<enum>I</enum><header>Reform of regulation of Enterprises and Federal Home Loan Banks</header> <subtitle id="HE859F87658C9459583892D405F00D6D7"><enum>A</enum><header>Improvement of safety and soundness</header> <section id="H89EAEC5144D345C49783DF66C7B85140"><enum>101.</enum><header>Establishment of the Federal Housing Finance Agency</header> <subsection id="H871CFFB95E81435F94F58BA7FB341DB3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended by striking sections 1311 and 1312 and inserting the following:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HA88918DC7E564630B8006CD7D397A78B"> <section id="H0E0D9EFC97314489B592A5AC00608701"><enum>1311.</enum><header>Establishment of the Federal Housing Finance Agency</header> <subsection id="HE1F233CBA99B46E1B3EB82B7A82E98AC"><enum>(a)</enum><header>Establishment</header><text>There is established the Federal Housing Finance Agency, which shall be an independent agency of the Federal Government.</text></subsection> <subsection id="HAF083CBFF8E04F3F00FE024F2621258F"><enum>(b)</enum><header>General supervisory and regulatory authority</header> <paragraph id="H7D05B1DBFCCC48CCA248A8098F9C05AB"><enum>(1)</enum><header>In General</header><text>Each regulated entity shall, to the extent provided in this title, be subject to the supervision and regulation of the Agency.</text></paragraph> <paragraph id="H20AADA117BF44E86925CEE3EAF6287B9"><enum>(2)</enum><header>Authority over fannie mae, freddie mac, and Federal Home Loan Banks</header><text>The Director of the Federal Housing Finance Agency shall have general supervisory and regulatory authority over each regulated entity and shall exercise such general regulatory authority, including such duties and authorities set forth under section 1313 of this Act, to ensure that the purposes of this Act, the authorizing statutes, and any other applicable law are carried out.</text></paragraph></subsection> <subsection id="HB2F5BE3043DD45B8A75C1E105C7DCE05"><enum>(c)</enum><header>Savings provision</header><text>The authority of the Director to take actions under subtitles B and C shall not in any way limit the general supervisory and regulatory authority granted to the Director.</text></subsection></section> <section id="H97713FA1EDEE4BFA8550FC677F330957"><enum>1312.</enum><header>Director</header> <subsection id="HA6DAB3D9852745F1AEBAC3073049DE50"><enum>(a)</enum><header>Establishment of position</header><text>There is established the position of the Director of the Federal Housing Finance Agency, who shall be the head of the Agency.</text></subsection> <subsection id="H9CD9441AF9954F80AAEF00BFCF1EF4D7"><enum>(b)</enum><header>Appointment; term</header> <paragraph id="HDC5BADC6061A42FEA847BB47A914D4FB"><enum>(1)</enum><header>Appointment</header><text>The Director shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight, and have a demonstrated understanding of capital markets, including the mortgage securities markets and housing finance.</text></paragraph> <paragraph id="H55952A7C00AA4DD79426C42B7021A6C6"><enum>(2)</enum><header>Term and removal</header><text>The Director shall be appointed for a term of 5 years and may be removed by the President only for cause.</text></paragraph> <paragraph id="HD9B4F017B37B458992020584005924A7"><enum>(3)</enum><header>Vacancy</header><text>A vacancy in the position of Director that occurs before the expiration of the term for which a Director was appointed shall be filled in the manner established under paragraph (1), and the Director appointed to fill such vacancy shall be appointed only for the remainder of such term.</text></paragraph> <paragraph id="H267EEA1490634CB1A382CD0000AE21FC"><enum>(4)</enum><header>Service after end of term</header><text>An individual may serve as the Director after the expiration of the term for which appointed until a successor has been appointed.</text></paragraph> <paragraph id="H02360606955B4CD192D007EDDA71953"><enum>(5)</enum><header>Transitional provision</header><text>Notwithstanding paragraphs (1) and (2), the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development shall serve as the Director until a successor has been appointed under paragraph (1).</text></paragraph></subsection> <subsection id="HA758EB597B4B4D83AA00CE4FC9B6648C"><enum>(c)</enum><header>Deputy Director of the Division of Enterprise Regulation</header> <paragraph id="H6643997933D64F29AD6BA2C4905E864"><enum>(1)</enum><header>In General</header><text>The Agency shall have a Deputy Director of the Division of Enterprise Regulation, who shall be appointed by the Director from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight and of mortgage securities markets and housing finance.</text></paragraph> <paragraph id="HF6635059F9D44B239CB305F8004BA44F"><enum>(2)</enum><header>Functions</header><text>The Deputy Director of the Division of Enterprise Regulation shall have such functions, powers, and duties with respect to the oversight of the enterprises as the Director shall prescribe.</text></paragraph></subsection> <subsection id="H304C3545288E4C8E83C00D0C1F1C6F7"><enum>(d)</enum><header>Deputy Director of the Division of Federal Home Loan Bank Regulation</header> <paragraph id="H768C094B8F194D69006DF356D677A454"><enum>(1)</enum><header>In General</header><text>The Agency shall have a Deputy Director of the Division of Federal Home Loan Bank Regulation, who shall be appointed by the Director from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight and of the Federal Home Loan Bank System and housing finance.</text></paragraph> <paragraph id="HABC40A7CBF8747F291F9D293F45EF624"><enum>(2)</enum><header>Functions</header><text>The Deputy Director of the Division of Federal Home Loan Bank Regulation shall have such functions, powers, and duties with respect to the oversight of the Federal home loan banks as the Director shall prescribe.</text></paragraph></subsection> <subsection id="H62987CDEFFB74A24A9ABE9B5C5C5619"><enum>(e)</enum><header>Deputy Director for Housing</header> <paragraph id="HF044D58106AC4C729CCA4600C56DA799"><enum>(1)</enum><header>In General</header><text>The Agency shall have a Deputy Director for Housing, who shall be appointed by the Director from among individuals who are citizens of the United States, and have a demonstrated understanding of the housing markets and housing finance.</text></paragraph> <paragraph id="H8D3254349ABB4E6DB56F7256B61220A4"><enum>(2)</enum><header>Functions</header><text>The Deputy Director for Housing shall have such functions, powers, and duties with respect to the oversight of the housing mission and goals of the enterprises, and with respect to oversight of the housing mission of the Federal home loan banks, as the Director shall prescribe.</text></paragraph></subsection> <subsection id="HB8A871ADFC124020B08985AA2233ED1E"><enum>(f)</enum><header>Limitations</header><text>The Director and each of the Deputy Directors may not—</text> <paragraph id="H62EF7A47AE9D45A3999EADBC967AA45"><enum>(1)</enum><text>have any direct or indirect financial interest in any regulated entity or regulated entity-affiliated party;</text></paragraph> <paragraph id="HF4EF5B174F4745C6B75CBBF7FE48AE46"><enum>(2)</enum><text>hold any office, position, or employment in any regulated entity or regulated entity-affiliated party; or</text></paragraph> <paragraph id="HA7D3EFA3C4A84F36AB5574C82584F8CA"><enum>(3)</enum><text>have served as an executive officer or director of any regulated entity, or regulated entity-affiliated party, at any time during the 3-year period ending on the date of appointment of such individual as Director or Deputy Director.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE74AD88CFD964E8D83E97467AC09DC98"><enum>(b)</enum><header>Appointment of Director</header><text>Notwithstanding any other provision of law or of this Act, the President may, any time after the date of the enactment of this Act, appoint an individual to serve as the Director of the Federal Housing Finance Agency, as such office is established by the amendment made by subsection (a). This subsection shall take effect on the date of the enactment of this Act.</text></subsection></section> <section id="HC0C9C4ADAE3E48A0B659F2A025F138F6"><enum>102.</enum><header>Duties and authorities of Director</header> <subsection id="H5A9C9683B10A4A85B06140EAC6CE501D"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4513">12 U.S.C. 4513</external-xref>) is amended by striking section 1313 and inserting the following new sections:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HAA9A4F2DA54C4738BB3B40766F5327A6"> <section id="H3D32DAFAFD2F417D97C6E9166BF3B68"><enum>1313.</enum><header>Duties and authorities of Director</header> <subsection id="H8796805236EB47DD804C438F241E3310"><enum>(a)</enum><header>Duties</header> <paragraph id="H286A3B0F4B3C4D35BDBE471758BE1529"><enum>(1)</enum><header>Principal duties</header><text>The principal duties of the Director shall be—</text> <subparagraph id="H197B158C34E44E8C89BA8F833EA00C"><enum>(A)</enum><text>to oversee the operations of each regulated entity; and</text></subparagraph> <subparagraph id="H16B0B45C41314F8D8FD69217BDBC9ED2"><enum>(B)</enum><text>to ensure that—</text> <clause id="H36E5D5A6253C41B6883001BCAA967427"><enum>(i)</enum><text>each regulated entity operates in a safe and sound manner, including maintenance of adequate capital and internal controls;</text></clause> <clause id="H4B1BD286DDCD4AFE93C3F500925493F3"><enum>(ii)</enum><text display-inline="yes-display-inline">the operations and activities of each regulated entity foster liquid, efficient, competitive, and resilient national housing finance markets that minimize the cost of housing finance (including activities relating to mortgages on housing for low- and moderate- income families involving a reasonable economic return that may be less than the return earned on other activities);</text></clause> <clause id="HF0D23617E0ED45D99FDBB8AFB13DEF84"><enum>(iii)</enum><text>each regulated entity complies with this title and the rules, regulations, guidelines, and orders issued under this title and the authorizing statutes; and</text></clause> <clause id="HE995C72C147E413BBAF00180922F7D3"><enum>(iv)</enum><text>each regulated entity carries out its statutory mission only through activities that are consistent with this title and the authorizing statutes.</text></clause></subparagraph></paragraph> <paragraph id="H98D1BC48A90D4372955C68F91D4BE6C4"><enum>(2)</enum><header>Scope of authority</header><text>The authority of the Director shall include the authority—</text> <subparagraph id="HFF0B42E7664943D8BEDC25FC20A55994"><enum>(A)</enum><text>to review and, if warranted based on the principal duties described in paragraph (1), reject any acquisition or transfer of a controlling interest in an enterprise; and</text></subparagraph> <subparagraph id="H74AA8F9B85674B0B88286CE1A91D2FC8"><enum>(B)</enum><text>to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the Director in the supervision and regulation of each regulated entity.</text></subparagraph></paragraph></subsection> <subsection id="H32B0FC9C879B416F84AFC161E514638C"><enum>(b)</enum><header>Delegation of authority</header><text>The Director may delegate to officers or employees of the Agency, including each of the Deputy Directors, any of the functions, powers, or duties of the Director, as the Director considers appropriate.</text></subsection> <subsection id="H10BAECAEAD8C4E359878D69D867C751E"><enum>(c)</enum><header>Litigation authority</header> <paragraph id="H7BF6DD8BD3864049B3B1BF52123D73A"><enum>(1)</enum><header>In General</header><text>In enforcing any provision of this title, any regulation or order prescribed under this title, or any other provision of law, rule, regulation, or order, or in any other action, suit, or proceeding to which the Director is a party or in which the Director is interested, and in the administration of conservatorships and receiverships, the Director may act in the Director’s own name and through the Director’s own attorneys.</text></paragraph> <paragraph id="HAA8921FA8BA845F8A2250017708800F2"><enum>(2)</enum><header>Subject to suit</header><text>Except as otherwise provided by law, the Director shall be subject to suit (other than suits on claims for money damages) by a regulated entity or director or officer thereof with respect to any matter under this title or any other applicable provision of law, rule, order, or regulation under this title, in the United States district court for the judicial district in which the regulated entity has its principal place of business, or in the United States District Court for the District of Columbia, and the Director may be served with process in the manner prescribed by the Federal Rules of Civil Procedure.</text></paragraph></subsection></section> <section id="H606AFF32D34A436F87906D5F781F4239"><enum>1313A.</enum><header>Prudential management and operations standards</header> <subsection id="H574AE9D6924C40B2ADD01142C612835"><enum>(a)</enum><header>Standards</header><text>The Director shall establish standards, by regulation, guideline, or order, for each regulated entity relating to—</text> <paragraph id="HDDBE09F138D54C22976806DBE4385E00"><enum>(1)</enum><text>adequacy of internal controls and information systems taking into account the nature and scale of business operations;</text></paragraph> <paragraph id="HDF5FC9B071794718B9EBFA1CE61F59AE"><enum>(2)</enum><text>independence and adequacy of internal audit systems;</text></paragraph> <paragraph id="H3D7524A8710742C7B6899CFC92B51400"><enum>(3)</enum><text>management of credit and counterparty risk, including systems to identify concentrations of credit risk and prudential limits to restrict exposure of the regulated entity to a single counterparty or groups of related counterparties;</text></paragraph> <paragraph id="HD81E0261C7824330A6AC27E44000C8FD"><enum>(4)</enum><text>management of interest rate risk exposure;</text></paragraph> <paragraph id="H0A42B79DC48A431D8BB95678DA2CACA"><enum>(5)</enum><text>management of market risk, including standards that provide for systems that accurately measure, monitor, and control market risks and, as warranted, that establish limitations on market risk;</text></paragraph> <paragraph id="H98DA1F7BB5044A0A8BFABD4383DECF9"><enum>(6)</enum><text>adequacy and maintenance of liquidity and reserves;</text></paragraph> <paragraph id="HDE6DC6ACEA6B47FAB5E24D686D6244"><enum>(7)</enum><text>management of any asset and investment portfolio;</text></paragraph> <paragraph id="HF8486706057C432AB34499665671A962"><enum>(8)</enum><text>investments and acquisitions by a regulated entity, to ensure that they are consistent with the purposes of this Act and the authorizing statutes;</text></paragraph> <paragraph id="H2007B2B3FC45466E00B43170AC97F9ED"><enum>(9)</enum><text>maintenance of adequate records, in accordance with consistent accounting policies and practices that enable the Director to evaluate the financial condition of the regulated entity;</text></paragraph> <paragraph id="H56E9CEE3A5F64423A622E9A508AB3DB9"><enum>(10)</enum><text>issuance of subordinated debt by that particular regulated entity, as the Director considers necessary;</text></paragraph> <paragraph id="H624B46FA4450441081FB047B6A8D088"><enum>(11)</enum><text>overall risk management processes, including adequacy of oversight by senior management and the board of directors and of processes and policies to identify, measure, monitor, and control material risks, including reputational risks, and for adequate, well-tested business resumption plans for all major systems with remote site facilities to protect against disruptive events; and</text></paragraph> <paragraph id="H68507F42651745B188450227DA18A819"><enum>(12)</enum><text>such other operational and management standards as the Director determines to be appropriate.</text></paragraph></subsection> <subsection id="H5129627870BF47ED8081177C86360261"><enum>(b)</enum><header>Failure to meet standards</header> <paragraph id="HE85E681BC32D4801839529C6AF02552C"><enum>(1)</enum><header>Plan requirement</header> <subparagraph id="HF8A910F86B9C4523897772DD4B306E04"><enum>(A)</enum><header>In General</header><text>If the Director determines that a regulated entity fails to meet any standard established under subsection (a)—</text> <clause id="H0DB3608197F745BB91A4378648B82023"><enum>(i)</enum><text>if such standard is established by regulation, the Director shall require the regulated entity to submit an acceptable plan to the Director within the time allowed under subparagraph (C); and</text></clause> <clause id="HF941CED91F054D548D2D745076A30064"><enum>(ii)</enum><text>if such standard is established by guideline, the Director may require the regulated entity to submit a plan described in clause (i).</text></clause></subparagraph> <subparagraph id="H2405FD3BAF3E4DE9B811FEF7A9FC38E4"><enum>(B)</enum><header>Contents</header><text>Any plan required under subparagraph (A) shall specify the actions that the regulated entity will take to correct the deficiency. If the regulated entity is undercapitalized, the plan may be a part of the capital restoration plan for the regulated entity under section 1369C.</text></subparagraph> <subparagraph id="HE6D5EB075FCD4A2E9CCF28CFB91E452B"><enum>(C)</enum><header>Deadlines for submission and review</header><text>The Director shall by regulation establish deadlines that—</text> <clause id="H19D7250A8B124CBDA1F5AF5341A2C1F4"><enum>(i)</enum><text>provide the regulated entities with reasonable time to submit plans required under subparagraph (A), and generally require a regulated entity to submit a plan not later than 30 days after the Director determines that the entity fails to meet any standard established under subsection (a); and</text></clause> <clause id="HCBC60222CD5E4BEBB6ACBA02FB1DFF"><enum>(ii)</enum><text>require the Director to act on plans expeditiously, and generally not later than 30 days after the plan is submitted.</text></clause></subparagraph></paragraph> <paragraph id="H60D5320D3477444F844DAED7C9BC1906"><enum>(2)</enum><header>Required order upon failure to submit or implement plan</header><text>If a regulated entity fails to submit an acceptable plan within the time allowed under paragraph (1)(C), or fails in any material respect to implement a plan accepted by the Director, the following shall apply:</text> <subparagraph id="H77E02F1B143A493F848DA437B0163306"><enum>(A)</enum><header>Required correction of deficiency</header><text>The Director shall, by order, require the regulated entity to correct the deficiency.</text></subparagraph> <subparagraph id="H0729122D48B042CC813338BD8E7186D1"><enum>(B)</enum><header>Other authority</header><text>The Director may, by order, take one or more of the following actions until the deficiency is corrected:</text> <clause id="HC7F804C64183434C949B5449DE59F74B"><enum>(i)</enum><text>Prohibit the regulated entity from permitting its average total assets (as such term is defined in section 1316(b)) during any calendar quarter to exceed its average total assets during the preceding calendar quarter, or restrict the rate at which the average total assets of the entity may increase from one calendar quarter to another.</text></clause> <clause id="HB39A1898DF2F41C6B34155441792B2AC"><enum>(ii)</enum><text>Require the regulated entity—</text> <subclause id="HA45FA14E131340558B62D4B11E14F2D"><enum>(I)</enum><text>in the case of an enterprise, to increase its ratio of core capital to assets.</text></subclause> <subclause id="H4CD969B68B5E4A4DAC86A2C0EDE3DB20"><enum>(II)</enum><text>in the case of a Federal home loan bank, to increase its ratio of total capital (as such term is defined in section 6(a)(5) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(5)</external-xref>) to assets.</text></subclause></clause> <clause id="H7EACB844BC714B39AB208217C0E7CA60"><enum>(iii)</enum><text>Require the regulated entity to take any other action that the Director determines will better carry out the purposes of this section than any of the actions described in this subparagraph</text></clause></subparagraph></paragraph> <paragraph id="H901CBEAF92494F5C93000594873919AF"><enum>(3)</enum><header>Mandatory restrictions</header><text>In complying with paragraph (2), the Director shall take one or more of the actions described in clauses (i) through (iii) of paragraph (2)(B) if—</text> <subparagraph id="H8DABE2C9CC86420BA6E36352A648A476"><enum>(A)</enum><text>the Director determines that the regulated entity fails to meet any standard prescribed under subsection (a);</text></subparagraph> <subparagraph id="H25822AD70AF3447E93EDB1C5FD43AD08"><enum>(B)</enum><text>the regulated entity has not corrected the deficiency; and</text></subparagraph> <subparagraph id="H1F58758B75C240C18200BD9BD89B43C9"><enum>(C)</enum><text>during the 18-month period before the date on which the regulated entity first failed to meet the standard, the entity underwent extraordinary growth, as defined by the Director.</text></subparagraph></paragraph></subsection> <subsection id="H93570DFEE99546C5A053677B44E8866"><enum>(c)</enum><header>Other enforcement authority not affected</header><text>The authority of the Director under this section is in addition to any other authority of the Director.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5B1197F502C448650010581CEC0053DA"><enum>(b)</enum><header>Independence in congressional testimony and recommendations</header><text>Section 111 of <external-xref legal-doc="public-law" parsable-cite="pl/93/495">Public Law 93–495</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/12/250">12 U.S.C. 250</external-xref>) is amended by striking <quote>the Federal Housing Finance Board</quote> and inserting <quote>the Director of the Federal Housing Finance Agency</quote>.</text></subsection></section> <section id="HC02A6C4A08384B3EA19799FEA0AC5E52"><enum>103.</enum><header>Housing Finance Oversight Board</header> <subsection id="H16DB8DE734E34EFCA7F727CDD2648CCC"><enum>(a)</enum><header>In General</header><text>Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended by inserting after section 1313A, as added by section 102 of this Act, the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H782A66067DA249CE8D674463D15C635"> <section id="HD5158A3A0AD44922001249D8A8A75182"><enum>1313B.</enum><header>Housing Finance Oversight Board</header> <subsection id="H62C1763D3C294C1E9D412186E9F25D9F"><enum>(a)</enum><header>In General</header><text>There is established the Housing Finance Oversight Board.</text></subsection> <subsection id="H1873AC08FF5A4FCBAA6ECEDE6E4288"><enum>(b)</enum><header>Duties</header> <paragraph id="H23A880A5B8C24C36BDE038AB9C431360"><enum>(1)</enum><header>In general</header><text>The Board shall advise the Director with respect to overall strategies and policies in carrying out the duties of the Director under this title, at the request of the Director and at the initiative of the Board, and shall carry out such functions as otherwise provided by law.</text></paragraph> <paragraph id="H4E5592959E0D4F5D83FCA7F2CB5329B6"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Director may not delegate to the Board any of the functions, powers, or duties of the Director.</text></paragraph></subsection> <subsection id="H13AE94AB7CDD423CBC4E00664D4574A"><enum>(c)</enum><header>Composition</header><text>The Board shall be comprised of 5 members, as follows:</text> <paragraph id="HB5EB08AF6A2D4F0CBA00F9720602BB2F"><enum>(1)</enum><text>One member shall be the Director, who shall serve as the Chairperson of the Board.</text></paragraph> <paragraph id="H9282504DD483485F954E3400D923E2A4"><enum>(2)</enum><text>One member shall be the Secretary of the Treasury or the designee of the Secretary.</text></paragraph> <paragraph id="HB55D0AFC8AF54D8180508988B6574F"><enum>(3)</enum><text display-inline="yes-display-inline">One member shall be the Secretary of Housing and Urban Development or the designee of the Secretary.</text></paragraph> <paragraph id="H9BCAA0C2F1BB4F24BD1B00DA4D7CA788"><enum>(4)</enum><text>Two members shall be appointed by the President, by and with the advice and consent of the Senate, who shall include—</text> <subparagraph id="HAC614C49B2FA47F2983147000400B54F"><enum>(A)</enum><text>one individual who has extensive experience and expertise in the capital markets (including debt markets), the secondary mortgage market, and mortgage-backed securities; and</text></subparagraph> <subparagraph id="H2980D7B36AFE4E10804B3F82D8DFC990"><enum>(B)</enum><text>one individual who has extensive experience and expertise in mortgage finance (including single family and multifamily housing mortgage finance), development of affordable housing, and economic development and revitalization.</text></subparagraph></paragraph></subsection> <subsection id="H93DA6364F8364B868BF619BC24C9456"><enum>(d)</enum><header>Terms and vacancies</header> <paragraph id="H8DC8828EB01F45B982681513ECEAA76F"><enum>(1)</enum><header>Terms</header><text display-inline="yes-display-inline">Each member of the Board pursuant to paragraph (4) shall be appointed for a term of 3 years, and may be removed by the President only for cause.</text></paragraph> <paragraph id="HD3024C458BE04ECC9DE51376E42F8CA9"><enum>(2)</enum><header>Vacancies</header><text>A member of the Board appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member of the Board may serve after the expiration of the member’s term until a successor has been appointed.</text></paragraph></subsection> <subsection id="H33A011BF76C2459BA9992BCD1E00A178"><enum>(e)</enum><header>Prohibition of additional compensation</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, members of Board pursuant to paragraphs (1), (2), and (3) shall not receive additional compensation by reason of service on the Board.</text></subsection> <subsection id="H703C95DDC9104F39A94FA965C21B600"><enum>(f)</enum><header>Limitations</header><text>Each member of the Board may not—</text> <paragraph id="H73FA9482F7B24E9300C5A43800E9009C"><enum>(1)</enum><text>have any direct or indirect financial interest in any regulated entity or regulated entity-affiliated party; or</text></paragraph> <paragraph id="H124DDB07851E4CB48B005F06E772159C"><enum>(2)</enum><text>hold any office, position, or employment in any regulated entity or regulated entity-affiliated party.</text></paragraph></subsection> <subsection id="HE0285CF407CC4867BBD5870846F2B02"><enum>(g)</enum><header>Full-Time members and staff</header> <paragraph id="H73F50580E050401186B3B9F7AE1BC87B"><enum>(1)</enum><header>Full-Time members</header><text>The members of the Board pursuant to subsection (c)(4) shall serve on a full-time basis.</text></paragraph> <paragraph id="HF2E472BA71B84D3D9C270000A4659582"><enum>(2)</enum><header>Staff</header><text display-inline="yes-display-inline">The staff of the Board shall be appointed subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates, except that each member of the Board pursuant to paragraph (4) may appoint one staff member without regard to the such provisions governing appointments in the competitive service and such staff members may be paid by the Board without regard to the such provisions relating to classification and General Schedule pay rates.</text></paragraph></subsection> <subsection id="H0BB05B77726A4DC0A0AE4109669EAA8C"><enum>(h)</enum><header>Meetings</header> <paragraph id="H71E28533C296426BBC73FC257300005B"><enum>(1)</enum><header>In General</header><text>The Board shall meet upon notice by the Director, but in no event shall the Board meet less frequently than once every 3 months.</text></paragraph> <paragraph id="HEE44FA28DFF741C6989E9E097964E289"><enum>(2)</enum><header>Special meetings</header><text>Any member of the Board may, upon giving written notice to the Director, require a special meeting of the Board, which shall be convened by the Director within 30 days after such notice.</text></paragraph></subsection> <subsection id="H2DB07641549E4058B7A500A8EE02200"><enum>(i)</enum><header>Testimony</header><text>On an annual basis, the Board shall testify before Congress regarding—</text> <paragraph id="H65FD2C3E47B54B56B100E65BAC171536"><enum>(1)</enum><text>the safety and soundness of the regulated entities;</text></paragraph> <paragraph id="H0F8796838052402282DDB5F800375FB3"><enum>(2)</enum><text>any material deficiencies in the conduct of the operations of the regulated entities;</text></paragraph> <paragraph id="HDA30CB7EC5E54560A4002700B2F98D87"><enum>(3)</enum><text>the overall operational status of the regulated entities;</text></paragraph> <paragraph id="HDA6D2883A03F457E83006BE0CA49A000"><enum>(4)</enum><text>an evaluation of the performance of the regulated entities in carrying out their respective missions;</text></paragraph> <paragraph id="HF425A951A3084DFB0082BDD200CE256B"><enum>(5)</enum><text>operations, resources, and performance of the Agency and the Board; and</text></paragraph> <paragraph id="HC6CC03D8ED0446F5BF1FA829672071BD"><enum>(6)</enum><text>such other matters relating to the Agency, the Board, and the regulated entities, and their fulfillment of their missions, as the Board determines appropriate.</text></paragraph></subsection> <subsection id="H226E49796CD64DABAEEA058B6D2B6680"><enum>(j)</enum><header>Costs</header><text>Costs of the Board, including staff, shall be paid by the Agency as a cost and expense of the Agency.</text></subsection> <subsection id="HE689608C463744AD96BE85F16FAC4095"><enum>(k)</enum><header>Exemption</header><text>Notwithstanding any other provision of law, the provisions of <external-xref legal-doc="usc" parsable-cite="usc/5/552b">section 552b</external-xref> of title 5, United States Code, shall not apply to the Board.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6AE67FBB7A5B4A9181E223CD25975ED8"><enum>(b)</enum><header>Annual report of the Director</header><text>Section 1319B(a) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (12 U.S.C. 4521 (a)) is amended—</text> <paragraph id="H628B59A76A974755AF512718010431DA"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end; and</text></paragraph> <paragraph id="H01E948B1EE2A4700A6CADB16C13379EC"><enum>(2)</enum><text>by striking paragraph (4) and inserting the following new paragraphs:</text> <quoted-block id="H72CF3F895B564CB38623EBF6DA17BC2"> <paragraph id="H4B0F4E32B55C4F08A99FC939CC0030FF"><enum>(4)</enum><text>an assessment of the Board with respect to—</text> <subparagraph id="HDF3AF6C2767B446E843D9BD2B276EB07"><enum>(A)</enum><text>the safety and soundness of the regulated entities;</text></subparagraph> <subparagraph id="H78F0D1ACAE4D4524A10076CCB331B8CE"><enum>(B)</enum><text>any material deficiencies in the conduct of the operations of the regulated entities;</text></subparagraph> <subparagraph id="HC1B41077A7724B518D943775BB717FF"><enum>(C)</enum><text>the overall operational status of the regulated entities;</text></subparagraph> <subparagraph id="H8307C4977933459FA68472FCD971C716"><enum>(D)</enum><text>an evaluation of the performance of the regulated entities in carrying out their missions, including compliance of the enterprises with the housing goals under subpart B of part 2 of this subtitle and compliance of the Federal home loan banks with the community investment and affordable housing programs under subsections (i) and (j) of section 10 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></subparagraph> <subparagraph id="HD50FA21F70074899AA6F3653B6B0008"><enum>(E)</enum><text>an evaluation of the performance of the Agency in fulfilling its duties and responsibilities under law; and</text></subparagraph> <subparagraph id="H58ED64D4C7034456A00038CE84B10900"><enum>(F)</enum><text>such other matters relating to the Board and the fulfillment of its duties as the Board considers appropriate;</text></subparagraph></paragraph> <paragraph id="H763A00B1EC0D43A8AEC9F34E6009FF64"><enum>(5)</enum><text>operations, resources, and performance of the Agency; and</text></paragraph> <paragraph id="H860838446355401396C4CE44B12751D9"><enum>(6)</enum><text>such other matters relating to the Agency and its fulfillment of its mission.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H4EB2CB79E9E24BCA8EC0E12B310038F0"><enum>104.</enum><header>Authority to require reports by regulated entities</header><text display-inline="no-display-inline">Section 1314 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>) is amended—</text> <paragraph id="H44035339A61E4AEFAD843B6EAED70868"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>enterprises</header-in-text>” and inserting “<header-in-text>regulated entities</header-in-text>”;</text></paragraph> <paragraph id="H10B9AABF22794B41BA7695FE04FE77D4"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="H569CE16AA7314EBFB0B22F959B76A38"><enum>(A)</enum><text>in the subsection heading, by striking <quote>Special Reports and Reports of Financial Condition</quote> and inserting <quote>Regular and Special Reports</quote>;</text></subparagraph> <subparagraph id="HAC23736F1E5149AE99323965E0C66819"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="HFB0770AE312B4CEBB6004F45151CC20"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph">Financial condition</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">Regular reports</header-in-text></quote>; and</text></clause> <clause id="H96935CEE7FFF423CB0AE15C95B365031"><enum>(ii)</enum><text>by striking <quote>reports of financial condition and operations</quote> and inserting <quote>regular reports on the condition (including financial condition), management, activities, or operations of the regulated entity, as the Director considers appropriate</quote>; and</text></clause></subparagraph> <subparagraph id="H0C9AB90AD5EB455D98972700AC09BFCF"><enum>(C)</enum><text>in paragraph (2), after <quote>submit special reports</quote> insert <quote>on any of the topics specified in paragraph (1) or such other topics</quote>; and</text></subparagraph></paragraph> <paragraph id="H2687E3C740EE46819BC1669627ECD2D4"><enum>(3)</enum><text>by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="HF5258F77DB2B44F289008F19F2A92618" display-inline="no-display-inline"> <subsection id="H11D4CED02CBA42D09891D93319DD8CC"><enum>(c)</enum><header>Reports of fraudulent financial transactions</header> <paragraph id="HFC9ABB17BCD543BE92CCE792D0C6AAF9"><enum>(1)</enum><header>Requirement to report</header><text>The Director shall require a regulated entity to submit to the Director a timely report upon discovery by the regulated entity that it has purchased or sold a fraudulent loan or financial instrument or suspects a possible fraud relating to a purchase or sale of any loan or financial instrument. The Director shall require the regulated entities to establish and maintain procedures designed to discover any such transactions.</text></paragraph> <paragraph id="HC337F2B080AA40548030FEEA9082D235"><enum>(2)</enum><header>Protection from liability for reports</header> <subparagraph id="H1B729FCB82DD493EB66D44AC66E905C7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If a regulated entity makes a report pursuant to paragraph (1), or a regulated entity-affiliated party makes, or requires another to make, such a report, and such report is made in a good faith effort to comply with the requirements of paragraph (1), such regulated entity or regulated entity-afffiliated party shall not be liable to any person under any law or regulation of the United States, any constitution, law, or regulation of any State or political subdivision of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement), for such report or for any failure to provide notice of such report to the person who is the subject of such report or any other person identified in the report.</text></subparagraph> <subparagraph id="HF7090523DC9143FF8371F4202FECC158"><enum>(B)</enum><header>Rule of construction</header><text>Subparagraph (A) shall not be construed as creating—</text> <clause id="HE15709A09D674CB691E5E2178ED280C4"><enum>(i)</enum><text>any inference that the term <quote>person</quote>, as used in such subparagraph, may be construed more broadly than its ordinary usage so as to include any government or agency of government; or</text></clause> <clause id="HBA4133D3F60340E08949F080282D1F46"><enum>(ii)</enum><text>any immunity against, or otherwise affecting, any civil or criminal action brought by any government or agency of government to enforce any constitution, law, or regulation of such government or agency.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H41E685FE763143D28D4B4FC1B746900" section-type="subsequent-section" display-inline="no-display-inline"><enum>105.</enum><header>Disclosure of charitable contributions by enterprises</header><text display-inline="no-display-inline">Section 1314 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing" id="HEC53527A608E421DB92BDAD26DF971A"> <subsection indent="paragraph" id="H1BBCA71846494187A075836C1327743D"><enum>(d)</enum><header>Disclosure of charitable contributions by enterprises</header> <paragraph id="H341D1365BCB144F5AEE8BC6E776BD7"><enum>(1)</enum><header>Required disclosure</header><text>The Director shall, by regulation, require each enterprise to submit a report annually, in a format designated by the Director, containing the following information:</text> <subparagraph id="HB19F187F4E034537856D4363C52F197F"><enum>(A)</enum><header>Total value</header><text>The total value of contributions made by the enterprise to nonprofit organizations during its previous fiscal year.</text></subparagraph> <subparagraph id="HFCC11B03F0DD40D191601E8249A700B"><enum>(B)</enum><header>Substantial contributions</header><text>If the value of contributions made by the enterprise to any nonprofit organization during its previous fiscal year exceeds the designated amount, the name of that organization and the value of contributions.</text></subparagraph> <subparagraph id="H32EE9EA308E04505B0CC04B7FCD4431F"><enum>(C)</enum><header>Substantial contributions to insider-affiliated charities</header><text>Identification of each contribution whose value exceeds the designated amount that were made by the enterprise during the enterprise’s previous fiscal year to any nonprofit organization of which a director, officer, or controlling person of the enterprise, or a spouse thereof, was a director or trustee, the name of such nonprofit organization, and the value of the contribution.</text></subparagraph></paragraph> <paragraph id="H41890F56A1CA46E8A9DA0BB001C0202"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H777258E0A5F84433849CF2EF897046C0"><enum>(A)</enum><text>the term <term>designated amount</term> means such amount as may be designated by the Director by regulation, consistent with the public interest and the protection of investors for purposes of this subsection; and</text></subparagraph> <subparagraph id="HB7C956C7BA9B4F37A34F123532FA13C6"><enum>(B)</enum><text>the Director may, by such regulations as the Director deems necessary or appropriate in the public interest, define the terms officer and controlling person.</text></subparagraph></paragraph> <paragraph id="H20CE861EDA114FA79BC0F91C1B2900EF"><enum>(3)</enum><header>Public availability</header><text>The Director shall make the information submitted pursuant to this subsection publicly available.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H70232B57D4B547D68B45088F524417D3"><enum>106.</enum><header>Assessments</header><text display-inline="no-display-inline">Section 1316 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4516">12 U.S.C. 4516</external-xref>) is amended—</text> <paragraph id="H68F03A693FB843C7A7E8DF058D421D76"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HCD6A37EFD85441FAA780841467DB864"> <subsection id="HAF1CDD3EEA4A4523941CBAC17ED50366"><enum>(a)</enum><header>Annual assessments</header><text>The Director shall establish and collect from the regulated entities annual assessments in an amount not exceeding the amount sufficient to provide for reasonable costs and expenses of the Agency, including—</text> <paragraph id="H03844B1CD27C4C10876C32659D26A34"><enum>(1)</enum><text>the expenses of any examinations under section 1317 of this Act and under section 20 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></paragraph> <paragraph id="H8E9935804BAB4F57A78D72009B097DF7"><enum>(2)</enum><text>the expenses of obtaining any reviews and credit assessments under section 1319; and</text></paragraph> <paragraph id="H2D7A365F87FC479A848E19D4AEC0F062"><enum>(3)</enum><text>such amounts in excess of actual expenses for any given year as deemed necessary by the Director to maintain a working capital fund in accordance with subsection (e).</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HD0D269E07300400BBA9CF936CF9089EF"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H1CD2143EAAF24F19B37797B5F3B8E881"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Enterprises</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Regulated Entities</header-in-text></quote> ;</text></subparagraph> <subparagraph id="HE41087D6845A417E98E8E674528BACE6"><enum>(B)</enum><text>by realigning paragraph (2) two ems from the left margin, so as to align the left margin of such paragraph with the left margins of paragraph (1);</text></subparagraph> <subparagraph id="H0ADDC87FB08A40C8B81059591EBC90F1"><enum>(C)</enum><text>in paragraph (1)—</text> <clause id="H619F79A6ECBE408685B3C984F7E420AA"><enum>(i)</enum><text>by striking <quote>Each enterprise</quote> and inserting <quote>Each regulated entity</quote>;</text></clause> <clause id="H5CB9C53C544941F5B4136EF321538418"><enum>(ii)</enum><text>by striking <quote>each enterprise</quote> and inserting <quote>each regulated entity</quote>; and</text></clause> <clause id="H1F53A30758C041708342B1F81FA9A9B4"><enum>(iii)</enum><text>by striking <quote>both enterprises</quote> and inserting <quote>all of the regulated entities</quote>; and</text></clause></subparagraph> <subparagraph id="H203AD71399574E859B3BAF2700CCB390"><enum>(D)</enum><text>in paragraph (3)— </text> <clause id="H21B47444B4BB43C4B9042C14463565A"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>subparagraph (A)</quote> and inserting <quote>clause (i)</quote>;</text></clause> <clause id="H4838E53B84D84EE39FE472BA00B97740"><enum>(ii)</enum><text>by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii) and (ii), respectively, and realigning such clauses, as so redesignated, so as to be indented 6 ems from the left margin;</text></clause> <clause id="HF4606151261D4C7FBCD5DAEACD99F402"><enum>(iii)</enum><text>by striking the matter that precedes clause (i), as so redesignated, and inserting the following:</text> <quoted-block id="H1E13D9A931D045F7A6EF1E46E3051B49"> <paragraph id="H55647CC5B3364FA0BFA4E821ECD46F4B"><enum>(3)</enum><header>Definition of total assets</header><text>For purposes of this section, the term <term>total assets</term> means as follows:</text> <subparagraph id="H8DA6F8ECFDD44F9FAACC70563229CC89"><enum>(A)</enum><header>Enterprises</header><text>With respect to an enterprise, the sum of—</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="H765A0187DB7F46BDB407C052DC532753"><enum>(iv)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block id="H8D1F2F88C13040E1AE65F8E9E95D1E78"> <subparagraph id="HEB1B1DAEA156464A989E5E5B552EDFAE"><enum>(B)</enum><header>Federal Home Loan Banks</header><text>With respect to a Federal home loan bank, the total assets of the Bank, as determined by the Director in accordance with generally accepted accounting principles.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H6B6B96E01398459E86E9D1A653357157"><enum>(3)</enum><text>by striking subsection (c) and inserting the following new subsection:</text> <quoted-block style="OLC" id="HAE57CEDE5FFD41FCB38782AACBA7EF0" display-inline="no-display-inline"> <subsection id="HF8E521AE39904BAE8C25C647803425D2"><enum>(c)</enum><header>Increased costs of regulation</header> <paragraph id="H7597453E919F4B809BCFB8F2E347DE24"><enum>(1)</enum><header>Increase for inadequate capitalization</header><text display-inline="yes-display-inline">The semiannual payments made pursuant to subsection (b) by any regulated entity that is not classified (for purposes of subtitle B) as adequately capitalized may be increased, as necessary, in the discretion of the Director to pay additional estimated costs of regulation of the regulated entity.</text></paragraph> <paragraph id="HBE686C23D0C0437FB4C998B075A9CFB"><enum>(2)</enum><header>Adjustment for enforcement activities</header><text display-inline="yes-display-inline">The Director may adjust the amounts of any semiannual assessments for an assessment under subsection (a) that are to be paid pursuant to subsection (b) by a regulated entity, as necessary in the discretion of the Director, to ensure that the costs of enforcement activities under subtitle B and C for a regulated entity are borne only by such regulated entity.</text></paragraph> <paragraph id="H5B2D75B6B546495A8DFA29664F306286"><enum>(3)</enum><header>Additional assessment for deficiencies</header><text display-inline="yes-display-inline">If at any time, as a result of increased costs of regulation of a regulated entity that is not classified (for purposes of subtitle B) as adequately captitalized or as the result of supervisory or enforcement activities under subtitle B or C for a regulated entity, the amount available from any semiannual payment made by such regulated entity pursuant to subsection (b) is insufficient to cover the costs of the Agency with respect to such entity, the Director may make and collect from such regulated entity an immediate assessment to cover the amount of such deficiency for the semiannual period. If, at the end of any semiannual period during which such an assessment is made, any amount remains from such assessment, such remaining amount shall be deducted from the assessment for such regulated entity for the following semiannual period.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H5BEF4B26E21A4463BF426EA379E8412B"><enum>(4)</enum><text>in subsection (d), by striking <quote>If</quote> and inserting <quote>Except with respect to amounts collected pursuant to subsection (a)(3), if</quote>; and</text></paragraph> <paragraph id="H233AC9F1387A40F5A781CFDFB46EE4B"><enum>(5)</enum><text>by striking subsections (e) through (g) and inserting the following new subsections:</text> <quoted-block id="H1F3FBF792980409184423E05592B939F"> <subsection id="HC5BEC3F6FB2A42409D838202C41DEA89"><enum>(e)</enum><header>Working capital fund</header><text>At the end of each year for which an assessment under this section is made, the Director shall remit to each regulated entity any amount of assessment collected from such regulated entity that is attributable to subsection (a)(3) and is in excess of the amount the Director deems necessary to maintain a working capital fund.</text></subsection> <subsection id="HEAB68E3AEA504E319B825B1C4FD6D2DC"><enum>(f)</enum><header>Treatment of assessments</header> <paragraph id="HCAF88A5413524732B11836BA15AA4F"><enum>(1)</enum><header>Deposit</header><text>Amounts received by the Director from assessments under this section may be deposited by the Director in the manner provided in section 5234 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/12/192">12 U.S.C. 192</external-xref>) for monies deposited by the Comptroller of the Currency.</text></paragraph> <paragraph id="H88C7EBF8AF784A579BC8189D53F3302D"><enum>(2)</enum><header>Not government funds</header><text>The amounts received by the Director from any assessment under this section shall not be construed to be Government or public funds or appropriated money.</text></paragraph> <paragraph id="HC855F4E96F2A49689794D71123B12576"><enum>(3)</enum><header>No apportionment of funds</header><text>Notwithstanding any other provision of law, the amounts received by the Director from any assessment under this section shall not be subject to apportionment for the purpose of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, or under any other authority.</text></paragraph> <paragraph id="H77DF6111ADFD45AB9C7593CDA9BDE923"><enum>(4)</enum><header>Use of funds</header><text>The Director may use any amounts received by the Director from assessments under this section for compensation of the Director and other employees of the Agency and for all other expenses of the Director and the Agency.</text></paragraph> <paragraph id="HBAB6C15480F142EFA6FA04B640821839"><enum>(5)</enum><header>Availability of oversight fund amounts</header><text>Notwithstanding any other provision of law, any amounts remaining in the Federal Housing Enterprises Oversight Fund established under this section (as in effect before the effective date under section 185 of the Federal Housing Finance Reform Act of 2005), and any amounts remaining from assessments on the Federal Home Loan banks pursuant to section 18(b) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1438">12 U.S.C. 1438(b)</external-xref>), shall, upon such effective date, be treated for purposes of this subsection as amounts received from assessments under this section.</text></paragraph></subsection> <subsection id="H362D85CDDCB44DDD95616C77F9883D2C"><enum>(g)</enum><header>Budget and financial management</header> <paragraph id="H06BBD742E48144B99BDCDAE7AB872D00"><enum>(1)</enum><header>Financial operating plans and forecasts</header><text>The Director shall provide to the Director of the Office of Management and Budget copies of the Director’s financial operating plans and forecasts as prepared by the Director in the ordinary course of the Agency’s operations, and copies of the quarterly reports of the Agency’s financial condition and results of operations as prepared by the Director in the ordinary course of the Agency’s operations.</text></paragraph> <paragraph id="H7136110AD187401898FA66E6A1ED2CE0"><enum>(2)</enum><header>Financial statements</header><text>The Agency shall prepare annually a statement of assets and liabilities and surplus or deficit; a statement of income and expenses; and a statement of sources and application of funds.</text></paragraph> <paragraph id="HAF39A737171A4D5B91FE00BA52DE84D6"><enum>(3)</enum><header>Financial management systems</header><text>The Agency shall implement and maintain financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and that uses a general ledger system that accounts for activity at the transaction level.</text></paragraph> <paragraph id="H80590D5585414E9487F47D1100A5B64C"><enum>(4)</enum><header>Assertion of internal controls</header><text>The Director shall provide to the Comptroller General an assertion as to the effectiveness of the internal controls that apply to financial reporting by the Agency, using the standards established in section 3512 (c) of title 31, United States Code.</text></paragraph> <paragraph id="HD506A9A304FF4E6CB0CC2BA99D674200"><enum>(5)</enum><header>Rule of construction</header><text>This subsection may not be construed as implying any obligation on the part of the Director to consult with or obtain the consent or approval of the Director of the Office of Management and Budget with respect to any reports, plans, forecasts, or other information referred to in paragraph (1) or any jurisdiction or oversight over the affairs or operations of the Agency.</text></paragraph></subsection> <subsection id="HBEDC600465854C8A9790B70091AB4800"><enum>(h)</enum><header>Audit of Agency</header> <paragraph id="HA25DFC78330C46BF90E5E9D668AE3646"><enum>(1)</enum><header>In general</header><text>The Comptroller General shall annually audit the financial transactions of the Agency in accordance with the U.S. generally accepted government auditing standards as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where accounts of the Agency are normally kept. The representatives of the Government Accountability Office shall have access to the personnel and to all books, accounts, documents, papers, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to or under the control of or used or employed by the Agency pertaining to its financial transactions and necessary to facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. All such books, accounts, documents, records, reports, files, papers, and property of the Agency shall remain in possession and custody of the Agency. The Comptroller General may obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit without cost to the Comptroller General and the Comptroller General’s right of access to such information shall be enforceable pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/716">section 716(c)</external-xref> of title 31, United States Code.</text></paragraph> <paragraph id="H84AD0BE887854DC29F766F00EE00CA75"><enum>(2)</enum><header>Report</header><text>The Comptroller General shall submit to the Congress a report of each annual audit conducted under this subsection. The report to the Congress shall set forth the scope of the audit and shall include the statement of assets and liabilities and surplus or deficit, the statement of income and expenses, the statement of sources and application of funds, and such comments and information as may be deemed necessary to inform Congress of the financial operations and condition of the Agency, together with such recommendations with respect thereto as the Comptroller General may deem advisable. A copy of each report shall be furnished to the President and to the Agency at the time submitted to the Congress.</text></paragraph> <paragraph id="H562B68F1FF2E499FB1BF62CA32AB0475"><enum>(3)</enum><header>Assistance and costs</header><text>For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to <external-xref legal-doc="usc" parsable-cite="usc/41/5">section 5</external-xref> of title 41, United States Code, professional services of firms and organizations of certified public accountants for temporary periods or for special purposes. Upon the request of the Comptroller General, the Director of the Agency shall transfer to the Government Accountability Office from funds available, the amount requested by the Comptroller General to cover the full costs of any audit and report conducted by the Comptroller General. The Comptroller General shall credit funds transferred to the account established for salaries and expenses of the Government Accountability Office, and such amount shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HF23641D19E684746A2C6853FD7E00204"><enum>107.</enum><header>Examiners and accountants</header> <subsection id="H27458DB9F45F4858AF4874ECF23D383F"><enum>(a)</enum><header>Examinations</header><text>Section 1317 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended——</text> <paragraph id="H73A09E0A845041FBA4253CBB02B7ACAA"><enum>(1)</enum><text>in subsection (a), by adding after the period at the end the following: <quote>Each examination under this subsection of a regulated entity shall include a review of the procedures required to be established and maintained by the regulated entity pursuant to section 1314(c) (relating to fraudulent financial transactions) and the report regarding each such examination shall describe any problems with such procedures maintained by the regulated entity.</quote>; </text></paragraph> <paragraph id="H6CD2700F276249A1A3DA03C843CFEE0"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H064E5200532D4A4C87F8701E3281959E"><enum>(A)</enum><text>by inserting <quote>of a regulated entity</quote> after <quote>under this section</quote>; and</text></subparagraph> <subparagraph id="HF130C4A888864FEB94821B741F0043C0"><enum>(B)</enum><text>by striking <quote>to determine the condition of an enterprise for the purpose of ensuring its financial safety and soundness</quote> and inserting <quote>or appropriate</quote> ; and</text></subparagraph></paragraph> <paragraph id="H5E0F9FC8855C49CDB928BAE5004BE9D3"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="HAEFDC9AC6572449C9E1F543600FE4454"><enum>(A)</enum><text>in the second sentence, by inserting <quote>to conduct examinations under this section</quote> before the period; and</text></subparagraph> <subparagraph id="H3366A7573F5B4BA98DB369EC009734"><enum>(B)</enum><text>in the third sentence, by striking <quote>from amounts available in the Federal Housing Enterprises Oversight Fund</quote>.</text></subparagraph></paragraph></subsection> <subsection id="HCC7A6402E82241E4BFA2E930B13DEB11"><enum>(b)</enum><header>Enhanced authority to hire examiners and accountants</header><text>Section 1317 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H30251FCBD848421189BA2BEE68739FA8"> <subsection id="H93D2BBAF57484CC98289D43300474F7D"><enum>(g)</enum><header>Appointment of accountants, economists, specialists, and examiners</header> <paragraph id="H975BF3C50F364A3986EEAFFCE9AD84D0"><enum>(1)</enum><header>Applicability</header><text>This section applies with respect to any position of examiner, accountant, specialist in financial markets, specialist in technology, and economist at the Agency, with respect to supervision and regulation of the regulated entities, that is in the competitive service.</text></paragraph> <paragraph id="H687FF981DDA1406E92B54C472E8D230"><enum>(2)</enum><header>Appointment authority</header><text>The Director may appoint candidates to any position described in paragraph (1)—</text> <subparagraph id="HA9ADE23CF60048B4828F6BFED43410ED"><enum>(A)</enum><text>in accordance with the statutes, rules, and regulations governing appointments in the excepted service; and</text></subparagraph> <subparagraph id="HFCADB944C94F4B1DA116B30367FEAE15"><enum>(B)</enum><text>notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDBFF9C941A8D4E2BBBF6DC6029416FFB"><enum>(c)</enum><header>Repeal</header><text>Section 20 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1440">12 U.S.C. 1440</external-xref>) is amended—</text> <paragraph id="HA46DE328D9E14981AAB822035D7A2CA"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>reports</header-in-text>” and inserting “<header-in-text>gao audits</header-in-text>”;</text></paragraph> <paragraph id="H65EFED831ED546EB9097286EE95F32FE"><enum>(2)</enum><text>in the third sentence, by striking <quote>the Board and</quote> each place such term appears; and</text></paragraph> <paragraph id="H5E9AA4CCABF64467881F63CCAF8BBA65"><enum>(3)</enum><text>by striking the first two sentences and inserting the following: <quote>The Federal home loan banks shall be subject to examinations by the Director to the extent provided in section 1317 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>).</quote>.</text></paragraph></subsection></section> <section id="HEE4E51DAAC63432E9359D774DEC7CB29"><enum>108.</enum><header>Prohibition and withholding of executive compensation</header> <subsection id="H4936E26C2C5D48FEB987D28460413D17"><enum>(a)</enum><header>In General</header><text>Section 1318 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>) is amended—</text> <paragraph id="HB4160E6AF2B04BA7B2ED16A89FF8CD76"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>of excessive</header-in-text>” and inserting “<header-in-text>and withholding of executive</header-in-text>”;</text></paragraph> <paragraph id="H8AF250626C26455AAF4F69ADFAF59D75"><enum>(2)</enum><text>by redesignating subsection (b) as subsection (d); and</text></paragraph> <paragraph id="H1BF557601FF043D2AAA2E300BD9EEE76"><enum>(3)</enum><text>by inserting after subsection (a) the following new subsections:</text> <quoted-block id="H26DAD488180D4698B9008979E91D0614"> <subsection id="H0CEFDB993FC94D939C9FF94BF67352EA"><enum>(b)</enum><header>Factors</header><text>In making any determination under subsection (a), the Director may take into consideration any factors the Director considers relevant, including any wrongdoing on the part of the executive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. The approval of an agreement or contract pursuant to section 309(d)(3)(B) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)(3)(B)</external-xref>) or section 303(h)(2) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>) shall not preclude the Director from making any subsequent determination under subsection (a).</text></subsection> <subsection id="H52046B766F8044F392C800AC4ECFD51B"><enum>(c)</enum><header>Withholding of compensation</header><text>In carrying out subsection (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HBD0978AA581F4629AD3CD7CE6CFE885E"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H10828CF560DB4BA800032DEB299B5DBA"><enum>(1)</enum><header>Fannie mae</header><text>Section 309(d) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="Federal National Mortgage Association Charter Act" id="H16D843826E4344008C89F166817CDDCD"> <paragraph indent="subsection" id="H0F814E365F8142298EB340E1D6DC6043"><enum>(4)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HE80B5F9C4EE84590BD1CF5B900338E00"><enum>(2)</enum><header>Freddie mac</header><text>Section 303(h) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="Federal Home Loan Mortgage Corporation Act" id="HEEC9AC24ED564AB99E85886E016DCCF0"> <paragraph indent="subsection" id="HC01CFCB425EB4A80002D4C4B0344F8DF"><enum>(4)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the Corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H4AE1D6EF76C24386BF551D47D2ABBECE"><enum>(3)</enum><header>Federal Home Loan Banks</header><text>Section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Federal Home Loan Bank Act" id="H61F8AEF4E24243B19525C00A443C4E"> <subsection id="H6ED5834582A345328064CDB64EE95893"><enum>(l)</enum><header>Withholding of compensation</header><text>Notwithstanding any other provision of this section, a Federal home loan bank shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="HA65DC786CBCA4E59B41E3D3FE306E1F5"><enum>109.</enum><header>Reviews of regulated entities</header><text display-inline="no-display-inline">Section 1319 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4519">12 U.S.C. 4519</external-xref>) is amended—</text> <paragraph id="HB54BE477AEFE4F1888D4F5541C5672EB"><enum>(1)</enum><text>by striking the section designation and heading and inserting the following:</text> <quoted-block id="H22EBD7EAA9A147778165846F82973DE7"> <section id="HE61D4791376F44FDA88CE3149918A6A5"><enum>1319.</enum><header>Reviews of Regulated Entities</header></section><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H5B01148E70F64CF8A35F6C9CB5CAE0C0"><enum>(2)</enum><text>by inserting after <quote>any entity</quote> the following: <quote>that the Director considers appropriate, including an entity</quote>.</text></paragraph></section> <section id="H300EE1D88E7A46F3B0AB001424EDF925"><enum>110.</enum><header>Regulations and orders</header><text display-inline="no-display-inline">Section 1319G of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4526">12 U.S.C. 4526</external-xref>) is amended—</text> <paragraph id="H856E4F18244C45CFBC58FC9D386DF44C"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="H8A511512F5F24A0EA3761EF58614C3CE"> <subsection id="HEB1903209F05480DAE7D114300E33F79"><enum>(a)</enum><header>Authority</header><text>The Director shall issue any regulations, guidelines, and orders necessary to carry out the duties of the Director under this title and each of the authorizing statutes to ensure that the purposes of this title and such Acts are accomplished.</text></subsection><after-quoted-block>; </after-quoted-block></quoted-block></paragraph> <paragraph id="HAA5F810898E6407EA6E7E639D3880027"><enum>(2)</enum><text>in subsection (b), by inserting <quote>, this title, or any of the authorizing statutes</quote> after <quote>under this section</quote>; and </text></paragraph> <paragraph id="HC5FA321AD8D7488DA1BD90DFF85EE24E"><enum>(3)</enum><text>by striking subsection (c).</text></paragraph></section> <section id="HC881DE20823F436CBD9F24EA9363758"><enum>111.</enum><header>Risk-based capital requirements</header> <subsection id="H0AC1DCB4820F4F95AF7FC25525B7F510"><enum>(a)</enum><header>In General</header><text>Section 1361 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H568A344C1D0448CF92008D90F600B397"> <section id="H18CF3E4B0B4741719B8B537354D07FF7"><enum>1361.</enum><header>Risk-Based capital levels for Regulated Entities</header> <subsection id="HC386805F62FB45D89969092DFDFA179B"><enum>(a)</enum><header>In General</header> <paragraph id="HE25A5F4425E6468500719B8D13B2BEFE"><enum>(1)</enum><header>Enterprises</header><text>The Director shall, by regulation, establish risk-based capital requirements for the enterprises to ensure that the enterprises operate in a safe and sound manner, maintaining sufficient capital and reserves to support the risks that arise in the operations and management of the enterprises.</text></paragraph> <paragraph id="H5B69D83C55784D4996C8E4F662E23F8"><enum>(2)</enum><header>Federal Home Loan Banks</header><text>The Director shall establish risk-based capital standards under section 6 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> for the Federal home loan banks.</text></paragraph></subsection> <subsection id="HDA2D922623CE406998F4858CC8D5500"><enum>(b)</enum><header>Confidentiality of information</header><text>Any person that receives any book, record, or information from the Director or a regulated entity to enable the risk-based capital requirements established under this section to be applied shall—</text> <paragraph id="H8C6882C7AA1C40E5B6D78619E4C86965"><enum>(1)</enum><text>maintain the confidentiality of the book, record, or information in a manner that is generally consistent with the level of confidentiality established for the material by the Director or the regulated entity; and</text></paragraph> <paragraph id="H5EE08A092FF6404E8023A0006509D9C"><enum>(2)</enum><text>be exempt from <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States Code, with respect to the book, record, or information.</text></paragraph></subsection> <subsection id="H1B8F60FBD6674CA08C739769E973E157"><enum>(c)</enum><header>No limitation</header><text>Nothing in this section shall limit the authority of the Director to require other reports or undertakings, or take other action, in furtherance of the responsibilities of the Director under this Act.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF53394D621534BA4959100A6B51CB98"><enum>(b)</enum><header>Federal Home Loan Banks Risk-Based capital</header><text>Section 6(a)(3) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(3)</external-xref>) is amended—</text> <paragraph id="H8212533A050A4A1594CCC7BE52C15E24"><enum>(1)</enum><text>by striking subparagraph (A) and inserting the following new subparagraph:</text> <quoted-block id="HB0C4F2754271476FAD8E704C9F756423"> <subparagraph id="H576499983B834DB298A2E8FE00537576"><enum>(A)</enum><header>Risk-Based capital standards</header><text>The Director shall, by regulation, establish risk-based capital standards for the Federal home loan banks to ensure that the Federal home loan banks operate in a safe and sound manner, with sufficient permanent capital and reserves to support the risks that arise in the operations and management of the Federal home loans banks.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HB83112F6ABF8441A96ECFF22A1FEA87F"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>(A)(ii)</quote> and inserting <quote>(A)</quote>.</text></paragraph></subsection></section> <section id="HA784009FCA194730B22C0091F04E3480"><enum>112.</enum><header>Minimum and critical capital levels</header> <subsection id="HC3C61CE7A6CA43C800002FE285B1AD79"><enum>(a)</enum><header>Minimum capital level</header><text>Section 1362 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4612">12 U.S.C. 4612</external-xref>) is amended—</text> <paragraph id="HA883F966001442D598AC08371E39B548"><enum>(1)</enum><text>in subsection (a), by striking <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Enterprises</header-in-text></quote> ; and</text></paragraph> <paragraph id="HD0485DB2509146CE91ECB49CB20F091"><enum>(2)</enum><text>by striking subsection (b) and inserting the following new subsections:</text> <quoted-block id="H3BFADAD28F954418971D9045F77B411F"> <subsection id="H962155CE809F4580B2B059000202DB2D"><enum>(b)</enum><header>Federal Home Loan Banks</header><text>For purposes of this subtitle, the minimum capital level for each Federal home loan bank shall be the minimum capital required to be maintained to comply with the leverage requirement for the bank established under section 6(a)(2) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(2)</external-xref>).</text></subsection> <subsection id="H584861FA26624DC586566DD667147D46" commented="no"><enum>(c)</enum><header>Establishment of revised minimum capital levels</header><text display-inline="yes-display-inline">Notwithstanding subsections (a) and (b) and notwithstanding the capital classifications of the regulated entities, the Director may, by regulations issued under section 1319G(b), establish a minimum capital level for the enterprises, for the Federal home loan banks, or for both the enterprises and the banks, that is higher than the level specified in subsection (a) for the enterprises or the level specified in subsection (b) for the Federal home loan banks, to the extent needed to ensure that the regulated entities operate in a safe and sound manner.</text></subsection> <subsection id="H3BDA6722841B4375B34919E90971C6ED"><enum>(d)</enum><header>Authority to require temporary increase</header><text>Notwithstanding subsections (a) and (b) and any minimum capital level established pursuant to subsection (c), the Director may, by order, increase the minimum capital level for a regulated entity for such period as the Director may provide if the Director—</text> <paragraph id="H677B123F21F54D7FB9008F31AFAB65AC"><enum>(1)</enum><text>makes any of the determinations specified in subparagraphs (A) through (C) of section 1364(c)(1); or</text></paragraph> <paragraph id="H498D01F166B14801B97D7E6973D749C9"><enum>(2)</enum><text>determines that the regulated entity has violated any of the prudential management and operations standards established pursuant to section 1313A and, as a result of such violation, is operating in an unsafe and unsound manner.