N.J. Admin. Code § 3:4-1.6

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:4-1.6 - Unsafe condition

(a) A depository institution which has a ratio of Tier 1 capital to total assets of less than two percent shall be deemed to be in an unsafe condition for purposes of 17:9A-269 or 17:12B-179.

(b) A depository institution which has entered into and is in compliance with a written agreement with the Department to increase its capital ratios to such levels as the Department deems appropriate and to take such other action as may be necessary for the depository institution to be operated in a safe and sound manner will not be deemed to be an unsafe condition on account of its capital ratio.

(c) Notwithstanding (a) above, the Department is not precluded from taking action against a depository institution which has a ratio of Tier 1 capital to total assets equal to or greater than two percent if the depository institution is otherwise in an unsafe condition, or such action is otherwise authorized.

N.J. Admin. Code § 3:4-1.6

Amended by R.1997 d.380, effective 9/15/1997.
See: 29 N.J.R. 2589(a), 29 N.J.R. 4099(b).
Recodified from N.J.A.C. 3:4-1.5 by R.2008 d.69, effective 4/7/2008.
See: 39 N.J.R. 4983(a), 40 N.J.R. 1826(a).
Former N.J.A.C. 3:4-1.6, Capital for interim conversion, recodified to N.J.A.C. 3:4-1.7.