economically depressed region
(5) Assistance before appointment of conservator or receiver (A) Assistance proposals The Corporation shall consider proposals by savings associations for assistance pursuant to subsection (c) before grounds exist for appointment of a conservator or receiver for such member under the following circumstances: (i) Troubled condition criteria The Corporation determines— (I) that grounds for appointment of a conservator or receiver exist or likely will exist in the future unless the member’s tangible capital is increased; (II) that it is unlikely that the member can achieve positive tangible capital without assistance; and (III) that providing assistance pursuant to the member’s proposal would be likely to lessen the risk to the Corporation. (ii) Other criteria The member meets the following criteria: (I) Before August 9, 1989 , the member was solvent under applicable regulatory accounting principles but had negative tangible capital. (II) The member’s negative tangible capital position is substantially attributable to its participation in acquisition and merger transactions that were instituted by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation for supervisory reasons. (III) The member is a qualified thrift lender (as defined in section 1467a(m) of this title ) or would be a qualified thrift lender if commercial real estate owned and nonperforming commercial loans acquired in acquisition and merger transactions that were instituted by the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation for supervisory reasons were excluded from the member’s total assets. (IV) The appropriate Federal banking agency has determined that the member’s management is competent and has complied with applicable laws, rules, and supervisory directives and orders. (V) The member’s management did not engage in insider dealing or speculative practices or other activities that jeopardized the member’s safety and soundness or contributed to its impaired capital position. (VI) The member’s offices are located in an economically depressed region. (B) Corporation consideration of assistance proposal If a member meets the requirements of clauses (i) and (ii) of subparagraph (A), the Corporation shall consider providing direct financial assistance. (C) “Economically depressed region” defined For purposes of this paragraph, the term “economically depressed region” means any geographical region which the Corporation determines by regulation to be a region within which real estate values have suffered serious decline due to severe economic conditions, such as a decline in energy or agricultural values or prices.