEEKLY AVERAGING FOR CERTAIN INSTITUTIONS. — In the case of insured depository institutions that have total assets of less than $300,000,000 and normally file reports of condition reflecting weekly (rather than daily) averages of accounting items, the appropriate Federal banking agency may provide that the 'average' of an accounting item during a given period means the sum of that item at the close of business on the relevant business day
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