Current through Register Vol. 54, No. 24, June 15, 2024
Section 10.6 - Unsafe and unsound condition(a) An institution or association which has a ratio of Tier 1 capital to total assets of less than 2% shall be deemed to be in an unsafe and unsound condition for the purposes of section 504 of the Department of Banking and Securities Code (71 P. S. § 733-504).(b) An institution or association which is in full compliance with a written agreement or order issued by the Department under section 501 of the Department of Banking and Securities Code (71 P. S. § 733-501) or section 1404 of the Savings Association Code of 1967 (7 P. S. § 6020-224), to increase its capital ratios to levels the Department deems appropriate and to take other actions as may be necessary for the institution or association to be operated in a safe and sound manner, will not be deemed to be in an unsafe and unsound condition based upon its capital ratios.(c) Notwithstanding the provisions of subsections (a) and (b), the Department is not precluded from taking action against an institution or association which is in an unsafe or unsound condition, is conducting its business in an unsafe or unsound manner, or is in violation of any agreement, any order of the Department, another banking agency or a court, its charter or any provision of applicable law, or otherwise meets the jurisdictional standards for applicable action by the Department.