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.