</text></paragraph></subsection> <subsection id="H380802643D45464BBCC8427EF591F032"><enum>(e)</enum><header>Authority to establish additional capital and reserve requirements for particular programs</header><text>The Director may, at any time by order or regulation, establish such capital or reserve requirements with respect to any program or activity of a regulated entity as the Director considers appropriate to ensure that the regulated entity operates in a safe and sound manner, with sufficient capital and reserves to support the risks that arise in the operations and management of the regulated entity.</text></subsection> <subsection id="H7BDFC8F82BD64FAB9D8BDD8EAB93B5DC" commented="no"><enum>(f)</enum><header>Periodic review</header><text display-inline="yes-display-inline">The Director shall periodically review the amount of core capital maintained by the enterprises, the amount of capital retained by the Federal home loan banks, and the minimum capital levels established for such regulated entities pursuant to this section. The Director may, by regulations issued under section 1319G(b), adjust the minimum capital levels as necessary, based on the Director’s review.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H453FF66271BA420DA04BE47FA3FF0396"><enum>(b)</enum><header>Critical capital levels</header> <paragraph id="H31B4074A78674F07B93D7BF000D4ADD6"><enum>(1)</enum><header>In General</header><text>Section 1363 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4613">12 U.S.C. 4613</external-xref>) is amended—</text> <subparagraph id="H17D1A09DB3614AEC86A2A124091D2F1D"><enum>(A)</enum><text>by striking <quote>For</quote> and inserting <quote>(a) Enterprises.—For</quote>; and</text></subparagraph> <subparagraph id="H99A5C8E590F8431087F6C07698C0098"><enum>(B)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="HF5EB5AEFB9084FC0B594FBF1BE39AE4C"> <subsection id="H0DD38981830049A6A4B02DEFA5339DE"><enum>(b)</enum><header>Federal Home Loan Banks</header> <paragraph id="HF7E0CFA53A4F4A1898364E1397BCB4B1"><enum>(1)</enum><header>In General</header><text>For purposes of this subtitle, the critical capital level for each Federal home loan bank shall be such amount of capital as the Director shall, by regulation require.</text></paragraph> <paragraph id="H5E3570885183458F85BA9BD7C1A1F4B5"><enum>(2)</enum><header>Consideration of other critical capital levels</header><text>In establishing the critical capital level under paragraph (1) for the Federal home loan banks, the Director shall take due consideration of the critical capital level established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H9EDD6787869F46D3B10050E74CA5F4CD"><enum>(2)</enum><header>Regulations</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 185, the Director of the Federal Housing Finance Agency shall issue regulations pursuant to section 1363(b) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as added by paragraph (1) of this subsection) establishing the critical capital level under such section.</text></paragraph></subsection></section> <section id="HAB48F00A567E442BAEA43537C3DE40"><enum>113.</enum><header>Review of and authority over enterprise assets and liabilities</header><text display-inline="no-display-inline">Subtitle B of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611 et seq.</external-xref>) is amended—</text> <paragraph id="H8D99E6EA604448BC994ED962445CF405"><enum>(1)</enum><text>by striking the subtitle designation and heading and inserting the following:</text> <quoted-block id="HBABBD5A95B4349B58700CD931FBCB138"> <subtitle id="HD3D179F513C94B4D9715822B2B85DAA1"><enum>B</enum><header>Required capital levels for Regulated Entities, special enforcement powers, and reviews of assets and liabilities</header></subtitle><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HA75F793BDD0D4A358BC3F9B01DA1A859"><enum>(2)</enum><text>by adding at the end the following new section:</text> <quoted-block id="H723AB11268984FD69044B7FBAFA01340"> <section id="HEEEEC86B573243FCBA4E5DBF8373F54F"><enum>1369E.</enum><header>Reviews of enterprise assets and liabilities</header> <subsection id="HA0BBD953AA6C41B6A97F7FA1DAC951B0"><enum>(a)</enum><header>In General</header><text>The Director shall conduct, on a periodic basis, a review of the on-balance sheet and off-balance sheet assets and liabilities of each enterprise.</text></subsection> <subsection id="H563D4C9B88C94A4FAE9B01510078CADD"><enum>(b)</enum><header>Authority to require disposition or acquisition</header><text display-inline="yes-display-inline">Pursuant to such a review and notwithstanding the capital classifications of the enterprises, the Director may by order require an enterprise, under such terms and conditions as the Director determines to be appropriate, to dispose of or acquire any asset or liability, if the Director determines that such action is consistent with the safe and sound operation of the enterprise or with the purposes of this Act or any of the authorizing statutes.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HAB92058F21A84B269428759FC79E2218"><enum>114.</enum><header>Corporate governance of enterprises</header><text display-inline="no-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting before section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H074E5CE330A540C8A8223D39113F32E7"> <section id="H05B2336CCDC9481787F8EEAD7B5769C6"><enum>1322A.</enum><header>Corporate governance of Enterprises</header> <subsection id="HAB5B95D83E1A4E75AF84DA01C497567F"><enum>(a)</enum><header>Board of Directors</header> <paragraph id="HE97B8046BF674A569CDF005C2543E220"><enum>(1)</enum><header>Independence</header><text>A majority of seated members of the board of directors of each enterprise shall be independent board members, as defined under rules set forth by the New York Stock Exchange, as such rules may be amended from time to time.</text></paragraph> <paragraph id="H662305AA06D34CE3BE1BAD92E6D65B5B"><enum>(2)</enum><header>Frequency of meetings</header><text>To carry out its obligations and duties under applicable laws, rules, regulations, and guidelines, the board of directors of an enterprise shall meet at least eight times a year and not less than once a calendar quarter.</text></paragraph> <paragraph id="H619B51EF096A42D9BD2D45BD43004CBB"><enum>(3)</enum><header>Non-management Board member meetings</header><text>The non-management directors of an enterprise shall meet at regularly scheduled executive sessions without management participation.</text></paragraph> <paragraph id="H9ECDB0AA8AE94B6EAE41D5FADAE0E1B1"><enum>(4)</enum><header>Quorum; prohibition on proxies</header><text>For the transaction of business, a quorum of the board of directors of an enterprise shall be at least a majority of the seated board of directors and a board member may not vote by proxy.</text></paragraph> <paragraph id="H2AE0C613504C40E8A4D50039EE537D57"><enum>(5)</enum><header>Information</header><text>The management of an enterprise shall provide a board member of the enterprise with such adequate and appropriate information that a reasonable board member would find important to the fulfillment of his or her fiduciary duties and obligations.</text></paragraph> <paragraph id="HD1A36E294C9947E1BEE3EB2ED4DF4188"><enum>(6)</enum><header>Annual review</header><text>At least annually, the board of directors of each enterprise shall review, with appropriate professional assistance, the requirements of laws, rules, regulations, and guidelines that are applicable to its activities and duties.</text></paragraph></subsection> <subsection id="HCCD31768D7464DFDAED20385495D922B"><enum>(b)</enum><header>Committees of boards of Directors</header> <paragraph id="H3594F9E2CD1E429686E0C5B64C6BE3CF"><enum>(1)</enum><header>Frequency of meetings</header><text>Any committee of the board of directors of an enterprise shall meet with sufficient frequency to carry out its obligations and duties under applicable laws, rules, regulations, and guidelines.</text></paragraph> <paragraph id="HDE970ECA3E724AF6B3BDA2C8C1A2AA30"><enum>(2)</enum><header>Required committees</header><text>Each enterprise shall provide for the establishment, however styled, of the following committees of the board of directors:</text> <subparagraph id="H72839C498D1940FC8E08960020C125A5"><enum>(A)</enum><text>Audit committee.</text></subparagraph> <subparagraph id="HEE149EDAC5284BE7A24D50871E5650DF"><enum>(B)</enum><text>Compensation committee.</text></subparagraph> <subparagraph id="H7EDCCC9F05954505ACD0684FE4D155A1"><enum>(C)</enum><text>Nominating/corporate governance committee.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such committees shall be in compliance with the charter, independence, composition, expertise, duties, responsibilities, and other requirements set forth under section 10A(m) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78j-1">15 U.S.C. 78j–1(m)</external-xref>), with respect to the audit committee, and under rules issued by the New York Stock Exchange, as such rules may be amended from time to time.</continuation-text></paragraph></subsection> <subsection id="H419F299FB1E94F0EB17331DA2748E16F"><enum>(c)</enum><header>Compensation</header> <paragraph id="HD839C5408CFD4834AECB4C54C4D5B390"><enum>(1)</enum><header>In General</header><text>The compensation of board members, executive officers, and employees of an enterprise—</text> <subparagraph id="H330B2C3FB0CC436382133338A2D9A604"><enum>(A)</enum><text>shall not be in excess of that which is reasonable and appropriate;</text></subparagraph> <subparagraph id="HF53CAB29CAE4445F85591C6966F47495"><enum>(B)</enum><text>shall be commensurate with the duties and responsibilities of such persons,</text></subparagraph> <subparagraph id="H0C4BA493C0F94EF0B62FBC6BDB58ADE8"><enum>(C)</enum><text>shall be consistent with the long-term goals of the enterprise;</text></subparagraph> <subparagraph id="H61DF7AB99FD94D5BA153FABFAF283D3B"><enum>(D)</enum><text>shall not focus solely on earnings performance, but shall take into account risk management, operational stability and legal and regulatory compliance as well; and</text></subparagraph> <subparagraph id="H5449F2A73A00406ABF1BB02843963C86"><enum>(E)</enum><text>shall be undertaken in a manner that complies with applicable laws, rules, and regulations.</text></subparagraph></paragraph> <paragraph id="HA0A12719557344EE86AD98D480BCCE8"><enum>(2)</enum><header>Reimbursement</header><text>If an enterprise is required to prepare an accounting restatement due to the material noncompliance of the enterprise, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the enterprise shall reimburse the enterprise as provided under section 304 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7243">15 U.S.C. 7243</external-xref>). This provision does not otherwise limit the authority of the Agency to employ remedies available to it under its enforcement authorities.</text></paragraph></subsection> <subsection id="H5DFA8A79203A46698D8F5DBEE2B6F3C"><enum>(d)</enum><header>Code of conduct and ethics</header> <paragraph id="HDC0F89E281B14D6784A32568C2E78E97"><enum>(1)</enum><header>In General</header><text>An enterprise shall establish and administer a written code of conduct and ethics that is reasonably designed to assure the ability of board members, executive officers, and employees of the enterprise to discharge their duties and responsibilities, on behalf of the enterprise, in an objective and impartial manner, and that includes standards required under section 406 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7264">15 U.S.C. 7264</external-xref>) and other applicable laws, rules, and regulations.</text></paragraph> <paragraph id="H32ACD65C8E244DAFAD3324FBECC93862"><enum>(2)</enum><header>Review</header><text>Not less than once every three years, an enterprise shall review the adequacy of its code of conduct and ethics for consistency with practices appropriate to the enterprise and make any appropriate revisions to such code.</text></paragraph></subsection> <subsection id="HA123F60A16BF43C490F2CD77B2B93B6B"><enum>(e)</enum><header>Conduct and responsibilities of Board of Directors</header><text>The board of directors of an enterprise shall be responsible for directing the conduct and affairs of the enterprise in furtherance of the safe and sound operation of the enterprise and shall remain reasonably informed of the condition, activities, and operations of the enterprise. The responsibilities of the board of directors shall include having in place adequate policies and procedures to assure its oversight of, among other matters, the following:</text> <paragraph id="H2B7EE931B5B3486D9BC2654DDF00BEB6"><enum>(1)</enum><text>Corporate strategy, major plans of action, risk policy, programs for legal and regulatory compliance and corporate performance, including prudent plans for growth and allocation of adequate resources to manage operations risk.</text></paragraph> <paragraph id="H45497003C0A6491F9E79BD5F632F243D"><enum>(2)</enum><text>Hiring and retention of qualified executive officers and succession planning for such executive officers.</text></paragraph> <paragraph id="H407848701BE74EDF00C393AB62495759"><enum>(3)</enum><text>Compensation programs of the enterprise.</text></paragraph> <paragraph id="HA4A01790C67245A5AAD8BCD991C60092"><enum>(4)</enum><text>Integrity of accounting and financial reporting systems of the enterprise, including independent audits and systems of internal control.</text></paragraph> <paragraph id="H4A56A73A8A7147A8B388487EAAB75150"><enum>(5)</enum><text>Process and adequacy of reporting, disclosures, and communications to shareholders, investors, and potential investors.</text></paragraph> <paragraph id="H0E4605BFA7AB4469856D04C7908BCDD"><enum>(6)</enum><text>Extensions of credit to board members and executive officers.</text></paragraph> <paragraph id="HD03601CB030940769543F63002F60F1"><enum>(7)</enum><text>Responsiveness of executive officers in providing accurate and timely reports to Federal regulators and in addressing the supervisory concerns of Federal regulators in a timely and appropriate manner.</text></paragraph></subsection> <subsection id="H44B429C201B94565A659F210984AF7E"><enum>(f)</enum><header>Prohibition of extensions of credit</header><text>An enterprise may not directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any board member or executive officer of the enterprise, as provided by section 13(k) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/78m">15 U.S.C. 78m(k)</external-xref>).</text></subsection> <subsection id="H6C3C011CD4C746C79964CFFA60EEB2CA"><enum>(g)</enum><header>Certification of disclosures</header><text>The chief executive officer and the chief financial officer of an enterprise shall review each quarterly report and annual report issued by the enterprise and such reports shall include certifications by such officers as required by section 302 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7241">15 U.S.C. 7241</external-xref>).</text></subsection> <subsection id="HED53B4B16E984F4BA765FE2904536C96"><enum>(h)</enum><header>Change of audit partner</header><text>An enterprise may not accept audit services from an external auditing firm if the lead or coordinating audit partner who has primary responsibility for the external audit of the enterprise, or the external audit partner who has responsibility for reviewing the external audit has performed audit services for the enterprise in each of the five previous fiscal years.</text></subsection> <subsection id="HFAC7BFB5C1DD486197BC652772D74852"><enum>(i)</enum><header>Compliance program</header> <paragraph id="H5CE9F35897E2443B8BDFE702CCB4CB07"><enum>(1)</enum><header>Requirement</header><text>Each enterprise shall establish and maintain a compliance program that is reasonably designed to assure that the enterprise complies with applicable laws, rules, regulations, and internal controls.</text></paragraph> <paragraph id="H4DAD8B2CC3D3407690E04956DA89E335"><enum>(2)</enum><header>Compliance officer</header><text>The compliance program of an enterprise shall be headed by a compliance officer, however styled, who reports directly to the chief executive officer of the enterprise. The compliance officer shall report regularly to the board of directors or an appropriate committee of the board of directors on compliance with and the adequacy of current compliance policies and procedures of the enterprise, and shall recommend any adjustments to such policies and procedures that the compliance officer considers necessary and appropriate.</text></paragraph></subsection> <subsection id="H825883BAB0D24E578CC369144C9FBF64"><enum>(j)</enum><header>Risk management program</header> <paragraph id="HE4A88ADFEDEC46B4BE015211B349800"><enum>(1)</enum><header>Requirement</header><text>Each enterprise shall establish and maintain a risk management program that is reasonably designed to manage the risks of the operations of the enterprise.</text></paragraph> <paragraph id="HA341937924E5444981DCFC55D34FDC99"><enum>(2)</enum><header>Risk management officer</header><text>The risk management program of an enterprise shall be headed by a risk management officer, however styled, who reports directly to the chief executive officer of the enterprise. The risk management officer shall report regularly to the board of directors or an appropriate committee of the board of directors on compliance with and the adequacy of current risk management policies and procedures of the enterprise, and shall recommend any adjustments to such policies and procedures that the risk management officer considers necessary and appropriate.</text></paragraph></subsection> <subsection id="H92FE830FA76340CCB2CED8CC8D3E8E3"><enum>(k)</enum><header>Compliance with other laws</header> <paragraph id="H12D651ED21824D83A9FB185E464FFC25"><enum>(1)</enum><header>Deregistered or unregistered common stock</header><text>If an enterprise deregisters or has not registered its common stock with the Securities and Exchange Commission under the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>, the enterprise shall comply or continue to comply with sections 10A(m) and 13(k) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/78j-1">15 U.S.C. 78j-1(m)</external-xref>, 78m(k)) and sections 302, 304, and 406 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7241">15 U.S.C. 7241</external-xref>, 7243, 7264), subject to such requirements as provided by subsection (l) of this section.</text></paragraph> <paragraph id="H4C1078740AC74001BF78ACC5F85500DA"><enum>(2)</enum><header>Registered common stock</header><text>An enterprise that has its common stock registered with the Securities and Exchange Commission shall maintain such registered status, unless it provides 60 days prior written notice to the Director stating its intent to deregister and its understanding that it will remain subject to the requirements of the sections of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and the Sarbanes-Oxley Act of 2002, subject to such requirements as provided by subsection (l) of this section.</text></paragraph></subsection> <subsection id="HEC14CB6E45FB412AA7075B5314BF8B81"><enum>(l)</enum><header>Other matters</header><text display-inline="yes-display-inline">The Director may from time to time establish standards, by regulation, order, or guideline, regarding such other corporate governance matters of the enterprises as the Director considers appropriate.</text></subsection> <subsection id="HBEF092DED8E847D68C156B4EC84EEBA2"><enum>(m)</enum><header>Modification of standards</header><text>In connection with standards of Federal or State law (including the Revised Model Corporation Act) or New York Stock Exchange rules that are made applicable to an enterprise by section 1710.10 of the Director’s rules (12 C.F.R. 1710.10) and by subsections (a), (b), (g), (i), (j), and (k) of this section, the Director, in the Director’s sole discretion, may modify the standards contained in this section or in part 1710 of the Director’s rules (12 U.S.C. Part 1710) in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code, and upon written notice to the enterprise.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H41D0DD2DC36E4BCCB29F9B88F97951D4"><enum>115.</enum><header>Required registration under Securities Exchange Act of 1934</header><text display-inline="no-display-inline">The Housing and Community Development Act of 1992 is amended by adding after section 1322A, as added by the preceding provisions of this Act, the following new section: </text> <quoted-block style="OLC" id="H67B5B095F1154CF59E963641CA452461" display-inline="no-display-inline"> <section id="H542186FE9BC445EF9BF7A700EB405C10"><enum>1322B.</enum><header>Required registration under Securities Exchange Act of 1934</header> <subsection id="H0D7808B357274B3E986774031DF8EFE"><enum>(a)</enum><header>In General</header><text>Each regulated entity shall register at least one class of the capital stock of such regulated entity, and maintain such registration with the Securities and Exchange Commission, under the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text></subsection> <subsection id="HA8A10FD079A64EC38036F0CF8488D324"><enum>(b)</enum><header>Enterprises</header><text>Each enterprise shall comply with sections 14 and 16 of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H0111122427B148DF8948B7EA96B95B61" display-inline="no-display-inline"><enum>116.</enum><header>Financial Institutions Examination Council</header><text display-inline="no-display-inline">The Federal Financial Institutions Examination Council Act of 1978 is amended—</text> <paragraph id="HCED5E12654734FDEA53324004D4E919D"><enum>(1)</enum><text>in section 1003 (<external-xref legal-doc="usc" parsable-cite="usc/12/3302">12 U.S.C. 3302</external-xref>)—</text> <subparagraph id="H0EB651E5DCC84CEFB5CCD283FF0002DE"><enum>(A)</enum><text>in paragraph (1), by inserting <quote>Director of the Federal Housing Finance Agency,</quote> after <quote>Supervision,</quote>; and</text></subparagraph> <subparagraph id="H3186858A083C442FA2E9F1D2FD8C87B"><enum>(B)</enum><text>in paragraph (3), by striking <quote>or a credit union;</quote> and inserting <quote>a credit union, or a regulated entity (as such term is defined in section 1303 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>)).</quote>;</text></subparagraph></paragraph> <paragraph id="H72E432F063834780A21455D8EC54E46"><enum>(2)</enum><text>in section 1004 (<external-xref legal-doc="usc" parsable-cite="usc/12/3303">12 U.S.C. 3303</external-xref>)—</text> <subparagraph id="H793B222E8C994A3CB00329C41DB0AEDD"><enum>(A)</enum><text>in paragraph (4), by inserting a semicolon at the end;</text></subparagraph> <subparagraph id="H2A0EBD48221349A19E71DBDC0651B305"><enum>(B)</enum><text>by redesignating paragraph (5) as paragraph (6); and</text></subparagraph> <subparagraph id="H9F374318C5384A9191A8AD4C96F2229"><enum>(C)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H6D6325D564D64AC6A8337488FC008E19" style="OLC"> <paragraph id="H02D8CA62CBFD4F97BCA7CD5FF618135F"><enum>(5)</enum><text>the Director of the Federal Housing Finance Agency; and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H6AA2A192DCAC4D9BB0896EDAB64EFE2D"><enum>(3)</enum><text>in section 1006(d) (<external-xref legal-doc="usc" parsable-cite="usc/12/3305">12 U.S.C. 3305(d)</external-xref>), by striking <quote>and employees of the Federal Housing Finance Board</quote>.</text></paragraph></section> <section id="H64651FB27B324A29006EF9CDB3503A2" display-inline="no-display-inline"><enum>117.</enum><header>Guarantee fee study</header> <subsection id="H77179D1BB35F4E15A1D6EE9F9E71C100"><enum>(a)</enum><header>In general</header><text>The Comptroller General of the United States, in consultation with the heads of the federal banking agencies and the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development, shall, not later than one year after the date of the enactment of this Act, submit to the Congress a study concerning the pricing, transparency and reporting of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal home loan banks with regard to guarantee fees and concerning analogous practices, transparency and reporting requirements (including advances pricing practices by the Federal Home Loan Banks) of other participants in the business of mortgage purchases and securitization.</text></subsection> <subsection id="H347A8BBC90C0402394FEB9B462055795"><enum>(b)</enum><header>Factors</header><text>The study required by this section shall examine various factors such as credit risk, counterparty risk considerations, economic value considerations, and volume considerations used by the regulated entities (as such term is defined in section 1303 of the Housing and Community Development Act of 1992) included in the study in setting the amount of fees they charge.</text></subsection> <subsection id="H057E4D3CF1D7478D85CBDE4F22534CCC"><enum>(c)</enum><header>Contents of report</header><text>The report required under subsection (a) shall identify and analyze—</text> <paragraph id="H6A1602B858BE44B5A4BAED2EEC1BF902"><enum>(1)</enum><text display-inline="yes-display-inline">the factors used by each enterprise (as such term is defined in section 1303 of the Housing and Community Development Act of 1992) in determining the amount of the guarantee fees it charges;</text></paragraph> <paragraph id="H392A5E2FEE52485AB7C0AF2B6B8E6E8F"><enum>(2)</enum><text>the total revenue the enterprises earn from guarantee fees;</text></paragraph> <paragraph id="HF6E8FC240B764B7B9BA613C288FF737B"><enum>(3)</enum><text>the total costs incurred by the enterprises for providing guarantees;</text></paragraph> <paragraph id="H7755D04578434EBF9BE65189CBD0733B"><enum>(4)</enum><text>the average guarantee fee charged by the enterprises;</text></paragraph> <paragraph id="H8B1267832FCC4D07BE24C35818A5363D"><enum>(5)</enum><text>an analysis of how and why the guarantee fees charged differ from such fees charged during the previous year;</text></paragraph> <paragraph id="H151075C7574E4766ADE2E87E66B704F"><enum>(6)</enum><text>a breakdown of the revenue and costs associated with providing guarantees, based on product type and risk classifications; and</text></paragraph> <paragraph id="HEFF0E33587C6454799C7001206B0B3F4"><enum>(7)</enum><text display-inline="yes-display-inline">other relevant information on guarantee fees with other participants in the mortgage and securitization business.</text></paragraph></subsection> <subsection id="HCCBD5DE1C82F45F3912222FB8CD90010"><enum>(d)</enum><header>Protection of information</header><text>Nothing in this section may be construed to require or authorize the Government Accounting Office, in connection with the study mandated by this section, to disclose information of the enterprises or other organization that is confidential or proprietary.</text></subsection></section> <section id="H96915720B40D42A4B5B581BD94008000"><enum>118.</enum><header>Conforming amendments</header> <subsection id="H066B07C58E974A1FBDC318DB885123B2"><enum>(a)</enum><header>1992 Act</header><text>Part 1 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4511">12 U.S.C. 4511 et seq.</external-xref>), as amended by the preceding provisions of this Act, is further amended—</text> <paragraph id="H7290EEFA9CE14FF1BD46934572B1EA4"><enum>(1)</enum><text>by striking <quote>an enterprise</quote> each place such term appears in such part (except in sections 1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), and 1316(b)(3)) and inserting <quote>a regulated entity</quote>;</text></paragraph> <paragraph id="H38B17F04BC5D4E8FB400D700D12D24F5"><enum>(2)</enum><text>by striking <quote>the enterprise</quote> each place such term appears in such part (except in section 1316(b)(3)) and inserting <quote>the regulated entity</quote>;</text></paragraph> <paragraph id="H5D79F27CEA4C4256B1DCC48F00FD8A8"><enum>(3)</enum><text>by striking <quote>the enterprises</quote> each place such term appears in such part (except in sections 1312(c)(2), 1312(e)(2), and 1319B(a)(4)(D)) and inserting <quote>the regulated entities</quote>;</text></paragraph> <paragraph id="HAD3F653850704B6FAC8E2D857F0007EE"><enum>(4)</enum><text>by striking <quote>each enterprise</quote> each place such term appears in such part and inserting <quote>each regulated entity</quote>;</text></paragraph> <paragraph id="HAA90F4F153F54E719D39EC3CE1E204EF"><enum>(5)</enum><text>by striking <quote>Office</quote> each place such term appears in such part (except in sections 1312(b)(5), 1315(b), and 1316(g), and section 1317(c)) and inserting <quote>Agency</quote>;</text></paragraph> <paragraph id="H4679361764534800003B4700DA75C332"><enum>(6)</enum><text>in section 1315 (<external-xref legal-doc="usc" parsable-cite="usc/12/4515">12 U.S.C. 4515</external-xref>)—</text> <subparagraph id="H86B1B31248BE45CB8433002C487BBFE"><enum>(A)</enum><text>in subsection (a)—</text> <clause id="H467A21692B0F4ABBADA7009FA6698C9E"><enum>(i)</enum><text>in the subsection heading, by striking <quote>Office Personnel</quote> and inserting <quote>In General</quote>; and</text></clause> <clause id="H68052A30F138463488BFC3018FE0231B"><enum>(ii)</enum><text>by striking <quote>The</quote> and inserting <quote>Subject to titles III and IV of the Federal Housing Finance Reform Act of 2005, the</quote>;</text></clause></subparagraph> <subparagraph id="H6306A3EFCF804BAA938F7E34886D73E2"><enum>(B)</enum><text>by striking subsections (d) and (f); and</text></subparagraph> <subparagraph id="HF65A6C94000849F28D803B37CF3751E9"><enum>(C)</enum><text>by redesignating subsection (e) as subsection (d);</text></subparagraph></paragraph> <paragraph id="H4B14A528619444419CABA63862A7C82F"><enum>(7)</enum><text>in section 1319A (<external-xref legal-doc="usc" parsable-cite="usc/12/4520">12 U.S.C. 4520</external-xref>)—</text> <subparagraph id="H41A946F135C14AAAA0E73CD8F82FF5A7"><enum>(A)</enum><text>by striking <quote>(a) In General.—Each enterprise</quote> and inserting <quote>Each regulated entity</quote>; and</text></subparagraph> <subparagraph id="HD990CD75ECDB4BB68E69B45ED1023E07"><enum>(B)</enum><text>by striking subsection (b);</text></subparagraph></paragraph> <paragraph id="H3087CCB74A5F461683C4C3DA3B8BE4A4"><enum>(8)</enum><text>in section 1319B (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521</external-xref>), by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Committee on Financial Services</quote>; and</text></paragraph> <paragraph id="HCA7FAB20C02346B0B84FDEEC4B94B06B"><enum>(9)</enum><text>in section 1319F (<external-xref legal-doc="usc" parsable-cite="usc/12/4525">12 U.S.C. 4525</external-xref>), striking all that follows <quote>United States Code</quote> and inserting <quote>, the Agency shall be considered an agency responsible for the regulation or supervision of financial institutions.</quote>.</text></paragraph></subsection> <subsection id="HD133B18E3EB249E5B400F91F1F2EEC52"><enum>(b)</enum><header>Amendments to fannie mae charter Act</header><text>The <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>) is amended—</text> <paragraph id="H33594DE03FF047C3821FECB03981148D"><enum>(1)</enum><text>by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> each place such term appears, and inserting <quote>Director of the Federal Housing Finance Agency</quote>, in—</text> <subparagraph id="HB9F8F32550F0445298E08F0000493734"><enum>(A)</enum><text>section 303(c)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1718">12 U.S.C. 1718(c)(2)</external-xref>);</text></subparagraph> <subparagraph id="HBE9A9874F1874316AC1D39E51F7DCBC3"><enum>(B)</enum><text>section 309(d)(3)(B) (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)(3)(B)</external-xref>); and</text></subparagraph> <subparagraph id="HC72AB5BF06F048088E8C509DF87CA700"><enum>(C)</enum><text>section 309(k)(1); and</text></subparagraph></paragraph> <paragraph id="H9C47D935C118436D8D2D9108166835AC"><enum>(2)</enum><text>in section 309—</text> <subparagraph id="H1C4A09325681494E0066D976A688F3C3"><enum>(A)</enum><text>in subsections (d)(3)(A) and (n)(1), by striking <quote>Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Financial Services</quote>; and</text></subparagraph> <subparagraph id="HA082FB01A7AD4146B026EB026D195EA7"><enum>(B)</enum><text>in subsection (m)—</text> <clause id="HFAA0BE772F49493CA10291E0024D211"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; </text></clause> <clause id="H13F6B2B125B54C66A99EB41532006089" display-inline="no-display-inline"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; and </text></clause> <clause id="HD02E29252FEB455F0096B52B6CA07BB0"><enum>(iii)</enum><text>by striking <quote>Secretary</quote> each other place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>; and</text></clause></subparagraph> <subparagraph id="H99986963795344549D36005200705D62"><enum>(C)</enum><text>in subsection (n), by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H6BB1780ACA5346459014B636E4B293B3"><enum>(c)</enum><header>Amendments to freddie mac Act</header><text>The <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> is amended—</text> <paragraph id="H1B0F5580614A43AEBB8382E671024F7D"><enum>(1)</enum><text>by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> each place such term appears, and inserting <quote>Director of the Federal Housing Finance Agency</quote>, in—</text> <subparagraph id="HDCED5F72BF1D4E189C3479A8DE3522E4"><enum>(A)</enum><text>section 303(b)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(b)(2)</external-xref>);</text></subparagraph> <subparagraph id="H8131B431C5924DDDB1EA8423418B5483"><enum>(B)</enum><text>section 303(h)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>); and</text></subparagraph> <subparagraph id="HFC4295474F8A49F0A09D1BE03FD6A0B7"><enum>(C)</enum><text>section 307(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(c)(1)</external-xref>);</text></subparagraph></paragraph> <paragraph id="HFD66854DE3F1432E96C5C56CF4EA2315"><enum>(2)</enum><text>in sections 303(h)(1) and 307(f)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(1)</external-xref>, 1456(f)(1)), by striking <quote>Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Financial Services</quote>;</text></paragraph> <paragraph id="H015F1999EDA04E088BA61295E7FA3E4"><enum>(3)</enum><text>in section 306(i) (<external-xref legal-doc="usc" parsable-cite="usc/12/1455">12 U.S.C. 1455(i)</external-xref>)—</text> <subparagraph id="H775A9DBE82354436A4F1615B62E83421"><enum>(A)</enum><text>by striking <quote>1316(c)</quote> and inserting <quote>306(c)</quote>; and</text></subparagraph> <subparagraph id="H13B279293A2E43CC8DB05BF073149500"><enum>(B)</enum><text>by striking <quote>section 106</quote> and inserting <quote>section 1316</quote>; and</text></subparagraph></paragraph> <paragraph id="HDCD25FA780BC48C2BABFE5D24DBFE7D"><enum>(4)</enum><text>in section 307 (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456</external-xref>))—</text> <subparagraph id="H189990C3AD0246689565352E38960033"><enum>(A)</enum><text>in subsection (e)—</text> <clause id="H2808F7FEA518478E942213E5F66BAF96"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; </text></clause> <clause id="HB504F4BE74B44BDE8793A3D513B2C997" display-inline="no-display-inline"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; and </text></clause> <clause id="HC19E2338D05041E3B9EBD5E3EA5BCF7"><enum>(iii)</enum><text>by striking <quote>Secretary</quote> each other place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>; and</text></clause></subparagraph> <subparagraph id="H7107458F83CA4ECE8FF94C294C37BF35"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (f), by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text></subparagraph></paragraph></subsection></section></subtitle> <subtitle id="HC3D439F294614090969563E82348B6D"><enum>B</enum><header>Improvement of mission supervision</header> <section id="H7123890C3BF74024BB603E6ED189D3AC"><enum>121.</enum><header>Transfer of program and activities approval and housing goal oversight</header><text display-inline="no-display-inline">Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text> <paragraph id="HDA337F2346B44D59951D8F5894EF7C08"><enum>(1)</enum><text>by striking the designation and heading for the part and inserting the following:</text> <quoted-block id="HB0282091C0674C5190E16CF6EE73E9A3"> <part id="H8625CEE28D124E2B8D30EF27A0D86654"><enum>2</enum><header>Program and activities approval by Director, corporate governance, and establishment of Housing goals</header></part><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H9FD85662BC00448D883DF7B7B828F33"><enum>(2)</enum><text>by striking sections 1321 and 1322.</text></paragraph></section> <section id="H9C1BE592333E454FA0A815A4581F1190"><enum>122.</enum><header>Review by Director of new programs and activities of enterprises</header> <subsection id="H1B0A29E04C6340B2B7081ECF7750BB1B"><enum>(a)</enum><header>In General</header><text>Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting before section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>) the following new section:</text> <quoted-block act-name="Housing" id="HB3BD53BCDCAD40409DD6711341CD00CD"> <section id="HEC7A8071A58C438781194772964303AB"><enum>1321.</enum><header>Review and approval by Director of new programs and business activities of Enterprises</header> <subsection id="H22017600F5E246E1A61C8D34BF5C30AC"><enum>(a)</enum><header>Limitation on authority to undertake programs and activities</header><text>An enterprise may not undertake any new program, including a pilot program, or any new business activity except in accordance with the procedures set forth in this section and orders and regulations issued under this section.</text></subsection> <subsection id="HDB9DC6A74FEE497D9346790192CDC89C"><enum>(b)</enum><header>New programs</header> <paragraph id="HA4BBE108EC5A45A5AFE000DBA949B00"><enum>(1)</enum><header>Prior approval requirement</header><text>An enterprise may not commence any new program before it has obtained the approval of the Director, pursuant to this subsection, for the new program.</text></paragraph> <paragraph id="HB60E37C9232348CB95E7849278B20056"><enum>(2)</enum><header>Application</header><text>The Director shall, by order or regulation, require that an enterprise shall, to obtain a determination by the Director regarding approval of a new program by the enterprise, submit to the Director a written application for the new program in a format as prescribed by the Director.</text></paragraph> <paragraph id="HB960D51C530F47E0B2966626398E146C"><enum>(3)</enum><header>Notice</header><text>Immediately upon receipt of a complete application for a new program, the Director shall cause to be published in the Federal Register notice of the receipt of such application and of the period for public comment pursuant to paragraph (4) regarding such new program, and a description of the new program proposed by the application.</text></paragraph> <paragraph id="H9AA4A4A6447D4C5EBF5779C5FD00014D"><enum>(4)</enum><header>Public comment period</header><text>During the 30-day period beginning upon publication pursuant to paragraph (3) of a notice regarding such an application, the Director shall receive public comments regarding the new program.</text></paragraph> <paragraph id="H311F4FF8DE91491BB6EE8320FA12AB7D"><enum>(5)</enum><header>Determination</header><text>Not less than 15 days after the conclusion of the public comment period pursuant to paragraph (4) regarding an application but not more than 30 days after the conclusion of such comment period, the Director shall approve, conditionally approve, or reject such program, in writing.</text></paragraph> <paragraph id="H072604ABCBD24BDE9700AFBE42F55730"><enum>(6)</enum><header>Standard for approval</header><text>The Director may approve, or conditionally approve, a new program of an enterprise only if the Director determines, taking into consideration any relevant information and comments received during the public comment period, that such new program—</text> <subparagraph id="HC80D26BC05DB4D1CACD6822426D755AC"><enum>(A)</enum><text>does not contravene and is not inconsistent with the purposes of this title, the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, as such purposes are determined taking into consideration the definitions of the terms <term>mortgage loan origination</term> and <term>secondary mortgage market</term> pursuant to section 1303;</text></subparagraph> <subparagraph id="H3BAB2DA08DB64B0E9400C47EFDAC899"><enum>(B)</enum><text>is not otherwise inconsistent with the safety and soundness of the enterprise; and</text></subparagraph> <subparagraph id="H9CC44AE1212242F3805DF4D429AA3EBB"><enum>(C)</enum><text>is in the public interest.</text></subparagraph></paragraph> <paragraph id="HA94FBE12A74B4CD182E53493144C9E4E" display-inline="no-display-inline"><enum>(7)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Director, in implementing this subsection, may not prevent an enterprise from continuing to offer the automated loan underwriting system in existence on the date of the enactment of the Federal Housing Finance Reform Act of 2005 or continuing to engage in counseling and education activities.</text></paragraph></subsection> <subsection id="H260C324F030140DABC74D3EFD500A5B7"><enum>(c)</enum><header>New business activities</header> <paragraph id="H5908F4A3CC38493AA901D0E81393A9A0"><enum>(1)</enum><header>Authority of Director to prohibit new business activities</header><text>The Director shall have authority to prohibit any new business activity by an enterprise if the Director determines, in writing, that such activity—</text> <subparagraph id="H892E950247034755BEC5DACD31508BE9"><enum>(A)</enum><text>contravenes or is inconsistent with the purposes of this title, the Federal National Mortgage Association Charter Act, or the Federal Home Loan Mortgage Corporation Act;</text></subparagraph> <subparagraph id="HA1F0030155F74D25A41F5BFB86110000"><enum>(B)</enum><text>is otherwise inconsistent with the safety and soundness of the enterprise; or</text></subparagraph> <subparagraph id="HF1BB2E633E61495386B81CE3B0061585"><enum>(C)</enum><text>is not in the public interest.</text></subparagraph></paragraph> <paragraph id="H06801814D6524DB183E59B26F1EFDCD8"><enum>(2)</enum><header>Notification of new business activities</header><text>An enterprise that undertakes any new business activity shall provide written notice of the activity to the Director and may commence the new business activity only in accordance with paragraph (4).</text></paragraph> <paragraph id="H9E45404C3532449E87B20081380088F7"><enum>(3)</enum><header>Director determination of applicable procedure</header> <subparagraph id="H4988566EDE4D47109DE52B6F76D5C5AF"><enum>(A)</enum><header>Timing</header><text>Immediately upon receipt of any notice under paragraph (2) regarding a new business activity, the Director shall undertake a determination under subparagraph (B) of this paragraph regarding the new business activity.</text></subparagraph> <subparagraph id="HF25370FC2D754568BB6E5BE400EBC4B"><enum>(B)</enum><header>Determination and treatment as new program</header><text>If the Director determines that any new business activity consists of, relates to, or involves any new program—</text> <clause id="H31BBA35B5E2E4CA488A773C8609325E1"><enum>(i)</enum><text>the Director shall notify the enterprise of the determination;</text></clause> <clause id="HB098C4B921794793B6FCAB1B001CC8EA"><enum>(ii)</enum><text>the new business activity described in the notice shall be considered a new program for purposes of this section; and</text></clause> <clause id="H4F5E18C728DB4A9A9D5EB24FF189A349"><enum>(iii)</enum><text>the Director shall prohibit the enterprise from carrying out the activity except to the extent that approval for the activity is obtained pursuant to subsection (b).</text></clause></subparagraph></paragraph> <paragraph id="H5253CB434EEC46528F7DE84F3D753956"><enum>(4)</enum><header>Commencement</header><text>An enterprise may commence a new business activity—</text> <subparagraph id="HFB752D6F1C4A4F97B31189D89456FA9"><enum>(A)</enum><text>if the Director issues a written approval regarding such new business activity, immediately upon such issuance or at such other time as provided by the Director in such letter; or</text></subparagraph> <subparagraph id="H9B55A17E8BFB45C1806490CA3D626000"><enum>(B)</enum><text>if, during the 30-day period beginning upon receipt by the Director of notice pursuant to paragraph (2) regarding a new business activity, the Director has not issued to the enterprise a written approval or denial of the new business activity, upon the expiration of such 30-day period.</text></subparagraph></paragraph></subsection> <subsection id="HAB7592FEDCFD4D5D009BA8A718FAA2BA"><enum>(d)</enum><header>Approval and conditional approval</header><text>The Director may at any time conditionally approve the undertaking of a particular new program or new business activity by an enterprise and set forth the terms and conditions that apply to the program or activity with which the enterprise shall comply if it undertakes the new program or activity. Such approval may, in the discretion of the Director, be in the form of a written agreement between the enterprise and the Director and shall be subject to such terms and conditions therein. Such a written agreement or conditional approval shall be enforceable under subtitle C.</text></subsection> <subsection id="H3CD8533756D24C16B03BAB96F1F2C972" commented="no"><enum>(e)</enum><header>Determination and treatment of activity as new business activity</header><text>If the Director determines that any activity of an enterprise consists of, relates to, or involves any new business activity—</text> <paragraph id="HAB77F671C78943F6A5673153AFF23F9" commented="no"><enum>(1)</enum><text>the Director shall notify the enterprise of the determination;</text></paragraph> <paragraph id="HC362A5885A14407C8D8FF0486D7D29" commented="no"><enum>(2)</enum><text>such activity shall be considered a new business activity for purposes of this section; and</text></paragraph> <paragraph id="HFABB3F9C9A8C4F9ABE4CE29C00EE106D" commented="no"><enum>(3)</enum><text>the Director shall prohibit the enterprise from carrying out the activity except to the extent that approval for the activity is obtained pursuant to subsection (c).</text></paragraph></subsection> <subsection id="HB5E6E81E813B424D9228AD131D511BC8"><enum>(f)</enum><header>Effect on other authorities</header> <paragraph id="HEA83EC286BB64B2F8085034977F13EBD"><enum>(1)</enum><header>Examinations</header><text>Nothing in this section may be construed to limit, in any manner, any other authority or right the Director may have under other provisions of law to conduct an examination of an enterprise.</text></paragraph> <paragraph id="H97C76CF0C9394E9DB534D8B45DDFCB78"><enum>(2)</enum><header>Requests for information</header><text>Nothing in this section may be construed to limit the right of the Director at any time to request additional information from an enterprise concerning any business activity.</text></paragraph> <paragraph id="H34DC257B1D1B47A9BDD03000C27EAB24"><enum>(3)</enum><header>No implied right of action</header><text>This section shall not create any private right of action against an enterprise or any director or executive officer of an enterprise, or impair any private right of action under other applicable law.</text></paragraph> <paragraph id="H1D615E263A1143F88BB6D57571EE01DF"><enum>(4)</enum><header>No limitation</header><text>Nothing in this section may be construed to restrict the general supervisory and regulatory authority of the Director over all programs, products, activities, or business operations of any kind.</text></paragraph></subsection> <subsection id="H491C9863C41A41EBB21D24E7D2B2C08"><enum>(g)</enum><header>Report on programs and business activities</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, each enterprise shall submit to the Director a report identifying and describing each program and business activity of the enterprise engaged in or existing as of the submission of the report.</text></subsection> <subsection id="H3E73BCFF382F4061BA4C6328ADA9F6F"><enum>(h)</enum><header>Regulations</header><text>The Director shall by order or regulation issue rules and procedures to implement this section, including in the discretion of the Director, such definitions, interpretations, forms, and other guidances as the Director considers appropriate.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5D423D3F12DF480D82B7F2800DFC378"><enum>(b)</enum><header>Definitions</header><text>Section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>), as amended by section 2 of this Act, is further amended—</text> <paragraph id="HCCA8A0E22493411B8C80CAA11904105"><enum>(1)</enum><text>by redesignating paragraphs (17) through (23) as paragraphs (20) through (26), respectively;</text></paragraph> <paragraph id="H9C2230FDED0C41BA8FA712C09500C3B8"><enum>(2)</enum><text>by inserting after paragraph (16) the following new paragraph:</text> <quoted-block id="HED9D03E6586F465F9E46908352EA4B92"> <paragraph id="H57A082F82FF64D75BE7181BC0000152F" commented="no"><enum>(19)</enum><header>New business activity</header><text display-inline="yes-display-inline">The term <term>new business activity</term> means, with respect to an enterprise, a business activity that—</text> <subparagraph id="HC7AB258F56E341AC0002C9A82C3DE796" commented="no"><enum>(A)</enum><text>is materially changed or materially different from any of the business activities that the enterprise was engaging in on the effective date under section 185 of the Federal Housing Finance Reform Act of 2005; and</text></subparagraph> <subparagraph id="HEDEE6AD25A9A49CE9FBFB13BBC6B81B5" commented="no"><enum>(B)</enum><text>the enterprise has not previously obtained authorization, pursuant to the provisions of section 1321(c), to offer, undertake, transact, conduct, or engage in.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HEBCC8EE82B744BCEBA7C8D911530E34E"><enum>(3)</enum><text>by redesignating paragraphs (15) and (16) as paragraphs (17) and (18), respectively;</text></paragraph> <paragraph id="H1084CBC2D80641CD85A500A7FEDBF9A1"><enum>(4)</enum><text>by inserting after paragraph (14) the following new paragraph:</text> <quoted-block id="HEC4C677B72C44EE6AB7DCD71D66876DC"> <paragraph id="HD2DB606FE0CD4F82B6B469CB6778BE98"><enum>(16)</enum><header>Mortgage markets</header><text>The terms <term>mortgage loan origination</term> and <term>secondary mortgage market</term> shall have such meanings as the Director shall, by regulation, prescribe consistent with the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> and the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>. The Director shall issue such regulations not later than the expiration of the 12-month period beginning on the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, and the Director shall review such regulations on a periodic basis.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HC8E965D475654CDD97B32C121268188B"><enum>(5)</enum><text>by redesignating paragraphs (5) through (14) as paragraphs (6) through (15), respectively; and</text></paragraph> <paragraph id="H0259E6C1C99447B6B46B9373A8890455"><enum>(6)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H14ACB42742F1447DA8A3EA766B604964"> <paragraph id="HE0FEEF856E5B46219EC8EB2195F289A4"><enum>(5)</enum><header>Business activity</header><text display-inline="yes-display-inline">The term <term>business activity</term> means, with respect to an enterprise, any offering, undertaking, transacting, conducting, or engaging in any conduct, activity, or product by the enterprise, as the Director shall provide.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HA71B3B0049BF4A84A5007900D7BBC2C"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H72E2599012E24CD297E960C354BB9FE0"><enum>(1)</enum><header>Fannie mae</header><text>Section 302(b)(6) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(6)</external-xref>) is amended—</text> <subparagraph id="HEF62276964EA467DB69E35246BD0F1F5"><enum>(A)</enum><text>by striking <quote>new program (as such term is</quote> and inserting <quote>new program or new business activity (as such terms are</quote>; and</text></subparagraph> <subparagraph id="H79C49A2A9C574F169300897537903CC5"><enum>(B)</enum><text>by striking <quote>before obtaining the approval of the Secretary under section 1322</quote> and inserting <quote>except in accordance with section 1321</quote>.</text></subparagraph></paragraph> <paragraph id="H5D749A1444994A91AFE2DF9F9E0028C2" display-inline="no-display-inline"><enum>(2)</enum><header>Freddie mac</header><text>Section 305(c) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(c)</external-xref>) is amended—</text> <subparagraph id="H53A8CD28EFF4497EA4A07B89F9F4EA34"><enum>(A)</enum><text>by striking <quote>new program (as such term is</quote> and inserting <quote>new program or new business activity (as such terms are</quote>; and</text></subparagraph> <subparagraph id="HE1432315C5174F868600768C92C9E2A6"><enum>(B)</enum><text>by striking <quote>before obtaining the approval of the Secretary under section 1322</quote> and inserting <quote>except in accordance with section 1321</quote>. </text></subparagraph></paragraph></subsection></section> <section id="HD4C887045A5B4707A0BA6DCDB5007F6F"><enum>123.</enum><header>Conforming loan limits</header> <subsection id="H7044BAFD71B34BD787AEE8A22A9FEC5"><enum>(a)</enum><header>Fannie mae</header> <paragraph id="HB63708C3B4824678A852D73C54A4A4B2"><enum>(1)</enum><header>General limit</header><text>Section 302(b)(2) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) is amended by striking the 7th and 8th sentences and inserting the following new sentences: <quote>Such limitations shall not exceed $359,650 for a mortgage secured by a single-family residence, $460,400 for a mortgage secured by a 2-family residence, $556,500 for a mortgage secured by a 3-family residence, and $691,600 for a mortgage secured by a 4-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>, subject to the limitations in this paragraph. Each adjustment shall be made by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recent 12-month or fourth-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained by the Director of the Federal Housing Finance Agency (pursuant to section 1322 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541</external-xref>)).</quote>.</text></paragraph> <paragraph id="HED793C073D0D483683F4D00009AFB32C"><enum>(2)</enum><header>High-cost area limit</header><text display-inline="yes-display-inline">Section 302(b)(2) of the Federal National Mortgage Association Charter Act is (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) is amended by adding after the period at the end the following: <quote>Such foregoing limitations shall also be increased with respect to properties of a particular size located in any area for which the median price for such size residence exceeds the foregoing limitation for such size residence, to the lesser of 150 percent of such foregoing limitation for such size residence or the amount that is equal to the median price in such area for such size residence, except that, subject to the order, if any, issued by the Director of the Federal Housing Finance Agency pursuant to section 123(d)(3) of the Federal Housing Finance Reform Act of 2005, such increase shall apply only with respect to mortgages on which are based securities issued and sold by the corporation.</quote></text></paragraph></subsection> <subsection id="HC65C3C450D114FCC98899514314D001F"><enum>(b)</enum><header>Freddie mac</header> <paragraph id="H3ED386185CB84A75995F3B4B6D8CFF5F"><enum>(1)</enum><header>General limit</header><text> Section 305(a)(2) of the <act-name parsable-cite="FNMACA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)(2)</external-xref>) is amended by striking the 6th and 7th sentences and inserting the following new sentences: <quote>Such limitations shall not exceed $359,650 for a mortgage secured by a single-family residence, $460,400 for a mortgage secured by a 2-family residence, $556,500 for a mortgage secured by a 3-family residence, and $691,600 for a mortgage secured by a 4-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>, subject to the limitations in this paragraph. Each adjustment shall be made by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recent 12-month or fourth-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained by the Director of the Federal Housing Finance Agency (pursuant to section 1322 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541</external-xref>)).</quote>.</text></paragraph> <paragraph id="HF4B6B8664ADD4DF9A3F9EBA45F0014C3"><enum>(2)</enum><header>High-cost area limit</header><text display-inline="yes-display-inline">Section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act is amended by adding after the period at the end the following: <quote>Such foregoing limitations shall also be increased with respect to properties of a particular size located in any area for which the median price for such size residence exceeds the foregoing limitation for such size residence, to the lesser of 150 percent of such foregoing limitation for such size residence or the amount that is equal to the median price in such area for such size residence, except that, subject to the order, if any, issued by the Director of the Federal Housing Finance Agency pursuant to section 123(d)(3) of the Federal Housing Finance Reform Act of 2005, such increase shall apply only with respect to mortgages on which are based securities issued and sold by the Corporation.</quote></text></paragraph></subsection> <subsection id="H267DC7B2B8B94684A56EF2B5876F1BC6"><enum>(c)</enum><header>Housing price index</header><text>Subpart A of part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as amended by the preceding provisions of this Act) is amended by inserting after section 1321 (as added by section 122 of this Act) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H0F36AE5C474747F900B5970153D4A410"> <section id="H484D9D6CDB8A4FBBA766325F6800CDB"><enum>1322.</enum><header>Housing price index</header> <subsection id="H68FCAF35CC5F43198617D8F24296940"><enum>(a)</enum><header>In General</header><text>The Director shall establish and maintain a method of assessing the national average 1-family house price for use for adjusting the conforming loan limitations of the enterprises. In establishing such method, the Director shall take into consideration the monthly survey of all major lenders conducted by the Federal Housing Finance Agency to determine the national average 1-family house price, the House Price Index maintained by the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development before the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, any appropriate house price indexes of the Bureau of the Census of the Department of Commerce, and any other indexes or measures that the Director considers appropriate.</text></subsection> <subsection id="H697A1365A3534D6EB4DE667053BC8D87"><enum>(b)</enum><header>GAO audit</header> <paragraph id="H4D8CE7C741054CB7B21579022048B46E"><enum>(1)</enum><header>In General</header><text>At such times as are required under paragraph (2), the Comptroller General of the United States shall conduct an audit of the methodology established by the Director under subsection (a) to determine whether the methodology established is an accurate and appropriate means of measuring changes to the national average 1-family house price.</text></paragraph> <paragraph id="H5218CE3658A54E18805CDFAE01F3C1E9"><enum>(2)</enum><header>Timing</header><text>An audit referred to in paragraph (1) shall be conducted and completed not later than the expiration of the 180-day period that begins upon each of the following dates:</text> <subparagraph id="HDCC097FC09264456944946681433ECF6"><enum>(A)</enum><header>Establishment</header><text>The date upon which such methodology is initially established under subsection (a) in final form by the Director.</text></subparagraph> <subparagraph id="H1ECAB5081F9A49D8A8200700A1E47727"><enum>(B)</enum><header>Modification or amendment</header><text>Each date upon which any modification or amendment to such methodology is adopted in final form by the Director.</text></subparagraph></paragraph> <paragraph id="HE5AC012D06DC452A8730CDCC8A27422"><enum>(3)</enum><header>Report</header><text>Within 30 days of the completion of any audit conducted under this subsection, the Comptroller General shall submit a report detailing the results and conclusions of the audit to the Director, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5940061FA43C4D8495401B3CA497C23E"><enum>(d)</enum><header>Conditions on conforming loan limit for high-cost areas</header> <paragraph id="H847305CE2D4B4E07942B8162B688B5F2"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">The Director of the Federal Housing Finance Agency shall conduct a study under this subsection during the six-month period beginning on the effective date under section 185 of this Act.</text></paragraph> <paragraph id="HE67681E24F004E79BCDCA77E3BF9A59C"><enum>(2)</enum><header>Issues</header><text>The study under this subsection shall determine—</text> <subparagraph id="HA786595C167B4D6394CF6BAEE7AC2493"><enum>(A)</enum><text display-inline="yes-display-inline">the effect that restricting the conforming loan limits for high-cost areas only to mortgages on which are based securities issued and sold by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (as provided in the last sentence of section 302(b)(2) of the Federal National Mortgage Association Charter Act and the last sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, pursuant to the amendments made by subsections (a)(2) and (b)(2) of this section) would have on the cost to borrowers for mortgages on housing in such high-cost areas;</text></subparagraph> <subparagraph id="H9BE6F7926E164C0CB757499E00E12C77"><enum>(B)</enum><text>the effects that such restrictions would have on the availability of mortgages for housing in such high-cost areas; and</text></subparagraph> <subparagraph id="HD3435E2AA41B4BA685C37C0B988A06E"><enum>(C)</enum><text>the extent to which the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation will be able to issue and sell securities based on mortgages for housing located in such high-cost areas.</text></subparagraph></paragraph> <paragraph id="H548956C2E6E44507A912ACCE9B51BAA6"><enum>(3)</enum><header>Determination</header> <subparagraph id="H3F82A1808A2F403500F6B78F6C7D1934"><enum>(A)</enum><header>In general</header><text>Not later than the expiration of the six-month period specified in paragraph (1), the Director of the Federal Housing Finance Agency shall make a determination, based on the results of the study under this subsection, of whether the restriction of conforming loan limits for high-cost areas only to mortgages on which are based securities issued and sold by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (as provided in the amendments made by subsections (a)(2) and (b)(2) of this section) will result in an increase in the cost to borrowers for mortgages on housing in such high-cost areas.</text></subparagraph> <subparagraph id="H09231A201135455C816F1420EF04111"><enum>(B)</enum><header>Order</header><text> If such determination is that costs to borrowers on housing in such high-cost areas will be increased by such restrictions, the Director may issue an order terminating such restrictions, in whole or in part.</text></subparagraph></paragraph> <paragraph id="H3E78158E04F441A28D8E7C6EC3630E2"><enum>(4)</enum><header>Publication</header><text> Not later than the expiration of the six-month period specified in paragraph (1), the Director of the Federal Housing Finance Agency shall cause to be published in the Federal Register—</text> <subparagraph id="H41A53BF2C8524A2387601900476876D6"><enum>(A)</enum><text>a report that—</text> <clause id="HC6AC56D019CC4E61879030B4CD0C5DD"><enum>(i)</enum><text>describes the study under this subsection; and</text></clause> <clause id="HFDDBCBBABA76463590CC91C3543B1D83"><enum>(ii)</enum><text>sets forth the conclusions of the study regarding the issues to be determined under paragraph (2); and</text></clause></subparagraph> <subparagraph id="H169DEA0FEDC34452B1EC1246C8FC42DE"><enum>(B)</enum><text>notice of the determination of the Director under paragraph (3); and</text></subparagraph> <subparagraph id="H5D1F5691C9F248F3B7B85FF4A02E5FA0"><enum>(C)</enum><text display-inline="yes-display-inline">the order of the Director under paragraph (3).</text></subparagraph></paragraph> <paragraph id="HFF2FD65BD8514B7F0015E3C65DEF20B3"><enum>(5)</enum><header>Definition</header><text>For purposes of this subsection, the term <quote>conforming loan limits for high-cost areas</quote> means the dollar amount limitations applicable under the section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (as amended by subsections (a) and (b) of this section) for areas described in the last sentence of such sections (as so amended).</text></paragraph></subsection> <subsection id="HF33BC40E74A847228336263B57CACD23"><enum>(e)</enum><header>Regular adjustment of conforming loan limits</header> <paragraph id="H5253F07B32314D6000947B9F86878266"><enum>(1)</enum><header>Adjustment for year intervening before effective date</header><text display-inline="yes-display-inline">Notwithstanding section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, as amended by this section, the maximum dollar amount limitations in such sections shall be adjusted on the effective date under section 185 of this Act, and the limitations as so adjusted shall be immediately effective, so that the limitations under such sections applicable to the year in which such effective date occurs are equal to the limitations in effect under such sections immediately before such effective date.</text></paragraph> <paragraph id="H0B181A5BCBFF45C3B9C29DCD48DEBB"><enum>(2)</enum><header>Further adjustments</header><text display-inline="yes-display-inline">After such effective date, the dollar amount limitations as adjusted pursuant to paragraph (1) shall be considered <quote>such amount (as it may have been previously adjusted</quote> for purposes of section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.</text></paragraph></subsection></section> <section id="H3298AA33767F40D093DA53A2CC3E114"><enum>124.</enum><header>Annual housing report regarding regulated entities</header> <subsection id="HDBF9CE69559846629F86E48C9CDBB0AB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking section 1324 (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544</external-xref>) and inserting the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H3E701AB9C60B40F2A3DF4E46FB2B513"> <section id="HCB2C33E159A54830A4F6CDA6A883AEA"><enum>1324.</enum><header>Annual housing report regarding regulated entities</header> <subsection id="H5A4E2F8FE5C14684B60041F3C12BBAA0"><enum>(a)</enum><header>In General</header><text>After reviewing and analyzing the reports submitted under section 309(n) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, section 307(f) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, and section 10(j)(11) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)(11)</external-xref>), the Director shall submit a report, not later than October 30 of each year, to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, on the activities of each regulated entity.