Section 702.204 - Prompt corrective action for moderately capitalized, marginally capitalized, or minimally capitalized new credit unions(a)Mandatory supervisory actions by new credit union. Beginning on the date of classification as moderately capitalized, marginally capitalized or minimally capitalized (including by reclassification under § 702.202(d) ), a new credit union must-(1)Earnings retention. Increase the dollar amount of its net worth by the amount reflected in its approved initial or revised business plan;(2)Submit revised business plan. Submit a revised business plan within the time provided by § 702.206 if the credit union either: (i) Has not increased its net worth ratio consistent with its then-present approved business plan;(ii) Has no then-present approved business plan; or(iii) Has failed to comply with paragraph (a)(3) of this section; and(3)Restrict member business loans. Not increase the total dollar amount of member business loans (defined as loans outstanding and unused commitments to lend) as of the preceding quarter-end unless it is granted an exception under 12 U.S.C. 1757a(b) .(b)Discretionary supervisory actions by NCUA. Subject to the applicable procedures set forth in subpart L of part 747 of this chapter for issuing, reviewing and enforcing directives, the NCUA Board may, by directive, take one or more of the actions prescribed in § 702.109(b) if the credit union's net worth ratio has not increased consistent with its then-present business plan, or the credit union has failed to undertake any mandatory supervisory action prescribed in paragraph (a) of this section.(c)Discretionary conservatorship or liquidation. Notwithstanding any other actions required or permitted to be taken under this section, the NCUA Board may place a new credit union which is moderately capitalized, marginally capitalized or minimally capitalized (including by reclassification under § 702.202(d) ) into conservatorship pursuant to 12 U.S.C. 1786(h)(1)(F) , or into liquidation pursuant to 12 U.S.C. 1787(a)(3)(A)(i) , provided that the credit union has no reasonable prospect of becoming adequately capitalized.