Capital distributions restricted

(A) In general An insured depository institution shall make no capital distribution if, after making the distribution, the institution would be undercapitalized.

(B) Exception Notwithstanding subparagraph (A), the appropriate Federal banking agency may permit, after consultation with the Corporation, an insured depository institution to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— (i) is made in connection with the issuance of additional shares or obligations of the institution in at least an equivalent amount; and (ii) will reduce the institution’s financial obligations or otherwise improve the institution’s financial condition.