</text></subsection> <subsection id="H991A53FC1AA6464EADB3002BDFFB756B"><enum>(b)</enum><header>Contents</header><text>The report shall—</text> <paragraph id="H4E9F6F0657DB461D9D8F25F4108CB7F3"><enum>(1)</enum><text>discuss the extent to which—</text> <subparagraph id="HADCDE07E2AF847FF9094DB10D4FE4225"><enum>(A)</enum><text>each enterprise is achieving the annual housing goals established under subpart B of this part;</text></subparagraph> <subparagraph id="H7FD2998B6A8443A694DD05A2CB14E77B"><enum>(B)</enum><text>each enterprise is complying with section 1337;</text></subparagraph> <subparagraph id="H11E74AD14C374F78B24CDA18D339126"><enum>(C)</enum><text>each Federal home loan bank is complying with section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>; and</text></subparagraph> <subparagraph id="HB492E2DE7DFF4F4D9F9C84008252FE90"><enum>(D)</enum><text>each regulated entity is achieving the purposes of the regulated entity established by law;</text></subparagraph></paragraph> <paragraph id="H7FED43F952634543AA9C98FBAB2A27B"><enum>(2)</enum><text>aggregate and analyze relevant data on income to assess the compliance by each enterprise with the housing goals established under subpart B;</text></paragraph> <paragraph id="H4173B5E892FD4105BA005F00CF00A61C"><enum>(3)</enum><text>aggregate and analyze data on income, race, and gender by census tract and other relevant classifications, and compare such data with larger demographic, housing, and economic trends;</text></paragraph> <paragraph id="H982F4E7D48A94EFCBB64002C1245D435"><enum>(4)</enum><text>examine actions that—</text> <subparagraph id="H8D89CB89D5714C4D00D109EF7C8354AD"><enum>(A)</enum><text>each enterprise has undertaken or could undertake to promote and expand the annual goals established under subpart B and the purposes of the enterprise established by law; and</text></subparagraph> <subparagraph id="HA1CEC424B96B4968A3F6646647BF23B0"><enum>(B)</enum><text>each Federal home loan bank has taken or could undertake to promote and expand the community investment program and affordable housing program of the bank established under section subsections (i) and (j) of section 10 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></subparagraph></paragraph> <paragraph id="H5ECF09AD10EE4680BF1471B9147C1404"><enum>(5)</enum><text>examine the primary and secondary multifamily housing mortgage markets and describe—</text> <subparagraph id="H4BFB8EA003874A4881EAABC91E4052FB"><enum>(A)</enum><text>the availability and liquidity of mortgage credit;</text></subparagraph> <subparagraph id="H38480F616FD84FE585C41684DBEDB2D4"><enum>(B)</enum><text>the status of efforts to provide standard credit terms and underwriting guidelines for multifamily housing and to securitize such mortgage products; and</text></subparagraph> <subparagraph id="HC201BC173A434DB2A41D015942E93606"><enum>(C)</enum><text>any factors inhibiting such standardization and securitization;</text></subparagraph></paragraph> <paragraph id="HAB41A0D6806F4AB8862B9E69364D8B4E"><enum>(6)</enum><text>examine actions each regulated entity has undertaken and could undertake to promote and expand opportunities for first-time homebuyers;</text></paragraph> <paragraph id="HBD0A13889B0E4843A5D25D7D7DF4CA8F"><enum>(7)</enum><text>describe any actions taken under section 1325(5) with respect to originators found to violate fair lending procedures;</text></paragraph> <paragraph id="H2311936FAD46466589F6D622D5828430"><enum>(8)</enum><text>discuss and analyze existing conditions and trends, including conditions and trends relating to pricing, in the housing markets and mortgage markets; and</text></paragraph> <paragraph id="H9F1D4EB5B26D4E9599339F57513F487F"><enum>(9)</enum><text>identify the extent to which each enterprise is involved in mortgage purchases and secondary market activities involving subprime loans (as identified in accordance with the regulations issued pursuant to section 124(b) of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>) and compare the characteristics of subprime loans purchased and securitized by the enterprises to other loans purchased and securitized by the enterprises</text></paragraph></subsection> <subsection id="HA94F0BED47CA48D6859B001D6BBDE88C"><enum>(c)</enum><header>Data collection and reporting</header> <paragraph id="HA373B6F4D70841408958091B7D108605"><enum>(1)</enum><header>In General</header><text>To assist the Director in analyzing the matters described in subsection (b) and establishing the methodology described in section 1322, the Director shall conduct, on a monthly basis, a survey of mortgage markets in accordance with this subsection.</text></paragraph> <paragraph id="HE375543605994582A103613B68E95ED5"><enum>(2)</enum><header>Data points</header><text>Each monthly survey conducted by the Director under paragraph (1) shall collect data on—</text> <subparagraph id="H2A56FA66FD594130A8D400CCE4FE28A5"><enum>(A)</enum><text>the characteristics of individual mortgages that are eligible for purchase by the enterprises and the characteristics of individual mortgages that are not eligible for purchase by the enterprises including, in both cases, information concerning—</text> <clause id="H3D9E57E649C5448188EA3200D71C195E"><enum>(i)</enum><text>the price of the house that secures the mortgage;</text></clause> <clause id="H9447BCA38D054C4CA77C1D44AD6FAAA9"><enum>(ii)</enum><text>the loan-to-value ratio of the mortgage, which shall reflect any secondary liens on the relevant property;</text></clause> <clause id="H2C62F6525ACD44D69214935233081302"><enum>(iii)</enum><text>the terms of the mortgage;</text></clause> <clause id="HF2F06210C7B24948A55456F9153F859B"><enum>(iv)</enum><text>the creditworthiness of the borrower or borrowers; and</text></clause> <clause id="H1301B6564EA94AA5A976642EF6E5BE00"><enum>(v)</enum><text>whether the mortgage, in the case of a conforming mortgage, was purchased by an enterprise; and</text></clause></subparagraph> <subparagraph id="HAAD5072828FC4B578542001903ECA16"><enum>(B)</enum><text>such other matters as the Director determines to be appropriate.</text></subparagraph></paragraph> <paragraph id="H28B1628FD3D54C1900CB44F2EBA60035"><enum>(3)</enum><header>Public availability</header><text>The Director shall make any data collected by the Director in connection with the conduct of a monthly survey available to the public in a timely manner, provided that the Director may modify the data released to the public to ensure that the data is not released in an identifiable form.</text></paragraph> <paragraph id="H4E9FFC4027ED4285ABA107D104233673"><enum>(4)</enum><header>Definition</header><text>For purposes of this subsection, the term <term>identifiable form</term> means any representation of information that permits the identity of a borrower to which the information relates to be reasonably inferred by either direct or indirect means.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBBEE7FD4969046B48602F19832FD4410"><enum>(b)</enum><header>Standards for subprime loans</header><text display-inline="yes-display-inline">The Director shall, not later than one year after the effective date under section 185, by regulations issued under section 1316G of the Housing and Community Development Act of 1992, establish standards by which mortgages purchased and mortgages purchased and securitized shall be characterized as subprime for the purpose of, and only for the purpose of, complying with the reporting requirement under section 1324(b)(9) of such Act.</text></subsection></section> <section id="H12C67EA07A58498E91F072B6FB4DCC4E" display-inline="no-display-inline" section-type="subsequent-section"><enum>125.</enum><header>Revision of housing goals</header> <subsection id="HFB22E76949164F7CA67632C7E92C9233"><enum>(a)</enum><header>Housing goals</header><text>The Housing and Community Development Act of 1992 is amended by striking sections 1331 through 1334 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561-4">12 U.S.C. 4561-4</external-xref>) and inserting the following new sections: </text> <quoted-block style="OLC" id="H5830CC0142F9435EBC007F61C177F52D" display-inline="no-display-inline"> <section id="H31ECB39A2CE54A0000B3A5DD0413D3F0"><enum>1331.</enum><header> Establishment of housing goals</header> <subsection id="HFA82F1954E2A45C50052CC946DC1192E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director shall establish, effective for the first year that begins after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title> and each year thereafter, annual housing goals, with respect to the mortgage purchases by the enterprises, as follows:</text> <paragraph id="H071E695D84C843E1A28B8308B289003C"><enum>(1)</enum><header>Single family housing goals</header><text>Three single-family housing goals under section 1332.</text></paragraph> <paragraph id="H2EF645AA1647465C9BD5A134FCE63BF5"><enum>(2)</enum><header>Multifamily special affordable housing goals</header><text display-inline="yes-display-inline">A multifamily special affordable housing goal under section 1333.</text></paragraph></subsection> <subsection id="HCB2F1767A78146E8820093F3D52E3DC9"><enum>(b)</enum><header>Eliminating interest rate disparities</header> <paragraph id="HC0A9BD2A585E429CA15CCCABD99DE13"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In establishing and implementing the housing goals under this subpart, the Director shall require the enterprises to disclose appropriate information to allow the Director to assess if there are any disparities in interest rates charged on mortgages to borrowers who are minorities as compared with borrowers of similar creditworthiness who are not minorities, as evidenced in reports pursuant to the Home Mortgage Disclosure Act of 1975.</text></paragraph> <paragraph id="HED199C494EEA4D20963DC640F588C0AF"><enum>(2)</enum><header>Report and remedy</header><text display-inline="yes-display-inline">Upon a finding by the Director, pursuant to the information provided by an enterprise in paragraph (1), that a pattern of disparities in interest rates exists, the Director shall—</text> <subparagraph id="HFEBF04573C3441B8B46E90AE42C27391"><enum>(A)</enum><text>submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report detailing the disparities; and</text></subparagraph> <subparagraph id="HBC380A8C837C4A4D9F895680241BD8AA"><enum>(B)</enum><text>require the enterprise to take such action as the Director deems appropriate pursuant to this Act to remedy the interest rate disparities identified.</text></subparagraph></paragraph> <paragraph id="H612D0CEFC6A84D4900FB50358957D800"><enum>(3)</enum><header>Protection of identity</header><text display-inline="yes-display-inline">In carrying out this subsection, the Director shall ensure that no information is made public that would reasonably allow identification, directly or indirectly, of an individual borrower.</text></paragraph></subsection> <subsection id="H86A45350F5DF4BD3ABF6D9EF57C268E"><enum>(c)</enum><header>Timing</header><text display-inline="yes-display-inline">The Director shall establish an annual deadline by which the Director shall establish the annual housing goals under this subpart for each year, taking into consideration the need for the enterprises to reasonably and sufficiently plan their operations and activities in advance, including operations and activities necessary to meet such annual goals.</text></subsection></section> <section id="H579639086FF94A5594AF597C4B10AFBD"><enum>1332.</enum><header>Single-family housing goals</header> <subsection id="H941B737FDDEF4519AD49E4B6F51EE4A7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director shall establish an annual goal for the purchase by each enterprise of conventional, conforming, single-family, owner-occupied, purchase money mortgages financing housing for each of the following categories of families:</text> <paragraph id="HC5A3F115044246A792AE74CE7B70F6B"><enum>(1)</enum><text>Low-income families.</text></paragraph> <paragraph id="H23ADD12931374A69A822179F3C64CF3F"><enum>(2)</enum><text>Families that reside in low-income areas.</text></paragraph> <paragraph id="HED57B6194B6344D29F7400CCE263F65F"><enum>(3)</enum><text>Very low-income families.</text></paragraph></subsection> <subsection id="HF7B4C9EDB541472CBFCCA33B3FD22321"><enum>(b)</enum><header>Determination of compliance</header><text display-inline="yes-display-inline">The Director shall determine, for each year that the housing goal under this section is in effect pursuant to section 1331(a), whether each enterprise has complied with the single-family housing goal established under this section for such year. An enterprise shall be considered to be in compliance with such a goal for a year only if—</text> <paragraph id="H38B98B8630CA4B8700EEB4BDE5805700"><enum>(1)</enum><text display-inline="yes-display-inline">for each of the types of families described in subsection (a), the percentage of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by each enterprise in such year that serve such families, meets or exceeds</text></paragraph> <paragraph id="HFA7D7AEC1EE6411CAFFFEB6300245302"><enum>(2)</enum><text>the target for the year for such type of family that is established under subsection (c).</text></paragraph></subsection> <subsection id="HFF7FDE0EBA414B17AAFE447542F762D3"><enum>(c)</enum><header>Annual targets</header> <paragraph id="H88E148D47FA54425B1D170D8F74D81C6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), for each of the types of families described in subsection (a), the target under this subsection for a year shall be the average percentage, for the three years that most recently precede such year and for which information under the Home Mortgage Disclosure Act of 1975 is publicly available, of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages originated in such year that serves such type of family, as determined by the Director using the information obtained and determined pursuant to paragraphs (3) and (4).</text></paragraph> <paragraph id="H0E04D62A7C62478BB19F6D33BB381677" display-inline="no-display-inline"><enum>(2)</enum><header>Authority to increase targets</header> <subparagraph id="H6A2C17CD957041D186B79720B29D313B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Director may, for any year, establish by regulation, for any or all of the types of families described in subsection (a), percentage targets that are higher than the percentages for such year determined pursuant to paragraph (1), to reflect expected changes in market performance related to such information under the Home Mortgage Disclosure Act of 1975.</text></subparagraph> <subparagraph id="HC39B5B22BDB9478E8EDAEBDDCA7443F5"><enum>(B)</enum><header>Factors</header><text display-inline="yes-display-inline">In establishing any targets pursuant to subparagraph (A), the Director shall consider the following factors:</text> <clause id="H9EB68BF3A95F477B00B42F5CFB2056E0"><enum>(i)</enum><text>National housing needs.</text></clause> <clause id="HD3E4E804EA96482AB9A48822FF861713"><enum>(ii)</enum><text>Economic, housing, and demographic conditions.</text></clause> <clause id="HBE27BE782BC745E1A71B00BB929FD35F"><enum>(iii)</enum><text>The performance and effort of the enterprises toward achieving the housing goals under this section in previous years.</text></clause> <clause id="H8395B65534304CE7AA823FC57836832B"><enum>(iv)</enum><text display-inline="yes-display-inline">The size of the conventional mortgage market serving each of the types of families described in subsection (a) relative to the size of the overall conventional mortgage market.</text></clause> <clause id="H5542D0B4CA1C462E98A5A50045EBB7F"><enum>(v)</enum><text>The need to maintain the sound financial condition of the enterprises.</text></clause></subparagraph></paragraph> <paragraph id="H84B9E1C25E2C4A0FA39656119D274403"><enum>(3)</enum><header>HMDA information</header><text display-inline="yes-display-inline">The Director shall annually obtain information submitted in compliance with the Home Mortgage Disclosure Act of 1975 regarding conventional, conforming, single-family, owner-occupied, purchase money mortgages originated and purchased for the previous year.</text></paragraph> <paragraph id="HBF411451D83D4C009390D424F207E649"><enum>(4)</enum><header>Conforming mortgages</header><text display-inline="yes-display-inline">In determining whether a mortgage is a conforming mortgage for purposes of this paragraph, the Director shall consider the original principal balance of the mortgage loan to be the principal balance as reported in the information referred to in paragraph (3), as rounded to the nearest thousand dollars.</text></paragraph></subsection> <subsection id="HC5F5682B62314B9587A5E0E438B676CB"><enum>(d)</enum><header>Notice of determination and enterprise comment</header> <paragraph id="H3B53B3DCD58A4AEDB800C0CFEB443BA4"><enum>(1)</enum><header>Notice</header><text>Within 30 days of making a determination under subsection (b) regarding a compliance of an enterprise for a year with the housing goal established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the targets for the year under subsection (c).</text></paragraph> <paragraph id="HA36B0F0E08644B64B462E6095B9B654C"><enum>(2)</enum><header>Comment period</header><text display-inline="yes-display-inline">The Director shall provide each enterprise an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice.</text></paragraph></subsection> <subsection id="H07F814041EDB47019792AE6300CAD681"><enum>(e)</enum><header>Use of borrower income</header><text display-inline="yes-display-inline">In monitoring the performance of each enterprise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 1336), the Director shall consider a mortgagor’s income to be such income at the time of origination of the mortgage.</text></subsection></section> <section id="HAF3918820755441286B580F458B14CAD"><enum>1333.</enum><header> Multifamily special affordable goal</header> <subsection id="HEE78194F247F4496AA7B1D7374F07546"><enum>(a)</enum><header>Establishment</header> <paragraph id="HC845B3112013408BBF85C666C5AB2BAA"><enum>(1)</enum><header>In general</header><text>The Director shall establish, by regulation, an annual goal for the purchase by each enterprise of each of the following types of mortgages on multifamily housing:</text> <subparagraph id="HD1917D4B827340F9A44B527862306B29"><enum>(A)</enum><text display-inline="yes-display-inline">Mortgages that finance dwelling units for very low-income families.</text></subparagraph> <subparagraph id="HA6B03B3C03EB44189CF79EDB53703EB"><enum>(B)</enum><text display-inline="yes-display-inline">Mortgages that finance dwelling units assisted by the low-income housing tax credit under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986.</text></subparagraph></paragraph> <paragraph id="HA49479744DB346EFB1B277BBD9038EA"><enum>(2)</enum><header>Additional requirements for smaller projects</header><text>The Director shall establish, within the goal under this section, additional requirements for the purchase by each enterprise of mortgages described in paragraph (1) for multifamily housing projects of a smaller or limited size, which may be based on the number of dwelling units in the project or the amount of the mortgage, or both, and shall include multifamily housing projects of such smaller sizes as are typical among such projects that serve rural areas.</text></paragraph> <paragraph id="H329D03078E98471399D69C3F012246A4"><enum>(3)</enum><header>Factors</header><text>In establishing the goal under this section relating to mortgages on multifamily housing for an enterprise, the Director shall consider—</text> <subparagraph id="H0D8EA0EF0C4D457290D1A383A8C3AE8B"><enum>(A)</enum><text>national multifamily mortgage credit needs;</text></subparagraph> <subparagraph id="H39D06DA3BD8147AA96FB7200DDB4A2F5"><enum>(B)</enum><text>the performance and effort of the enterprise in making mortgage credit available for multifamily housing in previous years;</text></subparagraph> <subparagraph id="H3180CD1153B34CA1BAB513008300E268"><enum>(C)</enum><text>the size of the multifamily mortgage market;</text></subparagraph> <subparagraph id="H8621D308852A4D2600A75C18624754F9"><enum>(D)</enum><text>the ability of the enterprise to lead the industry in making mortgage credit available, especially for underserved markets, such as for small multifamily projects of 5 to 50 units, multifamily properties in need of rehabilitation, and multifamily properties located in rural areas; and</text></subparagraph> <subparagraph id="H208AF70B6DD8418AB9309433FDCFCAB"><enum>(E)</enum><text>the need to maintain the sound financial condition of the enterprise.</text></subparagraph></paragraph></subsection> <subsection id="HD5580EF266C34E52B1E8543700C5F6A3"><enum>(b)</enum><header>Units financed by housing finance agency bonds</header><text>The Director shall give full credit toward the achievement of the multifamily special affordable housing goal under this section (for purposes of section 1336) to dwelling units in multifamily housing that otherwise qualifies under such goal and that is financed by tax-exempt or taxable bonds issued by a State or local housing finance agency, but only if—</text> <paragraph id="HA544B6ADCB1B4C0F00A9936976FC68DD"><enum>(1)</enum><text>such bonds are secured by a guarantee of the enterprise; or</text></paragraph> <paragraph id="H8F635546C5B64ED39D8003C0FEB89368"><enum>(2)</enum><text>are not investment grade and are purchased by the enterprise.</text></paragraph></subsection> <subsection id="H0DD817F801204007B1CDD657B5265A4"><enum>(c)</enum><header>Use of tenant income or rent</header><text display-inline="yes-display-inline">The Director shall monitor the performance of each enterprise in meeting the goals established under this section and shall evaluate such performance (for purposes of section 1336) based on—</text> <paragraph id="H834165EB09594B53863D27997B3477C1"><enum>(1)</enum><text>the income of the prospective or actual tenants of the property, where such data are available; or</text></paragraph> <paragraph id="H1784A14FE203466D8CFCA273F7D4BB8C"><enum>(2)</enum><text>where the data referred to in paragraph (1) are not available, rent levels affordable to low-income and very low-income families.</text></paragraph><continuation-text continuation-text-level="subsection">A rent level shall be considered to be affordable for purposes of this subsection for an income category referred to in this subsection if it does not exceed 30 percent of the maximum income level of such income category, with appropriate adjustments for unit size as measured by the number of bedrooms.</continuation-text></subsection> <subsection id="H8217A9743E754B1F891FA5B8474B2669"><enum>(d)</enum><header>Determination of compliance</header><text display-inline="yes-display-inline">The Director shall, for each year that the housing goal under this section is in effect pursuant to section 1331(a), determine whether each enterprise has complied with such goal and the additional requirements under subsection (a)(2).</text></subsection></section> <section id="H05E81C9EC35A473CAA92FE337BD01C5C"><enum>1334.</enum><header>Discretionary adjustment of housing goals</header></section> <subsection id="HD4D58C49E19D468C8FF5592E21B44F3"><enum>(a)</enum><header>Authority</header><text>An enterprise may petition the Director in writing at any time during a year to reduce the level of any goal for such year established pursuant to this subpart.</text></subsection> <subsection id="HD7AE837BC6594717B87D74A30853A868"><enum>(b)</enum><header>Standard for reduction</header><text>The Director may reduce the level for a goal pursuant to such a petition only if—</text> <paragraph id="HEA2E249FB0244E63B200DDA2060010BC"><enum>(1)</enum><text>market and economic conditions or the financial condition of the enterprise require such action; or</text></paragraph> <paragraph id="HD5816638A6124E558D2E50EA0000F2D9"><enum>(2)</enum><text>efforts to meet the goal would result in the constraint of liquidity, over-investment in certain market segments, or other consequences contrary to the intent of this subpart, or section 301(3) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716(3)</external-xref>) or section 301(3) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note), as applicable.</text></paragraph></subsection> <subsection id="H2DBC9A1486274B20B4EAB4A2271C6CEE"><enum>(c)</enum><header>Determination</header><text display-inline="yes-display-inline">The Director shall make a determination regarding any proposed reduction within 30 days of receipt of the petition regarding the reduction. The Director may extend such period for a single additional 15-day period, but only if the Director requests additional information from the enterprise. A denial by the Director to reduce the level of any goal under this section may be appealed to the United States District Court for the District of Columbia or the United States district court in the jurisdiction in which the headquarters of an enterprise is located.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H792154EDBF0E4A779DF8CEF86BFE7F05"><enum>(b)</enum><header>Conforming amendments</header><text>The Housing and Community Development Act of 1992 is amended——</text> <paragraph id="H0385DED8A6444848A03552C52438A606"><enum>(1)</enum><text>in section 1335(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565(a)</external-xref>), in the matter preceding paragraph (1), by striking <quote>low- and moderate-income housing goal</quote> and all that follows through <quote>section 1334</quote> and inserting <quote>housing goals established under this subpart</quote>; and</text></paragraph> <paragraph id="H2F989FC41B034E3FB8576750A8A5827F"><enum>(2)</enum><text>in section 1336(a)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)(1)</external-xref>), by striking <quote>sections 1332, 1333, and 1334,</quote> and inserting <quote>this subpart</quote> .</text> </paragraph></subsection> <subsection id="H387C771227C94C6900CB9506CFF13B22" display-inline="no-display-inline"><enum>(c)</enum><header>Definitions</header><text>Section 1303 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>), as amended by the preceding provisions of this Act, is further amended—</text> <paragraph id="H25000B07B81B4754B21302D7C7360260"><enum>(1)</enum><text>in paragraph (26), by striking <quote>60 percent</quote> each place such term appears and inserting <quote>50 percent</quote>; </text></paragraph> <paragraph id="HAF77D4D254A548908188C79759366B45"><enum>(2)</enum><text>by redesignating paragraphs (23) through (26) as paragraphs (27) through (30), respectively;</text></paragraph> <paragraph id="H6FB0443757854E3084A8C262ECF8215" display-inline="no-display-inline"><enum>(3)</enum><text>by inserting after paragraph (22) the following new paragraph:</text> <quoted-block style="OLC" id="H0A632379B59D460B87B9F91D6F047D" display-inline="no-display-inline"> <paragraph id="HC40965053D9E42EC83F0DB85F172B8A9"><enum>(26)</enum><header>Rural areas</header><text display-inline="yes-display-inline">The term <quote>rural areas</quote> means any areas that are non-metropolitan areas (as such term is defined by the Director of the Office of Management and Budget), including micropolitan areas and tribal trust lands.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF9769DC91B634866B1E0151EBD00AA31"><enum>(4)</enum><text>by redesignating paragraphs (14) through (22) as paragraphs (17) through (25), respectively; and</text></paragraph> <paragraph id="HDBD3C10564AF4CE98F9F446E0609F828"><enum>(5)</enum><text>by inserting after paragraph (13) the following new paragraph:</text> <quoted-block style="OLC" id="HD1AEC17CB99D40C59695FEE308592733" display-inline="no-display-inline"> <paragraph id="HD662BB9FC3244E70801E90BE6D795B2E"><enum>(16) </enum><header>Low-income area</header><text>The term ‘low income area’ means a census tract or block numbering area in which the median income does not exceed 80 percent of the median income for the area in which such census tract or block numbering area is located, and, for the purposes of section 1332(a)(2), shall include families having incomes not greater than 100 percent of the area median income who reside in minority census tracts.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HB73AECFEF2B544E380837466EDF94D65"><enum>(6)</enum><text>by redesignating paragraphs (12) and (13) as paragraphs (14) and (15), respectively;</text></paragraph> <paragraph id="H41D3582D96B444DD8783D9C227001F28"><enum>(7)</enum><text>by inserting after paragraph (11) the following new paragraph:</text> <quoted-block style="OLC" id="H8F4B387912664DF5A1A4A1DC5DB16899" display-inline="no-display-inline"> <paragraph id="H0084E9525FA74532827968197B55D9D8"><enum>(13)</enum><header>Extremely low-income</header><text>The term <quote>extremely low-income</quote> means—</text> <subparagraph id="HFCA1908B57A64FF18B55A58D40C1FDED"><enum>(A)</enum><text>in the case of owner-occupied units, income not in excess of 30 percent of the area median income; and</text></subparagraph> <subparagraph id="H23540CD3B1AF4D80B3E363DA7CF8AB42"><enum>(B)</enum><text>in the case of rental units, income not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Secretary.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H57A4751A4D444C35B2BBD3431314A780"><enum>(8)</enum><text>by redesignating paragraphs (8) through (11) as paragraphs (9) through (12), respectively; and</text></paragraph> <paragraph id="H2AA9532F834C413884FFAAC9480382FF" commented="no"><enum>(9)</enum><text>by inserting after paragraph (7) the following new paragraph:</text> <quoted-block style="OLC" id="H7EC86CFCCC8B4949885F55BBD2776D39" display-inline="no-display-inline"> <paragraph id="H30741A0896564F50A2C95C1FABEF8402" commented="no"><enum>(8)</enum><header>Conforming mortgage</header><text>The term <quote>conforming mortgage</quote> means, with respect to an enterprise, a conventional mortgage having an original principal obligation that does not exceed the dollar limitation, in effect at the time of such origination, under, as applicable—</text> <subparagraph id="H31A9C2A5D43D4281A878F0814FD6F741" commented="no"><enum>(A)</enum><text>section 302(b)(2) of the Federal National Mortgage Association Charter Act; or</text></subparagraph> <subparagraph id="HD198F570DFFF48C7BC76C5C83189A314" commented="no"><enum>(B)</enum><text>section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H113C9350C3CC4376AED155EE33EBFE00" display-inline="no-display-inline" section-type="subsequent-section"><enum>126.</enum><header>Duty to serve underserved markets</header> <subsection id="H0319070B93D94AE6B1B0597ED044B15"><enum>(a)</enum><header>Establishment and evaluation of performance</header><text>Section 1335 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565</external-xref>) is amended—</text> <paragraph id="H087F9237C4824EA4929F69B917AA3FD"><enum>(1)</enum><text>in the section heading, by inserting <quote><header-in-text level="section">duty to serve underserved markets and</header-in-text></quote> before <quote><header-in-text level="section">other</header-in-text></quote>;</text></paragraph> <paragraph id="HA1B4941F74024B3CBF13BF3B0024999F"><enum>(2)</enum><text>by striking subsection (b);</text></paragraph> <paragraph id="HC41E8C9AE961468F8DE3482ED2EE5DFE"><enum>(3)</enum><text>in subsection (a)—</text> <subparagraph id="H192E66B1A5E04984ABD6DA810061E03E"><enum>(A)</enum><text>in the matter preceding paragraph (1), by inserting <quote>and to carry out the duty under subsection (a) of this section</quote> before <quote>, each enterprise shall</quote>; </text></subparagraph> <subparagraph id="H1FA1F54EE11449EF93E309FED3DE72F"><enum>(B)</enum><text>in paragraph (3), by inserting <quote>and</quote> after the semicolon at the end;</text></subparagraph> <subparagraph id="H86D1AD6179D74AF7B52EE460D9009F89"><enum>(C)</enum><text>in paragraph (4), by striking <quote>; and</quote> and inserting a period;</text></subparagraph> <subparagraph id="H96D00F725C6A41B8B032E0DF7CCA8729"><enum>(D)</enum><text>by striking paragraph (5); and</text></subparagraph> <subparagraph id="H6BEA4165D5FD46AC88F2FFA25DC7A659"><enum>(E)</enum><text>by redesignating such subsection as subsection (b);</text></subparagraph></paragraph> <paragraph id="HAC7D3D653A8741FA849853A61CECE7BD"><enum>(4)</enum><text>by inserting before subsection (b) (as so redesignated by paragraph (3)(E) of this subsection) the following new subsection:</text> <quoted-block style="OLC" id="H36C17025D8B14A43B21C7574290004D7" display-inline="no-display-inline"> <subsection id="H3F3E109BAEE24F11819F07AC1CAE3364"><enum>(a)</enum><header>Duty to serve underserved markets</header> <paragraph id="H651A9ACB0C524A42934973835D7B8137"><enum>(1)</enum><header>Duty</header><text>In accordance with the purpose of the enterprises under section 301(3) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716</external-xref>) and section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note) to undertake activities relating to mortgages on housing for very low-, low-, and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities, each enterprise shall have the duty to increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for underserved markets.</text></paragraph> <paragraph id="HEC4602636EC042CC86FA495673C36920"><enum>(2)</enum><header>Underserved markets</header><text>To meet its duty under paragraph (1), each enterprise shall comply with the following requirements with respect to the following underserved markets:</text> <subparagraph id="H44AAC5B9151F4AE08C8D76D66DCD86DE"><enum>(A)</enum><header>Manufactured housing</header><text>The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families.</text></subparagraph> <subparagraph id="H1DA81D0B82734063829446C2BAE50277"><enum>(B)</enum><header>Affordable housing preservation</header><text display-inline="yes-display-inline">The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and moderate-income families, including housing projects subsidized under—</text> <clause id="H6E4D7465C6834946B53D24353C3C6C65"><enum>(i)</enum><text>the project-based and tenant-based rental assistance programs under section 8 of the United States Housing Act of 1937;</text></clause> <clause id="H2C9297097E9F45B294696800C6FE00EE"><enum>(ii)</enum><text>the program under section 236 of the National Housing Act;</text></clause> <clause id="H727C08F44B6B4E5EB9B81FBAFA4B34F"><enum>(iii)</enum><text>the below-market interest rate mortgage program under section 221(d)(4) of the National Housing Act; </text></clause> <clause id="H2C14DD4F637A40B7BE8D59D52646EBB1"><enum>(iv)</enum><text>the supportive housing for the elderly program under section 202 of the Housing Act of 1959;</text></clause> <clause id="H72895BBEFFE84A22AC8234B564038FC"><enum>(v)</enum><text>the supportive housing program for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act; and</text></clause> <clause id="HF223081E3F7848319CE720D41B773CC3"><enum>(vi)</enum><text>the rural rental housing program under section 515 of the Housing Act of 1949.</text></clause></subparagraph> <subparagraph id="H355556C3124245B595D0205B82390197"><enum>(C)</enum><header>Rural and other underserved markets</header><text display-inline="yes-display-inline">The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in rural areas, and for mortgages for housing for any other underserved market for very low-, low-, and moderate-income families that the Secretary identifies as lacking adequate credit through conventional lending sources. Such underserved markets may be identified by borrower type, market segment, or geographic area.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H35FD5E61FFC24F5BB49C39E989A900D9"><enum>(5)</enum><text>by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H009A8A2E1D284CA492BEC07C026E5FB8" display-inline="no-display-inline"> <subsection id="HDC696EB280C644ADB9E5FF473F1D8790"><enum>(c)</enum><header>Evaluation and reporting of compliance</header> <paragraph id="H0D07C2F8D71C45C88549FD29114D2DCA"><enum>(1)</enum><header>In general</header><text>Not later than 6 months after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>, the Director shall establish a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under subsection (a) to serve underserved markets and for rating the extent of such compliance. Using such method, the Director shall, for each year, evaluate such compliance and rate the performance of each enterprise as to extent of compliance. The Director shall include such evaluation and rating for each enterprise for a year in the report for that year submitted pursuant to section 1319B(a).</text></paragraph> <paragraph id="H400B1A9BD5A6422982D1D3D02D5ED12C"><enum>(2)</enum><header>Separate evaluations</header><text>In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director shall separately evaluate whether the enterprise has complied with such duty with respect to each of the underserved markets identified in subsection (a), taking into consideration—</text> <subparagraph id="H8395268D0ACC44799D8EE6F1DE9EF1BE"><enum>(A)</enum><text display-inline="yes-display-inline">the development of loan products and more flexible underwriting guidelines;</text></subparagraph> <subparagraph id="H5A9AD08CFA914C59B0CF3007592A7DA"><enum>(B)</enum><text display-inline="yes-display-inline">the extent of outreach to qualified loan sellers in each of such underserved markets; and</text></subparagraph> <subparagraph id="HAA3015D3338448D0BDEA7CE6B9D6CD89"><enum>(C)</enum><text>the volume of loans purchased in each of such underserved markets.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H93C33F2F91B24C2898DAAE9EA3E7017"><enum>(b)</enum><header>Enforcement</header><text>Subsection (a) of section 1336 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)</external-xref>) is amended—</text> <paragraph id="HF0DF5B70030644AA0007BACD66523FF"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>and with the duty under section 1335A of each enterprise with respect to underserved markets,</quote> before <quote>as provided in this section,</quote>; and</text></paragraph> <paragraph id="H59781A55241C4C99B6AF9EAC347C615"><enum>(2)</enum><text>by adding at the end of such subsection, as amended by the preceding provisions of this title, the following new paragraph:</text> <quoted-block id="HF3F6469A97E548DA8C5FA44D008743D1"> <paragraph id="HA4304FFAFA4C48C1B280B036063B000"><enum>(4)</enum><header>Enforcement of duty to provide mortgage credit to underserved markets</header><text>The duty under section 1335(a) of each enterprise to serve underserved markets (as determined in accordance with section 1335(c)) shall be enforceable under this section to the same extent and under the same provisions that the housing goals established under sections 1332, 1333, and 1334 are enforceable. Such duty shall not be enforceable under any other provision of this title (including subpart C of this part) other than this section or under any provision of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H7D69C357B4C84A6B97004824DD00EF00" display-inline="no-display-inline" section-type="subsequent-section"><enum>127.</enum><header>Monitoring and enforcing compliance with housing goals</header><text display-inline="no-display-inline">Section 1336 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566</external-xref>) is amended—</text> <paragraph id="H641FA419F52C4E7586B05B435E926703"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="HD9A3B8ED61B04D4BA9D16FD7F3A98576"><enum>(A)</enum><text>in the subsection heading, by inserting <quote>Preliminary</quote> before <quote>Determination</quote>;</text></subparagraph> <subparagraph id="H409E70B3557147E68C7351B63B9186F1"><enum>(B)</enum><text>by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block id="HFF14E95A9E184454834CC046FB969EEA"> <paragraph id="H5C24EF8320374E52AEDDA3606E5DB186"><enum>(1)</enum><header>Notice</header><text>If the Director preliminarily determines that an enterprise has failed, or that there is a substantial probability that an enterprise will fail, to meet any housing goal established under this subpart, the Director shall provide written notice to the enterprise of such a preliminary determination, the reasons for such determination, and the information on which the Director based the determination.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H23ED514688174C7F8F26B9D7E9D38BA9"><enum>(C)</enum><text>in paragraph (2)—</text> <clause id="H63F8641828C64447B5E9E1B0046BB56"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>finally</quote> before <quote>determining</quote>;</text></clause> <clause id="HCE07FF7A9BB44A94A14BD1260755738C"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C) and inserting the following new subparagraph:</text> <quoted-block id="H9E918D13A10A429CB98413097336B82E"> <subparagraph id="H543DAE58BD9644A99B7BD46F3EF4CD6"><enum>(B)</enum><header>Extension or shortening of period</header><text>The Director may—</text> <clause id="HB32EF11CCD5C4589AD5B18A000AA0079"><enum>(i)</enum><text>extend the period under subparagraph (A) for good cause for not more than 30 additional days; and</text></clause> <clause id="H75BA4F9CB1D74A40943FC62FC85D0798"><enum>(ii)</enum><text>shorten the period under subparagraph (A) for good cause.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="H7B476F2F266F4D4B97ABA9ED00D83D00"><enum>(iii)</enum><text>by redesignating subparagraph (D) as subparagraph (C); and</text></clause></subparagraph> <subparagraph id="HDDDA78D19AC945EA8BE8FA44431FFA5F"><enum>(D)</enum><text>in paragraph (3)—</text> <clause id="HE885EE96FE9249728C1700DEBDE01BFC"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>determine</quote> and inserting <quote>issue a final determination of</quote>;</text></clause> <clause id="HEF6CFC9E6ADC402197467FC70062D735"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>final</quote> before <quote>determinations</quote>; and</text></clause> <clause id="H7EBC0B4229434687AB5F27BCFB26D98"><enum>(iii)</enum><text>in subparagraph (C)—</text> <subclause id="H345A71D8ED174A259C8C1577863595E2"><enum>(I)</enum><text>by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> and inserting <quote>Committee on Financial Services</quote>; and</text></subclause> <subclause id="HBB3855B3E4774C569856DA6C70C19E91"><enum>(II)</enum><text>by inserting <quote>final</quote> before <quote>determination</quote> each place such term appears; and</text></subclause></clause></subparagraph></paragraph> <paragraph id="H4CC2C81FA2794555B8E2193568525EF"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H706B425C5BCE41958352008D16D25900"><enum>(A)</enum><text>by striking the subsection designation and heading and all that follows through the end of paragraph (1) and inserting the following:</text> <quoted-block id="H18043AC48E55426D8506D008BF7423"> <subsection id="H05E3F34C28C74B8EA9E313CAA828DB41"><enum>(c)</enum><header>Cease and desist orders, civil money penalties, and remedies including Housing plans</header> <paragraph id="HF8F53D07793A49EA95B04C1B2E885D04"><enum>(1)</enum><header>Requirement</header><text>If the Director finds, pursuant to subsection (b), that there is a substantial probability that an enterprise will fail, or has actually failed, to meet any housing goal under this subpart and that the achievement of the housing goal was or is feasible, the Director may require that the enterprise submit a housing plan under this subsection. If the Director makes such a finding and the enterprise refuses to submit such a plan, submits an unacceptable plan, fails to comply with the plan or the Director finds that the enterprise has failed to meet any housing goal under this subpart, in addition to requiring an enterprise to submit a housing plan, the Director may issue a cease and desist order in accordance with section 1341, impose civil money penalties in accordance with section 1345, or order other remedies as set forth in paragraph (7) of this subsection.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HBC37239FC08041668763A18852F933E"><enum>(B)</enum><text>in paragraph (2)—</text> <clause id="H35749927AE45432A99B808FE40EAF68E"><enum>(i)</enum><text>by striking “<header-in-text>Contents</header-in-text>.—Each housing plan” and inserting “<header-in-text>Housing plan</header-in-text>.—If the Director requires a housing plan under this section, such a plan”; and</text></clause> <clause id="H0FEADE3649354E9E90D0DAC50B96CDE"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>and changes in its operations</quote> after <quote>improvements</quote>;</text></clause></subparagraph> <subparagraph id="H66A547C863EC4686BAA99438EC55C78"><enum>(C)</enum><text>in paragraph (3)—</text> <clause id="HF9246CAED79B490700366661292858C0"><enum>(i)</enum><text>by inserting <quote>comply with any remedial action or</quote> before <quote>submit a housing plan</quote>; and</text></clause> <clause id="H33A79F07B5B241E686D2F6485B123BC7"><enum>(ii)</enum><text>by striking <quote>under subsection (b)(3) that a housing plan is required</quote>;</text></clause></subparagraph> <subparagraph id="HB3993B9078D6479089960038002CE53"><enum>(D)</enum><text>in paragraph (4), by striking the first two sentences and inserting the following: <quote>The Director shall review each submission by an enterprise, including a housing plan submitted under this subsection, and not later than 30 days after submission, approve or disapprove the plan or other action. The Director may extend the period for approval or disapproval for a single additional 30-day period if the Director determines such extension necessary.</quote>; and</text></subparagraph> <subparagraph id="H5AD15F667293455F96D1245CFDA4E751"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="H79B6CB4682074631A5EBA2957D27BAF8"> <paragraph id="H1D8EEEA8175244299E17B69737DC8FC0"><enum>(7)</enum><header>Additional remedies for failure to meet goals</header><text>In addition to ordering a housing plan under this section, issuing cease and desist orders under section 1341, and ordering civil money penalties under section 1345, the Director may seek other actions when an enterprise fails to meet a goal, and exercise appropriate enforcement authority available to the Director under this Act to prohibit the enterprise from entering into new programs and new business activities and to order the enterprise to suspend programs and business activities pending its achievement of the goal.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section> <section id="HC7F76D8B79A242FF93427E9837AE4749" display-inline="no-display-inline" section-type="subsequent-section"><enum>128.</enum><header>Affordable housing fund</header> <subsection id="HE751C7DAD6454AFD88532E27CA576786"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Housing and Community Development Act of 1992 is amended by striking sections 1337 and 1338 (<external-xref legal-doc="usc" parsable-cite="usc/12/4562">12 U.S.C. 4562</external-xref> note) and inserting the following new section:</text> <quoted-block style="OLC" id="H908BF8E3C5394C09A3BF8FC9E5D0862" display-inline="no-display-inline"> <section id="HBA4D9E0946324D1994A83730B2B28EB"><enum>1337. </enum><header>Affordable housing fund</header> <subsection id="H51A9AAC62328471CA944C7FFFA00CEA4"><enum>(a)</enum><header>Establishment and purpose</header><text>Each enterprise shall establish and manage an affordable housing fund in accordance with this section. The purpose of the affordable housing fund shall be—</text> <paragraph id="H7466B98802584C39A09DA738C1E98443"><enum>(1)</enum><text>to increase homeownership for extremely low-and very low-income families;</text></paragraph> <paragraph id="H7C72E44699F2421A9FCFD96824AAFFD5"><enum>(2)</enum><text>to increase investment in housing in low-income areas, and areas designated as qualified census tracts or an area of chronic economic distress pursuant to <external-xref legal-doc="usc" parsable-cite="usc/26/143">section 143(j)</external-xref> of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/143">26 U.S.C. 143(j)</external-xref>);</text></paragraph> <paragraph id="H5D8F30799FDC41EEB4268F94E7E01025"><enum>(3)</enum><text>to increase and preserve the supply of rental and owner-occupied housing for extremely low- and very low-income families; and</text></paragraph> <paragraph id="H34E9C6B6ADB14DCBA5006E99B461E6C7"><enum>(4)</enum><text>to increase investment in economic and community development in economically underserved areas.</text></paragraph></subsection> <subsection id="H5A9DEB8ABA134B948639D9D7FDBD3BD0"><enum>(b)</enum><header>Allocation of amounts by enterprises</header> <paragraph id="H3A7F42C533FF4D958F7B0066F2FE00AD"><enum>(1)</enum><header>In general</header><text>In accordance with regulations issued by the Director under subsection (l) and subject to paragraph (2) of this subsection, each enterprise shall allocate to the affordable housing fund established under subsection (a) by the enterprise, in each year beginning after the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, 5 percent of the after-tax income of the enterprise for the preceding year.</text></paragraph> <paragraph id="H45D625826B91441C9B6770A21551AFC7"><enum>(2)</enum><header>Limitation</header><text>An enterprise shall not be required to make an allocation for a year to the affordable housing fund of the enterprise established under subsection (a) unless—</text> <subparagraph id="H55EBDBC284CB4D88ABF172E7D606DF39"><enum>(A)</enum><text display-inline="yes-display-inline">the enterprise is classified by the Director at the time of such allocation as adequately capitalized; and</text></subparagraph> <subparagraph id="H4CD6308F58544CD7BB32CA00E300C998"><enum>(B)</enum><text>the enterprise generated after-tax income for the preceding year.</text></subparagraph></paragraph> <paragraph id="H85DA9B0469CB4E4DB03489EAE500EA9E" display-inline="no-display-inline"><enum>(3)</enum><header>Determination of after-tax income</header><text>For purposes of this section, the term <quote>after-tax income</quote> means, with respect to an enterprise for a year, the amount reported by the enterprise for such year in the enterprise’s annual report for such year that is filed with the Securities and Exchange Commission, except that for any year in which no such filing is made by an enterprise or such filing is not timely made, such term means the amount determined by the Director based on the income tax return filings of the enterprise.</text></paragraph></subsection> <subsection id="HF2AFB0C39708498FACF15FBE206BCA4E"><enum>(c)</enum><header>Selection of activities funded using affordable housing fund amounts</header><text>Amounts from the affordable housing fund of the enterprise may be used, or committed for use, only for activities that—</text> <paragraph id="HCEBBAE71532B47B0833266B8D71E9F75"><enum>(1)</enum><text>are eligible under subsection (d) for such use; and</text></paragraph> <paragraph id="H62D76ABB7BC54DD8B8188B617EBF15BC"><enum>(2)</enum><text display-inline="yes-display-inline">are selected for funding by the enterprise in accordance with the process and criteria for such selection established pursuant to subsection (l)(2)(C).</text></paragraph></subsection> <subsection id="HCF3ED4C3F26443379007987668FA88DA"><enum>(d)</enum><header>Eligible activities</header><text display-inline="yes-display-inline">Amounts from the affordable housing fund of an enterprise shall be eligible for use, or for commitment for use, only for assistance for—</text> <paragraph id="H6BAEDE8234114802B8A6B80081792FF0"><enum>(1)</enum><text display-inline="yes-display-inline">the production, preservation, and rehabilitation of rental housing, including housing under the programs identified in section 1335(a)(2)(B), except that amounts provided from the Fund may be used for the benefit only of extremely low- and very low-income families;</text></paragraph> <paragraph id="H33092A3C5C4B49C497C3B1BA43610071"><enum>(2)</enum><text display-inline="yes-display-inline">the production, preservation, and rehabilitation of housing for homeownership, including such forms as downpayment assistance, closing cost assistance, and assistance for interest-rate buy-downs, that—</text> <subparagraph id="HB5460A5C6328422095C92691A06EF423"><enum>(A)</enum><text display-inline="yes-display-inline">is available for purchase only for use as a principal residence by families that qualify both as—</text> <clause id="H250418E86FBD4FFE8F23004E03A9B05C"><enum>(i)</enum><text>extremely low- and very-low income families at the times described in subparagraphs (A) through (C) of section 215(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12745">42 U.S.C. 12745(b)(2)</external-xref>); and</text></clause> <clause id="HE71B2393009C42D18BD4A7CA6117BAA6"><enum>(ii)</enum><text>first-time homebuyers, as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704</external-xref>), except that any reference in such section to assistance under title II of such Act shall for purposes of this section be considered to refer to assistance from the affordable housing fund of the enterprise;</text></clause></subparagraph> <subparagraph id="H84FDB4E5C2D04FFC87BCB2552F00A7FF"><enum>(B)</enum><text>has an initial purchase price that meets the requirements of section 215(b)(1) of the Cranston-Gonzalez National Affordable Housing Act; and</text></subparagraph> <subparagraph id="HBDFF746917504CD89C0004B3651235C0"><enum>(C)</enum><text>is subject to the same resale restrictions established under section 215(b)(3) of the Cranston-Gonzalez National Affordable Housing Act and applicable to the participating jurisdiction that is the State in which such housing is located; and</text></subparagraph></paragraph> <paragraph id="H7B964566BE6042D0856B7BD2F2878CC8"><enum>(3)</enum><text>leveraged grants under subsection (e).</text></paragraph></subsection> <subsection id="H15F890BDF6D340418E62031DEE9E8B88" display-inline="no-display-inline"><enum>(e)</enum><header>Leveraged grants</header> <paragraph id="HEBE0614E8EBD413AB2A3DA26A2DDCB6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Pursuant to regulations issued by the Director, each enterprise shall carry out a program under this subsection to make leveraged grants from amounts in the affordable housing fund of the enterprise, subject to the requirements under this subsection.</text></paragraph> <paragraph id="H3F9931AF19084B26B7321BB949BDE700"><enum>(2)</enum><header>Eligible purposes</header><text display-inline="yes-display-inline">Amounts from the affordable housing fund of an enterprise may be used only for leveraged grants under paragraph (4) for—</text> <subparagraph id="H8114C43B1FA548D9B92C19A0DC978177"><enum>(A)</enum><text>the development, preservation, rehabilitation, or purchase of affordable housing that meets underserved needs for affordable housing;</text></subparagraph> <subparagraph id="HAE38B6CEDCD946B8B107601BA1028162"><enum>(B)</enum><text>community or economic development activities in economically underserved areas; or</text></subparagraph> <subparagraph id="HE1CF30937BF64E3EA119A68195AA0002"><enum>(C)</enum><text>a combination of the activities identified in subparagraphs (A) and (B).</text></subparagraph></paragraph> <paragraph id="H0DF73CE9D4884A9F0099DBC012BDD71E" commented="no"><enum>(3)</enum><header>Eligible sponsors</header><text display-inline="yes-display-inline">A leveraged grant under this subsection may be made only on behalf of a sponsor that meets such requirements as the Director shall establish for experience and success in carrying out the types of activities proposed under the application of the sponsor, such as the following entities:</text> <subparagraph id="H7240980162EC4637929810254992EAA6" commented="no"><enum>(A)</enum><text>A low-income housing fund.</text></subparagraph> <subparagraph id="H90AABD840D8143F492B3CF59D883DE55" commented="no"><enum>(B)</enum><text>A housing finance agency of a State or unit of general local government.</text></subparagraph> <subparagraph id="H1D241F0ADCD54E0188AE8B190722EF4B" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">A non-profit organization having as one of its principal purposes the development or management of affordable housing.</text></subparagraph> <subparagraph id="H3C1EB66495244403BBEF81844F64277" commented="no"><enum>(D)</enum><text>A community development financial institution.</text></subparagraph> <subparagraph id="H579F5EE1A9544442003C1EB0BDDC6FC4" commented="no"><enum>(E)</enum><text>A national non-profit housing intermediary.</text></subparagraph> <subparagraph id="H8474BDEF379A4DEEA744CD5900125441"><enum>(F)</enum><text>A community development corporation.</text></subparagraph> <subparagraph id="HEE725DE09E7C450C8EC15618E7063CF0"><enum>(G)</enum><text>A community development entity.</text></subparagraph></paragraph> <paragraph id="HD33A7A59ECD24BED9C467303D8A14109"><enum>(4)</enum><header>Eligible uses</header><text>Amounts from the affordable housing fund of an enterprise may be used under this subsection only for the following types of leveraged grants:</text> <subparagraph id="H29B0F73A846242D883E98737DF37E25"><enum>(A)</enum><text>To provide loan loss reserves.</text></subparagraph> <subparagraph id="HC3DD2BAF42FC41DA998BE85893003D64"><enum>(B)</enum><text>To capitalize a revolving loan fund.</text></subparagraph> <subparagraph id="H78D0CF282A104C060078DD6BA4A4A27D"><enum>(C)</enum><text>To provide equity capitalization of an affordable housing fund.</text></subparagraph> <subparagraph id="HD28CB1D6C8C34933B8647033C8F36C6B"><enum>(D)</enum><text>To provide equity capitalization of a community development or economic development fund.</text></subparagraph> <subparagraph id="HEDC9F3772D0C4B3C98977C5658CD398D"><enum>(E)</enum><text>For risk sharing loans.</text></subparagraph> <subparagraph id="HEF72B65BA20B4A47ACD7F4B2CB00811D"><enum>(F)</enum><text>For the funding of a specific, detailed investment plan that identifies the specific types of uses and the expected timeframes with respect to such uses.</text></subparagraph></paragraph> <paragraph id="H11E3FB09236E423283C8046359FDC2E5"><enum>(5)</enum><header>Applications</header><text>The Director shall provide, in the application process established pursuant to subsection (l)(2)(C), for eligible sponsors under paragraph (3) of this subsection to submit applications to an enterprise for leveraged grants pursuant to this subsection, which shall include a detailed description of—</text> <subparagraph id="HA7B6993136904F1EA3075043901F1BD"><enum>(A)</enum><text>the types of affordable housing or community or economic development activities for which the leveraged grant is made;</text></subparagraph> <subparagraph id="H98376442C4FC4864AFF7D1C937E2D7FB"><enum>(B)</enum><text>the type of eligible leveraged grants under paragraph (4) to be made in the project;</text></subparagraph> <subparagraph id="HF64948A07C15463193C604173F9B65E6"><enum>(C)</enum><text>the types, sources, and amounts of other funding for the project;</text></subparagraph> <subparagraph id="H18BAB71B71824EACBCB74002D918592"><enum>(D)</enum><text>and the expected time frame of the leveraged grant under this subsection.</text></subparagraph></paragraph> <paragraph id="HE8767EC545F54B7BB7A26C5D73DF2440" display-inline="no-display-inline"><enum>(6)</enum><header>Limitations</header><text>The Director shall by regulation—</text> <subparagraph id="HCD0C785BB91F4E94ADAAC7E2A842AACB"><enum>(A)</enum><text display-inline="yes-display-inline">ensure that leveraged grants pursuant to this subsection are designed to alleviate need for affordable housing in underserved markets identified in section 1335(a) having the greatest need for such housing or to address community and economic development needs in economically underserved areas having the greatest need; and</text></subparagraph> <subparagraph id="H96C78878D48249E194A16D6184E0A6F9"><enum>(B) ensure that</enum><text display-inline="yes-display-inline">any returns from leveraged grants under this subsection accrue to the affordable housing fund of the enterprise and are available for use only as provided under this section.</text></subparagraph></paragraph></subsection> <subsection id="H7F990A7C78E9427E80FF5C919C1CFCFC"><enum>(f)</enum><header>Limitations on use</header> <paragraph id="H87F2CF56A90B4DDCAC0807A5E63D19E"><enum>(1)</enum><header>Amounts for homeownership</header><text>Of any amounts allocated pursuant to subsection (b) in each year to the affordable housing fund of an enterprise, not less than 10 percent shall be used for activities under paragraph (2) of subsection (d).</text></paragraph> <paragraph id="H2E5F0FB527744DA99F73CF7CB5C0B8D7" display-inline="no-display-inline"><enum>(2)</enum><header>Amounts for leveraged grants</header><text>Of any amounts allocated pursuant to subsection (b) in each year to the affordable housing fund of an enterprise, not more than 12.5 percent shall be used for leveraged grants under subsection (e).</text></paragraph> <paragraph id="HF4CB4D7C12244895911D58311CBAEBD6"><enum>(3)</enum><header>Deadline for commitment or use</header><text display-inline="yes-display-inline">Any amounts allocated to the affordable housing fund of an enterprise shall be used or committed for use within two years of the date of such allocation.</text></paragraph> <paragraph id="H611D30B7D81D45ECA346936E21EC81A8"><enum>(4)</enum><header>Use of returns</header><text display-inline="yes-display-inline">Any return on investment of any amounts allocated pursuant to subsection (b) to the affordable housing fund of an enterprise shall be available for use by the enterprise only for eligible activities under subsection (d).</text></paragraph> <paragraph id="H6C658720494C498ABC303B00BF00E0E6" display-inline="no-display-inline"><enum>(5)</enum><header>Administrative costs</header><text>The Director shall, by regulation—</text> <subparagraph id="H92C2C75C4A2A442E855CC2D31077B859"><enum>(A)</enum><text display-inline="yes-display-inline">provide that, except as provided in subparagraph (B), amounts allocated to the affordable housing fund of an enterprise may not be used for administrative, outreach, or other costs of—</text> <clause id="HB627E2655A5A4F9686A971F3B3B95786"><enum>(i)</enum><text>the enterprise; or</text></clause> <clause id="H00B5FE89AEEB4EACBD8644D000616242"><enum>(ii)</enum><text>any recipient of amounts from the affordable housing fund; and</text></clause></subparagraph> <subparagraph id="H6EC8D607EA86455C82A83552CB55E861"><enum>(B)</enum><text>limit the amount of any such contributions that may be used for administrative costs of the enterprise of maintaining the affordable housing fund and carrying out the program under this section.</text></subparagraph></paragraph> <paragraph id="H1CE5C01419BA465BA4077227CA3DE6E6"><enum>(6)</enum><header>Prohibition of consideration of use for meeting housing goals</header><text>In determining compliance with the housing goals under this subpart, the Director may not consider amounts used under this section for eligible activities under subsection (d). The Director shall give credit toward the achievement of such housing goals to purchases of mortgages for housing that receives funding under this section, but only to the extent that such purchases are funded other than under this section.</text></paragraph> <paragraph id="H683E3B0FEF844E4DA35336C61DDB2644"><enum>(7)</enum><header>Prohibition of certain subgrants</header><text>The Director shall, by regulation, ensure that amounts from the affordable housing fund of an enterprise awarded under this section to a national non-profit housing intermediary are not used for the purpose of distributing subgrants to other non-profit entities.</text></paragraph></subsection> <subsection id="HACFC790D88964EBC935F5DC5A254BF17"><enum>(g)</enum><header>Consistency of use with housing needs</header> <paragraph id="HEB4D34ACBCEE49D7A148D085632927BC"><enum>(1)</enum><header>Quarterly reports</header><text>The Director shall require each enterprise to submit a report, on a quarterly basis, to the Director and the affordable housing board established under subsection (j) describing the activities funded under this section during such quarter with amounts from the affordable housing fund of the enterprise established under this section. The Director shall make such reports publicly available. The affordable housing board shall review each report by an enterprise to determine the consistency of such activities funded with the criteria for selection of such activities established pursuant to subsection (l)(2)(C).</text></paragraph> <paragraph id="HEE632AAC01F146BCB2298CC000DEFB3B"><enum>(2)</enum><header>Replenishment</header><text display-inline="yes-display-inline">If the affordable housing board determines that an activity funded by an enterprise with amounts from the affordable housing fund of the enterprise is not consistent with the criteria established pursuant to subsection (l)(2)(C), the board shall notify the Director and the Director shall require the enterprise to allocate to such affordable housing fund (in addition to amounts allocated in compliance with subsection (b)) an amount equal to the sum of the amounts from the affordable housing fund used and further committed for use for such activity.</text></paragraph></subsection> <subsection id="H2C82E7B06BD441B28D003F48DE00A1FA"><enum>(h)</enum><header>Capital requirements</header><text>The utilization or commitment of amounts from the affordable housing fund of an enterprise shall not be subject to the risk-based capital requirements established pursuant to section 1361(a).</text></subsection> <subsection id="H7ED36E22E06A4C11AA09EAF130F2709C"><enum>(i)</enum><header>Reporting requirement</header><text>Each enterprise shall include, in the report required under section 309(m) of the Federal National Mortgage Association Charter Act or section 307(f) of the Federal Home Loan Mortgage Corporation Act, as applicable, a description of the actions taken by the enterprise to utilize or commit amounts allocated under this section to the affordable housing fund of the enterprise established under this section.</text></subsection> <subsection id="H129E5F52BD624E80B6DBFD127118215"><enum>(j)</enum><header>Affordable housing board</header> <paragraph id="HC61AD533CB46484BBF790344128E166D"><enum>(1)</enum><header>Appointment</header><text>The Director shall appoint an affordable housing board of 7, 9, or 11 persons, who shall include—</text> <subparagraph id="HB64EAA86E9984DF8BDE34D810100ADEE"><enum>(A)</enum><text>the Director, or the Director’s designee;</text></subparagraph> <subparagraph id="H6BC7FD4C2F82479B82398D76A1214954"><enum>(B)</enum><text>the Secretary of Housing and Urban Development, or the Secretary’s designee;</text></subparagraph> <subparagraph id="H40568088B07042C0922F48AA5B49CC93"><enum>(C)</enum><text>the Secretary of Agriculture, or the Secretary’s designee;</text></subparagraph> <subparagraph id="H83FD75871932426DBD3C53530058C2CB"><enum>(D)</enum><text>2 persons from for-profit organizations or businesses actively involved in providing or promoting affordable housing for extremely low- and very low-income households; and</text></subparagraph> <subparagraph id="H368D8D6AFA784E80B9401C74BAB5B8A1"><enum>(E)</enum><text display-inline="yes-display-inline">2 persons from nonprofit organizations actively involved in providing or promoting affordable housing for extremely low- and very low-income households.</text></subparagraph></paragraph> <paragraph id="H250B7E3F2AD34ABAA44987B77D7EE4B4"><enum>(2)</enum><header>Terms</header> <subparagraph id="H6831F64F20C748C6BA28ADBCDC88F5EB"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term of each member of the affordable housing board appointed pursuant to paragraph (1) (but not including members appointed pursuant to subparagraphs (A), (B), and (C)) shall be 3 years.</text></subparagraph> <subparagraph id="H3421C039E0764840A600A6C8B6FCFA36"><enum>(B)</enum><header>Initial appointees</header><text display-inline="yes-display-inline">The Director shall appoint the initial members of the affordable housing board not later than the expiration of the 60-day period beginning on the date of the enactment of this Act. As designated by the Director at the time of appointment, of the members of the affordable housing board first appointed pursuant to paragraph (1) (but not including members appointed pursuant to subparagraphs (A), (B), and (C))—</text> <clause id="H6BD62D108E0944E087ED6641BA1E96AC"><enum>(i)</enum><text>in the case of a board having 7 members—</text> <subclause id="H86BEA392033E4F36B58FA3C2B99FED71"><enum>(I)</enum><text>one shall be appointed for a term of one year; and</text></subclause> <subclause id="HDB34C60E8BEA496585FC2E5D53DE00D5"><enum>(II)</enum><text>one shall be appointed for a term of two years;</text></subclause></clause> <clause id="H9CA03C643AEB4B758E46AFE157C5A8D6" display-inline="no-display-inline"><enum>(ii)</enum><text>in the case of a board having 9 members—</text> <subclause id="H8F0B3FDACE784EEE89AE8B615914DE58"><enum>(I)</enum><text>two shall be appointed for a term of one year; and</text></subclause> <subclause id="H389C20F04DDB4351A65E4EB8785B60D9"><enum>(II)</enum><text>two shall be appointed for a term of two years; and</text></subclause></clause> <clause id="H96DD947357814B2997198FEED31166B3" display-inline="no-display-inline"><enum>(iii)</enum><text>in the case of a board having 11 members—</text> <subclause id="HD528D71AED5C454BA27B157C4B040093"><enum>(I)</enum><text>two shall be appointed for a term of one year; and</text></subclause> <subclause id="HB00D3B9A5035409793186029611085A5"><enum>(II)</enum><text>three shall be appointed for a term of two years;</text></subclause></clause></subparagraph></paragraph> <paragraph id="H62915D57AC0F48E7B7FAF1FF98F86F99"><enum>(3)</enum><header>Duties</header><text>The affordable housing board shall meet not less than quarterly—</text> <subparagraph id="HB8602D7A96E445E2AE59C343E2D70355"><enum>(A)</enum><text>to determine extremely low- and very low-income housing needs;</text></subparagraph> <subparagraph id="HB802D164D3174363BABA4F6F9127E3E2"><enum>(B)</enum><text>to advise the Director with respect to—</text> <clause id="H56C71990C93C4201AFBAF8C2001E83DB"><enum>(i)</enum><text>establishment of the selection criteria under subsection (l)(2)(C) that provide for appropriate use of amounts from the affordable housing funds of the enterprises to meet such needs; and</text></clause> <clause id="H506A303936E641DBA54CF0ACB677AB2"><enum>(ii)</enum><text>operation of, and changes to, the program under this section appropriate to meet such needs; and</text></clause></subparagraph> <subparagraph id="HF635B6D9A0AA4EAAB90041E0CFDC7467"><enum>(C)</enum><text>to review the reports submitted by the enterprises pursuant to subsection (g)(1) to determine whether the activities funded using amounts from the affordable housing funds of the enterprises comply with the regulations issued pursuant to subsection (l)(2)(C) and inform the Director of such determinations, for purposes of subsection (g)(2).</text></subparagraph></paragraph> <paragraph id="HD051DE9BEE39466CB40044EF280900D4"><enum>(4)</enum><header>Expenses and per diem</header><text>Members of the board shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections <external-xref legal-doc="usc" parsable-cite="usc/5/5702">5702</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/5/5703">5703</external-xref> of title 5, United States Code.</text></paragraph> <paragraph id="H84369977B6184E7A9BF3D00942C742B"><enum>(5)</enum><header>Advisory committee</header><text>The board shall be considered an advisory committee for purposes of the Federal Advisory Committee Act (5 U.S.C. App.).