12 CFR § 1237.12 - Capital distributions while in conservatorship.

---
identifier: "/us/cfr/t12/s1237.12"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1237.12 - Capital distributions while in conservatorship."
title_number: 12
title_name: "Banks and Banking"
section_number: "1237.12"
section_name: "Capital distributions while in conservatorship."
chapter_name: "FEDERAL HOUSING FINANCE AGENCY"
subchapter_number: "B"
subchapter_name: "ENTITY REGULATIONS"
part_number: "1237"
part_name: "CONSERVATORSHIP AND RECEIVERSHIP"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 4513b, 4526, 4617."
regulatory_source: "76 FR 35733, June 20, 2011, unless otherwise noted."
cfr_part: "1237"
---


# 1237.12 Capital distributions while in conservatorship.

(a) Except as provided in paragraph (b) of this section, a regulated entity shall make no capital distribution while in conservatorship.

(b) The Director may authorize, or may delegate the authority to authorize, a capital distribution that would otherwise be prohibited by paragraph (a) of this section if he or she determines that such capital distribution:

(1) Will enhance the ability of the regulated entity to meet the risk-based capital level and the minimum capital level for the regulated entity;

(2) Will contribute to the long-term financial safety and soundness of the regulated entity;

(3) Is otherwise in the interest of the regulated entity; or

(4) Is otherwise in the public interest.

(c) This section is intended to supplement and shall not replace or affect any other restriction on capital distributions imposed by statute or regulation.