---
kind: "section"
citation: "12 U.S.C. § 4612"
title: "12"
title_heading: "Banks and Banking"
number: "4612"
heading: "Minimum capital levels"
release: "119-102"
url: "https://uscodex.org/usc/12/4612"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter II — Required Capital Levels for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and Liabilities"
---

# §4612. Minimum capital levels

- (a) **Enterprises—** For purposes of this subchapter, the minimum [capital](/usc/12/51c.md) level for each [enterprise](/usc/12/4502.md?p=10) shall be the sum of—
  - (1) 2.50 percent of the aggregate on-balance sheet assets of the [enterprise](/usc/12/4502.md?p=10), as determined in accordance with generally accepted accounting principles;
  - (2) 0.45 percent of the unpaid principal balance of outstanding [mortgage](/usc/12/1707.md?p=a)-backed securities and substantially equivalent instruments issued or guaranteed by the [enterprise](/usc/12/4502.md?p=10) that are not included in [paragraph (1)](#a-1); and
  - (3) 0.45 percent of other off-balance sheet obligations of the [enterprise](/usc/12/4502.md?p=10) not included in [paragraph (2)](#a-2) (excluding commitments in excess of 50 percent of the average dollar amount of the commitments outstanding each quarter over the preceding 4 quarters), except that the [Director](/usc/12/4502.md?p=9) shall adjust such percentage to reflect differences in the [credit](/usc/12/5481.md?p=7) risk of such obligations in relation to the instruments included in [paragraph (2)](#a-2).
- (b) **Federal Home Loan Banks—** For purposes of this subchapter, the minimum [capital](/usc/12/51c.md) level for each [Federal Home Loan Bank](/usc/12/1426a.md?p=g-1) shall be the minimum [capital](/usc/12/51c.md) required to be maintained to comply with the leverage requirement for the [bank](/usc/12/1426a.md?p=g-1) established under [section 1426(a)(2) of this title](/usc/12/1426.md?p=a-2).
- (c) **Establishment of revised minimum capital levels—** Notwithstanding subsections [(a)](#a) and [(b)](#b) and notwithstanding the [capital](/usc/12/51c.md) classifications of the [regulated entities](/usc/12/4502.md?p=20), the [Director](/usc/12/4502.md?p=9) may, by regulations issued under [section 4526 of this title](/usc/12/4526.md), establish a minimum [capital](/usc/12/51c.md) level for the [enterprises](/usc/12/4502.md?p=10), for the [Federal Home Loan Banks](/usc/12/1426a.md?p=g-1), or for both the [enterprises](/usc/12/4502.md?p=10) and the [banks](/usc/12/221a.md?p=a), that is higher than the level specified in [subsection (a)](#a) for the [enterprises](/usc/12/4502.md?p=10) or the level specified in [subsection (b)](#b) for the [Federal Home Loan Banks](/usc/12/1426a.md?p=g-1), to the extent needed to ensure that the [regulated entities](/usc/12/4502.md?p=20) operate in a safe and sound manner.
- (d) **Authority to require temporary increase—**
  - (1) **In general—** Notwithstanding subsections [(a)](#a) and [(b)](#b) and any minimum [capital](/usc/12/51c.md) level established pursuant to [subsection (c)](#c), the [Director](/usc/12/4502.md?p=9) may, by order, increase the minimum [capital](/usc/12/51c.md) level for a [regulated entity](/usc/12/4502.md?p=20) on a temporary basis, when the [Director](/usc/12/4502.md?p=9) determines that such an increase is necessary and consistent with the prudential regulation and the safe and sound operations of a [regulated entity](/usc/12/4502.md?p=20).
  - (2) **Rescission—** The [Director](/usc/12/4502.md?p=9) shall rescind any temporary minimum [capital](/usc/12/51c.md) level established under [paragraph (1)](#d-1) when the [Director](/usc/12/4502.md?p=9) determines that the circumstances or facts no longer justify the temporary minimum [capital](/usc/12/51c.md) level.
  - (3) **Regulations required—** The [Director](/usc/12/4502.md?p=9) shall issue regulations establishing—
    - (A) standards for the imposition of a temporary increase in minimum [capital](/usc/12/51c.md) under [paragraph (1)](#d-1);
    - (B) the standards and procedures that the [Director](/usc/12/4502.md?p=9) will use to make the determination referred to in [paragraph (2)](#d-2); and
    - (C) a reasonable time frame for periodic review of any temporary increase in minimum [capital](/usc/12/51c.md) for the purpose of making the determination referred to in [paragraph (2)](#d-2).
- (e) **Authority to establish additional capital and reserve requirements for particular purposes—** The [Director](/usc/12/4502.md?p=9) may, at any time by order or regulation, establish such [capital](/usc/12/51c.md) or reserve requirements with respect to any product or activity of a [regulated entity](/usc/12/4502.md?p=20), as the [Director](/usc/12/4502.md?p=9) considers appropriate to ensure that the [regulated entity](/usc/12/4502.md?p=20) operates in a safe and sound manner, with sufficient [capital](/usc/12/51c.md) and reserves to support the risks that arise in the operations and management of the [regulated entity](/usc/12/4502.md?p=20).
- (f) **Periodic review—** The [Director](/usc/12/4502.md?p=9) shall periodically review the amount of [core capital](/usc/12/4502.md?p=7) maintained by the [enterprises](/usc/12/4502.md?p=10), the amount of [capital](/usc/12/51c.md) retained by the [Federal Home Loan Banks](/usc/12/1426a.md?p=g-1), and the minimum [capital](/usc/12/51c.md) levels established for such [regulated entities](/usc/12/4502.md?p=20) pursuant to this section.

## Source credit

(Pub. L. 102–550, title XIII, § 1362, Oct. 28, 1992, 106 Stat. 3975; Pub. L. 110–289, div. A, title I, § 1111, July 30, 2008, 122 Stat. 2676.)

## Notes

### Editorial Notes

### Amendments

2008—Subsec. (a). Pub. L. 110–289, § 1111(1), substituted “Enterprises” for “In general” in heading.

Subsecs. (b) to (f). Pub. L. 110–289, § 1111(2), added subsecs. (b) to (f) and struck out former subsec. (b) which related to minimum capital level during transition period.