</text></paragraph> <paragraph id="H0393F4570D604DF6008BC9E6FBD9F1C"><enum>(6)</enum><header>Duration</header><text> The board shall have continued existence until terminated by law.</text></paragraph></subsection> <subsection id="H213EDE2F35444EA684B311EBE5A25D41" display-inline="no-display-inline"><enum>(k)</enum><header>Definition</header><text>For purposes of this section, the term <quote>economically underserved area</quote> means an area that predominantly includes census tracts for which—</text> <paragraph id="HA5FFF842882C4EB8BCD0D7A5E1334B3E"><enum>(1)</enum><text>at least 20 percent of the population is below the poverty line (as such term is defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>), including any revision required by such section), applicable to a family of the size involved; or</text></paragraph> <paragraph id="H92E08C41EC644B9CA2E8A17F0000FC2C"><enum>(2)</enum><text>median family income does not exceed the greater of—</text> <subparagraph id="HC07F6B9D35294D139CF743E800A3ED13"><enum>(A)</enum><text>80 percent of the median family income for the metropolitan statistical area in which such census tracts are located; or</text></subparagraph> <subparagraph id="HF65F041B306342858452F6D7858C29F4"><enum>(B)</enum><text>80 percent of the median family income for the State in which such census tracts are located.</text></subparagraph></paragraph></subsection> <subsection id="H2E2BD83E5F374CAEB2AE275DBB2FBC82"><enum>(l)</enum><header>Regulations</header> <paragraph id="H59FF23CBE36842409921AD955F00F9F1"><enum>(1)</enum><header>In general</header><text>The Director shall issue regulations to carry out this section.</text></paragraph> <paragraph id="HDB381F365D3A4239B63DE4229F7FC625"><enum>(2)</enum><header>Required contents</header><text>The regulations issued under this subsection shall include—</text> <subparagraph id="H97194CE1A3664FA69C5E69A7F82E62FC"><enum>(A)</enum><text>authority for the Director to audit, provide for an audit, or otherwise verify an enterprise’s activities, to ensure compliance with this section;</text></subparagraph> <subparagraph id="HC1E668FE77984A8CB9C3B26233ADD93"><enum>(B)</enum><text>a requirement that the Director ensure that the affordable housing fund of each enterprise is audited not less than annually to ensure compliance with this section;</text></subparagraph> <subparagraph id="H886F48F338F7426C928829A5C379BFC4"><enum>(C)</enum><text>requirements for a process for application to, and selection by, an enterprise for activities to be funded with amounts from the affordable housing fund, which shall provide that—</text> <clause id="H2F2CB60033E4434E977F7BB85483A020"><enum>(i)</enum><text>selection shall based upon specific criteria, including a prioritization of funding based upon—</text> <subclause id="H1529C7A38CB9414CB743CCF22E788400"><enum>(I)</enum><text>greatest impact;</text></subclause> <subclause id="H66CC121A2F164B26A86CC58FE94881D0"><enum>(II)</enum><text>geographic diversity;</text></subclause> <subclause id="H2C866DC584CD47D0B25056E115711CFE"><enum>(III)</enum><text>ability to obligate amounts and undertake activities so funded in a timely manner;</text></subclause> <subclause id="HDC9ABA3594284EE9994521679E585BE9" commented="no" display-inline="no-display-inline"><enum>(IV)</enum><text display-inline="yes-display-inline">in the case of rental housing projects under subsection (d)(1), the extent to which rents for units in the project funded are affordable, especially for extremely low-income families; and</text></subclause> <subclause id="H1B5DC08F02724FD0857FE35456636E00" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">in the case of rental housing projects under subsection (d)(1), the extent of the duration for which such rents will remain affordable; and</text></subclause></clause> <clause id="H459E1267570C4EBEA2AAC6F19C37B512"><enum>(ii)</enum><text display-inline="yes-display-inline">an enterprise may not require for such selection that an activity involve financing or underwriting of any kind by the enterprise (other than funding through the affordable housing fund of the enterprise) and may not give preference in such selection to activities that involve such financing; and</text></clause></subparagraph> <subparagraph id="HB0F996B9651B4B8C84E781629F57D3FA"><enum>(D)</enum><text display-inline="yes-display-inline">requirements to ensure that amounts from the affordable housing funds of the enterprises used for rental housing under subsection (d)(1) are used only for the benefit of extremely low- and very-low income families.</text></subparagraph></paragraph> <paragraph id="H6886BCE3453C49FC952644873FC6907F"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">Any regulations issued by the Director pursuant to this section shall be no more restrictive on the enterprises’ activities in connection with the allocation of after-tax income under this section than the regulations issued to implement the affordable housing program of the Federal home loan banks pursuant to section 10(j) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)</external-xref>).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4054804001EC48F4A51430FC1157AD08"><enum>(b)</enum><header>Contributions for 2006</header> <paragraph id="H546B3167E0B54300883079EA65091D2C"><enum>(1)</enum><header>Reservation and contribution</header><text display-inline="yes-display-inline">In 2006, each enterprise (as such term is defined in section 1303 of the Housing and Community Development Act of 1992) shall reserve for contribution to the affordable housing fund to be established by the enterprise pursuant to section 1337 of such Act (as amended by subsection (a) of this section), an amount equal to 3.5 percent of the after-tax income of the enterprise for 2005. Upon the establishment of such affordable housing fund, each enterprise shall allocate to such fund the amounts reserved under this subsection by the enterprise.</text></paragraph> <paragraph id="H4CDC10EA45984B76A8247E785327DF42"><enum>(2)</enum><header>Exception to deadline for commitment</header><text>Section 1337(e)(2) of the Housing and Community Development Act of 1992 (as amended by subsection (a) of this section) shall not apply to amounts allocated to the affordable housing fund of an enterprise pursuant to paragraph (1).</text></paragraph> <paragraph id="HE7CE1D910AD449D9838358D00279CF"><enum>(3)</enum><header>After-tax income</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>after-tax income</quote> has the meaning provided in subsection (b)(3) of the new section 1337 to be inserted by the amendment made by subsection (a) of this section.</text></paragraph> <paragraph id="HEE9C5D048BF74B889920EA46E7AABE3F"><enum>(4)</enum><header>Effective date</header><text>This subsection shall take effect on the date of the enactment of this Act.</text></paragraph></subsection></section> <section id="H665C6AF2156F488885EC672DA34640C4" display-inline="no-display-inline" section-type="subsequent-section"><enum>129.</enum><header>Consistency with mission</header><text display-inline="no-display-inline">Subpart B of part 2 of subtitle A of title XIII of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561">12 U.S.C. 4561 et seq.</external-xref>) is amended by adding after section 1337, as added by section 127 of this Act, the following new section:</text> <quoted-block style="OLC" id="H4EAE47B78F2A4799A6C22F62BB0600F1" display-inline="no-display-inline"> <section id="HC1A7F85D1A514A7DB1F0ED407C1DF93D"><enum>1338.</enum><header>Consistency with mission</header><text display-inline="no-display-inline">This subpart may not be construed to authorize an enterprise to engage in any program or activity that contravenes or is inconsistent with the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H787BC32239564B19BD61E500A63225B1"><enum>130.</enum><header>Enforcement</header> <subsection id="H9C41C5DA5DEA487B97AA4C8D91A0E8C8"><enum>(a)</enum><header>Cease-and-Desist proceedings</header><text>Section 1341 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4581">12 U.S.C. 4581</external-xref>) is amended—</text> <paragraph id="HF25449E53EBA4FF5864549D23CB6783"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HCA8815AD09F5421694706E1C81F939A0"> <subsection id="H49C6F32B2F9A47D885A819AC284DB094"><enum>(a)</enum><header>Grounds for issuance</header><text>The Director may issue and serve a notice of charges under this section upon an enterprise if the Director determines—</text> <paragraph id="HEEB8507F9904460989A5F03C5433FDD"><enum>(1)</enum><text>the enterprise has failed to meet any housing goal established under subpart B, following a written notice and determination of such failure in accordance with section 1336;</text></paragraph> <paragraph id="H34015AE47E8F4A178566459682568C25"><enum>(2)</enum><text>the enterprise has failed to submit a report under section 1314, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;</text></paragraph> <paragraph id="H4E0CDC4610E14D7EAE486300E7895525"><enum>(3)</enum><text>the enterprise has failed to submit the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>;</text></paragraph> <paragraph id="HB966BFAD71D244AD87CFD9AD6B167"><enum>(4)</enum><text>the enterprise has violated any provision of this part or any order, rule or regulation under this part;</text></paragraph> <paragraph id="H43230AFEB5784AE7AC9D42E16BA6FD8"><enum>(5)</enum><text>the enterprise has failed to submit a housing plan that complies with section 1336(c) within the applicable period; or</text></paragraph> <paragraph id="H1171C470F0264A9DA7BAE3A9705D3089"><enum>(6)</enum><text>the enterprise has failed to comply with a housing plan under section 1336(c).</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H44A3C4B205964882B5C6009DAB0491C" display-inline="no-display-inline"><enum>(2)</enum><text>in subsection (b)(2), by striking <quote>requiring the enterprise to</quote> and all that follows through the end of the paragraph and inserting the following:</text> <quoted-block style="OLC" id="HF4C97EFBA2CF4B01832E7EB18F4F08BA" display-inline="yes-display-inline"><text display-inline="yes-display-inline">requiring the enterprise to—</text> <subparagraph id="H543BC1EE96A147109B3311354155057E"><enum>(A)</enum><text>comply with the goal or goals;</text></subparagraph> <subparagraph id="H12D1B5CDE4354C8C9F9C533E63EF26F3"><enum>(B)</enum><text>submit a report under section 1314;</text></subparagraph> <subparagraph id="HDE16EA1A09284296A1A856A635621217"><enum>(C)</enum><text>comply with any provision this part or any order, rule or regulation under such part;</text></subparagraph> <subparagraph id="H68C63537C11E43B884AE6F991B0B448"><enum>(D)</enum><text>submit a housing plan in compliance with section 1336(c);</text></subparagraph> <subparagraph id="H063EE17A7E99442A81101000A1C3FAA8"><enum>(E)</enum><text>comply with a housing plan submitted under section 1336(c); or</text></subparagraph> <subparagraph id="H962324B6B6DE4F3AB9F6A720A540930"><enum>(F)</enum><text>provide the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, as applicable.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HCDD8FDB0B43F425385E6F939FFDD81C2"><enum>(3)</enum><text>in subsection (c), by inserting <quote>date of the</quote> before <quote>service of the order</quote>; and</text></paragraph> <paragraph id="HF31C803E6FE54449AD8F1913C15EA887"><enum>(4)</enum><text>by striking subsection (d).</text></paragraph></subsection> <subsection id="H07C3F681D5614F65B25D1E704F00B151"><enum>(b)</enum><header>Authority of Director to enforce notices and orders</header><text>Section 1344 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4584">12 U.S.C. 4584</external-xref>) is amended by striking subsection (a) and inserting the following new subsection:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H7D8F76C1D13F4744BA35DE628600D5E5"> <subsection id="H74D9EB0D6CDE4822A0FB32047C3C9696"><enum>(a)</enum><header>Enforcement</header><text>The Director may, in the discretion of the Director, apply to the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the enterprise is located, for the enforcement of any effective and outstanding notice or order issued under section 1341 or 1345, or request that the Attorney General of the United States bring such an action. Such court shall have jurisdiction and power to order and require compliance with such notice or order.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H34A4F5B351A244CDB7007771F7AAD36B"><enum>(c)</enum><header>Civil money penalties</header><text>Section 1345 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585</external-xref>) is amended—</text> <paragraph id="H19A0129DFB21464EA9DA9089FA00DFAB"><enum>(1)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="HEC85D34F04A6438588AF338811D616C8"> <subsection id="H7A34474BFCF54F8882BCD377F8FFD100"><enum>(a)</enum><header>Authority</header><text>The Director may impose a civil money penalty, in accordance with the provisions of this section, on any enterprise that has failed to—</text> <paragraph id="H2120CF060DE7437399DBD437EE805A8"><enum>(1)</enum><text>meet any housing goal established under subpart B, following a written notice and determination of such failure in accordance with section 1336(b);</text></paragraph> <paragraph id="H9307F091CB3543DD946386FF568ECFBD"><enum>(2)</enum><text>submit a report under section 1314, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;</text></paragraph> <paragraph id="HEB2C14E491DA4FE9B1B4FFE4006B4E00"><enum>(3)</enum><text>submit the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>;</text></paragraph> <paragraph id="HE4524C645DCB4699B19E2800E0FC9E6E"><enum>(4)</enum><text>comply with any provision of this part or any order, rule or regulation under this part;</text></paragraph> <paragraph id="H16D92181099248EEB2EC8CB2CBD9B97"><enum>(5)</enum><text>submit a housing plan pursuant to section 1336(c) within the required period; or</text></paragraph> <paragraph id="HEB97DE7FEFA346CAB8233FB8CF6774F6"><enum>(6)</enum><text>comply with a housing plan for the enterprise under section 1336(c).</text></paragraph></subsection> <subsection id="H9E0BEC6DD49B4393B4B53FE205D76233"><enum>(b)</enum><header>Amount of penalty</header><text>The amount of the penalty, as determined by the Director, may not exceed—</text> <paragraph id="H8ED1BB72AF674F7088B733FF87D90830"><enum>(1)</enum><text>for any failure described in paragraph (1), (5), or (6) of subsection (a), $50,000 for each day that the failure occurs; and</text></paragraph> <paragraph id="HDC35BAC1C88B43899D3D6E35DCE9D841"><enum>(2)</enum><text>for any failure described in paragraph (2), (3), or (4) of subsection (a), $20,000 for each day that the failure occurs.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HBDF1A3703E0C4635BDBA89EE9F093C34"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H101AD3420ADF4D37B36171D0014008C1"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="H863E44D913244952BEAD7063C9E100BA"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon at the end;</text></clause> <clause id="H7FE8E1248C1442B087D2FAEC7BAC11C"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>; and</quote> and inserting a period; and</text></clause> <clause id="H9DFC86D8A3C04F9A81A80E25E806B3"><enum>(iii)</enum><text>by striking subparagraph (C); and</text></clause></subparagraph> <subparagraph id="HC60019A709BB42C9A1BFC294CFECAE7B"><enum>(B)</enum><text>in paragraph (2), by inserting after the period at the end the following: <quote>In determining the penalty under subsection (a)(1), the Director shall give consideration to the length of time the enterprise should reasonably take to achieve the goal.</quote>;</text></subparagraph></paragraph> <paragraph id="H3EBF175EB3FC4E0985DBABC172C366D2"><enum>(3)</enum><text>in the first sentence of subsection (d)—</text> <subparagraph id="H520422811DA0445584C4AB0015084800"><enum>(A)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; and</text></subparagraph> <subparagraph id="H497644D8F2CE4F0FAFA030BC002FBC1E"><enum>(B)</enum><text>by inserting <quote>, or request that the Attorney General of the United States bring such an action</quote> before the period at the end;</text></subparagraph></paragraph> <paragraph id="H91F59D84885845529979D5D0E028D888"><enum>(4)</enum><text>by striking subsection (f); and</text></paragraph> <paragraph id="HB8F651289F8B4EFEBA64DF424B2836E9"><enum>(5)</enum><text>by redesignating subsection (g) as subsection (f).</text></paragraph></subsection> <subsection id="H2F6E8D6FC35F44F9BBB23D9472565934"><enum>(d)</enum><header>Enforcement of subpoenas</header><text>Section 1348(c) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4588">12 U.S.C. 4588(c)</external-xref>) is amended—</text> <paragraph id="HA28F6650401A4C209E9238F7005812B7"><enum>(1)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; and</text></paragraph> <paragraph id="H47CD0F368DDC4124B1F7A14C233FC5CA"><enum>(2)</enum><text>by inserting <quote>or request that the Attorney General of the United States bring such an action,</quote> after <quote>District of Columbia,</quote></text></paragraph></subsection> <subsection id="HE0C91B9A2E784837BF30FB947BFD9EF8"><enum>(e)</enum><header>Conforming amendment</header><text>The heading for subpart C of part 2 of subtitle A of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended to read as follows:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H62966DAF84F64846926649FD7D90E1E"> <subpart id="H21CF403477104AA5BCB3CD311CEC33F5"><enum>C</enum><header>Enforcement</header></subpart><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HA2D264B8E98F469E9651B571ED48F272"><enum>131.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text> <paragraph id="H6FD38220E11B4F3F8F864B005B4B3DAF"><enum>(1)</enum><text>by striking <quote>Secretary</quote> each place such term appears in such part and inserting <quote>Director</quote>;</text></paragraph> <paragraph id="HAB40CC34D6F449AA96EE6207627C7FAA"><enum>(2)</enum><text>in the section heading for section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>), by inserting “<header-in-text>of enterprises</header-in-text>” before the period at the end;</text></paragraph> <paragraph id="H4E12AEF4163040C88CA8B626EA81175"><enum>(3)</enum><text>by striking section 1327 (<external-xref legal-doc="usc" parsable-cite="usc/12/4547">12 U.S.C. 4547</external-xref>);</text></paragraph> <paragraph id="H084E449A71A44CB6896B491E8E07F943"><enum>(4)</enum><text>by striking section 1328 (<external-xref legal-doc="usc" parsable-cite="usc/12/4548">12 U.S.C. 4548</external-xref>);</text></paragraph> <paragraph id="H2F007B64C44741F0B400555FF96902C8"><enum>(5)</enum><text>in sections 1345(c)(1)(A) and 1346(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585(c)(1)(A)</external-xref>, 4586(b)), by striking <quote>Secretary’s</quote> each place such term appears and inserting <quote>Director’s</quote>; and</text></paragraph> <paragraph id="HB73CC81B7F074FB3BCBDE4593214F76"><enum>(6)</enum><text>by striking section 1349 (<external-xref legal-doc="usc" parsable-cite="usc/12/4589">12 U.S.C. 4589</external-xref>).</text></paragraph></section></subtitle> <subtitle id="H8A6D01AFD6A848759477D7C610007E83"><enum>C</enum><header>Prompt corrective action</header> <section id="HE501157A0B71430E8D06DBFA6740565"><enum>141.</enum><header>Capital classifications</header> <subsection id="H15DCC58CD87E49E6AAF714485FA95BA6"><enum>(a)</enum><header>In General</header><text>Section 1364 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614</external-xref>) is amended—</text> <paragraph id="H5C400134B07F46AF9D8992E5065E00C9"><enum>(1)</enum><text>in the heading for subsection (a) by striking <quote>In General</quote> and inserting <quote>Enterprises</quote>;</text></paragraph> <paragraph id="H45187B2F8C7C4BD0A3DDC9BF786800A2"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="HD62ED9FC62F042A09D422C00F00B302"><enum>(A)</enum><text>by striking <quote>subsection (b)</quote> and inserting <quote>subsection (c)</quote>;</text></subparagraph> <subparagraph id="H4D10D7AD7EBD449993E9319B12C88146"><enum>(B)</enum><text>by striking <quote>enterprises</quote> and inserting <quote>regulated entities</quote>; and</text></subparagraph> <subparagraph id="H963E845B26AB4EFDAB42830064FDE6AC"><enum>(C)</enum><text>by striking the last sentence;</text></subparagraph></paragraph> <paragraph id="H004C0C0495A84FFF9BAD536FFE071EAD"><enum>(3)</enum><text>by redesignating subsections (c) (as so amended by paragraph (2) of this subsection) and (d) as subsections (d) and (f), respectively;</text></paragraph> <paragraph id="HD555F0E5AE2C48859034B191793E64E9"><enum>(4)</enum><text>by striking subsection (b) and inserting the following new subsections:</text> <quoted-block id="HB52746E97A8848B6BECE328DCE8EC5F7"> <subsection id="H2096E96574764ADE8068592EAAC92534"><enum>(b)</enum><header>Federal Home Loan Banks</header> <paragraph id="H9394B9D1911D47FC9778F5C2ABC95F59"><enum>(1)</enum><header>Establishment and criteria</header><text>For purposes of this subtitle, the Director shall, by regulation—</text> <subparagraph id="H07537B7986154430B35016C005BB59C9"><enum>(A)</enum><text>establish the capital classifications specified under paragraph (2) for the Federal home loan banks;</text></subparagraph> <subparagraph id="H5E6E072E4A4E4D63B3B465DF85C4869D"><enum>(B)</enum><text>establish criteria for each such capital classification based on the amount and types of capital held by a bank and the risk-based, minimum, and critical capital levels for the banks and taking due consideration of the capital classifications established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises; and</text></subparagraph> <subparagraph id="H1FF42CE9033244EA9DFF6B82BD44751C"><enum>(C)</enum><text>shall classify the Federal home loan banks according to such capital classifications.</text></subparagraph></paragraph> <paragraph id="HE892B07B27CA47EA82DFCE293E72A22C"><enum>(2)</enum><header>Classifications</header><text>The capital classifications specified under this paragraph are—</text> <subparagraph id="H78698FE9126743759C65708F002B0580"><enum>(A)</enum><text>adequately capitalized;</text></subparagraph> <subparagraph id="H838795B30B43482AA73D204500B61947"><enum>(B)</enum><text>undercapitalized;</text></subparagraph> <subparagraph id="H78712CDA6EFE422F8C7D6100A0005FF4"><enum>(C)</enum><text>significantly undercapitalized; and</text></subparagraph> <subparagraph id="H230A2C92778B46B196C17B0179A52833"><enum>(D)</enum><text>critically undercapitalized.</text></subparagraph></paragraph></subsection> <subsection id="HE83193A0174B4205A5002C7FDD362598"><enum>(c)</enum><header>Discretionary classification</header> <paragraph id="HB9A949C1EFAA41CCBF183FD16500FDF0"><enum>(1)</enum><header>Grounds for reclassification</header><text>The Director may reclassify a regulated entity under paragraph (2) if—</text> <subparagraph id="H6BADDAB871AE40F6846583C4BF32A5C4"><enum>(A)</enum><text>at any time, the Director determines in writing that the regulated entity is engaging in conduct that could result in a rapid depletion of core or total capital or, in the case of an enterprise, that the value of the property subject to mortgages held or securitized by the enterprise has decreased significantly;</text></subparagraph> <subparagraph id="H97DD8CDAD7B349EB8063A1582B27E77E"><enum>(B)</enum><text>after notice and an opportunity for hearing, the Director determines that the regulated entity is in an unsafe or unsound condition; or</text></subparagraph> <subparagraph id="HC9FA1B20C5F840338586642CA39B8CE1"><enum>(C)</enum><text>pursuant to section 1371(b), the Director deems the regulated entity to be engaging in an unsafe or unsound practice.</text></subparagraph></paragraph> <paragraph id="H4B130707E2FC445BA6A6679483DFF35F"><enum>(2)</enum><header>Reclassification</header><text>In addition to any other action authorized under this title, including the reclassification of a regulated entity for any reason not specified in this subsection, if the Director takes any action described in paragraph (1) the Director may classify a regulated entity—</text> <subparagraph id="H2EE0C02FB96A4E789200592BF804D8B2"><enum>(A)</enum><text>as undercapitalized, if the regulated entity is otherwise classified as adequately capitalized;</text></subparagraph> <subparagraph id="H5B67CEC4AD674E3DABFB30BC59EFAC35"><enum>(B)</enum><text>as significantly undercapitalized, if the regulated entity is otherwise classified as undercapitalized; and</text></subparagraph> <subparagraph id="H161866F33CDF44FF9840AF7D6500FD75"><enum>(C)</enum><text>as critically undercapitalized, if the regulated entity is otherwise classified as significantly undercapitalized.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HEC41BD4DF2ED480AB84BCDD34CE98E7E"><enum>(5)</enum><text>by inserting after subsection (d) (as so redesignated by paragraph (3) of this subsection), the following new subsection:</text> <quoted-block id="H95334EC0D8024D18AEC39E349D47A23E"> <subsection id="H9444B32ECD3F4E3F8BD233B82382909"><enum>(e)</enum><header>Restriction on capital distributions</header> <paragraph id="H0DDF99E4CD1A429EAE98F3CE7B5073F"><enum>(1)</enum><header>In General</header><text>A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized.</text></paragraph> <paragraph id="HC313E886DC2D4E6CA3316C9003EBB639"><enum>(2)</enum><header>Exception</header><text>Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition—</text> <subparagraph id="H5A10186E4E084974B3B5D0D5DA57B9BF"><enum>(A)</enum><text>is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and</text></subparagraph> <subparagraph id="H1D24ACA0E53C43AEB114F37EC28B9572"><enum>(B)</enum><text>will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HAB25741F48E14239840412AE00E8D6AF"><enum>(b)</enum><header>Regulations</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 185, the Director of the Federal Housing Finance Agency shall issue regulations to carry out section 1364(b) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as added by paragraph (4) of this subsection), relating to capital classifications for the Federal home loan banks.</text></subsection></section> <section id="HEADCFE8FC341444DA7913DB2693D5C0"><enum>142.</enum><header>Supervisory actions applicable to undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1365 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) is amended—</text> <paragraph id="H00E3BDB65B57404AAD40CCB9A9AD1F92"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>enterprises</header-in-text>” and inserting “<header-in-text>regulated entities</header-in-text>”;</text></paragraph> <paragraph id="H544F0D30F70A4CCAB038019DB6D22E2C"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="HD155F6B9D4DA4CD4B3C05991574CDA6"><enum>(A)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;</text></subparagraph> <subparagraph id="H0EC96BAEBC11447CA45C0022A57697FC"><enum>(B)</enum><text>by inserting before paragraph (2) the following paragraph:</text> <quoted-block id="H97B6E5DB2FFB4EB3AF9C536C62B702EB"> <paragraph id="H7BD2E36659A942DCA3E958FB0B83DB9"><enum>(1)</enum><header>Required monitoring</header><text>The Director shall—</text> <subparagraph id="HBA9A2AA166C14E5B932BCA3374088EA1"><enum>(A)</enum><text>closely monitor the condition of any regulated entity that is classified as undercapitalized;</text></subparagraph> <subparagraph id="H106BCDC04EBA420AAD11975FCB4BB3D1"><enum>(B)</enum><text>closely monitor compliance with the capital restoration plan, restrictions, and requirements imposed under this section; and</text></subparagraph> <subparagraph id="H1AC119D74592487A80C4EE213E30FEE2"><enum>(C)</enum><text>periodically review the plan, restrictions, and requirements applicable to the undercapitalized regulated entity to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HAF81FEF0C4744593A31FE2F4276E94F1"><enum>(C)</enum><text>by inserting at the end the following new paragraphs:</text> <quoted-block id="H7D527DF26BCB495E93F382A18DB37E9"> <paragraph id="HD4DA43EFAD484A78931E177C4D749200"><enum>(4)</enum><header>Restriction of asset growth</header><text>A regulated entity that is classified as undercapitalized shall not permit its average total assets (as such term is defined in section 1316(b) during any calendar quarter to exceed its average total assets during the preceding calendar quarter unless—</text> <subparagraph id="H4A657051B0C54DBCBA3E20C0AED8B3AF"><enum>(A)</enum><text>the Director has accepted the capital restoration plan of the regulated entity;</text></subparagraph> <subparagraph id="HA455C814C0F94491B920B92CAAEE671"><enum>(B)</enum><text>any increase in total assets is consistent with the plan; and</text></subparagraph> <subparagraph id="HCAF8D365D3904C1BB176EF2600495141"><enum>(C)</enum><text>the ratio of total capital to assets for the regulated entity increases during the calendar quarter at a rate sufficient to enable the entity to become adequately capitalized within a reasonable time.</text></subparagraph></paragraph> <paragraph id="H48215C1F9C1B4C24B16CA24FEDC93CB3"><enum>(5)</enum><header>Prior approval of acquisitions, new programs, and new business activities</header><text>A regulated entity that is classified as undercapitalized shall not, directly or indirectly, acquire any interest in any entity or engage in any new program or new business activity unless—</text> <subparagraph id="HC05FE65549E14B1A909D725FC3BD19F2"><enum>(A)</enum><text>the Director has accepted the capital restoration plan of the regulated entity, the entity is implementing the plan, and the Director determines that the proposed action is consistent with and will further the achievement of the plan; or</text></subparagraph> <subparagraph id="HC662EAC36E254DD3986F1B7F5DE2935"><enum>(B)</enum><text>the Director determines that the proposed action will further the purpose of this section.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H4AEC8EF6ECAD4082B002C2EF88C6E8E0"><enum>(3)</enum><text>in the subsection heading for subsection (b), by striking <quote><header-in-text level="subsection" style="OLC">From undercapitalized to significantly undercapitalized</header-in-text></quote>; and</text></paragraph> <paragraph id="HC32D85BD1D494DF593A3247C4264F376"><enum>(4)</enum><text>by striking subsection (c) and inserting the following new subsection:</text> <quoted-block id="H52DBA848B17E4860BBD1BE308B8251F9"> <subsection id="H6B0E67D9B1544473B6602295E699BDEF"><enum>(c)</enum><header>Other discretionary safeguards</header><text>The Director may take, with respect to a regulated entity that is classified as undercapitalized, any of the actions authorized to be taken under section 1366 with respect to a regulated entity that is classified as significantly undercapitalized, if the Director determines that such actions are necessary to carry out the purpose of this subtitle.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H9488AA0B92A2493EA496006339CA3C0"><enum>143.</enum><header>Supervisory actions applicable to significantly undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1366 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>) is amended—</text> <paragraph id="HD60332C53ADE43A2AE858167AA7E7DA4"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>enterprises</header-in-text>” and inserting “<header-in-text>entities</header-in-text>”;</text></paragraph> <paragraph id="H0AB14E11752E445391A884E4106D731E"><enum>(2)</enum><text>in subsection (a)(2)(A), by striking <quote>enterprise</quote> the last place such term appears;</text></paragraph> <paragraph id="H398481A6438F4C27B9E1B4EAC7C27D26"><enum>(3)</enum><text>in subsection (b)—</text> <subparagraph id="H2A6A2D6310364B2C9040CA6B42AD17B4"><enum>(A)</enum><text>in the subsection heading, by striking <quote>Discretionary Supervisory Actions</quote> and inserting <quote>Specific Actions</quote>;</text></subparagraph> <subparagraph id="H627B6912C92648E594F08CF8ABD4E192"><enum>(B)</enum><text>in the matter preceding paragraph (1), by striking <quote>may, at any time, take any</quote> and inserting <quote>shall carry out this section by taking, at any time, one or more</quote>;</text></subparagraph> <subparagraph id="H9D18DEA1BF10452B90ECEDE81EE40033"><enum>(C)</enum><text>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively;</text></subparagraph> <subparagraph id="H4C1785C9AB8142738C15ED0233E35529"><enum>(D)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H8EA4D2DF77484539BCF7BE00F4A0D22C"> <paragraph id="HCCED89AF48E74DA68CD901EB4042E57B"><enum>(5)</enum><header>Improvement of management</header><text>Take one or more of the following actions:</text> <subparagraph id="H767F717637C34382B30476D195E80729"><enum>(A)</enum><header>New election of Board</header><text>Order a new election for the board of directors of the regulated entity.</text></subparagraph> <subparagraph id="H95212FF010E84E2897E5396BFDAC3B42"><enum>(B)</enum><header>Dismissal of Directors or executive officers</header><text>Require the regulated entity to dismiss from office any director or executive officer who had held office for more than 180 days immediately before the entity became undercapitalized. Dismissal under this subparagraph shall not be construed to be a removal pursuant to the Director’s enforcement powers provided in section 1377.</text></subparagraph> <subparagraph id="H6753637D1D98419C951FC3F7D834431D"><enum>(C)</enum><header>Employ qualified executive officers</header><text>Require the regulated entity to employ qualified executive officers (who, if the Director so specifies, shall be subject to approval by the Director).</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HDC6C697990B84FFB81B7A59652536BA6"><enum>(E)</enum><text>by inserting at the end the following new paragraph:</text> <quoted-block id="H3A84064661184BB1B48E57E6D84C5CCF"> <paragraph id="HCCD0A2958ED44A50887740B1ADBF5998"><enum>(8)</enum><header>Other action</header><text>Require the regulated entity to take any other action that the Director determines will better carry out the purpose of this section than any of the actions specified in this paragraph.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H1887CDB702D840779458B4CC510243D"><enum>(4)</enum><text>by redesignating subsection (c) as subsection (d); and</text></paragraph> <paragraph id="HCC86038CA68A46878CBBD69601E76981"><enum>(5)</enum><text>by inserting after subsection (b) the following new subsection:</text> <quoted-block id="H552886E2A90F499DB300F239AC00523C"> <subsection id="H912D698B28CC4D17A9E621E2AE440551"><enum>(c)</enum><header>Restriction on compensation of executive officers</header><text>A regulated entity that is classified as significantly undercapitalized may not, without prior written approval by the Director—</text> <paragraph id="H8543486F9D6D4AC2AC718D132F49B7A9"><enum>(1)</enum><text>pay any bonus to any executive officer; or</text></paragraph> <paragraph id="H474873A3C55D47618D2E037FB387073F"><enum>(2)</enum><text>provide compensation to any executive officer at a rate exceeding that officer’s average rate of compensation (excluding bonuses, stock options, and profit sharing) during the 12 calendar months preceding the calendar month in which the regulated entity became undercapitalized.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H19476EEEE809471FBB46E0335D7F818D" section-type="subsequent-section" display-inline="no-display-inline"><enum>144.</enum><header>Authority over critically undercapitalized regulated entities</header> <subsection id="H7D01E0B5718149E9A7B29860D696E377"><enum>(a)</enum><header>In general</header><text>Section 1367 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) is amended to read as follows:</text> <quoted-block id="HE01D866F87FC4586943355E89814BE04" style="OLC"> <section id="H5B1BE164DE9D4BF487F6B85003DE852"><enum>1367.</enum><header>Authority over critically undercapitalized regulated entities</header> <subsection id="HAEC3572EB9E04512B676A423A84D6064"><enum>(a)</enum><header>Appointment of Agency as Conservator or Receiver</header> <paragraph id="H1DDAC87BF7F54465BD00AED6A3C9E3BD"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of Federal or State law, if any of the grounds under paragraph (3) exist, at the discretion of the Director, the Director may establish a conservatorship or receivership, as appropriate, for the purpose of reorganizing, rehabilitating, or winding up the affairs of a regulated entity.</text></paragraph> <paragraph id="H69218D1BE70F4FD99DD1D00AE64C17F"><enum>(2)</enum><header>Appointment</header><text>In any conservatorship or receivership established under this section, the Director shall appoint the Agency as conservator or receiver.</text></paragraph> <paragraph id="H2C16BAFD36344975A8803D7799921B57"><enum>(3)</enum><header>Grounds for appointment</header><text>The grounds for appointing a conservator or receiver for a regulated entity are as follows:</text> <subparagraph id="H72994BF321084CC8AC3F3872E83198C8"><enum>(A)</enum><header>Assets insufficient for obligations</header><text>The assets of the regulated entity are less than the obligations of the regulated entity to its creditors and others.</text></subparagraph> <subparagraph id="H19FCA6DD4E744D9498A7308913CC76A5"><enum>(B)</enum><header>Substantial dissipation</header><text>Substantial dissipation of assets or earnings due to—</text> <clause id="H7E264F8FB3B84CBBABC0ABCB05D8E4E2"><enum>(i)</enum><text>any violation of any provision of Federal or State law; or</text></clause> <clause id="H7092891D747A46848B925CBAFFB869D7"><enum>(ii)</enum><text>any unsafe or unsound practice.</text></clause></subparagraph> <subparagraph id="HB245D2075DE6465EAFECE80027F3D138"><enum>(C)</enum><header>Unsafe or unsound condition</header><text>An unsafe or unsound condition to transact business.</text></subparagraph> <subparagraph id="HB0436026C1CD4F5EB585ACACA243A2EF"><enum>(D)</enum><header>Cease-and-desist orders</header><text>Any willful violation of a cease-and-desist order that has become final.</text></subparagraph> <subparagraph id="H18DFB96B7F5E4C0B9831C59CEE1C0091"><enum>(E)</enum><header>Concealment</header><text>Any concealment of the books, papers, records, or assets of the regulated entity, or any refusal to submit the books, papers, records, or affairs of the regulated entity, for inspection to any examiner or to any lawful agent of the Director.</text></subparagraph> <subparagraph id="H2667EAF4AD7E4384AFE61700F740E400"><enum>(F)</enum><header>Inability to meet obligations</header><text>The regulated entity is likely to be unable to pay its obligations or meet the demands of its creditors in the normal course of business.</text></subparagraph> <subparagraph id="HEAE977B72A35464FBA44FE923C00F8FA"><enum>(G)</enum><header>Losses</header><text>The regulated entity has incurred or is likely to incur losses that will deplete all or substantially all of its capital, and there is no reasonable prospect for the regulated entity to become adequately capitalized (as defined in section 1364(a)(1)).</text></subparagraph> <subparagraph id="H03909CD9130A488EBFC1B3D3198636BB"><enum>(H)</enum><header>Violations of law</header><text>Any violation of any law or regulation, or any unsafe or unsound practice or condition that is likely to—</text> <clause id="H294B4F01D0214CF7869E5F38CDBF4CEE"><enum>(i)</enum><text>cause insolvency or substantial dissipation of assets or earnings; or</text></clause> <clause id="H51126C31C5FD4478A83F1D68F7877BB5"><enum>(ii)</enum><text>weaken the condition of the regulated entity.</text></clause></subparagraph> <subparagraph id="HC1C46ED042884B90A11D0047104B6791"><enum>(I)</enum><header>Consent</header><text>The regulated entity, by resolution of its board of directors or its shareholders or members, consents to the appointment.</text></subparagraph> <subparagraph id="HDF5FEF914D0742B58D7642F10ADAD"><enum>(J)</enum><header>Undercapitalization</header><text>The regulated entity is undercapitalized or significantly undercapitalized (as defined in section 1364(a)(3) or in regulations issued pursuant to section 1364(b), as applicable), and—</text> <clause id="H3E60F028A969486EB6E7E5F8B618ED03"><enum>(i)</enum><text>has no reasonable prospect of becoming adequately capitalized;</text></clause> <clause id="H156EBCB5448D4DA888B857F7272D9B13"><enum>(ii)</enum><text>fails to become adequately capitalized, as required by—</text> <subclause id="HDB735068C59147858F8DB854C0C0D9F2"><enum>(I)</enum><text>section 1365(a)(1) with respect to an undercapitalized regulated entity; or</text></subclause> <subclause id="HB4474A93E29F46319D783700E168D7D5"><enum>(II)</enum><text>section 1366(a)(1) with respect to a significantly undercapitalized regulated entity;</text></subclause></clause> <clause id="H8DCDE2239A574735B95067D10001B4FB"><enum>(iii)</enum><text>fails to submit a capital restoration plan acceptable to the Agency within the time prescribed under section 1369C; or</text></clause> <clause id="H5ACAB5C830D842D2BEDD39D044848E63"><enum>(iv)</enum><text>materially fails to implement a capital restoration plan submitted and accepted under section 1369C.</text></clause></subparagraph> <subparagraph id="H30BD1AB92D52496B00F53B3D95D51B36"><enum>(K)</enum><header>Critical undercapitalization</header><text display-inline="yes-display-inline">The regulated entity is critically undercapitalized, as defined in section 1364(a)(4) or in regulations issued pursuant to section 1364(b), as applicable.</text></subparagraph> <subparagraph id="H6E355EBE03CB4B6D89B0A5FA914729B1"><enum>(L)</enum><header>Money laundering</header><text>The Attorney General notifies the Director in writing that the regulated entity has been found guilty of a criminal offense under section <external-xref legal-doc="usc" parsable-cite="usc/18/1956">1956</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/18/1957">1957</external-xref> of title 18, United States Code, or section <external-xref legal-doc="usc" parsable-cite="usc/31/5322">5322</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/31/5324">5324</external-xref> of title 31, United States Code.</text></subparagraph></paragraph> <paragraph id="HD5090A15978F4E1D9E8C49963D2C00DE"><enum>(4)</enum><header>Judicial review</header> <subparagraph id="H65D69B402EA14AE5B440FE7D6B32972C"><enum>(A)</enum><header>In general</header><text>If the Agency is appointed conservator or receiver under this section, the regulated entity may, within 30 days of such appointment, bring an action in the United States District Court for the judicial district in which the principal place of business of such regulated entity is located, or in the United States District Court for the District of Columbia, for an order requiring the Agency to remove itself as conservator or receiver.</text></subparagraph> <subparagraph id="HDDCD9D6F768A400A973273F90077E62C"><enum>(B)</enum><header>Review</header><text>Upon the filing of an action under subparagraph (A), the court shall, upon the merits, dismiss such action or direct the Agency to remove itself as such conservator or receiver.</text></subparagraph></paragraph> <paragraph id="H704BFDC210BE464C9796E0ADEA675426"><enum>(5)</enum><header>Directors not liable for acquiescing in appointment of conservator or receiver</header><text>The members of the board of directors of a regulated entity shall not be liable to the shareholders or creditors of the regulated entity for acquiescing in or consenting in good faith to the appointment of the Agency as conservator or receiver for that regulated entity.</text></paragraph> <paragraph id="H136B35C1A0C342C08046D0BB49F1C7D"><enum>(6)</enum><header>Agency not subject to any other federal agency</header><text>When acting as conservator or receiver, the Agency shall not be subject to the direction or supervision of any other agency of the United States or any State in the exercise of the rights, powers, and privileges of the Agency.</text></paragraph></subsection> <subsection id="HD0563628998A45E9BEAC1745ED6C02D"><enum>(b)</enum><header>Powers and Duties of the Agency as Conservator or Receiver</header> <paragraph id="H78AD4E81A07543DEB8B9EF5BF3AF4BBF"><enum>(1)</enum><header>Rulemaking authority of the agency</header><text>The Agency may prescribe such regulations as the Agency determines to be appropriate regarding the conduct of conservatorships or receiverships.</text></paragraph> <paragraph id="HE5072339D2F14AD880D7F3FDF0A18026"><enum>(2)</enum><header>General powers</header> <subparagraph id="H7D5FE39E54EF4BB4AD93EC76ADAEEFAE"><enum>(A)</enum><header>Successor to regulated entity</header><text>The Agency shall, as conservator or receiver, and by operation of law, immediately succeed to—</text> <clause id="HBC2895952E604175A3C4ED2BDC0085AB"><enum>(i)</enum><text>all rights, titles, powers, and privileges of the regulated entity, and of any stockholder, officer, or director of such regulated entity with respect to the regulated entity and the assets of the regulated entity; and</text></clause> <clause id="HCEE240EBD8274BE6B896FDEA541FD263"><enum>(ii)</enum><text>title to the books, records, and assets of any other legal custodian of such regulated entity.</text></clause></subparagraph> <subparagraph id="HD27D04728E9F489692068DCB6538BA82"><enum>(B)</enum><header>Operate the regulated entity</header><text>The Agency may, as conservator or receiver—</text> <clause id="H36DC963F3B9E4ECE83CA06924CA8B6B0"><enum>(i)</enum><text>take over the assets of and operate the regulated entity with all the powers of the shareholders, the directors, and the officers of the regulated entity and conduct all business of the regulated entity;</text></clause> <clause id="H5CCA6EF3539C4CB98500517286636556"><enum>(ii)</enum><text>collect all obligations and money due the regulated entity;</text></clause> <clause id="HD6D0E04A5453410188F6DE91E784146"><enum>(iii)</enum><text>perform all functions of the regulated entity in the name of the regulated entity which are consistent with the appointment as conservator or receiver; and</text></clause> <clause id="HD2E9AC80B4B14687A110633E185E9D7C"><enum>(iv)</enum><text>preserve and conserve the assets and property of such regulated entity.</text></clause></subparagraph> <subparagraph id="HA540A2F9C8FF4C5898B6BD462D5003CE"><enum>(C)</enum><header>Functions of officers, directors, and shareholders of a regulated entity</header><text>The Agency may, by regulation or order, provide for the exercise of any function by any stockholder, director, or officer of any regulated entity for which the Agency has been named conservator or receiver.</text></subparagraph> <subparagraph id="HC50FFDB1D6DD463F91DBF6D1C4F98690"><enum>(D)</enum><header>Powers as conservator</header><text>The Agency may, as conservator, take such action as may be—</text> <clause id="H4293B99B4F2243E89B74BF4E45570073"><enum>(i)</enum><text>necessary to put the regulated entity in a sound and solvent condition; and</text></clause> <clause id="H76E5A92A3FF54B19AD7507BE9F90DB14"><enum>(ii)</enum><text>appropriate to carry on the business of the regulated entity and preserve and conserve the assets and property of the regulated entity.</text></clause></subparagraph> <subparagraph id="HF8BF22C0F7E54EF58F1630F2C41207E0"><enum>(E)</enum><header>Additional powers as receiver</header><text>The Agency may, as receiver, place the regulated entity in liquidation and proceed to realize upon the assets of the regulated entity, having due regard to the conditions of the housing finance market.</text></subparagraph> <subparagraph id="HB8ACF8D9A80545048299B8FE7C7541EA"><enum>(F)</enum><header>Organization of new regulated entities</header><text>The Agency may, as receiver, organize a successor regulated entity that will operate pursuant to subsection (i).</text></subparagraph> <subparagraph id="H8992CE02418D4CC18D488BA4F861CA21"><enum>(G)</enum><header>Transfer of assets and liabilities</header><text>The Agency may, as conservator or receiver, transfer any asset or liability of the regulated entity in default without any approval, assignment, or consent with respect to such transfer. Any Federal home loan bank may, with the approval of the Agency, acquire the assets of any Bank in conservatorship or receivership, and assume the liabilities of such Bank</text></subparagraph> <subparagraph id="H8137CE9C1D0E43F0BC5BC2536EBAC270"><enum>(H)</enum><header>Payment of valid obligations</header><text>The Agency, as conservator or receiver, shall, to the extent of proceeds realized from the performance of contracts or sale of the assets of a regulated entity, pay all valid obligations of the regulated entity in accordance with the prescriptions and limitations of this section.</text></subparagraph> <subparagraph id="H2B7F275988E746CEBFED00C43976D7B9"><enum>(I)</enum><header>Subpoena authority</header> <clause id="H6227A8F80AC8498BA88F5178D795D500"><enum>(i)</enum><header>In general</header> <subclause id="HDB577A467F3A4C17805DC642BA51203B"><enum>(I)</enum><header>In general</header><text>The Agency may, as conservator or receiver, and for purposes of carrying out any power, authority, or duty with respect to a regulated entity (including determining any claim against the regulated entity and determining and realizing upon any asset of any person in the course of collecting money due the regulated entity), exercise any power established under section 1348.</text></subclause> <subclause id="H3C3B430C0E7044719271D720D1BC6BDB"><enum>(II)</enum><header>Applicability of law</header><text>The provisions of section 1348 shall apply with respect to the exercise of any power exercised under this subparagraph in the same manner as such provisions apply under that section.</text></subclause></clause> <clause id="H08F8E9048A9446259E3F9B3C918408A"><enum>(ii)</enum><header>Authority of director</header><text>A subpoena or subpoena duces tecum may be issued under clause (i) only by, or with the written approval of, the Director, or the designee of the Director.</text></clause> <clause id="HF6CD812852C84C58AECDCBD2A591FDB6"><enum>(iii)</enum><header>Rule of construction</header><text>This subsection shall not be construed to limit any rights that the Agency, in any capacity, might otherwise have under section 1317 or 1379D.</text></clause></subparagraph> <subparagraph id="H6D32935E413541CC96BFFFBF01BB3378"><enum>(J)</enum><header>Contracting for services</header><text>The Agency may, as conservator or receiver, provide by contract for the carrying out of any of its functions, activities, actions, or duties as conservator or receiver.</text></subparagraph> <subparagraph id="H5550912503244CDBAB866D6100707889"><enum>(K)</enum><header>Incidental powers</header><text>The Agency may, as conservator or receiver—</text> <clause id="H7530C964CD284132B1C9D4E543A4D239"><enum>(i)</enum><text>exercise all powers and authorities specifically granted to conservators or receivers, respectively, under this section, and such incidental powers as shall be necessary to carry out such powers; and</text></clause> <clause id="H5A9CCEDC3FAD42D7A7447F00B7410096"><enum>(ii)</enum><text>take any action authorized by this section, which the Agency determines is in the best interests of the regulated entity or the Agency.</text></clause></subparagraph></paragraph> <paragraph id="HA5EA9E7819DC4171BA3899DD124EE7D6"><enum>(3)</enum><header>Authority of receiver to determine claims</header> <subparagraph id="HAD5895E0B94C4340B075A0E9C6BAC93F"><enum>(A)</enum><header>In general</header><text>The Agency may, as receiver, determine claims in accordance with the requirements of this subsection and any regulations prescribed under paragraph (4).</text></subparagraph> <subparagraph id="H951C8B6A11E94F5E9F658481F14EA47B"><enum>(B)</enum><header>Notice requirements</header><text>The receiver, in any case involving the liquidation or winding up of the affairs of a closed regulated entity, shall—</text> <clause id="H46D206C6401945E7B7A5AFE9DE64F980"><enum>(i)</enum><text>promptly publish a notice to the creditors of the regulated entity to present their claims, together with proof, to the receiver by a date specified in the notice which shall be not less than 90 days after the publication of such notice; and</text></clause> <clause id="HC597533BF13F405680DB23E9FFB7A9FB"><enum>(ii)</enum><text>republish such notice approximately 1 month and 2 months, respectively, after the publication under clause (i).</text></clause></subparagraph> <subparagraph id="HA1566CDF906F4563BBDA11FD7370FF47"><enum>(C)</enum><header>Mailing required</header><text>The receiver shall mail a notice similar to the notice published under subparagraph (B)(i) at the time of such publication to any creditor shown on the books of the regulated entity—</text> <clause id="HF0475F3BF7C84D039074DC16E2DA693"><enum>(i)</enum><text>at the last address of the creditor appearing in such books; or</text></clause> <clause id="H7AC9CA1E601F481DAE0610DCD69B2D00"><enum>(ii)</enum><text>upon discovery of the name and address of a claimant not appearing on the books of the regulated entity within 30 days after the discovery of such name and address.</text></clause></subparagraph></paragraph> <paragraph id="H9BC7CEBADA9A4E41A65DBFDC4E089798"><enum>(4)</enum><header>Rulemaking authority relating to determination of claims</header><text>Subject to subsection (c), the Director may prescribe regulations regarding the allowance or disallowance of claims by the receiver and providing for administrative determination of claims and review of such determination.</text></paragraph> <paragraph id="H7352402CA2AE40BD97DACDECFEBF0500"><enum>(5)</enum><header>Procedures for determination of claims</header> <subparagraph id="HFB2D7568ACC944F7B29642AFC609B903"><enum>(A)</enum><header>Determination period</header> <clause id="H1ACE85004ABA4BE692168D1B8CD2B912"><enum>(i)</enum><header>In general</header><text>Before the end of the 180-day period beginning on the date on which any claim against a regulated entity is filed with the Agency as receiver, the Agency shall determine whether to allow or disallow the claim and shall notify the claimant of any determination with respect to such claim.</text></clause> <clause id="HF984E6F52B784DCDA9D3EBEE4D185136"><enum>(ii)</enum><header>Extension of time</header><text>The period described in clause (i) may be extended by a written agreement between the claimant and the Agency.</text></clause> <clause id="H71BF9042AA764434B6F7953C46FDC051"><enum>(iii)</enum><header>Mailing of notice sufficient</header><text>The notification requirements of clause (i) shall be deemed to be satisfied if the notice of any determination with respect to any claim is mailed to the last address of the claimant which appears—</text> <subclause id="H62DB43DF15074900888F4BF6F628E40"><enum>(I)</enum><text>on the books of the regulated entity;</text></subclause> <subclause id="HCB58C65227594B08A3DBDC1EB4888D05"><enum>(II)</enum><text>in the claim filed by the claimant; or</text></subclause> <subclause id="HBF1F6516592D41A5936C2C771849CEFD"><enum>(III)</enum><text>in documents submitted in proof of the claim.</text></subclause></clause> <clause id="H60204CB9D51D4BF6AB848C6551685DC"><enum>(iv)</enum><header>Contents of notice of disallowance</header><text>If any claim filed under clause (i) is disallowed, the notice to the claimant shall contain—</text> <subclause id="HB8075CDB81DD4723A3433299D0CB7EB2"><enum>(I)</enum><text>a statement of each reason for the disallowance; and</text></subclause> <subclause id="HD88D1FDEEA584136A5CD3B93CB8B50A8"><enum>(II)</enum><text>the procedures available for obtaining agency review of the determination to disallow the claim or judicial determination of the claim.</text></subclause></clause></subparagraph> <subparagraph id="HD43950DEE8BC408FB5B6EB4282340035"><enum>(B)</enum><header>Allowance of proven claim</header><text>The receiver shall allow any claim received on or before the date specified in the notice published under paragraph (3)(B)(i), or the date specified in the notice required under paragraph (3)(C), which is proved to the satisfaction of the receiver.</text></subparagraph> <subparagraph id="H019829A2694C4FCAB6FF139819B021F8"><enum>(C)</enum><header>Disallowance of claims filed after end of filing period</header><text>Claims filed after the date specified in the notice published under paragraph (3)(B)(i), or the date specified under paragraph (3)(C), shall be disallowed and such disallowance shall be final.</text></subparagraph> <subparagraph id="H6F32C06FEFCE4E58003CB7CF00760485"><enum>(D)</enum><header>Authority to disallow claims</header> <clause id="H392745762806494193D336C74FFEFFA7"><enum>(i)</enum><header>In general</header><text>The receiver may disallow any portion of any claim by a creditor or claim of security, preference, or priority which is not proved to the satisfaction of the receiver.</text></clause> <clause id="H60B266875CDF4CEE9FB9017D337B17E7"><enum>(ii)</enum><header>Payments to less than fully secured creditors</header><text>In the case of a claim of a creditor against a regulated entity which is secured by any property or other asset of such regulated entity, the receiver—</text> <subclause id="HA96937E10C5C4C67A1ECA9E11D006E73"><enum>(I)</enum><text>may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim against the regulated entity; and</text></subclause> <subclause id="HA0AEE98E67FF49139546E56E3987BFB2"><enum>(II)</enum><text>may not make any payment with respect to such unsecured portion of the claim other than in connection with the disposition of all claims of unsecured creditors of the regulated entity.</text></subclause></clause> <clause id="H3030FD82D20B4066AC3F4DF693421C6C"><enum>(iii)</enum><header>Exceptions</header><text display-inline="yes-display-inline">No provision of this paragraph shall apply with respect to any extension of credit from any Federal Reserve Bank, Federal home loan bank, or the Treasury of the United States.</text></clause></subparagraph> <subparagraph id="H3E8854EC5ECB46AEB775F46FA7DE3ECE"><enum>(E)</enum><header>No judicial review of determination pursuant to subparagraph (<enum-in-header>D</enum-in-header>)</header><text>No court may review the determination of the Agency under subparagraph (D) to disallow a claim. This subparagraph shall not effect the authority of a claimant to obtain de novo judicial review of a claim pursuant to paragraph (6).</text></subparagraph> <subparagraph id="HA7E1340DF50A420D98C06E4D33AE438F"><enum>(F)</enum><header>Legal effect of filing</header> <clause id="H7959CC0EB1FD4BB189E69D7644E76C69"><enum>(i)</enum><header>Statute of limitation tolled</header><text>For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action.</text></clause> <clause id="H531B6D311C8F4FE9A816AF0739225699"><enum>(ii)</enum><header>No prejudice to other actions</header><text>Subject to paragraph (10), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the date of the appointment of the receiver, subject to the determination of claims by the receiver.</text></clause></subparagraph></paragraph> <paragraph id="HB0DCCF672C604278A75900CF794B88B5"><enum>(6)</enum><header>Provision for judicial determination of claims</header> <subparagraph id="H32C1E817E31A4BF1AA4507A8BE05F1E2"><enum>(A)</enum><header>In general</header><text>The claimant may file suit on a claim (or continue an action commenced before the appointment of the receiver) in the district or territorial court of the United States for the district within which the principal place of business of the regulated entity is located or the United States District Court for the District of Columbia (and such court shall have jurisdiction to hear such claim), before the end of the 60-day period beginning on the earlier of—</text> <clause id="HE1FFA76E4177410EB213641BD2542D00"><enum>(i)</enum><text>the end of the period described in paragraph (5)(A)(i) with respect to any claim against a regulated entity for which the Agency is receiver; or</text></clause> <clause id="H6DC5980CEA7F428D8215E5BC163DCDB2"><enum>(ii)</enum><text>the date of any notice of disallowance of such claim pursuant to paragraph (5)(A)(i).</text></clause></subparagraph> <subparagraph id="HD6F50704D54349F1B741885B15EA0597"><enum>(B)</enum><header>Statute of limitations</header><text>A claim shall be deemed to be disallowed (other than any portion of such claim which was allowed by the receiver), and such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim, if the claimant fails, before the end of the 60-day period described under subparagraph (A), to file suit on such claim (or continue an action commenced before the appointment of the receiver).</text></subparagraph></paragraph> <paragraph id="H11CDB1EAA7E34C199199BF3836B78DEB"><enum>(7)</enum><header>Review of claims</header> <subparagraph id="HB16BBF2EA2C6492295B4FFF4AD081724"><enum>(A)</enum><header>Other review procedures</header> <clause id="H12F511ED8E0541B1B65FAE2B00EAE2D8"><enum>(i)</enum><header>In general</header><text>The Agency shall establish such alternative dispute resolution processes as may be appropriate for the resolution of claims filed under paragraph (5)(A)(i).</text></clause> <clause id="H90C3FC557914476B00ED29CB7E84A27F"><enum>(ii)</enum><header>Criteria</header><text>In establishing alternative dispute resolution processes, the Agency shall strive for procedures which are expeditious, fair, independent, and low cost.</text></clause> <clause id="H085CE08DD3CC4EBA95B288369FFD47AF"><enum>(iii)</enum><header>Voluntary binding or nonbinding procedures</header><text>The Agency may establish both binding and nonbinding processes, which may be conducted by any government or private party. All parties, including the claimant and the Agency, must agree to the use of the process in a particular case.</text></clause></subparagraph> <subparagraph id="HBCA5078C276749EE81C11F6735BA68B6"><enum>(B)</enum><header>Consideration of incentives</header><text>The Agency shall seek to develop incentives for claimants to participate in the alternative dispute resolution process.</text></subparagraph></paragraph> <paragraph id="HE2D1E5F418304BE78CC47DDC8A291C"><enum>(8)</enum><header>Expedited determination of claims</header> <subparagraph id="HEC56E49C831A4A8DAE3BB76EA200F3E3"><enum>(A)</enum><header>Establishment required</header><text>The Agency shall establish a procedure for expedited relief outside of the routine claims process established under paragraph (5) for claimants who—</text> <clause id="HDB56F2A7263840988E15A9E91215CD4C"><enum>(i)</enum><text>allege the existence of legally valid and enforceable or perfected security interests in assets of any regulated entity for which the Agency has been appointed receiver; and</text></clause> <clause id="H4AEB389386214604AB3FD3B94FBBEEF4"><enum>(ii)</enum><text>allege that irreparable injury will occur if the routine claims procedure is followed.</text></clause></subparagraph> <subparagraph id="H069B384360AA4D0F84F7691BDD3FF200"><enum>(B)</enum><header>Determination period</header><text>Before the end of the 90-day period beginning on the date any claim is filed in accordance with the procedures established under subparagraph (A), the Director shall—</text> <clause id="H96BD582937394DB1B11011E2344E84A5"><enum>(i)</enum><text>determine—</text> <subclause id="HC93BA86E9F594D85A358A184D3215C1"><enum>(I)</enum><text>whether to allow or disallow such claim; or</text></subclause> <subclause id="H161EE6318954408082D8E0E3516EEB5"><enum>(II)</enum><text>whether such claim should be determined pursuant to the procedures established under paragraph (5); and</text></subclause></clause> <clause id="HA98C5EE7BF2D402F94595C5350C7D575"><enum>(ii)</enum><text>notify the claimant of the determination, and if the claim is disallowed, provide a statement of each reason for the disallowance and the procedure for obtaining agency review or judicial determination.</text></clause></subparagraph> <subparagraph id="HCD44FBFBFDBA4BCCA0EC9EE530535007"><enum>(C)</enum><header>Period for filing or renewing suit</header><text>Any claimant who files a request for expedited relief shall be permitted to file a suit, or to continue a suit filed before the appointment of the receiver, seeking a determination of the rights of the claimant with respect to such security interest after the earlier of—</text> <clause id="H65D8FB5F49E4438881F772B8B951844C"><enum>(i)</enum><text>the end of the 90-day period beginning on the date of the filing of a request for expedited relief; or</text></clause> <clause id="HAA71D0B83B5D45A6876860F5FC68B8E7"><enum>(ii)</enum><text>the date the Agency denies the claim.</text></clause></subparagraph> <subparagraph id="HA1F8F8C6E76241E1837D91009EF881B2"><enum>(D)</enum><header>Statute of limitations</header><text>If an action described under subparagraph (C) is not filed, or the motion to renew a previously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed under subparagraph (B), the claim shall be deemed to be disallowed as of the end of such period (other than any portion of such claim which was allowed by the receiver), such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim.</text></subparagraph> <subparagraph id="HF675EAD4EF5F4A27A38EB1BDA5406F8B"><enum>(E)</enum><header>Legal effect of filing</header> <clause id="H39D7A283288E4E47B514F76BE9008896"><enum>(i)</enum><header>Statute of limitation tolled</header><text>For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action.</text></clause> <clause id="H6A626700BBEB42C38332F9172410EADE"><enum>(ii)</enum><header>No prejudice to other actions</header><text>Subject to paragraph (10), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action that was filed before the appointment of the receiver, subject to the determination of claims by the receiver.</text></clause></subparagraph></paragraph> <paragraph id="H47348B27E10E4E348106ABC87340A85B"><enum>(9)</enum><header>Payment of claims</header> <subparagraph id="H04B3AC5AACDF42D0A41976CEA9BA334B"><enum>(A)</enum><header>In general</header><text>The receiver may, in the discretion of the receiver, and to the extent funds are available from the assets of the regulated entity, pay creditor claims, in such manner and amounts as are authorized under this section, which are—</text> <clause id="H92753E73F85A4B0DA603235D72F521F0"><enum>(i)</enum><text>allowed by the receiver;</text></clause> <clause id="HE8086AE2A5DB41E3BF2576E285C29037"><enum>(ii)</enum><text>approved by the Agency pursuant to a final determination pursuant to paragraph (7) or (8); or</text></clause> <clause id="H50007C8CED564E46AB16D858641FAC6F"><enum>(iii)</enum><text>determined by the final judgment of any court of competent jurisdiction.</text></clause></subparagraph> <subparagraph id="HAD95D3AD232E48239995B04A7A0F1DD"><enum>(B)</enum><header>Agreements against the interest of the agency</header><text>No agreement that tends to diminish or defeat the interest of the Agency in any asset acquired by the Agency as receiver under this section shall be valid against the Agency unless such agreement is in writing, and executed by an authorized official of the regulated entity, except that such requirements for qualified financial contracts shall be applied in a manner consistent with reasonable business trading practices in the financial contracts market.</text></subparagraph> <subparagraph id="H7C4BCDE68AE5493DAF92AE8F9634DE58"><enum>(C)</enum><header>Payment of dividends on claims</header><text>The receiver may, in the sole discretion of the receiver, pay from the assets of the regulated entity dividends on proved claims at any time, and no liability shall attach to the Agency, by reason of any such payment, for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment.</text></subparagraph> <subparagraph id="H47926E46ED1141FE9C9DF2C77300A95C"><enum>(D)</enum><header>Rulemaking authority of the director</header><text>The Director may prescribe such rules, including definitions of terms, as the Director deems appropriate to establish a single uniform interest rate for, or to make payments of post-insolvency interest to creditors holding proven claims against the receivership estates of regulated entities following satisfaction by the receiver of the principal amount of all creditor claims.</text></subparagraph></paragraph> <paragraph id="H2D7CB38B999C454092846980B822D8D"><enum>(10)</enum><header>Suspension of legal actions</header> <subparagraph id="H81D57AB286EA40EFB19F006847E737EB"><enum>(A)</enum><header>In general</header><text>After the appointment of a conservator or receiver for a regulated entity, the conservator or receiver may, in any judicial action or proceeding to which such regulated entity is or becomes a party, request a stay for a period not to exceed—</text> <clause id="H3EBF00107775488B8F95C61CB4FEC270"><enum>(i)</enum><text>45 days, in the case of any conservator; and</text></clause> <clause id="H0708937765AD4DF8AB6B00B79292B5C7"><enum>(ii)</enum><text>90 days, in the case of any receiver.</text></clause></subparagraph> <subparagraph id="HED9D7F6FB0834B4BAA64A0DF52313EE3"><enum>(B)</enum><header>Grant of stay by all courts required</header><text>Upon receipt of a request by any conservator or receiver under subparagraph (A) for a stay of any judicial action or proceeding in any court with jurisdiction of such action or proceeding, the court shall grant such stay as to all parties.</text></subparagraph></paragraph> <paragraph id="HE28438A461CE4902AD37339781A2CE2"><enum>(11)</enum><header>Additional rights and duties</header> <subparagraph id="H15FC3F117ADD4EDF90EFFA076277DB65"><enum>(A)</enum><header>Prior final adjudication</header><text>The Agency shall abide by any final unappealable judgment of any court of competent jurisdiction which was rendered before the appointment of the Agency as conservator or receiver.