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124 STAT. 1432 PUBLIC LAW 111–203—JULY 21, 2010

(3) OFF-BALANCE-SHEET ACTIVITIES DEFINED.—For purposes
of this subsection, the term ‘‘off-balance-sheet activities’’ means
an existing liability of a company that is not currently a balance
sheet liability, but may become one upon the happening of
some future event, including the following transactions, to the
extent that they may create a liability:
(A) Direct credit substitutes in which a bank sub-
stitutes its own credit for a third party, including standby
letters of credit.
(B) Irrevocable letters of credit that guarantee repay-
ment of commercial paper or tax-exempt securities.
(C) Risk participations in bankers’ acceptances.
(D) Sale and repurchase agreements.
(E) Asset sales with recourse against the seller.
(F) Interest rate swaps.
(G) Credit swaps.
(H) Commodities contracts.
(I) Forward contracts.
(J) Securities contracts.
(K) Such other activities or transactions as the Board
of Governors may, by rule, define.

12 USC 5366. SEC. 166. EARLY REMEDIATION REQUIREMENTS.
Regulations. (a) IN GENERAL.—The Board of Governors, in consultation with
the Council and the Corporation, shall prescribe regulations estab-
lishing requirements to provide for the early remediation of financial
distress of a nonbank financial company supervised by the Board
of Governors or a bank holding company described in section 165(a),
except that nothing in this subsection authorizes the provision
of financial assistance from the Federal Government.
(b) PURPOSE OF THE EARLY REMEDIATION REQUIREMENTS.—
The purpose of the early remediation requirements under subsection
(a) shall be to establish a series of specific remedial actions to
be taken by a nonbank financial company supervised by the Board
of Governors or a bank holding company described in section 165(a)
that is experiencing increasing financial distress, in order to mini-
mize the probability that the company will become insolvent and
the potential harm of such insolvency to the financial stability
of the United States.
(c) REMEDIATION REQUIREMENTS.—The regulations prescribed
by the Board of Governors under subsection (a) shall—
(1) define measures of the financial condition of the com-
pany, including regulatory capital, liquidity measures, and
other forward-looking indicators; and
(2) establish requirements that increase in stringency as
the financial condition of the company declines, including—
(A) requirements in the initial stages of financial
decline, including limits on capital distributions, acquisi-
tions, and asset growth; and
(B) requirements at later stages of financial decline,
including a capital restoration plan and capital-raising
requirements, limits on transactions with affiliates,
management changes, and asset sales.

12 USC 5367. SEC. 167. AFFILIATIONS.

LAWS (a) AFFILIATIONS.—Nothing in this subtitle shall be construed to require a nonbank financial company supervised by the BoardPUBLIC with on anorris VerDate Nov 24 2008 00:54 Jul 29, 2010 Jkt 089139 PO 00203 Frm 00058 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203