; and (II) such extension is necessary to avert substantial loss to the covered industrial bank holding company. (2) Conditions before divestiture During the 2-year period referred to in paragraph (1)(A) with respect to any covered industrial bank holding company and any extension of that period, the appropriate Federal supervisory agency may impose any conditions or restrictions on the covered industrial bank holding company or any subsidiary of the covered industrial bank holding company (other than a bank), including restricting or prohibiting transactions between the covered industrial bank holding company or subsidiary and any depository institution subsidiary of the covered industrial bank holding company, as are appropriate under the circumstances. (3) Termination of activities or divestiture of nonbank subsidiaries constituting serious risk (A) In general Notwithstanding any other provision of this section, the appropriate Federal supervisory agency may, whenever such agency has reasonable cause to believe that the continuation by a covered industrial bank holding company of any activity or of ownership or control of any nonbank subsidiary of the covered industrial bank holding company, other than a nonbank subsidiary of a depository institution, constitutes a serious risk to the financial safety, soundness, or stability of a depository institution subsidiary of the covered industrial bank holding company and is inconsistent with sound banking principles or with the purposes of this section, at the election of the covered industrial bank holding company— (i) order the covered industrial bank holding company or any nonbank subsidiary of the covered industrial bank holding company, after due notice and opportunity for hearing, and after considering the views of the appropriate Federal banking agency and, if applicable, appropriate State bank supervisor, to terminate those activities or to terminate (within 120 days or such longer period as the appropriate Federal supervisory agency may direct in unusual