</text></subparagraph> <subparagraph id="H70559145B69941B1A2BC81D241C51E51"><enum>(B)</enum><header>Rights and remedies of conservator or receiver</header><text>In the event of any appealable judgment, the Agency as conservator or receiver shall—</text> <clause id="H16E5397AB6EE4A188E6519CBE4C66FC7"><enum>(i)</enum><text>have all the rights and remedies available to the regulated entity (before the appointment of such conservator or receiver) and the Agency, including removal to Federal court and all appellate rights; and</text></clause> <clause id="H7572B5F29B1C437BB8AE4F998228A7EE"><enum>(ii)</enum><text>not be required to post any bond in order to pursue such remedies.</text></clause></subparagraph> <subparagraph id="H34562D8CB4C04C948000B192BF83CDB5"><enum>(C)</enum><header>No attachment or execution</header><text>No attachment or execution may issue by any court upon assets in the possession of the receiver.</text></subparagraph> <subparagraph id="HAB9C42BA0A124610A135D17EE007D89"><enum>(D)</enum><header>Limitation on judicial review</header><text>Except as otherwise provided in this subsection, no court shall have jurisdiction over—</text> <clause id="H0EC4ADFF4A9946B6839C9676B3813907"><enum>(i)</enum><text>any claim or action for payment from, or any action seeking a determination of rights with respect to, the assets of any regulated entity for which the Agency has been appointed receiver; or</text></clause> <clause id="H1B7DD8F4F6D44D2E956618D3BA84171"><enum>(ii)</enum><text>any claim relating to any act or omission of such regulated entity or the Agency as receiver.</text></clause></subparagraph> <subparagraph id="H9A9C62522F0047B8A43DB4EF4EA14D27"><enum>(E)</enum><header>Disposition of assets</header><text display-inline="yes-display-inline">In exercising any right, power, privilege, or authority as conservator or receiver in connection with any sale or disposition of assets of a regulated entity for which the Agency has been appointed conservator or receiver, the Agency shall conduct its operations in a manner which maintains stability in the housing finance markets and, to the extent consistent with that goal—</text> <clause id="H873658BF6C6D4F8C954452369189DF78"><enum>(i)</enum><text>maximizes the net present value return from the sale or disposition of such assets;</text></clause> <clause id="H92D2F6DBEC47447F991F00E1D6679148"><enum>(ii)</enum><text>minimizes the amount of any loss realized in the resolution of cases; and</text></clause> <clause id="H9DF777D28D5E421100886F9943A58DC"><enum>(iii)</enum><text>ensures adequate competition and fair and consistent treatment of offerors.</text></clause></subparagraph></paragraph> <paragraph id="HE8F740E8CB084F89BC4411A8BE96FFC9"><enum>(12)</enum><header>Statute of limitations for actions brought by conservator or receiver</header> <subparagraph id="H7CDB933F641042238C02F9103D262F7D"><enum>(A)</enum><header>In general</header><text>Notwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the Agency as conservator or receiver shall be—</text> <clause id="H58BF3EC905D14D278783CCE28100C25B"><enum>(i)</enum><text>in the case of any contract claim, the longer of—</text> <subclause id="H3D4C4E911A0B4478BEA63BD79D021D4D"><enum>(I)</enum><text>the 6-year period beginning on the date the claim accrues; or</text></subclause> <subclause id="H84988177F9B2446A9E8F19C11109ED21"><enum>(II)</enum><text>the period applicable under State law; and</text></subclause></clause> <clause id="H751409B6DF63439CAC9CA715A9C61580"><enum>(ii)</enum><text>in the case of any tort claim, the longer of—</text> <subclause id="H0329A429EAE24896939C720971B1BF71"><enum>(I)</enum><text>the 3-year period beginning on the date the claim accrues; or</text></subclause> <subclause id="H56B73191012F4E88BF4E433281C823EF"><enum>(II)</enum><text>the period applicable under State law.</text></subclause></clause></subparagraph> <subparagraph id="HC37ADEF0D7854765BD495F9F96B4878E"><enum>(B)</enum><header>Determination of the date on which a claim accrues</header><text>For purposes of subparagraph (A), the date on which the statute of limitations begins to run on any claim described in such subparagraph shall be the later of—</text> <clause id="H3A10B4FE02864E63A9622701322FFA51"><enum>(i)</enum><text>the date of the appointment of the Agency as conservator or receiver; or</text></clause> <clause id="H815909B5E0EA4C9EB2BB0518052DC3B6"><enum>(ii)</enum><text>the date on which the cause of action accrues.</text></clause></subparagraph></paragraph> <paragraph id="H91DAC5C2AAAA4B378F00661813A0C1BA"><enum>(13)</enum><header>Revival of expired state causes of action</header> <subparagraph id="HF976EA783F804CC0A18B10B06B847EA6"><enum>(A)</enum><header>In general</header><text>In the case of any tort claim described under subparagraph (B) for which the statute of limitations applicable under State law with respect to such claim has expired not more than 5 years before the appointment of the Agency as conservator or receiver, the Agency may bring an action as conservator or receiver on such claim without regard to the expiration of the statute of limitation applicable under State law.</text></subparagraph> <subparagraph id="H57AD271D3F434FEEB8D07C6264C58223"><enum>(B)</enum><header>Claims described</header><text>A tort claim referred to under subparagraph (A) is a claim arising from fraud, intentional misconduct resulting in unjust enrichment, or intentional misconduct resulting in substantial loss to the regulated entity.</text></subparagraph></paragraph> <paragraph id="H5FE34A57A15A4C4FB0D86F8C07F2D48"><enum>(14)</enum><header>Accounting and recordkeeping requirements</header> <subparagraph id="H3E9189CBC989423CACA5FCC32CFABACF"><enum>(A)</enum><header>In general</header><text>The Agency as conservator or receiver shall, consistent with the accounting and reporting practices and procedures established by the Agency, maintain a full accounting of each conservatorship and receivership or other disposition of a regulated entity in default.</text></subparagraph> <subparagraph id="H9981B5A2185148E3B280320010BA175F"><enum>(B)</enum><header>Annual accounting or report</header><text>With respect to each conservatorship or receivership, the Agency shall make an annual accounting or report available to the Board, the Comptroller General of the United States, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives.</text></subparagraph> <subparagraph id="HFDE63B9100D04ECAB900D774721B91D8"><enum>(C)</enum><header>Availability of reports</header><text>Any report prepared under subparagraph (B) shall be made available by the Agency upon request to any shareholder of a regulated entity or any member of the public.</text></subparagraph> <subparagraph id="HC6ED18CE93524EBDBBD02FFD2C69FBF"><enum>(D)</enum><header>Recordkeeping requirement</header><text>After the end of the 6-year period beginning on the date that the conservatorship or receivership is terminated by the Director, the Agency may destroy any records of such regulated entity which the Agency, in the discretion of the Agency, determines to be unnecessary unless directed not to do so by a court of competent jurisdiction or governmental agency, or prohibited by law.</text></subparagraph></paragraph> <paragraph id="H8EFB41259CE141D2B0AE33F2C1E5FB6"><enum>(15)</enum><header>Fraudulent transfers</header> <subparagraph id="HB48BFA3F206841698CAAC467CB1F2398"><enum>(A)</enum><header>In general</header><text>The Agency, as conservator or receiver, may avoid a transfer of any interest of a regulated entity-affiliated party, or any person who the conservator or receiver determines is a debtor of the regulated entity, in property, or any obligation incurred by such party or person, that was made within 5 years of the date on which the Agency was appointed conservator or receiver, if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder, delay, or defraud the regulated entity, the Agency, the conservator, or receiver.</text></subparagraph> <subparagraph id="HF15643E19F6C47D1A0FDD5A9F1D5A55B"><enum>(B)</enum><header>Right of recovery</header><text>To the extent a transfer is avoided under subparagraph (A), the conservator or receiver may recover, for the benefit of the regulated entity, the property transferred, or, if a court so orders, the value of such property (at the time of such transfer) from—</text> <clause id="HACFD5DC76B1E4ECDA188A3C7CAB6DB38"><enum>(i)</enum><text>the initial transferee of such transfer or the regulated entity-affiliated party or person for whose benefit such transfer was made; or</text></clause> <clause id="H15FFDAEEE87048BAAE107CCB1BABC0A1"><enum>(ii)</enum><text>any immediate or mediate transferee of any such initial transferee.</text></clause></subparagraph> <subparagraph id="H705600C716DE44AEA9BB772B1BF800"><enum>(C)</enum><header>Rights of transferee or obligee</header><text>The conservator or receiver may not recover under subparagraph (B) from—</text> <clause id="H98A1CE9AEA8943F88DD2B40032338285"><enum>(i)</enum><text>any transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith; or</text></clause> <clause id="H24462EB62D3C496E894E9800B440A85F"><enum>(ii)</enum><text>any immediate or mediate good faith transferee of such transferee.</text></clause></subparagraph> <subparagraph id="HFAAFE272AC96411387651C0138FC708E"><enum>(D)</enum><header>Rights under this paragraph</header><text>The rights under this paragraph of the conservator or receiver described under subparagraph (A) shall be superior to any rights of a trustee or any other party (other than any party which is a Federal agency) under title 11, United States Code.</text></subparagraph></paragraph> <paragraph id="H5864DDED08DC40ADBD6413C15E9FF1C"><enum>(16)</enum><header>Attachment of assets and other injunctive relief</header><text>Subject to paragraph (17), any court of competent jurisdiction may, at the request of the conservator or receiver, issue an order in accordance with Rule 65 of the Federal Rules of Civil Procedure, including an order placing the assets of any person designated by the Agency or such conservator under the control of the court, and appointing a trustee to hold such assets.</text></paragraph> <paragraph id="H26167BE5CA2E4EA6856227594FF600E2"><enum>(17)</enum><header>Standards of proof</header><text>Rule 65 of the Federal Rules of Civil Procedure shall apply with respect to any proceeding under paragraph (16) without regard to the requirement of such rule that the applicant show that the injury, loss, or damage is irreparable and immediate.</text></paragraph> <paragraph id="HB81763243859495500D738B033945D15"><enum>(18)</enum><header>Treatment of claims arising from breach of contracts executed by the receiver or conservator</header> <subparagraph id="HA3407790C1BD4BF18484E5C1A917A4E5"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of this subsection, any final and unappealable judgment for monetary damages entered against a receiver or conservator for the breach of an agreement executed or approved in writing by such receiver or conservator after the date of its appointment, shall be paid as an administrative expense of the receiver or conservator.</text></subparagraph> <subparagraph id="H85E83CC0D67B4A2DAD34D400584C1787"><enum>(B)</enum><header>No limitation of power</header><text>Nothing in this paragraph shall be construed to limit the power of a receiver or conservator to exercise any rights under contract or law, including to terminate, breach, cancel, or otherwise discontinue such agreement.</text></subparagraph></paragraph> <paragraph id="H77ECBAAC967A4A80905319FFC096F6B2"><enum>(19)</enum><header>General exceptions</header> <subparagraph id="H7887370B13164A1700D879333EED6E1B"><enum>(A)</enum><header>Limitations</header><text>The rights of a conservator or receiver appointed under this section shall be subject to the limitations on the powers of a receiver under sections 402 through 407 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402 through 4407).</text></subparagraph> <subparagraph id="HCC473772D4A2466ABEAB1CA03B5EE3F"><enum>(B)</enum><header>Mortgages held in trust</header> <clause id="HF63C653C26D94835865FECD650856868"><enum>(i)</enum><header>In general</header><text>Any mortgage, pool of mortgages, or interest in a pool of mortgages, held in trust, custodial, or agency capacity by a regulated entity for the benefit of persons other than the regulated entity shall not be available to satisfy the claims of creditors generally.</text></clause> <clause id="HD5BE375003B849C7004C0321B0721711"><enum>(ii)</enum><header>Holding of mortgages</header><text>Any mortgage, pool of mortgages, or interest in a pool of mortgages, described under clause (i) shall be held by the conservator or receiver appointed under this section for the beneficial owners of such mortgage, pool of mortgages, or interest in a pool of mortgages in accordance with the terms of the agreement creating such trust, custodial, or other agency arrangement.</text></clause> <clause id="H55B446A52C014A1AA805C1D8C5D00861"><enum>(iii)</enum><header>Liability of receiver</header><text>The liability of a receiver appointed under this section for damages shall, in the case of any contingent or unliquidated claim relating to the mortgages held in trust, be estimated in accordance set forth in the regulations of the Director.</text></clause></subparagraph></paragraph></subsection> <subsection id="H6EF9053B62F5448091C2DAEDEBAA7B"><enum>(c)</enum><header>Priority of Expenses and Unsecured Claims</header> <paragraph id="H7AA9126E6B89405EA6621DD385D66CE3"><enum>(1)</enum><header>In general</header><text>Unsecured claims against a regulated entity, or a receiver, that are proven to the satisfaction of the receiver shall have priority in the following order:</text> <subparagraph id="HE72627623AE54969BF4BDB496563FC18"><enum>(A)</enum><text>Administrative expenses of the receiver.</text></subparagraph> <subparagraph id="HAE4E53E9A9B644988993AB4FEF637D8C"><enum>(B)</enum><text>Any other general or senior liability of the regulated entity and claims of other Federal home loan banks arising from their payment obligations (including joint and several payment obligations).</text></subparagraph> <subparagraph id="HD6B538DFA29441E9B995EED45EB33023"><enum>(C)</enum><text>Any obligation subordinated to general creditors.</text></subparagraph> <subparagraph id="H3C778AAFB241443EB7C1927F79E6FEFC"><enum>(D)</enum><text>Any obligation to shareholders or members arising as a result of their status as shareholder or members.</text></subparagraph></paragraph> <paragraph id="HDC4FDFA2ABED4FE2A38CE93148F296F9"><enum>(2)</enum><header>Creditors similarly situated</header><text>All creditors that are similarly situated under paragraph (1) shall be treated in a similar manner, except that the Agency may make such other payments to creditors necessary to maximize the present value return from the sale or disposition or such regulated entity’s assets or to minimize the amount of any loss realized in the resolution of cases so long as all creditors similarly situated receive not less than the amount provided under subsection (e)(2).</text></paragraph> <paragraph id="H7084F2618D10430B9CE270BCC3AC1200"><enum>(3)</enum><header>Definition</header><text>The term <quote>administrative expenses of the receiver</quote> shall include the actual, necessary costs and expenses incurred by the receiver in preserving the assets of the regulated entity or liquidating or otherwise resolving the affairs of the regulated entity. Such expenses shall include obligations that are incurred by the receiver after appointment as receiver that the Director determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity.</text></paragraph></subsection> <subsection id="HFEC95204FC6B4F0E812B00321D886005"><enum>(d)</enum><header>Provisions relating to contracts entered into before appointment of conservator or receiver</header> <paragraph id="HEA271CC2DB6E4C20AC07FAE5472DD96C"><enum>(1)</enum><header>Authority to repudiate contracts</header><text>In addition to any other rights a conservator or receiver may have, the conservator or receiver for any regulated entity may disaffirm or repudiate any contract or lease—</text> <subparagraph id="HD4E0C98EBE8D462CB58D2070DF002D00"><enum>(A)</enum><text>to which such regulated entity is a party;</text></subparagraph> <subparagraph id="H63D12E65DE43483200FB0009B306DCC"><enum>(B)</enum><text>the performance of which the conservator or receiver, in its sole discretion, determines to be burdensome; and</text></subparagraph> <subparagraph id="HAAD760D0CF3940B0A6DB260EF5CE500"><enum>(C)</enum><text>the disaffirmance or repudiation of which the conservator or receiver determines, in its sole discretion, will promote the orderly administration of the affairs of the regulated entity.</text></subparagraph></paragraph> <paragraph id="H050F897F7D52484283D83DB12BD3AB61"><enum>(2)</enum><header>Timing of repudiation</header><text>The conservator or receiver shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment.</text></paragraph> <paragraph id="H8675DFC6883D41988D969862A77FE49"><enum>(3)</enum><header>Claims for damages for repudiation</header> <subparagraph id="HBC6F4418EA0B4BD98F6B8C9690AA60A4"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided under subparagraph (C) and paragraphs (4), (5), and (6), the liability of the conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be—</text> <clause id="H34A25ADFBD384C168730EF65E84C48E6"><enum>(i)</enum><text>limited to actual direct compensatory damages; and</text></clause> <clause id="H426F28A0D52941848D642C3FBACA9BB"><enum>(ii)</enum><text>determined as of—</text> <subclause id="HDAB2DE07C1D741229868268B022021C"><enum>(I)</enum><text>the date of the appointment of the conservator or receiver; or</text></subclause> <subclause id="HC0D22F5908E8499E836105CF6FA3A3E0"><enum>(II)</enum><text>in the case of any contract or agreement referred to in paragraph (8), the date of the disaffirmance or repudiation of such contract or agreement.</text></subclause></clause></subparagraph> <subparagraph id="HD3D5C1F6C158401BB9DD181EE1E413F"><enum>(B)</enum><header>No liability for other damages</header><text>For purposes of subparagraph (A), the term <quote>actual direct compensatory damages</quote> shall not include—</text> <clause id="H952D82D061584F5FBACC6996E351AEB8"><enum>(i)</enum><text>punitive or exemplary damages;</text></clause> <clause id="H29680C9C15AE4913BD500215ED582574"><enum>(ii)</enum><text>damages for lost profits or opportunity; or</text></clause> <clause id="HF51A1A37FC814012A7CAD2DE2CF7FC00"><enum>(iii)</enum><text>damages for pain and suffering.</text></clause></subparagraph> <subparagraph id="HD21C6F826B77401B832EAD1EC9D4DE36"><enum>(C)</enum><header>Measure of damages for repudiation of financial contracts</header><text>In the case of any qualified financial contract or agreement to which paragraph (8) applies, compensatory damages shall be—</text> <clause id="HD0E0F0635EAD4C848431886DF7A3EB25"><enum>(i)</enum><text>deemed to include normal and reasonable costs of cover or other reasonable measures of damages utilized in the industries for such contract and agreement claims; and</text></clause> <clause id="H3C4B693A4A1F47A598DBE26092F2CEA"><enum>(ii)</enum><text>paid in accordance with this subsection and subsection (e), except as otherwise specifically provided in this section.</text></clause></subparagraph></paragraph> <paragraph id="HC394BA79FC1D4BE9992BB02BDA2B5166"><enum>(4)</enum><header>Leases under which the regulated entity is the lessee</header> <subparagraph id="HD43EFD6B47A14987A29E37E13012C43"><enum>(A)</enum><header>In general</header><text>If the conservator or receiver disaffirms or repudiates a lease under which the regulated entity was the lessee, the conservator or receiver shall not be liable for any damages (other than damages determined under subparagraph (B)) for the disaffirmance or repudiation of such lease.</text></subparagraph> <subparagraph id="H483CC74940034EBEA7C5F61E49FB5958"><enum>(B)</enum><header>Payments of rent</header><text>Notwithstanding subparagraph (A), the lessor under a lease to which that subparagraph applies shall—</text> <clause id="HFB6FA99842AD4A1BB7537D32CF02CBDB"><enum>(i)</enum><text>be entitled to the contractual rent accruing before the later of the date—</text> <subclause id="H2B1673DA19904AD1B73E27F3DF0E6BE"><enum>(I)</enum><text>the notice of disaffirmance or repudiation is mailed; or</text></subclause> <subclause id="H37DC18A70B8D41D7A43FCDEA3F8697E"><enum>(II)</enum><text>the disaffirmance or repudiation becomes effective, unless the lessor is in default or breach of the terms of the lease;</text></subclause></clause> <clause id="HFEEE8B1791F24FA492FDFEF3587547E1"><enum>(ii)</enum><text>have no claim for damages under any acceleration clause or other penalty provision in the lease; and</text></clause> <clause id="H2A1321997F804B80BADD68AB38E064AF"><enum>(iii)</enum><text>have a claim for any unpaid rent, subject to all appropriate offsets and defenses, due as of the date of the appointment, which shall be paid in accordance with this subsection and subsection (e).</text></clause></subparagraph></paragraph> <paragraph id="HD7ED98270C9C49D4A5D5C4A690CBB992"><enum>(5)</enum><header>Leases under which the regulated entity is the lessor</header> <subparagraph id="HC8450C88A5C0420C8842DA13C63F6E8"><enum>(A)</enum><header>In general</header><text>If the conservator or receiver repudiates an unexpired written lease of real property of the regulated entity under which the regulated entity is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either—</text> <clause id="H09CF3DF9C41F46B98E3DE792C4EF8691"><enum>(i)</enum><text>treat the lease as terminated by such repudiation; or</text></clause> <clause id="H9E966E9769FA4F9EAE20032616ABF7E4"><enum>(ii)</enum><text>remain in possession of the leasehold interest for the balance of the term of the lease, unless the lessee defaults under the terms of the lease after the date of such repudiation.</text></clause></subparagraph> <subparagraph id="H755AD15052BB4AC082AECC7A800378C"><enum>(B)</enum><header>Provisions applicable to lessee remaining in possession</header><text>If any lessee under a lease described under subparagraph (A) remains in possession of a leasehold interest under clause (ii) of such subparagraph—</text> <clause id="H8513E9453FE84E3FA300EBFFAB7E0D9"><enum>(i)</enum><text>the lessee—</text> <subclause id="H62615DB0F13043E8A8C94817DAB080A0"><enum>(I)</enum><text>shall continue to pay the contractual rent pursuant to the terms of the lease after the date of the repudiation of such lease; and</text></subclause> <subclause id="H2D3905541D3948C00020C7AD1CD2C8D7"><enum>(II)</enum><text>may offset against any rent payment which accrues after the date of the repudiation of the lease, and any damages which accrue after such date due to the nonperformance of any obligation of the regulated entity under the lease after such date; and</text></subclause></clause> <clause id="H87E3753AA8794B3199FF2675FB722450"><enum>(ii)</enum><text>the conservator or receiver shall not be liable to the lessee for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause (i)(II).</text></clause></subparagraph></paragraph> <paragraph id="HDC253D7D8F9C498BB0CF4ECE70AF4360"><enum>(6)</enum><header>Contracts for the sale of real property</header> <subparagraph id="H72EA23FD4D63441B828EF20095BB9E88"><enum>(A)</enum><header>In general</header><text>If the conservator or receiver repudiates any contract for the sale of real property and the purchaser of such real property under such contract is in possession, and is not, as of the date of such repudiation, in default, such purchaser may either—</text> <clause id="H943F2572AF6144C091D5A0018E3C5900"><enum>(i)</enum><text>treat the contract as terminated by such repudiation; or</text></clause> <clause id="H665BCF252D964A0287D1B51B8BBB00CC"><enum>(ii)</enum><text>remain in possession of such real property.</text></clause></subparagraph> <subparagraph id="HAA7225ADF86E4EC3B58E7756C7C1B355"><enum>(B)</enum><header>Provisions applicable to purchaser remaining in possession</header><text>If any purchaser of real property under any contract described under subparagraph (A) remains in possession of such property under clause (ii) of such subparagraph—</text> <clause id="HDD2054C30021444C9486004DA68B99E3"><enum>(i)</enum><text>the purchaser—</text> <subclause id="H7357A7FBF5E040EDA7B1F799166856B6"><enum>(I)</enum><text>shall continue to make all payments due under the contract after the date of the repudiation of the contract; and</text></subclause> <subclause id="H5B33C822BF2A4EDD00063F02B3D300E"><enum>(II)</enum><text>may offset against any such payments any damages which accrue after such date due to the nonperformance (after such date) of any obligation of the regulated entity under the contract; and</text></subclause></clause> <clause id="H3C6ABC4AD4D0425087E59768243F0031"><enum>(ii)</enum><text>the conservator or receiver shall—</text> <subclause id="H0CE71D5F4BE34884878711A26B00F34D"><enum>(I)</enum><text>not be liable to the purchaser for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause (i)(II);</text></subclause> <subclause id="HC2510B73756442A09FFAB9CB21B63F19"><enum>(II)</enum><text>deliver title to the purchaser in accordance with the provisions of the contract; and</text></subclause> <subclause id="H109473084D504000BF7D2711164B3D4D"><enum>(III)</enum><text>have no obligation under the contract other than the performance required under subclause (II).</text></subclause></clause></subparagraph> <subparagraph id="H997A51AA92AC47C8A85446CB21AB86D5"><enum>(C)</enum><header>Assignment and sale allowed</header> <clause id="HEB8F58297BDA415EAA5CD510971363FD"><enum>(i)</enum><header>In general</header><text>No provision of this paragraph shall be construed as limiting the right of the conservator or receiver to assign the contract described under subparagraph (A), and sell the property subject to the contract and the provisions of this paragraph.</text></clause> <clause id="HFB8B207B5BC64A8E89BF932D426942A5"><enum>(ii)</enum><header>No liability after assignment and sale</header><text>If an assignment and sale described under clause (i) is consummated, the conservator or receiver shall have no further liability under the contract described under subparagraph (A), or with respect to the real property which was the subject of such contract.</text></clause></subparagraph></paragraph> <paragraph id="H8DE06C33A5DD4EC69ED276F359CE081D"><enum>(7)</enum><header>Provisions applicable to service contracts</header> <subparagraph id="HFE5C056E4A8947079F8B7B45411055EB"><enum>(A)</enum><header>Services performed before appointment</header><text>In the case of any contract for services between any person and any regulated entity for which the Agency has been appointed conservator or receiver, any claim of such person for services performed before the appointment of the conservator or the receiver shall be—</text> <clause id="H2F2002869332463F8D57DBE3B5E3C572"><enum>(i)</enum><text>a claim to be paid in accordance with subsections (b) and (e); and</text></clause> <clause id="H6834F89B00AC40C5A1EAD900CA53393C"><enum>(ii)</enum><text>deemed to have arisen as of the date the conservator or receiver was appointed.</text></clause></subparagraph> <subparagraph id="H8BA87574D156411BA4DCFB89E2EC51BE"><enum>(B)</enum><header>Services performed after appointment and prior to repudiation</header><text>If, in the case of any contract for services described under subparagraph (A), the conservator or receiver accepts performance by the other person before the conservator or receiver makes any determination to exercise the right of repudiation of such contract under this section—</text> <clause id="HFEB5A8824144476298F167DF61DD5060"><enum>(i)</enum><text>the other party shall be paid under the terms of the contract for the services performed; and</text></clause> <clause id="HA5EE3C34133447978800897DEDAE164B"><enum>(ii)</enum><text>the amount of such payment shall be treated as an administrative expense of the conservatorship or receivership.</text></clause></subparagraph> <subparagraph id="HA53841F383CB42B4AF1614E0D5B35FED"><enum>(C)</enum><header>Acceptance of performance no bar to subsequent repudiation</header><text>The acceptance by any conservator or receiver of services referred to under subparagraph (B) in connection with a contract described in such subparagraph shall not affect the right of the conservator or receiver to repudiate such contract under this section at any time after such performance.</text></subparagraph></paragraph> <paragraph id="HA4229652BA1A4B019CDF8B521BDEBC8F"><enum>(8)</enum><header>Certain qualified financial contracts</header> <subparagraph id="H5A15F84D282C438CA05017946DAEBF34"><enum>(A)</enum><header>Rights of parties to contracts</header><text>Subject to paragraphs (9) and (10) and notwithstanding any other provision of this Act, any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—</text> <clause id="H40A9CA056BD143109BDC4078543B1009"><enum>(i)</enum><text>any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a regulated entity that arises upon the appointment of the Agency as receiver for such regulated entity at any time after such appointment;</text></clause> <clause id="H86AB501073E54ABDA304A719DC4D5014"><enum>(ii)</enum><text>any right under any security agreement or arrangement or other credit enhancement relating to one or more qualified financial contracts described in clause (i); or</text></clause> <clause id="HF363240EC34B4747945E75B3EBD965B"><enum>(iii)</enum><text>any right to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more contracts and agreements described in clause (i), including any master agreement for such contracts or agreements.</text></clause></subparagraph> <subparagraph id="HA0C6F41BF2DC4E3688C01E009B31BD4"><enum>(B)</enum><header>Applicability of other provisions</header><text>Paragraph (10) of subsection (b) shall apply in the case of any judicial action or proceeding brought against any receiver referred to under subparagraph (A), or the regulated entity for which such receiver was appointed, by any party to a contract or agreement described under subparagraph (A)(i) with such regulated entity.</text></subparagraph> <subparagraph id="HB51C2E5F49D04CCCA01759A1FA8017A5"><enum>(C)</enum><header>Certain transfers not avoidable</header> <clause id="H7E9EF00474C4431800FB04BFE3979D43"><enum>(i)</enum><header>In general</header><text>Notwithstanding paragraph (11) or any other Federal or State laws relating to the avoidance of preferential or fraudulent transfers, the Agency, whether acting as such or as conservator or receiver of a regulated entity, may not avoid any transfer of money or other property in connection with any qualified financial contract with a regulated entity.</text></clause> <clause id="H7C725B23139A45E4BCA914392917049C"><enum>(ii)</enum><header>Exception for certain transfers</header><text>Clause (i) shall not apply to any transfer of money or other property in connection with any qualified financial contract with a regulated entity if the Agency determines that the transferee had actual intent to hinder, delay, or defraud such regulated entity, the creditors of such regulated entity, or any conservator or receiver appointed for such regulated entity.</text></clause></subparagraph> <subparagraph id="H274095752D47451D8C444F1FDB060073"><enum>(D)</enum><header>Certain contracts and agreements defined</header><text>In this subsection:</text> <clause id="H906C0E26F8FD46749B39FB64B5485C70"><enum>(i)</enum><header>Qualified financial contract</header><text display-inline="yes-display-inline">The term <quote>qualified financial contract</quote> means any securities contract, commodity contract, forward contract, repurchase agreement, swap agreement, and any similar agreement that the Agency determines by regulation, resolution, or order to be a qualified financial contract for purposes of this paragraph.</text></clause> <clause id="H39959B591D324E3FA2314DEFABFEEE77"><enum>(ii)</enum><header>Securities contract</header><text display-inline="yes-display-inline">The term <quote>securities contract</quote>—</text> <subclause id="HCBD20D2B1C404185B4A500E1A0CCBED"><enum>(I)</enum><text>means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, or any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option;</text></subclause> <subclause id="HB3D67F9B354F43AF83DC21875ED99DF3"><enum>(II)</enum><text>does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan unless the Agency determines by regulation, resolution, or order to include any such agreement within the meaning of such term;</text></subclause> <subclause id="HDE735966AB4D425498B960BA29A4C8A1"><enum>(III)</enum><text>means any option entered into on a national securities exchange relating to foreign currencies;</text></subclause> <subclause id="HAB88EF37062E48538E299D8E8391B734"><enum>(IV)</enum><text>means the guarantee by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option;</text></subclause> <subclause id="H7407CC1250044BC6809B340846009C21"><enum>(V)</enum><text>means any margin loan;</text></subclause> <subclause id="H8B3027FFB1BB4575AB897DA7AF67013B"><enum>(VI)</enum><text>means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;</text></subclause> <subclause id="HF04F0B0AF2704FAC8328005930005FD6"><enum>(VII)</enum><text>means any combination of the agreements or transactions referred to in this clause;</text></subclause> <subclause id="HC6CF365B73C94759AAE938AFE011D14"><enum>(VIII)</enum><text>means any option to enter into any agreement or transaction referred to in this clause;</text></subclause> <subclause id="H0D47BE5C14AC46A9A7E6A17201B2ECA6"><enum>(IX)</enum><text>means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII); and</text></subclause> <subclause id="HF4BEDBB3105E490C80A1F9F491F65958"><enum>(X)</enum><text>means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.</text></subclause></clause> <clause id="H6A15E3B3271A4EF4AD42C2EA566FFCAD"><enum>(iii)</enum><header>Commodity contract</header><text>The term <quote>commodity contract</quote> means—</text> <subclause id="HC4154F34380B4791B599BC467DE7ADEC"><enum>(I)</enum><text>with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;</text></subclause> <subclause id="HACC3B578A2654E298F7FAEE99ABCEF"><enum>(II)</enum><text>with respect to a foreign futures commission merchant, a foreign future;</text></subclause> <subclause id="HD9263224AC9E4B1BB900A0DEB590D064"><enum>(III)</enum><text>with respect to a leverage transaction merchant, a leverage transaction;</text></subclause> <subclause id="HC57A2FF48A4045C7003B4BF6CA946C77"><enum>(IV)</enum><text>with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;</text></subclause> <subclause id="H058733AC988E417FA6261B282B40E400"><enum>(V)</enum><text>with respect to a commodity options dealer, a commodity option;</text></subclause> <subclause id="H71519F1A361F492893CD288CCB42C876"><enum>(VI)</enum><text>any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;</text></subclause> <subclause id="H039E0E12860A4CE98769CF8F8D274BC2"><enum>(VII)</enum><text>any combination of the agreements or transactions referred to in this clause;</text></subclause> <subclause id="HB103C5E9772748BD9201E812792060A3"><enum>(VIII)</enum><text>any option to enter into any agreement or transaction referred to in this clause;</text></subclause> <subclause id="HB4179FFB915E4D6797B81CE0FB75CD12"><enum>(IX)</enum><text>a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or</text></subclause> <subclause id="HFE2E878D091A4CDD84F6DDBC6FF9BF"><enum>(X)</enum><text>any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.</text></subclause></clause> <clause id="H97F49EF9D1D746D9A7D7C0C93924D6F"><enum>(iv)</enum><header>Forward contract</header><text>The term <quote>forward contract</quote> means—</text> <subclause id="H044BE8CE69B44828B6A2BB0600FCC966"><enum>(I)</enum><text>a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date the contract is entered into, including, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement;</text></subclause> <subclause id="H394A04C231364C47B5BBA90959765D42"><enum>(II)</enum><text>any combination of agreements or transactions referred to in subclauses (I) and (III);</text></subclause> <subclause id="H5FC702BF8F5D4064A7A84D61434FEA6E"><enum>(III)</enum><text>any option to enter into any agreement or transaction referred to in subclause (I) or (II);</text></subclause> <subclause id="H7F3E32B43EAD46DBA7CDC43DBCBBCCA2"><enum>(IV)</enum><text>a master agreement that provides for an agreement or transaction referred to in subclauses (I), (II), or (III), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or</text></subclause> <subclause id="H9DEDAFB5D7C843D680288FAAD0A5779B"><enum>(V)</enum><text>any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.</text></subclause></clause> <clause id="H2A4619CB8B3B4AF8BB5DB553237DA634"><enum>(v)</enum><header>Repurchase agreement</header><text>The term <quote>repurchase agreement</quote> (which definition also applies to a reverse repurchase agreement)—</text> <subclause id="HE42CEB910F994F15A1D70091A4318F47"><enum>(I)</enum><text>means an agreement, including related terms, which provides for the transfer of one or more certificates of deposit, mortgage-related securities (as such term is defined in the Securities Exchange Act of 1934), mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers’ acceptances, qualified foreign government securities or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement;</text></subclause> <subclause id="HA59AC9C2DF924BF0BE1E98AE358ED7F6"><enum>(II)</enum><text>does not include any repurchase obligation under a participation in a commercial mortgage loan unless the Agency determines by regulation, resolution, or order to include any such participation within the meaning of such term;</text></subclause> <subclause id="H1759D9ECAD42488CA3DC5731198E54AD"><enum>(III)</enum><text>means any combination of agreements or transactions referred to in subclauses (I) and (IV);</text></subclause> <subclause id="H76DF6794DDFB4E8590AD66C7FDBD9FC0"><enum>(IV)</enum><text>means any option to enter into any agreement or transaction referred to in subclause (I) or (III);</text></subclause> <subclause id="H0ACC701AE58E4A4CB722EC3B999826E1"><enum>(V)</enum><text>means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), or (IV); and</text></subclause> <subclause id="H337D7D328B4048A2A496BF95CA7CC7B6"><enum>(VI)</enum><text>means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.</text></subclause><continuation-text continuation-text-level="clause">For purposes of this clause, the term `qualified foreign government security' means a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the Organization for Economic Cooperation and Development (as determined by regulation or order adopted by the appropriate Federal banking authority).</continuation-text></clause> <clause id="H31154308E5DC4FE698BA66BFC940F95E"><enum>(vi)</enum><header>Swap agreement</header><text>The term <quote>swap agreement</quote> means—</text> <subclause id="H04C5D0BBF1DD43919F5661C69708CB00"><enum>(I)</enum><text>any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement; a currency swap, option, future, or forward agreement; an equity index or equity swap, option, future, or forward agreement; a debt index or debt swap, option, future, or forward agreement; a total return, credit spread or credit swap, option, future, or forward agreement; a commodity index or commodity swap, option, future, or forward agreement; or a weather swap, weather derivative, or weather option;</text></subclause> <subclause id="H7BE1BCF39F504549BAC64FF07700D388"><enum>(II)</enum><text>any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap markets (including terms and conditions incorporated by reference in such agreement) and that is a forward, swap, future, or option on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, quantitative measures associated with an occurrence, extent of an occurrence, or contingency associated with a financial, commercial, or economic consequence, or economic or financial indices or measures of economic or financial risk or value;</text></subclause> <subclause id="H52A75F040E4A45D38BBBD8F5CC435033"><enum>(III)</enum><text>any combination of agreements or transactions referred to in this clause;</text></subclause> <subclause id="H735B2ED4EE50485C9B439D949BFE31D5"><enum>(IV)</enum><text>any option to enter into any agreement or transaction referred to in this clause;</text></subclause> <subclause id="H71C28264994245109C51B51D23B2A687"><enum>(V)</enum><text>a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement contains an agreement or transaction that is not a swap agreement under this clause, except that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), or (IV); and</text></subclause> <subclause id="H101BDB16B9944DBD81587532AC6C20F5"><enum>(VI)</enum><text>any security agreement or arrangement or other credit enhancement related to any agreements or transactions referred to in subclause (I), (II), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.</text></subclause><continuation-text continuation-text-level="clause">Such term is applicable for purposes of this subsection only and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any swap agreement under any other statute, regulation, or rule, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Investor Protection Act of 1970, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank Products Act of 2000.</continuation-text></clause> <clause id="H46EE06650FB44746BDC4D38312129B58"><enum>(vii)</enum><header>Treatment of master agreement as one agreement</header><text>Any master agreement for any contract or agreement described in any preceding clause of this subparagraph (or any master agreement for such master agreement or agreements), together with all supplements to such master agreement, shall be treated as a single agreement and a single qualified financial contract. If a master agreement contains provisions relating to agreements or transactions that are not themselves qualified financial contracts, the master agreement shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts.</text></clause> <clause id="H83E388DF32DC44B0B92851BE5B2068A4"><enum>(viii)</enum><header>Transfer</header><text display-inline="yes-display-inline">The term <quote>transfer</quote> means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest and foreclosure of the regulated entity's equity of redemption.</text></clause></subparagraph> <subparagraph id="H9E95504C70E44CAD94DD7DE1FFD47C1"><enum>(E)</enum><header>Certain protections in event of appointment of conservator</header><text>Notwithstanding any other provision of this Act (other than paragraph (13) of this subsection), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—</text> <clause id="H9C4A8BC82D1846A1A395029889C8CAA7"><enum>(i)</enum><text>any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a regulated entity in a conservatorship based upon a default under such financial contract which is enforceable under applicable noninsolvency law;</text></clause> <clause id="H3ED0A817B20E45FEBE7B99F1FE6CFE15"><enum>(ii)</enum><text>any right under any security agreement or arrangement or other credit enhancement relating to one or more such qualified financial contracts; or</text></clause> <clause id="H10BD225423EC4AD88C9C41A983FFB049"><enum>(iii)</enum><text>any right to offset or net out any termination values, payment amounts, or other transfer obligations arising under or in connection with such qualified financial contracts.</text></clause></subparagraph> <subparagraph id="H356D3ABBC44A467F004BBB0090FA836D"><enum>(F)</enum><header>Clarification</header><text>No provision of law shall be construed as limiting the right or power of the Agency, or authorizing any court or agency to limit or delay, in any manner, the right or power of the Agency to transfer any qualified financial contract in accordance with paragraphs (9) and (10) of this subsection or to disaffirm or repudiate any such contract in accordance with subsection (d)(1) of this section.</text></subparagraph> <subparagraph id="H69D9186C8BDC480DA504C12F00C0C508"><enum>(G)</enum><header>Walkaway clauses not effective</header> <clause id="H18435510F2594240BBF997C3733084F7"><enum>(i)</enum><header>In general</header><text>Notwithstanding the provisions of subparagraphs (A) and (E), and sections 403 and 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, no walkaway clause shall be enforceable in a qualified financial contract of a regulated entity in default.</text></clause> <clause id="H7994E57C0B3E42A7AC38DB22527CAC00"><enum>(ii)</enum><header>Walkaway clause defined</header><text>For purposes of this subparagraph, the term <quote>walkaway clause</quote> means a provision in a qualified financial contract that, after calculation of a value of a party’s position or an amount due to or from 1 of the parties in accordance with its terms upon termination, liquidation, or acceleration of the qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of such party’s status as a nondefaulting party.</text></clause></subparagraph></paragraph> <paragraph id="HB34332AE1A294F16B424C4A002F9B681"><enum>(9)</enum><header>Transfer of qualified financial contracts</header><text>In making any transfer of assets or liabilities of a regulated entity in default which includes any qualified financial contract, the conservator or receiver for such regulated entity shall either—</text> <subparagraph id="HAA6E4677DC914566BBDE1036D672A296"><enum>(A)</enum><text>transfer to 1 person—</text> <clause id="H02CA6F0D9DDF4D519D2C348D6920EAE4"><enum>(i)</enum><text>all qualified financial contracts between any person (or any affiliate of such person) and the regulated entity in default;</text></clause> <clause id="HF2A0404F3AB449E7990335A46D70030"><enum>(ii)</enum><text>all claims of such person (or any affiliate of such person) against such regulated entity under any such contract (other than any claim which, under the terms of any such contract, is subordinated to the claims of general unsecured creditors of such regulated entity);</text></clause> <clause id="H3BB492544BB14029B9D3F1928FEA7229"><enum>(iii)</enum><text>all claims of such regulated entity against such person (or any affiliate of such person) under any such contract; and</text></clause> <clause id="H6E2772F30DF84CE5BC076936C3F96035"><enum>(iv)</enum><text display-inline="yes-display-inline">all property securing or any other credit enhancement for any contract described in clause (i) or any claim described in clause (ii) or (iii) under any such contract; or</text></clause></subparagraph> <subparagraph id="HCECE50E7B01F4F1EB1D3591D743C1FAC"><enum>(B)</enum><text>transfer none of the financial contracts, claims, or property referred to under subparagraph (A) (with respect to such person and any affiliate of such person).</text></subparagraph></paragraph> <paragraph id="HF1847D99B44E4D5F85170730CEA11F2D"><enum>(10)</enum><header>Notification of transfer</header> <subparagraph id="H8A182F1F6CBA49D294B8358676988230"><enum>(A)</enum><header>In general</header><text>If—</text> <clause id="H517881DE984A4A9C99D0BB1784978407"><enum>(i)</enum><text>the conservator or receiver for a regulated entity in default makes any transfer of the assets and liabilities of such regulated entity, and</text></clause> <clause id="H7A28AF573DFA407FB049D6E22678CF9"><enum>(ii)</enum><text>the transfer includes any qualified financial contract,</text></clause><continuation-text continuation-text-level="subparagraph">the conservator or receiver shall notify any person who is a party to any such contract of such transfer by 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver in the case of a receivership, or the business day following such transfer in the case of a conservatorship.</continuation-text></subparagraph> <subparagraph id="H05CBDB162CA94B9F8FBFD073A53873C"><enum>(B)</enum><header>Certain rights not enforceable</header> <clause id="HA8944F4B59E44DF1A54FA77BEC000019"><enum>(i)</enum><header>Receivership</header><text>A person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(A) of this subsection or section 403 or 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, solely by reason of or incidental to the appointment of a receiver for the regulated entity (or the insolvency or financial condition of the regulated entity for which the receiver has been appointed)—</text> <subclause id="H7F89EA269B624CFC0030A1F38D20043"><enum>(I)</enum><text>until 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver; or</text></subclause> <subclause id="H3A89DC70CC9A460B00F22902FD5508CF"><enum>(II)</enum><text>after the person has received notice that the contract has been transferred pursuant to paragraph (9)(A).</text></subclause></clause> <clause id="H1328E1C50B014C8C9845BCCE287099EA"><enum>(ii)</enum><header>Conservatorship</header><text>A person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(E) of this subsection or section 403 or 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, solely by reason of or incidental to the appointment of a conservator for the regulated entity (or the insolvency or financial condition of the regulated entity for which the conservator has been appointed).</text></clause> <clause id="HDCCA9B1BF2864694B111419CBA6FC354"><enum>(iii)</enum><header>Notice</header><text>For purposes of this paragraph, the Agency as receiver or conservator of a regulated entity shall be deemed to have notified a person who is a party to a qualified financial contract with such regulated entity if the Agency has taken steps reasonably calculated to provide notice to such person by the time specified in subparagraph (A).</text></clause></subparagraph> <subparagraph id="HC45D01FF4B784B2A869B6102008B2469"><enum>(C)</enum><header>Business day defined</header><text>For purposes of this paragraph, the term <quote>business day</quote> means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed.</text></subparagraph></paragraph> <paragraph id="H8860842B146743E5913435007FB28CD3"><enum>(11)</enum><header>Disaffirmance or repudiation of qualified financial contracts</header><text>In exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which a regulated entity is a party, the conservator or receiver for such institution shall either—</text> <subparagraph id="HAB6FCDB110CE4E12B55E3EF4BCB7CD4"><enum>(A)</enum><text>disaffirm or repudiate all qualified financial contracts between—</text> <clause id="HEA501AB913364C2D85C9F62174B7555D"><enum>(i)</enum><text>any person or any affiliate of such person; and</text></clause> <clause id="HBA01F58F24CB44F38170058D003B5013"><enum>(ii)</enum><text>the regulated entity in default; or</text></clause></subparagraph> <subparagraph id="H0D0A2A6EF4DB4300B2FBE3EC807B47DD"><enum>(B)</enum><text>disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph (A) (with respect to such person or any affiliate of such person).</text></subparagraph></paragraph> <paragraph id="H1097E1D257B34CA3AB99E812A05BBC78"><enum>(12)</enum><header>Certain security interests not avoidable</header><text>No provision of this subsection shall be construed as permitting the avoidance of any legally enforceable or perfected security interest in any of the assets of any regulated entity, except where such an interest is taken in contemplation of the insolvency of the regulated entity, or with the intent to hinder, delay, or defraud the regulated entity or the creditors of such regulated entity.</text></paragraph> <paragraph id="HF32C7483526A4B1A8B60051D47E8C418"><enum>(13)</enum><header>Authority to enforce contracts</header> <subparagraph id="H1733DDA5FEBD4C1A9FA606B524F200C8"><enum>(A)</enum><header>In general</header><text>Notwithstanding any provision of a contract providing for termination, default, acceleration, or exercise of rights upon, or solely by reason of, insolvency or the appointment of a conservator or receiver, the conservator or receiver may enforce any contract or regulated entity bond entered into by the regulated entity.</text></subparagraph> <subparagraph id="H19F3822E0D954C04BE54D2C404438FD7"><enum>(B)</enum><header>Certain rights not affected</header><text>No provision of this paragraph may be construed as impairing or affecting any right of the conservator or receiver to enforce or recover under a director’s or officer’s liability insurance contract or surety bond under other applicable law.</text></subparagraph> <subparagraph id="HA409BC07CE9446F0A795F9B304F8979D"><enum>(C)</enum><header>Consent requirement</header> <clause id="H14DAF3D974AF46CC91170593F86FA566"><enum>(i)</enum><header>In general</header><text>Except as otherwise provided under this section, no person may exercise any right or power to terminate, accelerate, or declare a default under any contract to which a regulated entity is a party, or to obtain possession of or exercise control over any property of the regulated entity, or affect any contractual rights of the regulated entity, without the consent of the conservator or receiver, as appropriate, for a period of—</text> <subclause id="H600F60C5D4EC4AC4BE62496436264800"><enum>(I)</enum><text>45 days after the date of appointment of a conservator; or</text></subclause> <subclause id="H26A1B0E7A7044CC1BA57CD00005208E7"><enum>(II)</enum><text>90 days after the date of appointment of a receiver.</text></subclause></clause> <clause id="HC638E3EC4F644116A12F1C580587F673"><enum>(ii)</enum><header>Exceptions</header><text>This paragraph shall—</text> <subclause id="HF8655EF12D414ACF9D3D24A07D6FD8DD"><enum>(I)</enum><text>not apply to a director’s or officer’s liability insurance contract;</text></subclause> <subclause id="H34EBE7789CC349AEB56E84ABF0B61FD2"><enum>(II)</enum><text>not apply to the rights of parties to any qualified financial contracts under subsection (d)(8); and</text></subclause> <subclause id="H042EDB078FA04BDFB5F7000000535CD1"><enum>(III)</enum><text>not be construed as permitting the conservator or receiver to fail to comply with otherwise enforceable provisions of such contracts.</text></subclause></clause></subparagraph></paragraph> <paragraph id="HF36012752CDC48E189EB58B4FD747007"><enum>(14)</enum><header>Savings clause</header><text>The meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), and the Commodity Exchange Act</text></paragraph> <paragraph id="H1A1B47BAD38C4E929BFD82B1676C562D"><enum>(15)</enum><header>Exception for federal reserve and federal home loan banks</header><text>No provision of this subsection shall apply with respect to—</text> <subparagraph id="H5A6AC99FDF614F9E8074008F6C965BAD"><enum>(A)</enum><text>any extension of credit from any Federal home loan bank or Federal Reserve Bank to any regulated entity; or</text></subparagraph> <subparagraph id="HBEF50CE36DA64FA68CA21B0027929C20"><enum>(B)</enum><text>any security interest in the assets of the regulated entity securing any such extension of credit.</text></subparagraph></paragraph></subsection> <subsection id="HFAA8F3994D81462E8DCED4820312DD61"><enum>(e)</enum><header>Valuation of Claims in Default</header> <paragraph id="H5DD99665AA4443E0B8C17D70C9C946FC"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of Federal law or the law of any State, and regardless of the method which the Agency determines to utilize with respect to a regulated entity in default or in danger of default, including transactions authorized under subsection (i), this subsection shall govern the rights of the creditors of such regulated entity.</text></paragraph> <paragraph id="H59A38EFD086649E99CA1FAA89C2E2448"><enum>(2)</enum><header>Maximum liability</header><text>The maximum liability of the Agency, acting as receiver or in any other capacity, to any person having a claim against the receiver or the regulated entity for which such receiver is appointed shall equal the lesser of—</text> <subparagraph id="H90E4083834E749DEA2D2582772FAEFE1"><enum>(A)</enum><text>the amount such claimant would have received if the Agency had liquidated the assets and liabilities of such regulated entity without exercising the authority of the Agency under subsection (i) of this section; or</text></subparagraph> <subparagraph id="H85BDBBB9889648329EDD29FA44771C"><enum>(B)</enum><text>the amount of proceeds realized from the performance of contracts or sale of the assets of the regulated entity.</text></subparagraph></paragraph></subsection> <subsection id="HF606C43F46A74D31AB30625B216F4E08"><enum>(f)</enum><header>Limitation on Court Action</header><text>Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.</text></subsection> <subsection id="H1163AD52FE5E44959E384678DDA1E8A6"><enum>(g)</enum><header>Liability of Directors and Officers</header> <paragraph id="HBDADD106FA87453FA0C409921C00A0B5"><enum>(1)</enum><header>In general</header><text>A director or officer of a regulated entity may be held personally liable for monetary damages in any civil action by, on behalf of, or at the request or direction of the Agency, which action is prosecuted wholly or partially for the benefit of the Agency—</text> <subparagraph id="H13E3009CA80049AD90C585224CC12E2B"><enum>(A)</enum><text>acting as conservator or receiver of such regulated entity, or</text></subparagraph> <subparagraph id="HE8AF4F34DC0B4743B670DEF6C817F0A0"><enum>(B)</enum><text>acting based upon a suit, claim, or cause of action purchased from, assigned by, or otherwise conveyed by such receiver or conservator,</text></subparagraph><continuation-text continuation-text-level="paragraph">for gross negligence, including any similar conduct or conduct that demonstrates a greater disregard of a duty of care (than gross negligence) including intentional tortious conduct, as such terms are defined and determined under applicable State law.</continuation-text></paragraph> <paragraph id="HBAEF7341024F4C29A7D04FF43817A3C0"><enum>(2)</enum><header>No limitation</header><text>Nothing in this paragraph shall impair or affect any right of the Agency under other applicable law.</text></paragraph></subsection> <subsection id="H81FE0445F7C54C80BFA7460283D98CBF"><enum>(h)</enum><header>Damages</header><text>In any proceeding related to any claim against a director, officer, employee, agent, attorney, accountant, appraiser, or any other party employed by or providing services to a regulated entity, recoverable damages determined to result from the improvident or otherwise improper use or investment of any assets of the regulated entity shall include principal losses and appropriate interest.</text></subsection> <subsection id="H76A591A9E8B140FB938C689984E79600"><enum>(i)</enum><header>Limited-life regulated entities</header> <paragraph id="H0574C47400CF462786D881DF94BD12D4"><enum>(1)</enum><header>Organization</header> <subparagraph id="H689428251C334EE19CACC414AE254E3D"><enum>(A)</enum><header>Purpose</header><text>If a regulated entity is in default, or if the Agency anticipates that a regulated entity will default, the Agency may organize a limited-life regulated entity with those powers and attributes of the regulated entity in default or in danger of default that the Director determines necessary, subject to the provisions of this subsection. The Director shall grant a temporary charter to the limited-life regulated entity, and the limited-life regulated entity shall operate subject to that charter.</text></subparagraph> <subparagraph id="HBB3812D800BC4D6B815FC091FAEBECA6"><enum>(B)</enum><header>Authorities</header><text>Upon the creation of a limited-life regulated entity under subparagraph (A), the limited-life regulated entity may—</text> <clause id="H15AFE32E7575429EAE2200495F1E29F2"><enum>(i)</enum><text>assume such liabilities of the regulated entity that is in default or in danger of default as the Agency may, in its discretion, determine to be appropriate, provided that the liabilities assumed shall not exceed the amount of assets of the limited-life regulated entity;</text></clause> <clause id="H3CC7F05584924D6DB32D49DEF4009412"><enum>(ii)</enum><text>purchase such assets of the regulated entity that is in default, or in danger of default, as the Agency may, in its discretion, determine to be appropriate; and</text></clause> <clause id="H332FD2090126497690F29B83ECAE00AA"><enum>(iii)</enum><text>perform any other temporary function which the Agency may, in its discretion, prescribe in accordance with this section.</text></clause></subparagraph></paragraph> <paragraph id="HE2242CEC64F146A5A83BA231C18E1C6"><enum>(2)</enum><header>Charter</header> <subparagraph id="HAC3F1918703045E5B0300017E14794B1"><enum>(A)</enum><header>Conditions</header><text>The Agency may grant a temporary charter if the Agency determines that the continued operation of the regulated entity in default or in danger of default is in the best interest of the national economy and the housing markets.</text></subparagraph> <subparagraph id="H2C3D9AE9F2024E9EAA74EF1FBFC5E0D3"><enum>(B)</enum><header>Treatment as being in default for certain purposes</header><text>A limited-life regulated entity shall be treated as a regulated entity in default at such times and for such purposes as the Agency may, in its discretion, determine.</text></subparagraph> <subparagraph id="H979958ED0EFF43048946C29987F0372E"><enum>(C)</enum><header>Management</header><text>A limited-life regulated entity, upon the granting of its charter, shall be under the management of a board of directors consisting of not fewer than 5 nor more than 10 members appointed by the Agency.</text></subparagraph> <subparagraph id="HA91180A9CB864D5DB5A900D9D8715993"><enum>(D)</enum><header>Bylaws</header><text>The board of directors of a limited-life regulated entity shall adopt such bylaws as may be approved by the Agency.</text></subparagraph></paragraph> <paragraph id="HC0CC22F107B14F28851F00D55B1BD149"><enum>(3)</enum><header>Capital stock</header><text>No capital stock need be paid into a limited-life regulated entity by the Agency.</text></paragraph> <paragraph id="H259A7126A01B4F4A82AB65E6C1D12BC9"><enum>(4)</enum><header>Investments</header><text>Funds of a limited-life regulated entity shall be kept on hand in cash, invested in obligations of the United States or obligations guaranteed as to principal and interest by the United States, or deposited with the Agency, or any Federal Reserve bank.</text></paragraph> <paragraph id="H9A09FC18417A4EFC82ECC000F69E1763"><enum>(5)</enum><header>Exempt status</header><text>Notwithstanding any other provision of Federal or State law, the limited-life regulated entity, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.</text></paragraph> <paragraph id="H91AAE157B8AF4990B7510560ECCC8182"><enum>(6)</enum><header>Winding up</header> <subparagraph id="H0BF944EFBA41475194852C07AFF507C5"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), unless Congress authorizes the sale of the capital stock of the limited-life regulated entity, not later than 2 years after the date of its organization, the Agency shall wind up the affairs of the limited-life regulated entity.</text></subparagraph> <subparagraph id="H4544D54FE918451EBCDD3C00861B7D76"><enum>(B)</enum><header>Extension</header><text>The Director may, in the discretion of the Director, extend the status of the limited-life regulated entity for 3 additional 1-year periods.</text></subparagraph></paragraph> <paragraph id="H71604D9053B14436906CCAD223D943DC"><enum>(7)</enum><header>Transfer of assets and liabilities</header> <subparagraph id="H845F436D4DB94F8F81662C6FEF9C4F12"><enum>(A)</enum><header>In general</header> <clause id="HBF35A86211394BA78FA1C2DEA666D6CE"><enum>(i)</enum><header>Transfer of assets and liabilities</header><text>The Agency, as receiver, may transfer any assets and liabilities of a regulated entity in default, or in danger of default, to the limited-life regulated entity in accordance with paragraph (1).</text></clause> <clause id="HAEF2819F37FD41B99F53EC9FC0BB4FED"><enum>(ii)</enum><header>Subsequent transfers</header><text>At any time after a charter is transferred to a limited-life regulated entity, the Agency, as receiver, may transfer any assets and liabilities of such regulated entity in default, or in danger in default, as the Agency may, in its discretion, determine to be appropriate in accordance with paragraph (1).</text></clause> <clause id="HCA0A85EB98E54F99B7BE3277D3CBAD"><enum>(iii)</enum><header>Effective without approval</header><text>The transfer of any assets or liabilities of a regulated entity in default, or in danger of default, transferred to a limited-life regulated entity shall be effective without any further approval under Federal or State law, assignment, or consent with respect thereto.</text></clause></subparagraph></paragraph> <paragraph id="H34D2865245064E4980D26CFC969C0071"><enum>(8)</enum><header>Proceeds</header><text>To the extent that available proceeds from the limited-life regulated entity exceed amounts required to pay obligations, such proceeds may be paid to the regulated entity in default, or in danger of default.</text></paragraph> <paragraph id="H3D4E826A76EC461C00FFE5E392A986B5"><enum>(9)</enum><header>Powers</header> <subparagraph id="H5E0D4F9C5ED74892AA9CA998163F014"><enum>(A)</enum><header>In general</header><text>Each limited-life regulated entity created under this subsection shall have all corporate powers of, and be subject to the same provisions of law as, the regulated entity in default or in danger of default to which it relates, except that—</text> <clause id="H94DE40C7BE8E4556BF1CF100E52E16BD"><enum>(i)</enum><text>the Agency may—</text> <subclause id="H0A24F544066848BD9EF52C00BA55C52B"><enum>(I)</enum><text>remove the directors of a limited-life regulated entity; and</text></subclause> <subclause id="H9A9E45B7D4424114AD1BBF93255E5CB5"><enum>(II)</enum><text>fix the compensation of members of the board of directors and senior management, as determined by the Agency in its discretion, of a limited-life regulated entity;</text></subclause></clause> <clause id="H082D113FB0D84D008F3C40D0550041CA"><enum>(ii)</enum><text>the Agency may indemnify the representatives for purposes of paragraph (1)(B), and the directors, officers, employees, and agents of a limited-life regulated entity on such terms as the Agency determines to be appropriate; and</text></clause> <clause id="H4D0987F37E5C4DCDAEA193AB5FE57333"><enum>(iii)</enum><text>the board of directors of a limited-life regulated entity—</text> <subclause id="HC887471C558742298511E78584D84718"><enum>(I)</enum><text>shall elect a chairperson who may also serve in the position of chief executive officer, except that such person shall not serve either as chairperson or as chief executive officer without the prior approval of the Agency; and</text></subclause> <subclause id="HB26E93976B96475EBAC02F781778EDD5"><enum>(II)</enum><text>may appoint a chief executive officer who is not also the chairperson, except that such person shall not serve as chief executive officer without the prior approval of the Agency.</text></subclause></clause></subparagraph> <subparagraph id="HAC8C1CA4DBBD45948FBE7CC03FCAB58B"><enum>(B)</enum><header>Stay of judicial action</header><text>Any judicial action to which a limited-life regulated entity becomes a party by virtue of its acquisition of any assets or assumption of any liabilities of a regulated entity in default shall be stayed from further proceedings for a period of up to 45 days at the request of the limited-life regulated entity. Such period may be modified upon the consent of all parties.</text></subparagraph></paragraph> <paragraph id="HE056C9F3254E4D028499C457F61DC6C" display-inline="no-display-inline"><enum>(10)</enum><header>Obtaining of credit and incurring of debt</header> <subparagraph id="HF97206CE7C434918A7C60993377F433F"><enum>(A)</enum><header>In general</header><text>The limited-life regulated entity may obtain unsecured credit and incur unsecured debt in the ordinary course of business.</text></subparagraph> <subparagraph id="HC4780B24752A44FFB1AF45E0F1360760"><enum>(B)</enum><header>Inability to obtain credit</header><text>If the limited-life regulated entity is unable to obtain unsecured credit the Director may authorize the obtaining of credit or the incurring of debt—</text> <clause id="HC35495672E594050AB7EE25275E1D1E"><enum>(i)</enum><text>with priority over any or all administrative expenses;</text></clause> <clause id="H24C0626686284A53B74D70D7FA1D4FAC"><enum>(ii)</enum><text>secured by a lien on property that is not otherwise subject to a lien; or</text></clause> <clause id="H552CAB664BB74595B679B441CF8418B"><enum>(iii)</enum><text>secured by a junior lien on property that is subject to a lien.</text></clause></subparagraph> <subparagraph id="H404C8A2A9F364856A445051D11447319"><enum>(C)</enum><header>Limitations</header> <clause id="HF557900A28BC4B08B742B7DED4E0A953"><enum>(i)</enum><header>In general</header><text>The Director, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt secured by a senior or equal lien on property that is subject to a lien (other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by the regulated entity) only if—</text> <subclause id="HC58EF4DC11EF4E5D8FCF93D1B01EC57"><enum>(I)</enum><text>the limited-life regulated entity is unable to obtain such credit otherwise; and</text></subclause> <subclause id="HF5291D7A14294CE28F537FAE674B79DB"><enum>(II)</enum><text>there is adequate protection of the interest of the holder of the lien on the property which such senior or equal lien is proposed to be granted.</text></subclause></clause> <clause id="HCEAA2F6777D54B03AD1F4F6914B5E602"><enum>(ii)</enum><header>Burden of proof</header><text>In any hearing under this subsection, the Director has the burden of proof on the issue of adequate protection.