PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3977

(A) maintains an amount of total capital that is equal
to or exceeds the risk-based capital level established for
the enterprise under section 1361; and

(B) maintains an amount of core capital that is equal
to or exceeds the minimum capital level established for
the enterprise under section 1362.

(2) UNDERCAPITALIZED.—An enterprise shall be classified
as undercapitalized if—

(A) the enterprise—

(i) does not maintain an amount of total capital
that is equal to or exceeds the risk-based capital level
established for the enterprise; and

(ii) maintains an amount of core capital that is
equal to or exceeds the minimum capital level estab-
lished for the enterprise; or

(B) the enterprise is otherwise classified as
undercapitalized under subsection (bXl) of this section.

(3) SIGNIFICANTLY UNDERCAPITALIZED.—An enterprise shall
be classified as significantly undercapitalized if—

(A) the enterprise—

(i) does not maintain an amount of total capital
that is equal to or exceeds the risk-based capital level
established for the enterprise;

(ii) does not maintain an amount of core capital
that is equal to or exceeds the minimum capital level
established for the enterprise; and

(iii) maintains an amount of core capital that is
equal to or exceeds the critical capital level established
for the enterprise under section 1363; or

(B) the enterprise is otherwise classified as signifi-
cantly undercapitalized under subsection (bX2) of this sec-
tion or section 1365(b).

(4) CRITICALLY UNDERCAPITALIZED.—An enterprise shall be
classified as critically undercapitalized if—

(A) the enterprise—

(i) does not maintain an amount of total capital
that is equal to or exceeds the risk-based capital level
established for the enterprise; and

(ii) does not maintain an amount of core capital
that is equal to or exceeds the critical capital level
for the enterprise; or

(B) is otherwise classified as critically undercapitalized
under subsection (bX3) of this section or section 1366(bX5).

(b) DISCRETIONARY CLASSIFICATION.—If at any time the Director
determines in writing that an enterprise is engaging in conduct
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
held or securitized by the enterprise has decreased significantly,
the Director may classify the enterprise—

(1) as undercapitalized, if the enterprise is otherwise classi-
fied as adequately capitalized;

(2) as significantly undercapitalized, if the enterprise is
otherwise classified as undercapitalized; and

(3) as critically undercapitalized, if the enterprise is other-
wise classified as significantly undercapitalized.

(c) QUARTERLY DETERMINATION.—The Director shall determine
the capital classification of the enterprises for purposes of this