</text></clause></subparagraph> <subparagraph id="H0F73C186161F4FE69EA000968FC56F6D" display-inline="no-display-inline"><enum>(D)</enum><header>Affect on debts and liens</header><text>The reversal or modification on appeal of an authorization under this paragraph to obtain credit or incur debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so incurred, or any priority or lien so granted, to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and the incurring of such debt, or the granting of such priority or lien, were stayed pending appeal.</text></subparagraph></paragraph> <paragraph id="H68DFC8230AAB46D2B100BAA9076E2FB"><enum>(11)</enum><header>Issuance of preferred debt</header><text>A limited-life regulated entity may, subject to the approval of the Director and subject to such terms and conditions as the Director may prescribe, issue notes, bonds, or other debt obligations of a class to which all other debt obligations of the limited-life regulated entity shall be subordinate in right and payment. </text></paragraph> <paragraph id="H51E2693F5E3F4F21B2270087FDA51800"><enum>(12)</enum><header>No federal status</header> <subparagraph id="H5FF1802E143143AD836B0602FCADBAAD"><enum>(A)</enum><header>Agency status</header><text>A limited-life regulated entity is not an agency, establishment, or instrumentality of the United States.</text></subparagraph> <subparagraph id="H129C917630AA489FB6711F0074FE2D48"><enum>(B)</enum><header>Employee status</header><text>Representatives for purposes of paragraph (1)(B), interim directors, directors, officers, employees, or agents of a limited-life regulated entity are not, solely by virtue of service in any such capacity, officers or employees of the United States. Any employee of the Agency or of any Federal instrumentality who serves at the request of the Agency as a representative for purposes of paragraph (1)(B), interim director, director, officer, employee, or agent of a limited-life regulated entity shall not—</text> <clause id="H30F9828F86CF4D38A59FBB2332D65C00"><enum>(i)</enum><text>solely by virtue of service in any such capacity lose any existing status as an officer or employee of the United States for purposes of title 5, United States Code, or any other provision of law; or</text></clause> <clause id="H0938D82987394DDAAF86AF8E7000EFC8"><enum>(ii)</enum><text>receive any salary or benefits for service in any such capacity with respect to a limited-life regulated entity in addition to such salary or benefits as are obtained through employment with the Agency or such Federal instrumentality.</text></clause></subparagraph></paragraph> <paragraph id="H71E4630567984AF9AEDA8BA0FDAFD4E5"><enum>(13)</enum><header>Additional powers</header><text>In addition to any other powers granted under this subsection, a limited-life regulated entity may—</text> <subparagraph id="HAECFAAF1C26247718693F1DBE5208D4F"><enum>(A)</enum><text>extend a maturity date or change in an interest rate or other term of outstanding securities;</text></subparagraph> <subparagraph id="H65C00CF113A142A69C72C6C0CD68DA44"><enum>(B)</enum><text>issue securities of the limited-life regulated entity, for cash, for property, for existing securities, or in exchange for claims or interests, or for any other appropriate purposes; and</text></subparagraph> <subparagraph id="H4D09D73E6F2E4160A8B08913F7DC3FEF"><enum>(C)</enum><text>take any other action not inconsistent with this section.</text></subparagraph></paragraph></subsection> <subsection id="H66C9CC6D1BD74ED087B7C71962E9B5D" display-inline="no-display-inline"><enum>(j)</enum><header>Other exemptions</header><text>When acting as a receiver, the following provisions shall apply with respect to the Agency:</text> <paragraph id="H78EF0A7366554CD69E1969B559776784"><enum>(1)</enum><header>Exemption from taxation</header><text>The Agency, including its franchise, its capital, reserves, and surplus, and its income, shall be exempt from all taxation imposed by any State, country, municipality, or local taxing authority, except that any real property of the Agency shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed, except that, notwithstanding the failure of any person to challenge an assessment under State law of the value of such property, and the tax thereon, shall be determined as of the period for which such tax is imposed.</text></paragraph> <paragraph id="H1D08BF7EC8354EDF92DB7087F35C869"><enum>(2)</enum><header>Exemption from attachment and liens</header><text>No property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency, nor shall any involuntary lien attach to the property of the Agency.</text></paragraph> <paragraph id="H0365EFB950464A9F8CC2D1EB4CA36762"><enum>(3)</enum><header>Exemption from penalties and fines</header><text>The Agency shall not be liable for any amounts in the nature of penalties or fines, including those arising from the failure of any person to pay any real property, personal property, probate, or recording tax or any recording or filing fees when due.</text></paragraph></subsection> <subsection id="H9664C21727A140DF91620017FC000175"><enum>(k)</enum><header>Prohibition of charter revocation</header><text>In no case may a receiver appointed pursuant to this section revoke, annul, or terminate the charter of a regulated entity.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDC1FCAD77B224971A3B13257449554F6"><enum>(b)</enum><header>Conforming amendments</header><text>Subtitle B of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking sections 1369 (<external-xref legal-doc="usc" parsable-cite="usc/12/4619">12 U.S.C. 4619</external-xref>), 1369A (<external-xref legal-doc="usc" parsable-cite="usc/12/4620">12 U.S.C. 4620</external-xref>), and 1369B (<external-xref legal-doc="usc" parsable-cite="usc/12/4621">12 U.S.C. 4621</external-xref>).</text></subsection></section> <section id="HCE8573181F3C4EB6A7F1B743E4A4400"><enum>145.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, as amended by the preceding provisions of this Act, is further amended—</text> <paragraph id="H243D5AA867AE480DBB9902C8CAAE25FD"><enum>(1)</enum><text>in sections 1365 (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) through 1369D (<external-xref legal-doc="usc" parsable-cite="usc/12/4623">12 U.S.C. 4623</external-xref>), but not including section 1367 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) as added by section 144 of this Act—</text> <subparagraph id="H33AF1C292CF849999582FF26E9B6FBE7"><enum>(A)</enum><text>by striking <quote>An enterprise</quote> each place such term appears and inserting <quote>A regulated entity</quote>;</text></subparagraph> <subparagraph id="H5B2960C55E0B41AAACB1FA925C356679"><enum>(B)</enum><text>by striking <quote>an enterprise</quote> each place such term appears and inserting <quote>a regulated entity</quote>; and</text></subparagraph> <subparagraph id="H7C7F127E738942E5BECBC52163163F8E"><enum>(C)</enum><text>by striking <quote>the enterprise</quote> each place such term appears and inserting <quote>the regulated entity</quote>;</text></subparagraph></paragraph> <paragraph id="HA3371703D70D404EA252ECD48655343"><enum>(2)</enum><text>in section 1366 (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>)—</text> <subparagraph id="H687EBB63273042AC91AB8DFB7DFBC8FF"><enum>(A)</enum><text>in subsection (b)(7), by striking <quote>section 1369 (excluding subsection (a)(1) and (2))</quote> and inserting <quote>section 1367</quote>; and </text></subparagraph> <subparagraph id="H1A22B1A443D44C9FB995610053F09516"><enum>(B)</enum><text>in subsection (d), by striking <quote>the enterprises</quote> and inserting <quote>the regulated entities</quote>;</text></subparagraph></paragraph> <paragraph id="HACC7BC27CAF347E68220E8A4A3912E00"><enum>(3)</enum><text>in section 1368(d) (<external-xref legal-doc="usc" parsable-cite="usc/12/4618">12 U.S.C. 4618(d)</external-xref>), by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> and inserting <quote>Committee on Financial Services</quote>;</text></paragraph> <paragraph id="HCB627497A2264D0BB205D092F59007C"><enum>(4)</enum><text>in section 1369C(c) (<external-xref legal-doc="usc" parsable-cite="usc/12/4622">12 U.S.C. 4622(c)</external-xref>), by striking <quote>any enterprise</quote> and inserting <quote>any regulated entity</quote>; and</text></paragraph> <paragraph id="H8F0E3B6A2EDE4ECBA85EC9840827323B"><enum>(5)</enum><text>in subsections (a) and (d) of section 1369D, by striking <quote>section 1366 or 1367 or action under section 1369)</quote> each place such phrase appears and inserting <quote>section 1367)</quote>. </text></paragraph></section></subtitle> <subtitle id="HD342A2FBBFAF43DCA44CE3CA91ADFEA1"><enum>D</enum><header>Enforcement actions</header> <section id="HE53F808D0C054DF8B699DACAE386E812"><enum>161.</enum><header>Cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1371 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631</external-xref>) is amended—</text> <paragraph id="HED0A72F6D6D24D2985DDCCCD2E7A0AD"><enum>(1)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="H669EDDA60673425B87987C7792BCD827"> <subsection id="H988F0BB4779642CDA0874DAD3201F323"><enum>(a)</enum><header>Issuance for unsafe or unsound practices and violations of rules or laws</header><text>If, in the opinion of the Director, a regulated entity or any regulated entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any regulated entity-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of the regulated entity or is violating or has violated, or the Director has reasonable cause to believe that the regulated entity or any regulated entity-affiliated party is about to violate, a law, rule, or regulation, or any condition imposed in writing by the Director in connection with the granting of any application or other request by the regulated entity or any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or such party a notice of charges in respect thereof. The Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title, with subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(m)</external-xref>, (n)), with subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(e)</external-xref>, (f)), or with paragraph (5) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)</external-xref>).</text></subsection> <subsection id="HE64D1280F64E4CCF96EFED5CE27DB1A5"><enum>(b)</enum><header>Issuance for unsatisfactory rating</header><text>If a regulated entity receives, in its most recent report of examination, a less-than-satisfactory rating for asset quality, management, earnings, or liquidity, the Director may (if the deficiency is not corrected) deem the regulated entity to be engaging in an unsafe or unsound practice for purposes of this subsection.</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HF14D91F38BB249A7A2E89FBCC538CD10"><enum>(2)</enum><text>in subsection (c)(2), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>; and</text></paragraph> <paragraph id="HDB05CE4C7B5C47DCA8EB3665BBBB500"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="H92D2E4F9DD81451CB41D267900005C06"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text></subparagraph> <subparagraph id="H2BFD48EFDFAC445D9751E35F254EA2C"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="H5C4BE4573C1B4FCCB8A4C9DD6D9CA1A7"><enum>(i)</enum><text>by striking <quote>an executive officer or director</quote> and inserting <quote>a regulated entity affiliated party</quote>; and</text></clause> <clause id="H4CF5D40E48AB4CAD846800165276D2A6"><enum>(ii)</enum><text>by inserting <quote>(including reimbursement of compensation under section 1318)</quote> after <quote>reimbursement</quote>;</text></clause></subparagraph> <subparagraph id="H0B7C7CB4B64442F0AFBA055C35509E87"><enum>(C)</enum><text>in paragraph (6), by striking <quote>and</quote> at the end;</text></subparagraph> <subparagraph id="H59C401A5B3C94AE0B1EFB309A53CF200"><enum>(D)</enum><text>by redesignating paragraph (7) as paragraph (8); and</text></subparagraph> <subparagraph id="H6CF3231F6AFB40CDB6F914A8DFB33C74"><enum>(E)</enum><text>by inserting after paragraph (6) the following new paragraph:</text> <quoted-block id="H05F6AB46F08D428EA552B242DC2F3DC"> <paragraph id="HB72FBA978E5B47438217BE001E9D9938"><enum>(7)</enum><text>to effect an attachment on a regulated entity or regulated entity-affiliated party subject to an order under this section or section 1372; and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section> <section id="H969811A7077E497786F27730AC003B4C"><enum>162.</enum><header>Temporary cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1372 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632</external-xref>) is amended—</text> <paragraph id="H0888C1253D9F4007ACDF021E8520055"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HD0B15166DF304EAE8F52AA5C4E4C6BD0"> <subsection id="H7C36D2A15EF4475AB92B8E66D2C83422"><enum>(a)</enum><header>Grounds for issuance</header><text>Whenever the Director determines that the violation or threatened violation or the unsafe or unsound practice or practices specified in the notice of charges served upon the regulated entity or any regulated entity-affiliated party pursuant to section 1371(a), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of the regulated entity, or is likely to weaken the condition of the regulated entity prior to the completion of the proceedings conducted pursuant to sections 1371 and 1373, the Director may issue a temporary order requiring the regulated entity or such party to cease and desist from any such violation or practice and to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings. Such order may include any requirement authorized under section 1371(d).</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H42850CF927744CD59047F101CCBB00F9"><enum>(2)</enum><text>in subsection (b), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text></paragraph> <paragraph id="H313D7AADFAF34AB4804389FED1E87E81"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="HBF9EB1293FDB48299DBAC02C659DB114"><enum>(A)</enum><text>by striking <quote>An enterprise, executive officer, or director</quote> and inserting <quote>A regulated entity or regulated entity-affiliated party</quote>; and</text></subparagraph> <subparagraph id="HBA80015A630748F5BB6EFB301B5F15D9"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>the enterprise, executive officer, or director</quote> and inserting <quote>the regulated entity or regulated entity-affiliated party</quote>; and</text></subparagraph></paragraph> <paragraph id="H9436014D361644699347822CDD97CED2"><enum>(4)</enum><text>by striking subsection (e) and in inserting the following new subsection:</text> <quoted-block id="H22B76E37106948DDA0E13E724E7D7587"> <subsection id="HA38A3DA1236B4868BD105F323B6C654B"><enum>(e)</enum><header>Enforcement</header><text>In the case of violation or threatened violation of, or failure to obey, a temporary cease-and-desist order issued pursuant to this section, the Director may apply to the United States District Court for the District of Columbia or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, for an injunction to enforce such order, and, if the court determines that there has been such violation or threatened violation or failure to obey, it shall be the duty of the court to issue such injunction.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H9412D04F22A7498E8DC08B00E1669071"><enum>163.</enum><header>Prejudgment attachment</header><text display-inline="no-display-inline">The Housing and Community Development Act of 1992 is amended by inserting after section 1375 (<external-xref legal-doc="usc" parsable-cite="usc/12/4635">12 U.S.C. 4635</external-xref>) the following new section:</text> <quoted-block style="OLC" id="H5FD3F119C8474777B3BBDAEC9CA45FA" display-inline="no-display-inline"> <section id="H017C8522408C443F8534AFF005DB428"><enum>1375A.</enum><header>Prejudgment attachment</header> <subsection id="HD4D2CCA77BCE4C609F7502F0B2A2DAE9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In any action brought pursuant to this title, or in actions brought in aid of, or to enforce an order in, any administrative or other civil action for money damages, restitution, or civil money penalties brought pursuant to this title, the court may, upon application of the Director or Attorney General, as applicable, issue a restraining order that—</text> <paragraph id="H8E0A674F95BF4DB5814FDA64E744F9DA"><enum>(1)</enum><text>prohibits any person subject to the proceeding from withdrawing, transferring, removing, dissipating, or disposing of any funds, assets or other property; and</text></paragraph> <paragraph id="H3B96D3CA4DD748CFBCA20041815FA5A7"><enum>(2)</enum><text>appoints a person on a temporary basis to administer the restraining order.</text></paragraph></subsection> <subsection id="H69BDAF9F40F64F409728C0008E5B75EC"><enum>(b)</enum><header>Standard</header> <paragraph id="H1E1B75E5A5704EBAA701D0643060C27"><enum>(1)</enum><header>Showing</header><text display-inline="yes-display-inline">Rule 65 of the Federal Rules of Civil Procedure shall apply with respect to any proceeding under subsection (a) without regard to the requirement of such rule that the applicant show that the injury, loss, or damage is irreparable and immediate.</text></paragraph> <paragraph id="H5359F7B85108462E82D2DD798C5800A9"><enum>(2)</enum><header>State proceeding</header><text display-inline="yes-display-inline">If, in the case of any proceeding in a State court, the court determines that rules of civil procedure available under the laws of such State provide substantially similar protections to a party’s right to due process as Rule 65 (as modified with respect to such proceeding by paragraph (1)), the relief sought under subsection (a) may be requested under the laws of such State.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HEBCC830EAD9344499F532F7EC17712E"><enum>164.</enum><header>Enforcement and jurisdiction</header><text display-inline="no-display-inline">Section 1375 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4635">12 U.S.C. 4635</external-xref>) is amended—</text> <paragraph id="H207CF11735214748BBBFE986280353E2"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HC21F2D36185A4603BAD026F205F4FB7E"> <subsection id="HA6D9ABF2637A44FAA643847D00D9D89B"><enum>(a)</enum><header>Enforcement</header><text>The Director may, in the discretion of the Director, apply to the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, for the enforcement of any effective and outstanding notice or order issued under this subtitle or subtitle B, or request that the Attorney General of the United States bring such an action. Such court shall have jurisdiction and power to order and require compliance with such notice or order.</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HB9EE94DE6FB3418EA9817366E0C44873"><enum>(2)</enum><text>in subsection (b), by striking <quote>or 1376</quote> and inserting <quote>1376, or 1377</quote>.</text></paragraph></section> <section id="H472B04C9C39B46B1BDF44FA900680038"><enum>165.</enum><header>Civil money penalties</header><text display-inline="no-display-inline">Section 1376 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4636">12 U.S.C. 4636</external-xref>) is amended—</text> <paragraph id="H5D3BA25D2C504830A1F252054F606862"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HC8D1D7A5ACD3407C928C93BE7D355583"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>or any executive officer or</quote> and inserting <quote>any executive officer of a regulated entity, any regulated entity-affiliated party, or any</quote>; and</text></subparagraph> <subparagraph id="H337671D1CBA54E08AEF0C426CBCF08AF"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="HE6A090476F5E4DEFA3E65400B6201B3B"><enum>(i)</enum><text>by striking <quote>the Federal National Mortgage Association Charter Act, the Federal Home Loan Mortgage Corporation Act</quote> and inserting <quote>any provision of any of the authorizing statutes</quote>;</text></clause> <clause id="HC7CEDA90F06E49EBA468346823ECF7D1"><enum>(ii)</enum><text>by striking <quote>or Act</quote> and inserting <quote>or statute</quote>; </text></clause> <clause id="H6506E004096641CFA88B10097348E9F0"><enum>(iii)</enum><text>by striking <quote>or subsection</quote> and inserting <quote>, subsection</quote>; and</text></clause> <clause id="HEEB1B911F3324D7A960002D700116CD5"><enum>(iv)</enum><text>by inserting <quote>, or paragraph (5) or (12) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name></quote> before the semicolon at the end;</text></clause></subparagraph></paragraph> <paragraph id="H0B508E1AF1A64DF8A344FB19C8493338"><enum>(2)</enum><text>by striking subsection (b) and inserting the following new subsection:</text> <quoted-block id="HD2C3955A115B4AE691F6C6FFDDC606F7"> <subsection id="HE8BF4B967EE4453894FE011C803DC84D"><enum>(b)</enum><header>Amount of penalty</header> <paragraph id="H358FF787BFDE48A4A73545F46F33B1DA"><enum>(1)</enum><header>First tier</header><text>Any regulated entity which, or any regulated entity-affiliated party who—</text> <subparagraph id="HD674399D04CA4ABBB95C00E5318B23FB"><enum>(A)</enum><text>violates any provision of this title, any provision of any of the authorizing statutes, or any order, condition, rule, or regulation under any such title or statute, except that the Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title, with subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(m)</external-xref>, (n)), with subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(e)</external-xref>, (f)), or with paragraph (5) or (12) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></subparagraph> <subparagraph id="HC466C93024984EB8A28E67C577C1D36E"><enum>(B)</enum><text>violates any final or temporary order or notice issued pursuant to this title;</text></subparagraph> <subparagraph id="HC49D745E51DE436D9BA2A1E407114423"><enum>(C)</enum><text>violates any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity;</text></subparagraph> <subparagraph id="HFCE95DDE9381454D97EAB5EA17FEB827"><enum>(D)</enum><text>violates any written agreement between the regulated entity and the Director; or</text></subparagraph> <subparagraph id="H0F7EF9392B0B40BC9F762B438F29D66D"><enum>(E)</enum><text>engages in any conduct the Director determines to be an unsafe or unsound practice, shall forfeit and pay a civil penalty of not more than $10,000 for each day during which such violation continues.</text></subparagraph></paragraph> <paragraph id="H24435962245D433590A71F7E5055B53"><enum>(2)</enum><header>Second tier</header><text>Notwithstanding paragraph (1)—</text> <subparagraph id="H82F781CA672448B9B4D416A8A06D05D3"><enum>(A)</enum><text>if a regulated entity, or a regulated entity-affiliated party—</text> <clause id="H89E19507507342CFB326F9F6722D432"><enum>(i)</enum><text>commits any violation described in any subparagraph of paragraph (1);</text></clause> <clause id="H1B7EB962F2474E4F89B91F1C619ECE07"><enum>(ii)</enum><text>recklessly engages in an unsafe or unsound practice in conducting the affairs of such regulated entity; or</text></clause> <clause id="HEC5114FFAEF8486CA7D8F237474C1245"><enum>(iii)</enum><text>breaches any fiduciary duty; and</text></clause></subparagraph> <subparagraph id="HCB27F1961EC647AEA0A20036DD3DCE2B"><enum>(B)</enum><text>the violation, practice, or breach—</text> <clause id="H6058A8D4A84C4791B81C12B21493C6F2"><enum>(i)</enum><text>is part of a pattern of misconduct;</text></clause> <clause id="H94CCB006776B4848933F169045CDC649"><enum>(ii)</enum><text>causes or is likely to cause more than a minimal loss to such regulated entity; or</text></clause> <clause id="H838BDDC0B33B4849944B3E6EFA92CDB1"><enum>(iii)</enum><text>results in pecuniary gain or other benefit to such party, the regulated entity or regulated entity-affiliated party shall forfeit and pay a civil penalty of not more than $50,000 for each day during which such violation, practice, or breach continues.</text></clause></subparagraph></paragraph> <paragraph id="H632559AA8B5B47A199AB6EA0BE11199C"><enum>(3)</enum><header>Third tier</header><text>Notwithstanding paragraphs (1) and (2), any regulated entity which, or any regulated entity-affiliated party who—</text> <subparagraph id="HDE376ADDCC754FD98BA45574136896F2"><enum>(A)</enum><text>knowingly—</text> <clause id="HD6BB59705E964E4C82166E3C00AB887"><enum>(i)</enum><text>commits any violation or engages in any conduct described in any subparagraph of paragraph (1);</text></clause> <clause id="H1D64924ABF5A4B1EB4B3275D8EA7D92"><enum>(ii)</enum><text>engages in any unsafe or unsound practice in conducting the affairs of such regulated entity; or</text></clause> <clause id="HF96F4F2BE5664B4389227140689FD342"><enum>(iii)</enum><text>breaches any fiduciary duty; and</text></clause></subparagraph> <subparagraph id="HBCC410FD32014CD499C3251870F52D75"><enum>(B)</enum><text>knowingly or recklessly causes a substantial loss to such regulated entity or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under paragraph (4) for each day during which such violation, practice, or breach continues.</text></subparagraph></paragraph> <paragraph id="H1627B9C6617D4EC2A8F2CCCE00A92090"><enum>(4)</enum><header>Maximum amounts of penalties for any violation described in paragraph <enum-in-header>(3)</enum-in-header></header><text>The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is—</text> <subparagraph id="H196EBE1DF20844AD95600533BF9D65B"><enum>(A)</enum><text>in the case of any person other than a regulated entity, an amount not to exceed $2,000,000; and</text></subparagraph> <subparagraph id="HCACAEFA06E0B4345A2B5AD71532C3B72"><enum>(B)</enum><text>in the case of any regulated entity, $2,000,000.</text></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HD508942318A94DC3829907433155108B"><enum>(3)</enum><text>in subsection (c)(1)(B), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text></paragraph> <paragraph id="H462397A4D408457FA3AB65A27366DE75"><enum>(4)</enum><text>in subsection (d), by striking the first sentence and inserting the following: <quote>If a regulated entity or regulated entity-affiliated party fails to comply with an order of the Director imposing a civil money penalty under this section, after the order is no longer subject to review as provided under subsection (c)(1) and section 1374, the Director may, in the discretion of the Director, bring an action in the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, to obtain a monetary judgment against the regulated entity or regulated entity affiliated party and such other relief as may be available, or request that the Attorney General of the United States bring such an action.</quote>; and</text></paragraph> <paragraph id="HD62A059CE3BB4F73919377C25FFDACD6"><enum>(5)</enum><text>in subsection (g), by striking <quote>subsection (b)(3)</quote> and inserting <quote>this section, unless authorized by the Director by rule, regulation, or order</quote>.</text></paragraph></section> <section id="HCA4B9754C5D447CCB62288FEB8FA0C"><enum>166.</enum><header>Removal and prohibition authority</header> <subsection id="H17764B272A854ABF994CF2ECE2DDA29D"><enum>(a)</enum><header>In General</header><text>Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended—</text> <paragraph id="HAB5A2C31E9B246E9B0EA15C8494E0029"><enum>(1)</enum><text>by redesignating sections 1377, 1378, 1379, 1379A, and 1379B (<external-xref legal-doc="usc" parsable-cite="usc/12/4637-41">12 U.S.C. 4637–41</external-xref>) as sections 1379, 1379A, 1379B, 1379C, and 1379D, respectively; and</text></paragraph> <paragraph id="HEECF0DB1615843F4BE99DDE727AE9305"><enum>(2)</enum><text>by inserting after section 1376 (<external-xref legal-doc="usc" parsable-cite="usc/12/4636">12 U.S.C. 4636</external-xref>) the following new section:</text> <quoted-block id="H186ACD628DFE42CE9939959B38A14376"> <section id="H15812A10419C41F685AE6D00A836DD95"><enum>1377.</enum><header>Removal and prohibition authority</header> <subsection id="HDFED478983B44BBCBAF481A9BFC32FA6"><enum>(a)</enum><header>Authority to issue order</header><text>Whenever the Director determines that—</text> <paragraph id="HD4988111196640BE9B9800308E04114B"><enum>(1)</enum><text>any regulated entity-affiliated party has, directly or indirectly—</text> <subparagraph id="H7A5A01ECDD2C4CE4817F40BCDF793D2"><enum>(A)</enum><text>violated—</text> <clause id="H60ABACC0DDCB4E2C8089D1B28776353C"><enum>(i)</enum><text>any law or regulation;</text></clause> <clause id="H5A2D5C538FEA4B5B936608C3EDB75537"><enum>(ii)</enum><text>any cease-and-desist order which has become final;</text></clause> <clause id="H52E5054E172349B2B3AD6BF1C29CA4F3"><enum>(iii)</enum><text>any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or</text></clause> <clause id="H4590323EA290406BB3B68672F042513B"><enum>(iv)</enum><text>any written agreement between such regulated entity and the Director;</text></clause></subparagraph> <subparagraph id="H8410EC66B4784AA1A6A6664629235B46"><enum>(B)</enum><text>engaged or participated in any unsafe or unsound practice in connection with any regulated entity; or</text></subparagraph> <subparagraph id="H5350291B54964AFBA49150E0F4D6FF6D"><enum>(C)</enum><text>committed or engaged in any act, omission, or practice which constitutes a breach of such party’s fiduciary duty;</text></subparagraph></paragraph> <paragraph id="HC6E288A726A241E38FB916D2ECF01C62"><enum>(2)</enum><text>by reason of the violation, practice, or breach described in any subparagraph of paragraph (1)—</text> <subparagraph id="HD3517C9B0FD846949FCD29DCBA785E2F"><enum>(A)</enum><text>such regulated entity has suffered or will probably suffer financial loss or other damage; or</text></subparagraph> <subparagraph id="H9C90E2FFD6094C0FBB42193397D6E42B"><enum>(B)</enum><text>such party has received financial gain or other benefit by reason of such violation, practice, or breach; and</text></subparagraph></paragraph> <paragraph id="HB49901BCA5A343E39F5DCB2E45EBD04F"><enum>(3)</enum><text>such violation, practice, or breach—</text> <subparagraph id="HDEE5D626385F43A793761BDB26F42503"><enum>(A)</enum><text>involves personal dishonesty on the part of such party; or</text></subparagraph> <subparagraph id="HABE484F4605A4EF1BC1262E1603BBB70"><enum>(B)</enum><text>demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity, the Director may serve upon such party a written notice of the Director’s intention to remove such party from office or to prohibit any further participation by such party, in any manner, in the conduct of the affairs of any regulated entity.</text></subparagraph></paragraph></subsection> <subsection id="HA6C8C5E1B1DB40568BA2514879260073"><enum>(b)</enum><header>Suspension order</header> <paragraph id="H73FA523701E946448D9E47A5F0F3B300"><enum>(1)</enum><header>Suspension or prohibition authority</header><text>If the Director serves written notice under subsection (a) to any regulated entity-affiliated party of the Director’s intention to issue an order under such subsection, the Director may—</text> <subparagraph id="H05D86EE9CCCF467BB722121F499F4522"><enum>(A)</enum><text>suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the regulated entity, if the Director—</text> <clause id="H23A5DD32B75C4B0F92D9156E924223A9"><enum>(i)</enum><text>determines that such action is necessary for the protection of the regulated entity; and</text></clause> <clause id="HF970805357EB4A74A9F5B462B6AF0355"><enum>(ii)</enum><text>serves such party with written notice of the suspension order; and</text></clause></subparagraph> <subparagraph id="H1827B4E8A1344F9F8EA66821EA91BCA"><enum>(B)</enum><text>prohibit the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with any resignation, removal, retirement, or other termination of employment or office of the party.</text></subparagraph></paragraph> <paragraph id="H7EC237591F3C4FAA85AF6E61BCF65619"><enum>(2)</enum><header>Effective period</header><text>Any suspension order issued under this subsection—</text> <subparagraph id="HDB1205B150204EF78959C9E9A1E27347"><enum>(A)</enum><text>shall become effective upon service; and</text></subparagraph> <subparagraph id="H4F973217E2D54B3AB681356DCBE1BEE7"><enum>(B)</enum><text>unless a court issues a stay of such order under subsection (g) of this section, shall remain in effect and enforceable until—</text> <clause id="H049E7E6142C14B8781EBB2F227CE45F1"><enum>(i)</enum><text>the date the Director dismisses the charges contained in the notice served under subsection (a) with respect to such party; or</text></clause> <clause id="HE02E71C070464B84ACDCF7531CFF3941"><enum>(ii)</enum><text>the effective date of an order issued by the Director to such party under subsection (a).</text></clause></subparagraph></paragraph> <paragraph id="H7EEAEF9926E14F5EB1D995F2D5A0E11F"><enum>(3)</enum><header>Copy of order</header><text>If the Director issues a suspension order under this subsection to any regulated entity-affiliated party, the Director shall serve a copy of such order on any regulated entity with which such party is affiliated at the time such order is issued.</text></paragraph></subsection> <subsection id="H9BA0E1092FF743AAA94FC993BC7BBDD3"><enum>(c)</enum><header>Notice, hearing, and order</header><text>A notice of intention to remove a regulated entity-affiliated party from office or to prohibit such party from participating in the conduct of the affairs of a regulated entity shall contain a statement of the facts constituting grounds for such action, and shall fix a time and place at which a hearing will be held on such action. Such hearing shall be fixed for a date not earlier than 30 days nor later than 60 days after the date of service of such notice, unless an earlier or a later date is set by the Director at the request of (1) such party, and for good cause shown, or (2) the Attorney General of the United States. Unless such party shall appear at the hearing in person or by a duly authorized representative, such party shall be deemed to have consented to the issuance of an order of such removal or prohibition. In the event of such consent, or if upon the record made at any such hearing the Director shall find that any of the grounds specified in such notice have been established, the Director may issue such orders of suspension or removal from office, or prohibition from participation in the conduct of the affairs of the regulated entity, as it may deem appropriate, together with an order prohibiting compensation described in subsection (b)(1)(B). Any such order shall become effective at the expiration of 30 days after service upon such regulated entity and such party (except in the case of an order issued upon consent, which shall become effective at the time specified therein). Such order shall remain effective and enforceable except to such extent as it is stayed, modified, terminated, or set aside by action of the Director or a reviewing court.</text></subsection> <subsection id="H12600A6DDEFA487BA7A452C3DC41B446"><enum>(d)</enum><header>Prohibition of certain specific activities</header><text>Any person subject to an order issued under this section shall not—</text> <paragraph id="H5A83DC22BBBE4DEB816515009E1C37CD"><enum>(1)</enum><text>participate in any manner in the conduct of the affairs of any regulated entity;</text></paragraph> <paragraph id="HE58AC83ABA2A429184EFE2C0CAF057EF"><enum>(2)</enum><text>solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in any regulated entity;</text></paragraph> <paragraph id="HFC3086BA4AA742F3B297EE12FB9549A6"><enum>(3)</enum><text>violate any voting agreement previously approved by the Director; or</text></paragraph> <paragraph id="H98710D08AA43435C99B49549DE43599"><enum>(4)</enum><text>vote for a director, or serve or act as a regulated entity-affiliated party.</text></paragraph></subsection> <subsection id="H48F9F16194E44D709350A27EA8E4AB01"><enum>(e)</enum><header>Industry-Wide prohibition</header> <paragraph id="H82E375BBB0AD41DEBA2900E145241DAA"><enum>(1)</enum><header>In General</header><text>Except as provided in paragraph (2), any person who, pursuant to an order issued under this section, has been removed or suspended from office in a regulated entity or prohibited from participating in the conduct of the affairs of a regulated entity may not, while such order is in effect, continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of, any regulated entity.</text></paragraph> <paragraph id="HF8AF7B4FDFED4328AA2F1FA0D7138892"><enum>(2)</enum><header>Exception if Director provides written consent</header><text>If, on or after the date an order is issued under this section which removes or suspends from office any regulated entity-affiliated party or prohibits such party from participating in the conduct of the affairs of a regulated entity, such party receives the written consent of the Director, the order shall, to the extent of such consent, cease to apply to such party with respect to the regulated entity described in the written consent. If the Director grants such a written consent, it shall publicly disclose such consent.</text></paragraph> <paragraph id="H3AE1FD4FEBD44E5BA54365B37E5B100"><enum>(3)</enum><header>Violation of paragraph <enum-in-header>(1)</enum-in-header> treated as violation of order</header><text>Any violation of paragraph (1) by any person who is subject to an order described in such subsection shall be treated as a violation of the order.</text></paragraph></subsection> <subsection id="H5C0BC24E71C6467690F4CEBD8E502BC"><enum>(f)</enum><header>Applicability</header><text>This section shall only apply to a person who is an individual, unless the Director specifically finds that it should apply to a corporation, firm, or other business enterprise.</text></subsection> <subsection id="H721440A5393C412EA715A7228880626D"><enum>(g)</enum><header>Stay of suspension and prohibition of regulated Entity-Affiliated party</header><text>Within 10 days after any regulated entity-affiliated party has been suspended from office and/or prohibited from participation in the conduct of the affairs of a regulated entity under this section, such party may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district in which the headquarters of the regulated entity is located, for a stay of such suspension and/or prohibition and any prohibition under subsection (b)(1)(B) pending the completion of the administrative proceedings pursuant to the notice served upon such party under this section, and such court shall have jurisdiction to stay such suspension and/or prohibition.</text></subsection> <subsection id="H07536481BE1D4581B6BC866F96A8E6D1"><enum>(h)</enum><header>Suspension or removal of regulated entity-affiliated party charged with felony</header> <paragraph id="H20E3E12A18184978BEEB9730C3B0DC4"><enum>(1)</enum><header>Suspension or prohibition</header> <subparagraph id="HD393B6D7FDF34F74B88E7FE4D641261D"><enum>(A)</enum><header>In General</header><text>Whenever any regulated entity-affiliated party is charged in any information, indictment, or complaint, with the commission of or participation in a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, by written notice served upon such party—</text> <clause id="H778A081C98174BC58E1FDD673F77B048"><enum>(i)</enum><text>suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of any regulated entity; and</text></clause> <clause id="H1DA3B3C24BF541BA9ECAA8E93C8153F"><enum>(ii)</enum><text>prohibit the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with the period of any such suspension or with any resignation, removal, retirement, or other termination of employment or office of the party.</text></clause></subparagraph> <subparagraph id="H0A0A1188210D49248019FE59AC3FC2D9"><enum>(B)</enum><header>Provisions applicable to notice</header> <clause id="HC424AF0714504E6293D16B21FF001BF2"><enum>(i)</enum><header>Copy</header><text>A copy of any notice under paragraph (1)(A) shall also be served upon the regulated entity.</text></clause> <clause id="H68CEBF0D805240FBBA10E44190904345"><enum>(ii)</enum><header>Effective period</header><text>A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the Director.</text></clause></subparagraph></paragraph> <paragraph id="HB59D102DBE93432E9C11C000ECB9DD1"><enum>(2)</enum><header>Removal or prohibition</header> <subparagraph id="HAC2AC2C8979A4D139C772EA81E99F66B"><enum>(A)</enum><header>In General</header><text>If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against a regulated entity-affiliated party in connection with a crime described in paragraph (1)(A), at such time as such judgment is not subject to further appellate review, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, issue and serve upon such party an order that—</text> <clause id="H736F763EAE5A49B583A5B072477C4D8B"><enum>(i)</enum><text>removes such party from office or prohibits such party from further participation in any manner in the conduct of the affairs of the regulated entity without the prior written consent of the Director; and</text></clause> <clause id="H7470B5D40B4C45CF00188FCDC21B8819"><enum>(ii)</enum><text>prohibits the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with the termination of employment or office of the party.</text></clause></subparagraph> <subparagraph id="H16A76C6AEC8C4887A204BCE2C7663723"><enum>(B)</enum><header>Provisions applicable to order</header> <clause id="H77FA2BDB6A934559B04D6402F549F3F5"><enum>(i)</enum><header>Copy</header><text>A copy of any order under paragraph (2)(A) shall also be served upon the regulated entity, whereupon the regulated entity-affiliated party who is subject to the order (if a director or an officer) shall cease to be a director or officer of such regulated entity.</text></clause> <clause id="H87CADB5E30B44F26B8E0E402B72662E6"><enum>(ii)</enum><header>Effect of acquittal</header><text>A finding of not guilty or other disposition of the charge shall not preclude the Director from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in regulated entity affairs, and to prohibit compensation or other payment of money or other thing of current or potential value in connection with any resignation, removal, retirement, or other termination of employment or office of the party, pursuant to subsections (a), (d), or (e) of this section.</text></clause> <clause id="HD26266BB42734258B400F44C5946D197"><enum>(iii)</enum><header>Effective period</header><text>Any notice of suspension or order of removal issued under this subsection shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (4) unless terminated by the Director.</text></clause></subparagraph></paragraph> <paragraph id="HD0F868822DE54217BC4808C443B59F58"><enum>(3)</enum><header>Authority of remaining Board members</header><text>If at any time, because of the suspension of one or more directors pursuant to this section, there shall be on the board of directors of a regulated entity less than a quorum of directors not so suspended, all powers and functions vested in or exercisable by such board shall vest in and be exercisable by the director or directors on the board not so suspended, until such time as there shall be a quorum of the board of directors. In the event all of the directors of a regulated entity are suspended pursuant to this section, the Director shall appoint persons to serve temporarily as directors in their place and stead pending the termination of such suspensions, or until such time as those who have been suspended cease to be directors of the regulated entity and their respective successors take office.</text></paragraph> <paragraph id="H8AEF7C9508B543C7A0A72961C24CDEEB"><enum>(4)</enum><header>Hearing regarding continued participation</header><text>Within 30 days from service of any notice of suspension or order of removal issued pursuant to paragraph (1) or (2) of this subsection, the regulated entity-affiliated party concerned may request in writing an opportunity to appear before the Director to show that the continued service to or participation in the conduct of the affairs of the regulated entity by such party does not, or is not likely to, pose a threat to the interests of the regulated entity or threaten to impair public confidence in the regulated entity. Upon receipt of any such request, the Director shall fix a time (not more than 30 days after receipt of such request, unless extended at the request of such party) and place at which such party may appear, personally or through counsel, before one or more members of the Director or designated employees of the Director to submit written materials (or, at the discretion of the Director, oral testimony) and oral argument. Within 60 days of such hearing, the Director shall notify such party whether the suspension or prohibition from participation in any manner in the conduct of the affairs of the regulated entity will be continued, terminated, or otherwise modified, or whether the order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the regulated entity, and prohibiting compensation in connection with termination will be rescinded or otherwise modified. Such notification shall contain a statement of the basis for the Director’s decision, if adverse to such party. The Director is authorized to prescribe such rules as may be necessary to effectuate the purposes of this subsection.</text></paragraph></subsection> <subsection id="H9090A5F9C6514DA99616003BDD218248"><enum>(i)</enum><header>Hearings and judicial review</header> <paragraph id="HABCDD7882EEC455700820672C6268960"><enum>(1)</enum><header>Venue and procedure</header><text>Any hearing provided for in this section shall be held in the District of Columbia or in the Federal judicial district in which the headquarters of the regulated entity is located, unless the party afforded the hearing consents to another place, and shall be conducted in accordance with the provisions of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code. After such hearing, and within 90 days after the Director has notified the parties that the case has been submitted to it for final decision, it shall render its decision (which shall include findings of fact upon which its decision is predicated) and shall issue and serve upon each party to the proceeding an order or orders consistent with the provisions of this section. Judicial review of any such order shall be exclusively as provided in this subsection. Unless a petition for review is timely filed in a court of appeals of the United States, as provided in paragraph (2), and thereafter until the record in the proceeding has been filed as so provided, the Director may at any time, upon such notice and in such manner as it shall deem proper, modify, terminate, or set aside any such order. Upon such filing of the record, the Director may modify, terminate, or set aside any such order with permission of the court.</text></paragraph> <paragraph id="H5640DA05C79A41F2AEC277AB135C5486"><enum>(2)</enum><header>Review of order</header><text>Any party to any proceeding under paragraph (1) may obtain a review of any order served pursuant to paragraph (1) (other than an order issued with the consent of the regulated entity or the regulated entity-affiliated party concerned, or an order issued under subsection (h) of this section) by the filing in the United States Court of Appeals for the District of Columbia Circuit or court of appeals of the United States for the circuit in which the headquarters of the regulated entity is located, within 30 days after the date of service of such order, a written petition praying that the order of the Director be modified, terminated, or set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Director, and thereupon the Director shall file in the court the record in the proceeding, as provided in <external-xref legal-doc="usc" parsable-cite="usc/28/2112">section 2112</external-xref> of title 28, United States Code. Upon the filing of such petition, such court shall have jurisdiction, which upon the filing of the record shall (except as provided in the last sentence of paragraph (1)) be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of the Director. Review of such proceedings shall be had as provided in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in <external-xref legal-doc="usc" parsable-cite="usc/28/1254">section 1254</external-xref> of title 28, United States Code.</text></paragraph> <paragraph id="H3A96BF5864394DBA874D27384F172BA3"><enum>(3)</enum><header>Proceedings not treated as stay</header><text>The commencement of proceedings for judicial review under paragraph (2) shall not, unless specifically ordered by the court, operate as a stay of any order issued by the Director.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H06F32D545660475895BAEFF533E7EE39"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H371E4C9023334501A6775ECDD3C59600"><enum>(1)</enum><header>1992 Act</header><text>Section 1317(f) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517(f)</external-xref>) is amended by striking <quote>section 1379B</quote> and inserting <quote>section 1379D</quote>.</text></paragraph> <paragraph id="H060B13855E8C47DB910034FA836CAB88"><enum>(2)</enum><header>Fannie mae charter Act</header><text>The second sentence of subsection (b) of section 308 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended by striking <quote>The</quote> and inserting <quote>Except to the extent that action under section 1377 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> temporarily results in a lesser number, the</quote>.</text></paragraph> <paragraph id="H31B1BFE7C8BA4CE8BF61F9D9B7C443CF"><enum>(3)</enum><header>Freddie mac Act</header><text>The second sentence of subparagraph (A) of section 303(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)(A)</external-xref>) is amended by striking <quote>The</quote> and inserting <quote>Except to the extent that action under section 1377 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> temporarily results in a lesser number, the</quote>.</text></paragraph></subsection></section> <section id="HBC3FDE443DE74A54B8F5DE22C4EAA728"><enum>167.</enum><header>Criminal penalty</header><text display-inline="no-display-inline">Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>) is amended by inserting after section 1377 (as added by the preceding provisions of this Act) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HB57B47BC9F704CE1BB28F4D926F786FD"> <section id="H6154DA260A5349DAA8D0FD7E25AF15C5"><enum>1378.</enum><header>Criminal penalty</header><text display-inline="no-display-inline">Whoever, being subject to an order in effect under section 1377, without the prior written approval of the Director, knowingly participates, directly or indirectly, in any manner (including by engaging in an activity specifically prohibited in such an order) in the conduct of the affairs of any regulated entity shall, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, be fined not more than $1,000,000, imprisoned for not more than 5 years, or both.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H4BA6C09885FC4020B06FF556EB83F63B"><enum>168.</enum><header>Subpoena authority</header><text display-inline="no-display-inline">Section 1379D(c) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4641">12 U.S.C. 4641(c)</external-xref>), as so redesignated by section 165(a)(1) of this Act, is further amended—</text> <paragraph id="H232C8257087A40CE807F3435D49D7939"><enum>(1)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; </text></paragraph> <paragraph id="H500C43CDF5734D4C92C13B477E23933B"><enum>(2)</enum><text>by inserting <quote>or request that the Attorney General of the United States bring such an action,</quote> after <quote>District of Columbia,</quote>; and</text></paragraph> <paragraph id="HCD011BB1390E40DAB5FF6949E0136C"><enum>(3)</enum><text>by striking <quote>or may, under the direction and control of the Attorney General, bring such an action</quote>.</text></paragraph></section> <section id="H09C1A368FA864AE68C75D962D78F4799"><enum>169.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended—</text> <paragraph id="H20ACC58F4FCD49749C1789BCDA2BC004"><enum>(1)</enum><text>in section 1372(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632(c)</external-xref>), by striking <quote>that enterprise</quote> and inserting <quote>that regulated entity</quote>;</text></paragraph> <paragraph id="HA4094850D4D246688426549651000631"><enum>(2)</enum><text>in section 1379 (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637</external-xref>), as so redesignated by section 165(a)(1) of this Act—</text> <subparagraph id="H82F72414AC0440E2B43C620981AC0041"><enum>(A)</enum><text>by inserting <quote>, or of a regulated entity-affiliated party,</quote> before <quote>shall not affect</quote>; and</text></subparagraph> <subparagraph id="H7D2D5FAE0EF640C99E4F7E113659F45C"><enum>(B)</enum><text>by striking <quote>such director or executive officer</quote> each place such term appears and inserting <quote>such director, executive officer, or regulated entity-affiliated party</quote>;</text></subparagraph></paragraph> <paragraph id="H3E17DD61E81E495300DB9400D4C8934F"><enum>(3)</enum><text>in section 1379A (<external-xref legal-doc="usc" parsable-cite="usc/12/4638">12 U.S.C. 4638</external-xref>), as so redesignated by section 165(a)(1) of this Act, by inserting <quote>or against a regulated entity-affiliated party,</quote> before <quote>or impair</quote>;</text></paragraph> <paragraph id="HE352B9F2FF2F4276AFB665F228613F1"><enum>(4)</enum><text>by striking <quote>An enterprise</quote> each place such term appears in such subtitle and inserting <quote>A regulated entity</quote>;</text></paragraph> <paragraph id="H9E2D97B245ED43258435B671250220B0"><enum>(5)</enum><text>by striking <quote>an enterprise</quote> each place such term appears in such subtitle and inserting <quote>a regulated entity</quote>;</text></paragraph> <paragraph id="H182D58447C0D4C68A5BD7C03ED62EB7B"><enum>(6)</enum><text>by striking <quote>the enterprise</quote> each place such term appears in such subtitle and inserting <quote>the regulated entity</quote>; and</text></paragraph> <paragraph id="H430C254404444E0F9F2E7CEBDB5200A7"><enum>(7)</enum><text>by striking <quote>any enterprise</quote> each place such term appears in such subtitle and inserting <quote>any regulated entity</quote>.</text></paragraph></section></subtitle> <subtitle id="H86D6218831884511A31E7FCBC13B15C3"><enum>E</enum><header>General provisions</header> <section id="H5D07040EC9194179B5A9D778FE14A563"><enum>181.</enum><header>Presidentially appointed directors of enterprises</header> <subsection id="H2540A9E599A640C0B0006F539F804600"><enum>(a)</enum><header>Fannie mae</header> <paragraph id="HDE0132C6D30E45F4AA280138084357F4"><enum>(1)</enum><header>In General</header><text>Subsection (b) of section 308 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended—</text> <subparagraph id="H235AFE05CF6B4209AFBA7B538D4D5D39"><enum>(A)</enum><text>in the first sentence, by striking <quote>eighteen persons, five of whom shall be appointed annually by the President of the United States, and the remainder of whom</quote> and inserting <quote>not less than 7 and not more than 15 persons, who</quote>;</text></subparagraph> <subparagraph id="H58E7CB54A3B14B9700BF87A6D9FF8E2"><enum>(B)</enum><text>in the second sentence, by striking <quote>appointed by the President</quote>;</text></subparagraph> <subparagraph id="H412A4D91366640BFBE3F8D93AC3738A0"><enum>(C)</enum><text>in the third sentence—</text> <clause id="HE4F847D805544EAEBA187BD3D5BB10B"><enum>(i)</enum><text>by striking <quote>appointed or</quote>; and</text></clause> <clause id="H03157A74CDFB49A0B5F63571AB42EF9E"><enum>(ii)</enum><text>by striking <quote>, except that any such appointed member may be removed from office by the President for good cause</quote>;</text></clause></subparagraph> <subparagraph id="HD4FE5A2B3C6A471692B99D40B5FFBCA4"><enum>(D)</enum><text>in the fourth sentence, by striking <quote>elective</quote>; and</text></subparagraph> <subparagraph id="HEC5AD0B4ED3747B7BF65672DC994E12E"><enum>(E)</enum><text>by striking the fifth sentence.</text></subparagraph></paragraph> <paragraph id="HCACF012F0D854359AFBD8644D1362F00"><enum>(2)</enum><header>Transitional provision</header><text>The amendments made by paragraph (1) shall not apply to any appointed position of the board of directors of the Federal National Mortgage Association until the expiration of the annual term for such position during which the effective date under section 185 occurs.</text></paragraph></subsection> <subsection id="H837A1E84D826402083777E8DBA4D4062"><enum>(b)</enum><header>Freddie mac</header> <paragraph id="H79E0203C295E4B9385183DB312ED3B99"><enum>(1)</enum><header>In General</header><text>Paragraph (2) of section 303(a) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)</external-xref>) is amended—</text> <subparagraph id="H42CA3DF518594FA5A6ED9CDCD11F1967"><enum>(A)</enum><text>in subparagraph (A)—</text> <clause id="H9E0BCE43AE3B47C3902CECFF94DA57C5"><enum>(i)</enum><text>in the first sentence, by striking <quote>18 persons, 5 of whom shall be appointed annually by the President of the United States and the remainder of whom</quote> and inserting <quote>not less than 7 and not more than 15 persons, who</quote>; and</text></clause> <clause id="H26F1FBEE936441CF95DD4B004139E2EB"><enum>(ii)</enum><text>in the second sentence, by striking <quote>appointed by the President of the United States</quote>;</text></clause></subparagraph> <subparagraph id="H6487FED56E6C49439F93E1F8E84FAE5"><enum>(B)</enum><text>in subparagraph (B)—</text> <clause id="HB0B16AB227F34761A148A0B6D022FBC"><enum>(i)</enum><text>by striking <quote>such or</quote>; and</text></clause> <clause id="H0D2BBC911316405BAB9870B2E744089"><enum>(ii)</enum><text>by striking <quote>, except that any appointed member may be removed from office by the President for good cause</quote>; and</text></clause></subparagraph> <subparagraph id="H27605FD824D54073A4CC57387952F6F3"><enum>(C)</enum><text>in subparagraph (C)—</text> <clause id="HFE6BFFDAA92E4A4CB8B872CCF7A1C7DF"><enum>(i)</enum><text>by striking the first sentence; and</text></clause> <clause id="H9BCD242484154F729C82EA118419B0D8"><enum>(ii)</enum><text>by striking <quote>elective</quote>.</text></clause></subparagraph></paragraph> <paragraph id="HC54099DFD4474E68AEBA56C5461900EC"><enum>(2)</enum><header>Transitional provision</header><text>The amendments made by paragraph (1) shall not apply to any appointed position of the Board of Directors of the Federal Home Loan Mortgage Corporation until the expiration of the annual term for such position during which the effective date under section 185 occurs.</text></paragraph></subsection></section> <section id="HF1D299BEB75F4F2E00B91800B1EDA441"><enum>182.</enum><header>Report on portfolio operations, safety and soundness, and mission of enterprises</header><text display-inline="no-display-inline">Not later than the expiration of the 12-month period beginning on the effective date under section 185, the Director of the Federal Housing Finance Agency shall submit a report to the Congress which shall include—</text> <paragraph id="HE84B4016D595420294D70A926B2B02"><enum>(1)</enum><text>a description of the portfolio holdings of the enterprises (as such term is defined in section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>) in mortgages (including whole loans and mortgage-backed securities), non-mortgages, and other assets;</text></paragraph> <paragraph id="HE120EA1EFCC54EEA97D1B13765F5B3B"><enum>(2)</enum><text>a description of the risk implications for the enterprises of such holdings and the consequent risk management undertaken by the enterprises (including the use of derivatives for hedging purposes), compared with off-balance sheet liabilities of the enterprises (including mortgage-backed securities guaranteed by the enterprises);</text></paragraph> <paragraph id="HA038DB24DE954FFC8184D117B231C2BB"><enum>(3)</enum><text>an analysis of portfolio holdings for safety and soundness purposes;</text></paragraph> <paragraph id="HD886837A758A4A859E6F7C00CB962BF9"><enum>(4)</enum><text>an assessment of whether portfolio holdings fulfill the mission purposes of the enterprises under the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> and the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>; and</text></paragraph> <paragraph id="HC9DC02EF5E3C42D98CC7C2D8168C8800"><enum>(5)</enum><text>an analysis of the potential systemic risk implications for the enterprises, the housing and capital markets, and the financial system of portfolio holdings, and whether such holdings should be limited or reduced over time.</text></paragraph></section> <section id="HBDD0F1ABCB5F4CDAADC384FCA13C8DB"><enum>183.</enum><header>Conforming and technical amendments</header> <subsection id="H42E5F1DE31724CB4900558356FCF3092"><enum>(a)</enum><header>1992 Act</header><text>Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking section 1383 (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note).</text></subsection> <subsection id="HCB2DB89960A041580017C1F9C96E2DEB"><enum>(b)</enum><header>Title <enum-in-header>18</enum-in-header>, United States Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/18/1905">Section 1905</external-xref> of title 18, United States Code, is amended by striking <quote>Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>Federal Housing Finance Agency</quote> .</text></subsection> <subsection id="H20031CA86121494A9110617DE4FD04D4"><enum>(c)</enum><header>Flood Disaster Protection Act of 1973</header><text>Section 102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(f)(3)(A)</external-xref>) is amended by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H0D1F5117F3464E86A059B8A1596602E7"><enum>(d)</enum><header>Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name></header><text>Section 5 of the Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/3534">42 U.S.C. 3534</external-xref>) is amended by striking subsection (d).</text></subsection> <subsection id="HC0CC2B9EDDCA41C6B3D015598901D39C"><enum>(e)</enum><header>Title <enum-in-header>5</enum-in-header>, United States Code</header> <paragraph id="H9518D513FE4E4D72BBA0DB839B34E8A9"><enum>(1)</enum><header>Director’s pay rate</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5313">Section 5313</external-xref> of title 5, United States Code, is amended by striking the item relating to the Director of the Office of Federal Housing Enterprise Oversight, Department of Housing and Urban Development and inserting the following new item:</text> <quoted-block id="H213BDD676E9D4678AF03B0004889ADD"> <subsection id="HA3D94E16D47B4E81B2E3A4FC04D79E9B"><enum></enum><text display-inline="no-display-inline">Director of the Federal Housing Finance Agency.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HBE9B6615484442599FAB0097F668D56F"><enum>(2)</enum><header>Deputy Directors’ pay rate</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5314">Section 5314</external-xref> of title 5, United States Code, is amended by adding at the end the following new item:</text> <quoted-block id="H50F4E6FA191A46E4879E2CCE7127BEFA"> <subsection id="H2507EFA3A5A74C43B907C104A21851D1"><enum></enum><text display-inline="no-display-inline">Deputy Directors, Federal Housing Finance Agency (3).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H520307DB2E4C4072B8723959528C93AC"><enum>(3)</enum><header>Pay rate for members of Housing Finance Oversight Board</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended by adding at the end the following new item:</text> <quoted-block id="HF9322D73A9BB47E4BF9EB580A0D510BC"> <subsection id="H7FE72ADF66164AF7B7A6D46B3328AF3F"><enum></enum><text display-inline="no-display-inline">Members, Housing Finance Oversight Board.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H8EDA49FD0BB2456DA527499600AE979"><enum>(4)</enum><header>Exclusion from senior executive service</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/3132">Section 3132(a)(1)(D)</external-xref> of title 5, United States Code, is amended by striking <quote>the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> and inserting <quote>the Federal Housing Finance Agency</quote>.</text></paragraph></subsection> <subsection id="HCC2010647D22429DA89F086F82067BC0"><enum>(f)</enum><header>Inspector General Act of 1978</header><text>Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H2394A98235B14B4C9314DFD4715895BC"><enum>(g)</enum><header>Federal Deposit Insurance Act</header><text>Section 11(t)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.1821(t)(2)(A)) is amended by adding at the end the following new clause:</text> <quoted-block style="OLC" id="HB0FF0294E5D143EBB6C933ABAEDB8BB" display-inline="no-display-inline"> <clause id="H759D9A24A36B424A99A1001E871B1D98"><enum>(vii)</enum><text>The Federal Housing Finance Agency.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9E2EA7FE6E874B23B13E808700607BCD"><enum>(h)</enum><header>1997 Emergency Supplemental Appropriations Act</header><text>Section 10001 of the 1997 Emergency Supplemental Appropriations Act for Recovery From Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those In Bosnia (<external-xref legal-doc="usc" parsable-cite="usc/42/3548">42 U.S.C. 3548</external-xref>) is amended—</text> <paragraph id="H831C4E889DA64377A8568C8F00AB1F23"><enum>(1)</enum><text>by striking <quote>the Government National Mortgage Association, and the Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>and the Government National Mortgage Association</quote>; and</text></paragraph> <paragraph id="H9749B285683445F5A327CF8E9C3E1F34"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>, the Government National Mortgage Association, or the Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>or the Government National Mortgage Association</quote>.</text></paragraph></subsection> <subsection id="H055368ED4C194C2E92C408B8087DEB25"><enum>(i)</enum><header>National Homeownership Trust Act </header><text>Section 302(b)(4) of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12851">42 U.S.C. 12851(b)(4)</external-xref>) is amended by striking <quote>the chairperson of the Federal Housing Finance Board</quote> and inserting <quote>the Director of the Federal Housing Finance Agency</quote>.</text></subsection></section> <section id="H2BA5862A01934D51A8ABEF84CF685E61" display-inline="no-display-inline" section-type="subsequent-section"><enum>184.</enum><header>Study of alternative secondary market systems</header> <subsection id="H2159A629DCB94D8FB6826C6FB3962409"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of the Federal Housing Finance Agency, in consultation with the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, and the Secretary of Housing and Urban Development, shall conduct a comprehensive study of the effects on financial and housing finance markets of alternatives to the current secondary market system for housing finance, taking into consideration changes in the structure of financial and housing finance markets and institutions since the creation of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text></subsection> <subsection id="H6D33F759FCF34C779E3C466900AADEA2"><enum>(b)</enum><header>Contents</header><text display-inline="yes-display-inline">The study under this section shall—</text> <paragraph id="HA0B15073C1204AB08BDA17935C8822F6"><enum>(1)</enum><text>include, among the alternatives to the current secondary market system analyzed—</text> <subparagraph id="HD436E0960A6A41428902FA208B2A7B9"><enum>(A)</enum><text>repeal of the chartering Acts for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;</text></subparagraph> <subparagraph id="H5258FEC5CD584A1800287B3DA81CCC19"><enum>(B)</enum><text>establishing bank-like mechanisms for granting new charters for limited purposed mortgage securitization entities;</text></subparagraph> <subparagraph id="HAD1C3C77C20143430001D4BAF7CDB92"><enum>(C)</enum><text display-inline="yes-display-inline">permitting the Director of the Federal Housing Finance Agency to grant new charters for limited purpose mortgage securitization entities, which shall include analyzing the terms on which such charters should be granted, including whether such charters should be sold, or whether such charters and the charters for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation should be taxed or otherwise assessed a monetary price; and</text></subparagraph> <subparagraph id="HE60F58E934C6416B8DB2A436256B6433"><enum>(D)</enum><text>such other alternatives as the Director considers appropriate;</text></subparagraph></paragraph> <paragraph id="HEB0B8947A24D45D38676D7A27D445D41"><enum>(2)</enum><text>examine all of the issues involved in making the transition to a completely private secondary mortgage market system;</text></paragraph> <paragraph id="HF496A22DD4C04951A6865C46B0896B01"><enum>(3)</enum><text>examine the technological advancements the private sector has made in providing liquidity in the secondary mortgage market and how such advancements have affected liquidity in the secondary mortgage market; and</text></paragraph> <paragraph id="H7CB0FED6BD5042D5B79FC058B102D0EC"><enum>(4)</enum><text>examine how taxpayers would be impacted by each alternative system, including the complete privatization of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text></paragraph></subsection> <subsection id="HF3312B0FACD44AEF8BEBA3009F842401"><enum>(c)</enum><header>Report</header><text>The Director of the Federal Housing Finance Agency shall submit a report to the Congress on the study not later than the expiration of the 12-month period beginning on the effective date under section 185.</text></subsection></section> <section id="HC837654EE544449EB3122728CA2D327E"><enum>185.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as specifically provided otherwise in this title, the amendments made by this title shall take effect on, and shall apply beginning on, the expiration of the 1-year period beginning on the date of the enactment of this Act.</text></section></subtitle>

109 HR 1461 RH: Federal Housing Finance Reform Act of 2005 U.S. House of Representatives 2005-09-16 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Union Calendar No. 126 109th CONGRESS 1st Session

H. R. 1461

[Report No. 109–171, Part I]

IN THE HOUSE OF REPRESENTATIVES

April 5, 2005

Mr. Baker (for himself, Mr. Oxley, Mr. Ryun of Kansas, Mr. Hensarling, Mr. Jones of North Carolina, Mr. Davis of Kentucky, Mr. Fitzpatrick of Pennsylvania, and Mr. Shays) introduced the following bill; which was referred to the Committee on Financial Services

July 14, 2005

Reported with an amendment and referred to the Committee on the Judiciary for a period ending not later than September 16, 2005 for consideration of such provisions of the bill as fall within the jurisdiction of that committee pursuant to clause 1(l), rule X

Strike out all after the enacting clause and insert the part printed in italic

September 16, 2005

Additional sponsors: Mr. Garrett of New Jersey, Mr. Wolf, Mr. Gillmor, Mr. Feeney, Mr. Barrett of South Carolina, Mr. McHenry, Ms. Ros-Lehtinen, Mr. Blunt, Mr. Ryan of Wisconsin, Mr. McCotter, Mr. Aderholt, and Mr. Simmons

September 16, 2005

Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed

For text of introduced bill, see copy of bill as introduced on April 5, 2005

A BILL

To reform the regulation of certain housing-related Government-sponsored enterprises, and for other purposes.

Short title and table of contents

(a)

Short title

This Act may be cited as the

Federal Housing Finance Reform Act of 2005

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title and table of contents

Sec. 2. Definitions

Title I—Reform of regulation of Enterprises and Federal Home Loan Banks

Subtitle A—Improvement of safety and soundness

Sec. 101. Establishment of the Federal Housing Finance Agency

Sec. 102. Duties and authorities of Director

Sec. 103. Housing Finance Oversight Board

Sec. 104. Authority to require reports by regulated entities

Sec. 105. Disclosure of charitable contributions by enterprises

Sec. 106. Assessments

Sec. 107. Examiners and accountants

Sec. 108. Prohibition and withholding of executive compensation

Sec. 109. Reviews of regulated entities

Sec. 110. Regulations and orders

Sec. 111. Risk-based capital requirements

Sec. 112. Minimum and critical capital levels

Sec. 113. Review of and authority over enterprise assets and liabilities

Sec. 114. Corporate governance of enterprises

Sec. 115. Required registration under Securities Exchange Act of 1934

Sec. 116. Financial Institutions Examination Council

Sec. 117. Guarantee fee study

Sec. 118. Conforming amendments

Subtitle B—Improvement of mission supervision

Sec. 121. Transfer of program and activities approval and housing goal oversight

Sec. 122. Review by Director of new programs and activities of enterprises

Sec. 123. Conforming loan limits

Sec. 124. Annual housing report regarding regulated entities

Sec. 125. Revision of housing goals

Sec. 126. Duty to serve underserved markets

Sec. 127. Monitoring and enforcing compliance with housing goals

Sec. 128. Affordable housing fund

Sec. 129. Consistency with mission

Sec. 130. Enforcement

Sec. 131. Conforming amendments

Subtitle C—Prompt corrective action

Sec. 141. Capital classifications

Sec. 142. Supervisory actions applicable to undercapitalized regulated entities

Sec. 143. Supervisory actions applicable to significantly undercapitalized regulated entities

Sec. 144. Authority over critically undercapitalized regulated entities

Sec. 145. Conforming amendments

Subtitle D—Enforcement actions

Sec. 161. Cease-and-desist proceedings

Sec. 162. Temporary cease-and-desist proceedings

Sec. 163. Prejudgment attachment

Sec. 164. Enforcement and jurisdiction

Sec. 165. Civil money penalties

Sec. 166. Removal and prohibition authority

Sec. 167. Criminal penalty

Sec. 168. Subpoena authority

Sec. 169. Conforming amendments

Subtitle E—General provisions

Sec. 181. Presidentially appointed directors of enterprises

Sec. 182. Report on portfolio operations, safety and soundness, and mission of enterprises

Sec. 183. Conforming and technical amendments

Sec. 184. Study of alternative secondary market systems

Sec. 185. Effective date

Title II—Federal Home Loan Banks

Sec. 201. Definitions

Sec. 202. Directors

Sec. 203. Federal Housing Finance Agency oversight of Federal Home Loan Banks

Sec. 204. Joint activities of banks

Sec. 205. Sharing of information between Federal Home Loan Banks

Sec. 206. Reorganization of banks and voluntary merger

Sec. 207. Securities and Exchange Commission disclosure

Sec. 208. Community financial institution members

Sec. 209. Technical and conforming amendments

Sec. 210. Study of affordable housing program use for long-term care facilities

Sec. 211. Effective date

Title III—Transfer of functions, personnel, and property of Office of Federal Housing Enterprise Oversight, Federal Housing Finance Board, and Department of Housing and Urban Development

Subtitle A—Office of Federal Housing Enterprise Oversight

Sec. 301. Abolishment of OFHEO

Sec. 302. Continuation and coordination of certain regulations

Sec. 303. Transfer and rights of employees of OFHEO

Sec. 304. Transfer of property and facilities

Subtitle B—Federal Housing Finance Board

Sec. 321. Abolishment of the Federal Housing Finance Board

Sec. 322. Continuation and coordination of certain regulations

Sec. 323. Transfer and rights of employees of the Federal Housing Finance Board

Sec. 324. Transfer of property and facilities

Subtitle C—Department of Housing and Urban Development

Sec. 341. Termination of enterprise-related functions

Sec. 342. Continuation and coordination of certain regulations

Sec. 343. Transfer and rights of employees

Sec. 344. Transfer of appropriations, property, and facilities

Definitions

Section 1303 of the Housing and Community Development Act of 1992 (12 U.S.C. 4502) is amended— (1) in paragraph (7), by striking an enterprise and inserting a regulated entity; (2)by striking the enterprise each place such term appears (except in paragraphs (4) and (18)) and inserting the regulated entity; (3)in paragraph (5), by striking Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development and inserting Federal Housing Finance Agency; (4)in each of paragraphs (8), (9), (10), and (19), by striking Secretary each place that term appears and inserting Director; (5)in paragraph (13), by inserting , with respect to an enterprise, after means; (6)by redesignating paragraphs (16) through (19) as paragraphs (20) through (23), respectively; (7)by striking paragraphs (14) and (15) and inserting the following new paragraphs:

(18)

Regulated entity

The term regulated entity means— (A)the Federal National Mortgage Association and any affiliate thereof; (B)the Federal Home Loan Mortgage Corporation and any affiliate thereof; and (C)each Federal home loan bank. (19)

Regulated Entity-Affiliated party

The term regulated entity-affiliated party means— (A)any director, officer, employee, or controlling stockholder of, or agent for, a regulated entity; (B)any shareholder, affiliate, consultant, or joint venture partner of a regulated entity, and any other person, as determined by the Director (by regulation or on a case-by-case basis) that participates in the conduct of the affairs of a regulated entity; (C)any independent contractor for a regulated entity (including any attorney, appraiser, or accountant); and (D)any not-for-profit corporation that receives its principal funding, on an ongoing basis, from any regulated entity.

;

(8)by redesignating paragraphs (8) through (13) as paragraphs (12) through (17), respectively; and (9)by inserting after paragraph (7) the following new paragraph:

(11)

Federal home loan bank

The term Federal home loan bank means a bank established under the authority of the Federal Home Loan Bank Act.

;

(10)by redesignating paragraphs (2) through (7) as paragraphs (5) through (10), respectively; and (11)by inserting after paragraph (1) the following new paragraphs:

(2)

Agency

The term Agency means the Federal Housing Finance Agency. (3)

Authorizing statutes

The term authorizing statutes means— (A)the Federal National Mortgage Association Charter Act; (B)the Federal Home Loan Mortgage Corporation Act; and (C)the Federal Home Loan Bank Act. (4)

Board

The term Board means the Housing Finance Oversight Board established under section 1313B.

<enum>I</enum><header>Reform of regulation of Enterprises and Federal Home Loan Banks</header> <subtitle id="HE859F87658C9459583892D405F00D6D7"><enum>A</enum><header>Improvement of safety and soundness</header> <section id="H89EAEC5144D345C49783DF66C7B85140"><enum>101.</enum><header>Establishment of the Federal Housing Finance Agency</header> <subsection id="H871CFFB95E81435F94F58BA7FB341DB3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended by striking sections 1311 and 1312 and inserting the following:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HA88918DC7E564630B8006CD7D397A78B"> <section id="H0E0D9EFC97314489B592A5AC00608701"><enum>1311.</enum><header>Establishment of the Federal Housing Finance Agency</header> <subsection id="HE1F233CBA99B46E1B3EB82B7A82E98AC"><enum>(a)</enum><header>Establishment</header><text>There is established the Federal Housing Finance Agency, which shall be an independent agency of the Federal Government.</text></subsection> <subsection id="HAF083CBFF8E04F3F00FE024F2621258F"><enum>(b)</enum><header>General supervisory and regulatory authority</header> <paragraph id="H7D05B1DBFCCC48CCA248A8098F9C05AB"><enum>(1)</enum><header>In General</header><text>Each regulated entity shall, to the extent provided in this title, be subject to the supervision and regulation of the Agency.</text></paragraph> <paragraph id="H20AADA117BF44E86925CEE3EAF6287B9"><enum>(2)</enum><header>Authority over fannie mae, freddie mac, and Federal Home Loan Banks</header><text>The Director of the Federal Housing Finance Agency shall have general supervisory and regulatory authority over each regulated entity and shall exercise such general regulatory authority, including such duties and authorities set forth under section 1313 of this Act, to ensure that the purposes of this Act, the authorizing statutes, and any other applicable law are carried out.</text></paragraph></subsection> <subsection id="HB2F5BE3043DD45B8A75C1E105C7DCE05"><enum>(c)</enum><header>Savings provision</header><text>The authority of the Director to take actions under subtitles B and C shall not in any way limit the general supervisory and regulatory authority granted to the Director.</text></subsection></section> <section id="H97713FA1EDEE4BFA8550FC677F330957"><enum>1312.</enum><header>Director</header> <subsection id="HA6DAB3D9852745F1AEBAC3073049DE50"><enum>(a)</enum><header>Establishment of position</header><text>There is established the position of the Director of the Federal Housing Finance Agency, who shall be the head of the Agency.</text></subsection> <subsection id="H9CD9441AF9954F80AAEF00BFCF1EF4D7"><enum>(b)</enum><header>Appointment; term</header> <paragraph id="HDC5BADC6061A42FEA847BB47A914D4FB"><enum>(1)</enum><header>Appointment</header><text>The Director shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight, and have a demonstrated understanding of capital markets, including the mortgage securities markets and housing finance.</text></paragraph> <paragraph id="H55952A7C00AA4DD79426C42B7021A6C6"><enum>(2)</enum><header>Term and removal</header><text>The Director shall be appointed for a term of 5 years and may be removed by the President only for cause.</text></paragraph> <paragraph id="HD9B4F017B37B458992020584005924A7"><enum>(3)</enum><header>Vacancy</header><text>A vacancy in the position of Director that occurs before the expiration of the term for which a Director was appointed shall be filled in the manner established under paragraph (1), and the Director appointed to fill such vacancy shall be appointed only for the remainder of such term.</text></paragraph> <paragraph id="H267EEA1490634CB1A382CD0000AE21FC"><enum>(4)</enum><header>Service after end of term</header><text>An individual may serve as the Director after the expiration of the term for which appointed until a successor has been appointed.</text></paragraph> <paragraph id="H02360606955B4CD192D007EDDA71953"><enum>(5)</enum><header>Transitional provision</header><text>Notwithstanding paragraphs (1) and (2), the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development shall serve as the Director until a successor has been appointed under paragraph (1).</text></paragraph></subsection> <subsection id="HA758EB597B4B4D83AA00CE4FC9B6648C"><enum>(c)</enum><header>Deputy Director of the Division of Enterprise Regulation</header> <paragraph id="H6643997933D64F29AD6BA2C4905E864"><enum>(1)</enum><header>In General</header><text>The Agency shall have a Deputy Director of the Division of Enterprise Regulation, who shall be appointed by the Director from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight and of mortgage securities markets and housing finance.</text></paragraph> <paragraph id="HF6635059F9D44B239CB305F8004BA44F"><enum>(2)</enum><header>Functions</header><text>The Deputy Director of the Division of Enterprise Regulation shall have such functions, powers, and duties with respect to the oversight of the enterprises as the Director shall prescribe.</text></paragraph></subsection> <subsection id="H304C3545288E4C8E83C00D0C1F1C6F7"><enum>(d)</enum><header>Deputy Director of the Division of Federal Home Loan Bank Regulation</header> <paragraph id="H768C094B8F194D69006DF356D677A454"><enum>(1)</enum><header>In General</header><text>The Agency shall have a Deputy Director of the Division of Federal Home Loan Bank Regulation, who shall be appointed by the Director from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight and of the Federal Home Loan Bank System and housing finance.</text></paragraph> <paragraph id="HABC40A7CBF8747F291F9D293F45EF624"><enum>(2)</enum><header>Functions</header><text>The Deputy Director of the Division of Federal Home Loan Bank Regulation shall have such functions, powers, and duties with respect to the oversight of the Federal home loan banks as the Director shall prescribe.</text></paragraph></subsection> <subsection id="H62987CDEFFB74A24A9ABE9B5C5C5619"><enum>(e)</enum><header>Deputy Director for Housing</header> <paragraph id="HF044D58106AC4C729CCA4600C56DA799"><enum>(1)</enum><header>In General</header><text>The Agency shall have a Deputy Director for Housing, who shall be appointed by the Director from among individuals who are citizens of the United States, and have a demonstrated understanding of the housing markets and housing finance.</text></paragraph> <paragraph id="H8D3254349ABB4E6DB56F7256B61220A4"><enum>(2)</enum><header>Functions</header><text>The Deputy Director for Housing shall have such functions, powers, and duties with respect to the oversight of the housing mission and goals of the enterprises, and with respect to oversight of the housing mission of the Federal home loan banks, as the Director shall prescribe.</text></paragraph></subsection> <subsection id="HB8A871ADFC124020B08985AA2233ED1E"><enum>(f)</enum><header>Limitations</header><text>The Director and each of the Deputy Directors may not—</text> <paragraph id="H62EF7A47AE9D45A3999EADBC967AA45"><enum>(1)</enum><text>have any direct or indirect financial interest in any regulated entity or regulated entity-affiliated party;</text></paragraph> <paragraph id="HF4EF5B174F4745C6B75CBBF7FE48AE46"><enum>(2)</enum><text>hold any office, position, or employment in any regulated entity or regulated entity-affiliated party; or</text></paragraph> <paragraph id="HA7D3EFA3C4A84F36AB5574C82584F8CA"><enum>(3)</enum><text>have served as an executive officer or director of any regulated entity, or regulated entity-affiliated party, at any time during the 3-year period ending on the date of appointment of such individual as Director or Deputy Director.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE74AD88CFD964E8D83E97467AC09DC98"><enum>(b)</enum><header>Appointment of Director</header><text>Notwithstanding any other provision of law or of this Act, the President may, any time after the date of the enactment of this Act, appoint an individual to serve as the Director of the Federal Housing Finance Agency, as such office is established by the amendment made by subsection (a). This subsection shall take effect on the date of the enactment of this Act.</text></subsection></section> <section id="HC0C9C4ADAE3E48A0B659F2A025F138F6"><enum>102.</enum><header>Duties and authorities of Director</header> <subsection id="H5A9C9683B10A4A85B06140EAC6CE501D"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4513">12 U.S.C. 4513</external-xref>) is amended by striking section 1313 and inserting the following new sections:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HAA9A4F2DA54C4738BB3B40766F5327A6"> <section id="H3D32DAFAFD2F417D97C6E9166BF3B68"><enum>1313.</enum><header>Duties and authorities of Director</header> <subsection id="H8796805236EB47DD804C438F241E3310"><enum>(a)</enum><header>Duties</header> <paragraph id="H286A3B0F4B3C4D35BDBE471758BE1529"><enum>(1)</enum><header>Principal duties</header><text>The principal duties of the Director shall be—</text> <subparagraph id="H197B158C34E44E8C89BA8F833EA00C"><enum>(A)</enum><text>to oversee the operations of each regulated entity; and</text></subparagraph> <subparagraph id="H16B0B45C41314F8D8FD69217BDBC9ED2"><enum>(B)</enum><text>to ensure that—</text> <clause id="H36E5D5A6253C41B6883001BCAA967427"><enum>(i)</enum><text>each regulated entity operates in a safe and sound manner, including maintenance of adequate capital and internal controls;</text></clause> <clause id="H4B1BD286DDCD4AFE93C3F500925493F3"><enum>(ii)</enum><text display-inline="yes-display-inline">the operations and activities of each regulated entity foster liquid, efficient, competitive, and resilient national housing finance markets that minimize the cost of housing finance (including activities relating to mortgages on housing for low- and moderate- income families involving a reasonable economic return that may be less than the return earned on other activities);</text></clause> <clause id="HF0D23617E0ED45D99FDBB8AFB13DEF84"><enum>(iii)</enum><text>each regulated entity complies with this title and the rules, regulations, guidelines, and orders issued under this title and the authorizing statutes; and</text></clause> <clause id="HE995C72C147E413BBAF00180922F7D3"><enum>(iv)</enum><text>each regulated entity carries out its statutory mission only through activities that are consistent with this title and the authorizing statutes.</text></clause></subparagraph></paragraph> <paragraph id="H98D1BC48A90D4372955C68F91D4BE6C4"><enum>(2)</enum><header>Scope of authority</header><text>The authority of the Director shall include the authority—</text> <subparagraph id="HFF0B42E7664943D8BEDC25FC20A55994"><enum>(A)</enum><text>to review and, if warranted based on the principal duties described in paragraph (1), reject any acquisition or transfer of a controlling interest in an enterprise; and</text></subparagraph> <subparagraph id="H74AA8F9B85674B0B88286CE1A91D2FC8"><enum>(B)</enum><text>to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the Director in the supervision and regulation of each regulated entity.</text></subparagraph></paragraph></subsection> <subsection id="H32B0FC9C879B416F84AFC161E514638C"><enum>(b)</enum><header>Delegation of authority</header><text>The Director may delegate to officers or employees of the Agency, including each of the Deputy Directors, any of the functions, powers, or duties of the Director, as the Director considers appropriate.</text></subsection> <subsection id="H10BAECAEAD8C4E359878D69D867C751E"><enum>(c)</enum><header>Litigation authority</header> <paragraph id="H7BF6DD8BD3864049B3B1BF52123D73A"><enum>(1)</enum><header>In General</header><text>In enforcing any provision of this title, any regulation or order prescribed under this title, or any other provision of law, rule, regulation, or order, or in any other action, suit, or proceeding to which the Director is a party or in which the Director is interested, and in the administration of conservatorships and receiverships, the Director may act in the Director’s own name and through the Director’s own attorneys.</text></paragraph> <paragraph id="HAA8921FA8BA845F8A2250017708800F2"><enum>(2)</enum><header>Subject to suit</header><text>Except as otherwise provided by law, the Director shall be subject to suit (other than suits on claims for money damages) by a regulated entity or director or officer thereof with respect to any matter under this title or any other applicable provision of law, rule, order, or regulation under this title, in the United States district court for the judicial district in which the regulated entity has its principal place of business, or in the United States District Court for the District of Columbia, and the Director may be served with process in the manner prescribed by the Federal Rules of Civil Procedure.</text></paragraph></subsection></section> <section id="H606AFF32D34A436F87906D5F781F4239"><enum>1313A.</enum><header>Prudential management and operations standards</header> <subsection id="H574AE9D6924C40B2ADD01142C612835"><enum>(a)</enum><header>Standards</header><text>The Director shall establish standards, by regulation, guideline, or order, for each regulated entity relating to—</text> <paragraph id="HDDBE09F138D54C22976806DBE4385E00"><enum>(1)</enum><text>adequacy of internal controls and information systems taking into account the nature and scale of business operations;</text></paragraph> <paragraph id="HDF5FC9B071794718B9EBFA1CE61F59AE"><enum>(2)</enum><text>independence and adequacy of internal audit systems;</text></paragraph> <paragraph id="H3D7524A8710742C7B6899CFC92B51400"><enum>(3)</enum><text>management of credit and counterparty risk, including systems to identify concentrations of credit risk and prudential limits to restrict exposure of the regulated entity to a single counterparty or groups of related counterparties;</text></paragraph> <paragraph id="HD81E0261C7824330A6AC27E44000C8FD"><enum>(4)</enum><text>management of interest rate risk exposure;</text></paragraph> <paragraph id="H0A42B79DC48A431D8BB95678DA2CACA"><enum>(5)</enum><text>management of market risk, including standards that provide for systems that accurately measure, monitor, and control market risks and, as warranted, that establish limitations on market risk;</text></paragraph> <paragraph id="H98DA1F7BB5044A0A8BFABD4383DECF9"><enum>(6)</enum><text>adequacy and maintenance of liquidity and reserves;</text></paragraph> <paragraph id="HDE6DC6ACEA6B47FAB5E24D686D6244"><enum>(7)</enum><text>management of any asset and investment portfolio;</text></paragraph> <paragraph id="HF8486706057C432AB34499665671A962"><enum>(8)</enum><text>investments and acquisitions by a regulated entity, to ensure that they are consistent with the purposes of this Act and the authorizing statutes;</text></paragraph> <paragraph id="H2007B2B3FC45466E00B43170AC97F9ED"><enum>(9)</enum><text>maintenance of adequate records, in accordance with consistent accounting policies and practices that enable the Director to evaluate the financial condition of the regulated entity;</text></paragraph> <paragraph id="H56E9CEE3A5F64423A622E9A508AB3DB9"><enum>(10)</enum><text>issuance of subordinated debt by that particular regulated entity, as the Director considers necessary;</text></paragraph> <paragraph id="H624B46FA4450441081FB047B6A8D088"><enum>(11)</enum><text>overall risk management processes, including adequacy of oversight by senior management and the board of directors and of processes and policies to identify, measure, monitor, and control material risks, including reputational risks, and for adequate, well-tested business resumption plans for all major systems with remote site facilities to protect against disruptive events; and</text></paragraph> <paragraph id="H68507F42651745B188450227DA18A819"><enum>(12)</enum><text>such other operational and management standards as the Director determines to be appropriate.</text></paragraph></subsection> <subsection id="H5129627870BF47ED8081177C86360261"><enum>(b)</enum><header>Failure to meet standards</header> <paragraph id="HE85E681BC32D4801839529C6AF02552C"><enum>(1)</enum><header>Plan requirement</header> <subparagraph id="HF8A910F86B9C4523897772DD4B306E04"><enum>(A)</enum><header>In General</header><text>If the Director determines that a regulated entity fails to meet any standard established under subsection (a)—</text> <clause id="H0DB3608197F745BB91A4378648B82023"><enum>(i)</enum><text>if such standard is established by regulation, the Director shall require the regulated entity to submit an acceptable plan to the Director within the time allowed under subparagraph (C); and</text></clause> <clause id="HF941CED91F054D548D2D745076A30064"><enum>(ii)</enum><text>if such standard is established by guideline, the Director may require the regulated entity to submit a plan described in clause (i).</text></clause></subparagraph> <subparagraph id="H2405FD3BAF3E4DE9B811FEF7A9FC38E4"><enum>(B)</enum><header>Contents</header><text>Any plan required under subparagraph (A) shall specify the actions that the regulated entity will take to correct the deficiency. If the regulated entity is undercapitalized, the plan may be a part of the capital restoration plan for the regulated entity under section 1369C.</text></subparagraph> <subparagraph id="HE6D5EB075FCD4A2E9CCF28CFB91E452B"><enum>(C)</enum><header>Deadlines for submission and review</header><text>The Director shall by regulation establish deadlines that—</text> <clause id="H19D7250A8B124CBDA1F5AF5341A2C1F4"><enum>(i)</enum><text>provide the regulated entities with reasonable time to submit plans required under subparagraph (A), and generally require a regulated entity to submit a plan not later than 30 days after the Director determines that the entity fails to meet any standard established under subsection (a); and</text></clause> <clause id="HCBC60222CD5E4BEBB6ACBA02FB1DFF"><enum>(ii)</enum><text>require the Director to act on plans expeditiously, and generally not later than 30 days after the plan is submitted.</text></clause></subparagraph></paragraph> <paragraph id="H60D5320D3477444F844DAED7C9BC1906"><enum>(2)</enum><header>Required order upon failure to submit or implement plan</header><text>If a regulated entity fails to submit an acceptable plan within the time allowed under paragraph (1)(C), or fails in any material respect to implement a plan accepted by the Director, the following shall apply:</text> <subparagraph id="H77E02F1B143A493F848DA437B0163306"><enum>(A)</enum><header>Required correction of deficiency</header><text>The Director shall, by order, require the regulated entity to correct the deficiency.</text></subparagraph> <subparagraph id="H0729122D48B042CC813338BD8E7186D1"><enum>(B)</enum><header>Other authority</header><text>The Director may, by order, take one or more of the following actions until the deficiency is corrected:</text> <clause id="HC7F804C64183434C949B5449DE59F74B"><enum>(i)</enum><text>Prohibit the regulated entity from permitting its average total assets (as such term is defined in section 1316(b)) during any calendar quarter to exceed its average total assets during the preceding calendar quarter, or restrict the rate at which the average total assets of the entity may increase from one calendar quarter to another.</text></clause> <clause id="HB39A1898DF2F41C6B34155441792B2AC"><enum>(ii)</enum><text>Require the regulated entity—</text> <subclause id="HA45FA14E131340558B62D4B11E14F2D"><enum>(I)</enum><text>in the case of an enterprise, to increase its ratio of core capital to assets.</text></subclause> <subclause id="H4CD969B68B5E4A4DAC86A2C0EDE3DB20"><enum>(II)</enum><text>in the case of a Federal home loan bank, to increase its ratio of total capital (as such term is defined in section 6(a)(5) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(5)</external-xref>) to assets.</text></subclause></clause> <clause id="H7EACB844BC714B39AB208217C0E7CA60"><enum>(iii)</enum><text>Require the regulated entity to take any other action that the Director determines will better carry out the purposes of this section than any of the actions described in this subparagraph</text></clause></subparagraph></paragraph> <paragraph id="H901CBEAF92494F5C93000594873919AF"><enum>(3)</enum><header>Mandatory restrictions</header><text>In complying with paragraph (2), the Director shall take one or more of the actions described in clauses (i) through (iii) of paragraph (2)(B) if—</text> <subparagraph id="H8DABE2C9CC86420BA6E36352A648A476"><enum>(A)</enum><text>the Director determines that the regulated entity fails to meet any standard prescribed under subsection (a);</text></subparagraph> <subparagraph id="H25822AD70AF3447E93EDB1C5FD43AD08"><enum>(B)</enum><text>the regulated entity has not corrected the deficiency; and</text></subparagraph> <subparagraph id="H1F58758B75C240C18200BD9BD89B43C9"><enum>(C)</enum><text>during the 18-month period before the date on which the regulated entity first failed to meet the standard, the entity underwent extraordinary growth, as defined by the Director.</text></subparagraph></paragraph></subsection> <subsection id="H93570DFEE99546C5A053677B44E8866"><enum>(c)</enum><header>Other enforcement authority not affected</header><text>The authority of the Director under this section is in addition to any other authority of the Director.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5B1197F502C448650010581CEC0053DA"><enum>(b)</enum><header>Independence in congressional testimony and recommendations</header><text>Section 111 of <external-xref legal-doc="public-law" parsable-cite="pl/93/495">Public Law 93–495</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/12/250">12 U.S.C. 250</external-xref>) is amended by striking <quote>the Federal Housing Finance Board</quote> and inserting <quote>the Director of the Federal Housing Finance Agency</quote>.</text></subsection></section> <section id="HC02A6C4A08384B3EA19799FEA0AC5E52"><enum>103.</enum><header>Housing Finance Oversight Board</header> <subsection id="H16DB8DE734E34EFCA7F727CDD2648CCC"><enum>(a)</enum><header>In General</header><text>Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended by inserting after section 1313A, as added by section 102 of this Act, the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H782A66067DA249CE8D674463D15C635"> <section id="HD5158A3A0AD44922001249D8A8A75182"><enum>1313B.</enum><header>Housing Finance Oversight Board</header> <subsection id="H62C1763D3C294C1E9D412186E9F25D9F"><enum>(a)</enum><header>In General</header><text>There is established the Housing Finance Oversight Board.</text></subsection> <subsection id="H1873AC08FF5A4FCBAA6ECEDE6E4288"><enum>(b)</enum><header>Duties</header> <paragraph id="H23A880A5B8C24C36BDE038AB9C431360"><enum>(1)</enum><header>In general</header><text>The Board shall advise the Director with respect to overall strategies and policies in carrying out the duties of the Director under this title, at the request of the Director and at the initiative of the Board, and shall carry out such functions as otherwise provided by law.</text></paragraph> <paragraph id="H4E5592959E0D4F5D83FCA7F2CB5329B6"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Director may not delegate to the Board any of the functions, powers, or duties of the Director.</text></paragraph></subsection> <subsection id="H13AE94AB7CDD423CBC4E00664D4574A"><enum>(c)</enum><header>Composition</header><text>The Board shall be comprised of 5 members, as follows:</text> <paragraph id="HB5EB08AF6A2D4F0CBA00F9720602BB2F"><enum>(1)</enum><text>One member shall be the Director, who shall serve as the Chairperson of the Board.</text></paragraph> <paragraph id="H9282504DD483485F954E3400D923E2A4"><enum>(2)</enum><text>One member shall be the Secretary of the Treasury or the designee of the Secretary.</text></paragraph> <paragraph id="HB55D0AFC8AF54D8180508988B6574F"><enum>(3)</enum><text display-inline="yes-display-inline">One member shall be the Secretary of Housing and Urban Development or the designee of the Secretary.</text></paragraph> <paragraph id="H9BCAA0C2F1BB4F24BD1B00DA4D7CA788"><enum>(4)</enum><text>Two members shall be appointed by the President, by and with the advice and consent of the Senate, who shall include—</text> <subparagraph id="HAC614C49B2FA47F2983147000400B54F"><enum>(A)</enum><text>one individual who has extensive experience and expertise in the capital markets (including debt markets), the secondary mortgage market, and mortgage-backed securities; and</text></subparagraph> <subparagraph id="H2980D7B36AFE4E10804B3F82D8DFC990"><enum>(B)</enum><text>one individual who has extensive experience and expertise in mortgage finance (including single family and multifamily housing mortgage finance), development of affordable housing, and economic development and revitalization.</text></subparagraph></paragraph></subsection> <subsection id="H93DA6364F8364B868BF619BC24C9456"><enum>(d)</enum><header>Terms and vacancies</header> <paragraph id="H8DC8828EB01F45B982681513ECEAA76F"><enum>(1)</enum><header>Terms</header><text display-inline="yes-display-inline">Each member of the Board pursuant to paragraph (4) shall be appointed for a term of 3 years, and may be removed by the President only for cause.</text></paragraph> <paragraph id="HD3024C458BE04ECC9DE51376E42F8CA9"><enum>(2)</enum><header>Vacancies</header><text>A member of the Board appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member of the Board may serve after the expiration of the member’s term until a successor has been appointed.</text></paragraph></subsection> <subsection id="H33A011BF76C2459BA9992BCD1E00A178"><enum>(e)</enum><header>Prohibition of additional compensation</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, members of Board pursuant to paragraphs (1), (2), and (3) shall not receive additional compensation by reason of service on the Board.</text></subsection> <subsection id="H703C95DDC9104F39A94FA965C21B600"><enum>(f)</enum><header>Limitations</header><text>Each member of the Board may not—</text> <paragraph id="H73FA9482F7B24E9300C5A43800E9009C"><enum>(1)</enum><text>have any direct or indirect financial interest in any regulated entity or regulated entity-affiliated party; or</text></paragraph> <paragraph id="H124DDB07851E4CB48B005F06E772159C"><enum>(2)</enum><text>hold any office, position, or employment in any regulated entity or regulated entity-affiliated party.</text></paragraph></subsection> <subsection id="HE0285CF407CC4867BBD5870846F2B02"><enum>(g)</enum><header>Full-Time members and staff</header> <paragraph id="H73F50580E050401186B3B9F7AE1BC87B"><enum>(1)</enum><header>Full-Time members</header><text>The members of the Board pursuant to subsection (c)(4) shall serve on a full-time basis.</text></paragraph> <paragraph id="HF2E472BA71B84D3D9C270000A4659582"><enum>(2)</enum><header>Staff</header><text display-inline="yes-display-inline">The staff of the Board shall be appointed subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates, except that each member of the Board pursuant to paragraph (4) may appoint one staff member without regard to the such provisions governing appointments in the competitive service and such staff members may be paid by the Board without regard to the such provisions relating to classification and General Schedule pay rates.</text></paragraph></subsection> <subsection id="H0BB05B77726A4DC0A0AE4109669EAA8C"><enum>(h)</enum><header>Meetings</header> <paragraph id="H71E28533C296426BBC73FC257300005B"><enum>(1)</enum><header>In General</header><text>The Board shall meet upon notice by the Director, but in no event shall the Board meet less frequently than once every 3 months.</text></paragraph> <paragraph id="HEE44FA28DFF741C6989E9E097964E289"><enum>(2)</enum><header>Special meetings</header><text>Any member of the Board may, upon giving written notice to the Director, require a special meeting of the Board, which shall be convened by the Director within 30 days after such notice.</text></paragraph></subsection> <subsection id="H2DB07641549E4058B7A500A8EE02200"><enum>(i)</enum><header>Testimony</header><text>On an annual basis, the Board shall testify before Congress regarding—</text> <paragraph id="H65FD2C3E47B54B56B100E65BAC171536"><enum>(1)</enum><text>the safety and soundness of the regulated entities;</text></paragraph> <paragraph id="H0F8796838052402282DDB5F800375FB3"><enum>(2)</enum><text>any material deficiencies in the conduct of the operations of the regulated entities;</text></paragraph> <paragraph id="HDA30CB7EC5E54560A4002700B2F98D87"><enum>(3)</enum><text>the overall operational status of the regulated entities;</text></paragraph> <paragraph id="HDA6D2883A03F457E83006BE0CA49A000"><enum>(4)</enum><text>an evaluation of the performance of the regulated entities in carrying out their respective missions;</text></paragraph> <paragraph id="HF425A951A3084DFB0082BDD200CE256B"><enum>(5)</enum><text>operations, resources, and performance of the Agency and the Board; and</text></paragraph> <paragraph id="HC6CC03D8ED0446F5BF1FA829672071BD"><enum>(6)</enum><text>such other matters relating to the Agency, the Board, and the regulated entities, and their fulfillment of their missions, as the Board determines appropriate.</text></paragraph></subsection> <subsection id="H226E49796CD64DABAEEA058B6D2B6680"><enum>(j)</enum><header>Costs</header><text>Costs of the Board, including staff, shall be paid by the Agency as a cost and expense of the Agency.</text></subsection> <subsection id="HE689608C463744AD96BE85F16FAC4095"><enum>(k)</enum><header>Exemption</header><text>Notwithstanding any other provision of law, the provisions of <external-xref legal-doc="usc" parsable-cite="usc/5/552b">section 552b</external-xref> of title 5, United States Code, shall not apply to the Board.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6AE67FBB7A5B4A9181E223CD25975ED8"><enum>(b)</enum><header>Annual report of the Director</header><text>Section 1319B(a) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (12 U.S.C. 4521 (a)) is amended—</text> <paragraph id="H628B59A76A974755AF512718010431DA"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end; and</text></paragraph> <paragraph id="H01E948B1EE2A4700A6CADB16C13379EC"><enum>(2)</enum><text>by striking paragraph (4) and inserting the following new paragraphs:</text> <quoted-block id="H72CF3F895B564CB38623EBF6DA17BC2"> <paragraph id="H4B0F4E32B55C4F08A99FC939CC0030FF"><enum>(4)</enum><text>an assessment of the Board with respect to—</text> <subparagraph id="HDF3AF6C2767B446E843D9BD2B276EB07"><enum>(A)</enum><text>the safety and soundness of the regulated entities;</text></subparagraph> <subparagraph id="H78F0D1ACAE4D4524A10076CCB331B8CE"><enum>(B)</enum><text>any material deficiencies in the conduct of the operations of the regulated entities;</text></subparagraph> <subparagraph id="HC1B41077A7724B518D943775BB717FF"><enum>(C)</enum><text>the overall operational status of the regulated entities;</text></subparagraph> <subparagraph id="H8307C4977933459FA68472FCD971C716"><enum>(D)</enum><text>an evaluation of the performance of the regulated entities in carrying out their missions, including compliance of the enterprises with the housing goals under subpart B of part 2 of this subtitle and compliance of the Federal home loan banks with the community investment and affordable housing programs under subsections (i) and (j) of section 10 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></subparagraph> <subparagraph id="HD50FA21F70074899AA6F3653B6B0008"><enum>(E)</enum><text>an evaluation of the performance of the Agency in fulfilling its duties and responsibilities under law; and</text></subparagraph> <subparagraph id="H58ED64D4C7034456A00038CE84B10900"><enum>(F)</enum><text>such other matters relating to the Board and the fulfillment of its duties as the Board considers appropriate;</text></subparagraph></paragraph> <paragraph id="H763A00B1EC0D43A8AEC9F34E6009FF64"><enum>(5)</enum><text>operations, resources, and performance of the Agency; and</text></paragraph> <paragraph id="H860838446355401396C4CE44B12751D9"><enum>(6)</enum><text>such other matters relating to the Agency and its fulfillment of its mission.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H4EB2CB79E9E24BCA8EC0E12B310038F0"><enum>104.</enum><header>Authority to require reports by regulated entities</header><text display-inline="no-display-inline">Section 1314 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>) is amended—</text> <paragraph id="H44035339A61E4AEFAD843B6EAED70868"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>enterprises</header-in-text>” and inserting “<header-in-text>regulated entities</header-in-text>”;</text></paragraph> <paragraph id="H10B9AABF22794B41BA7695FE04FE77D4"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="H569CE16AA7314EBFB0B22F959B76A38"><enum>(A)</enum><text>in the subsection heading, by striking <quote>Special Reports and Reports of Financial Condition</quote> and inserting <quote>Regular and Special Reports</quote>;</text></subparagraph> <subparagraph id="HAC23736F1E5149AE99323965E0C66819"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="HFB0770AE312B4CEBB6004F45151CC20"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph">Financial condition</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">Regular reports</header-in-text></quote>; and</text></clause> <clause id="H96935CEE7FFF423CB0AE15C95B365031"><enum>(ii)</enum><text>by striking <quote>reports of financial condition and operations</quote> and inserting <quote>regular reports on the condition (including financial condition), management, activities, or operations of the regulated entity, as the Director considers appropriate</quote>; and</text></clause></subparagraph> <subparagraph id="H0C9AB90AD5EB455D98972700AC09BFCF"><enum>(C)</enum><text>in paragraph (2), after <quote>submit special reports</quote> insert <quote>on any of the topics specified in paragraph (1) or such other topics</quote>; and</text></subparagraph></paragraph> <paragraph id="H2687E3C740EE46819BC1669627ECD2D4"><enum>(3)</enum><text>by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="HF5258F77DB2B44F289008F19F2A92618" display-inline="no-display-inline"> <subsection id="H11D4CED02CBA42D09891D93319DD8CC"><enum>(c)</enum><header>Reports of fraudulent financial transactions</header> <paragraph id="HFC9ABB17BCD543BE92CCE792D0C6AAF9"><enum>(1)</enum><header>Requirement to report</header><text>The Director shall require a regulated entity to submit to the Director a timely report upon discovery by the regulated entity that it has purchased or sold a fraudulent loan or financial instrument or suspects a possible fraud relating to a purchase or sale of any loan or financial instrument. The Director shall require the regulated entities to establish and maintain procedures designed to discover any such transactions.</text></paragraph> <paragraph id="HC337F2B080AA40548030FEEA9082D235"><enum>(2)</enum><header>Protection from liability for reports</header> <subparagraph id="H1B729FCB82DD493EB66D44AC66E905C7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If a regulated entity makes a report pursuant to paragraph (1), or a regulated entity-affiliated party makes, or requires another to make, such a report, and such report is made in a good faith effort to comply with the requirements of paragraph (1), such regulated entity or regulated entity-afffiliated party shall not be liable to any person under any law or regulation of the United States, any constitution, law, or regulation of any State or political subdivision of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement), for such report or for any failure to provide notice of such report to the person who is the subject of such report or any other person identified in the report.</text></subparagraph> <subparagraph id="HF7090523DC9143FF8371F4202FECC158"><enum>(B)</enum><header>Rule of construction</header><text>Subparagraph (A) shall not be construed as creating—</text> <clause id="HE15709A09D674CB691E5E2178ED280C4"><enum>(i)</enum><text>any inference that the term <quote>person</quote>, as used in such subparagraph, may be construed more broadly than its ordinary usage so as to include any government or agency of government; or</text></clause> <clause id="HBA4133D3F60340E08949F080282D1F46"><enum>(ii)</enum><text>any immunity against, or otherwise affecting, any civil or criminal action brought by any government or agency of government to enforce any constitution, law, or regulation of such government or agency.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H41E685FE763143D28D4B4FC1B746900" section-type="subsequent-section" display-inline="no-display-inline"><enum>105.</enum><header>Disclosure of charitable contributions by enterprises</header><text display-inline="no-display-inline">Section 1314 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing" id="HEC53527A608E421DB92BDAD26DF971A"> <subsection indent="paragraph" id="H1BBCA71846494187A075836C1327743D"><enum>(d)</enum><header>Disclosure of charitable contributions by enterprises</header> <paragraph id="H341D1365BCB144F5AEE8BC6E776BD7"><enum>(1)</enum><header>Required disclosure</header><text>The Director shall, by regulation, require each enterprise to submit a report annually, in a format designated by the Director, containing the following information:</text> <subparagraph id="HB19F187F4E034537856D4363C52F197F"><enum>(A)</enum><header>Total value</header><text>The total value of contributions made by the enterprise to nonprofit organizations during its previous fiscal year.</text></subparagraph> <subparagraph id="HFCC11B03F0DD40D191601E8249A700B"><enum>(B)</enum><header>Substantial contributions</header><text>If the value of contributions made by the enterprise to any nonprofit organization during its previous fiscal year exceeds the designated amount, the name of that organization and the value of contributions.</text></subparagraph> <subparagraph id="H32EE9EA308E04505B0CC04B7FCD4431F"><enum>(C)</enum><header>Substantial contributions to insider-affiliated charities</header><text>Identification of each contribution whose value exceeds the designated amount that were made by the enterprise during the enterprise’s previous fiscal year to any nonprofit organization of which a director, officer, or controlling person of the enterprise, or a spouse thereof, was a director or trustee, the name of such nonprofit organization, and the value of the contribution.</text></subparagraph></paragraph> <paragraph id="H41890F56A1CA46E8A9DA0BB001C0202"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H777258E0A5F84433849CF2EF897046C0"><enum>(A)</enum><text>the term <term>designated amount</term> means such amount as may be designated by the Director by regulation, consistent with the public interest and the protection of investors for purposes of this subsection; and</text></subparagraph> <subparagraph id="HB7C956C7BA9B4F37A34F123532FA13C6"><enum>(B)</enum><text>the Director may, by such regulations as the Director deems necessary or appropriate in the public interest, define the terms officer and controlling person.</text></subparagraph></paragraph> <paragraph id="H20CE861EDA114FA79BC0F91C1B2900EF"><enum>(3)</enum><header>Public availability</header><text>The Director shall make the information submitted pursuant to this subsection publicly available.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H70232B57D4B547D68B45088F524417D3"><enum>106.</enum><header>Assessments</header><text display-inline="no-display-inline">Section 1316 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4516">12 U.S.C. 4516</external-xref>) is amended—</text> <paragraph id="H68F03A693FB843C7A7E8DF058D421D76"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HCD6A37EFD85441FAA780841467DB864"> <subsection id="HAF1CDD3EEA4A4523941CBAC17ED50366"><enum>(a)</enum><header>Annual assessments</header><text>The Director shall establish and collect from the regulated entities annual assessments in an amount not exceeding the amount sufficient to provide for reasonable costs and expenses of the Agency, including—</text> <paragraph id="H03844B1CD27C4C10876C32659D26A34"><enum>(1)</enum><text>the expenses of any examinations under section 1317 of this Act and under section 20 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></paragraph> <paragraph id="H8E9935804BAB4F57A78D72009B097DF7"><enum>(2)</enum><text>the expenses of obtaining any reviews and credit assessments under section 1319; and</text></paragraph> <paragraph id="H2D7A365F87FC479A848E19D4AEC0F062"><enum>(3)</enum><text>such amounts in excess of actual expenses for any given year as deemed necessary by the Director to maintain a working capital fund in accordance with subsection (e).</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HD0D269E07300400BBA9CF936CF9089EF"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H1CD2143EAAF24F19B37797B5F3B8E881"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Enterprises</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Regulated Entities</header-in-text></quote> ;</text></subparagraph> <subparagraph id="HE41087D6845A417E98E8E674528BACE6"><enum>(B)</enum><text>by realigning paragraph (2) two ems from the left margin, so as to align the left margin of such paragraph with the left margins of paragraph (1);</text></subparagraph> <subparagraph id="H0ADDC87FB08A40C8B81059591EBC90F1"><enum>(C)</enum><text>in paragraph (1)—</text> <clause id="H619F79A6ECBE408685B3C984F7E420AA"><enum>(i)</enum><text>by striking <quote>Each enterprise</quote> and inserting <quote>Each regulated entity</quote>;</text></clause> <clause id="H5CB9C53C544941F5B4136EF321538418"><enum>(ii)</enum><text>by striking <quote>each enterprise</quote> and inserting <quote>each regulated entity</quote>; and</text></clause> <clause id="H1F53A30758C041708342B1F81FA9A9B4"><enum>(iii)</enum><text>by striking <quote>both enterprises</quote> and inserting <quote>all of the regulated entities</quote>; and</text></clause></subparagraph> <subparagraph id="H203AD71399574E859B3BAF2700CCB390"><enum>(D)</enum><text>in paragraph (3)— </text> <clause id="H21B47444B4BB43C4B9042C14463565A"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>subparagraph (A)</quote> and inserting <quote>clause (i)</quote>;</text></clause> <clause id="H4838E53B84D84EE39FE472BA00B97740"><enum>(ii)</enum><text>by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii) and (ii), respectively, and realigning such clauses, as so redesignated, so as to be indented 6 ems from the left margin;</text></clause> <clause id="HF4606151261D4C7FBCD5DAEACD99F402"><enum>(iii)</enum><text>by striking the matter that precedes clause (i), as so redesignated, and inserting the following:</text> <quoted-block id="H1E13D9A931D045F7A6EF1E46E3051B49"> <paragraph id="H55647CC5B3364FA0BFA4E821ECD46F4B"><enum>(3)</enum><header>Definition of total assets</header><text>For purposes of this section, the term <term>total assets</term> means as follows:</text> <subparagraph id="H8DA6F8ECFDD44F9FAACC70563229CC89"><enum>(A)</enum><header>Enterprises</header><text>With respect to an enterprise, the sum of—</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="H765A0187DB7F46BDB407C052DC532753"><enum>(iv)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block id="H8D1F2F88C13040E1AE65F8E9E95D1E78"> <subparagraph id="HEB1B1DAEA156464A989E5E5B552EDFAE"><enum>(B)</enum><header>Federal Home Loan Banks</header><text>With respect to a Federal home loan bank, the total assets of the Bank, as determined by the Director in accordance with generally accepted accounting principles.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H6B6B96E01398459E86E9D1A653357157"><enum>(3)</enum><text>by striking subsection (c) and inserting the following new subsection:</text> <quoted-block style="OLC" id="HAE57CEDE5FFD41FCB38782AACBA7EF0" display-inline="no-display-inline"> <subsection id="HF8E521AE39904BAE8C25C647803425D2"><enum>(c)</enum><header>Increased costs of regulation</header> <paragraph id="H7597453E919F4B809BCFB8F2E347DE24"><enum>(1)</enum><header>Increase for inadequate capitalization</header><text display-inline="yes-display-inline">The semiannual payments made pursuant to subsection (b) by any regulated entity that is not classified (for purposes of subtitle B) as adequately capitalized may be increased, as necessary, in the discretion of the Director to pay additional estimated costs of regulation of the regulated entity.</text></paragraph> <paragraph id="HBE686C23D0C0437FB4C998B075A9CFB"><enum>(2)</enum><header>Adjustment for enforcement activities</header><text display-inline="yes-display-inline">The Director may adjust the amounts of any semiannual assessments for an assessment under subsection (a) that are to be paid pursuant to subsection (b) by a regulated entity, as necessary in the discretion of the Director, to ensure that the costs of enforcement activities under subtitle B and C for a regulated entity are borne only by such regulated entity.</text></paragraph> <paragraph id="H5B2D75B6B546495A8DFA29664F306286"><enum>(3)</enum><header>Additional assessment for deficiencies</header><text display-inline="yes-display-inline">If at any time, as a result of increased costs of regulation of a regulated entity that is not classified (for purposes of subtitle B) as adequately captitalized or as the result of supervisory or enforcement activities under subtitle B or C for a regulated entity, the amount available from any semiannual payment made by such regulated entity pursuant to subsection (b) is insufficient to cover the costs of the Agency with respect to such entity, the Director may make and collect from such regulated entity an immediate assessment to cover the amount of such deficiency for the semiannual period. If, at the end of any semiannual period during which such an assessment is made, any amount remains from such assessment, such remaining amount shall be deducted from the assessment for such regulated entity for the following semiannual period.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H5BEF4B26E21A4463BF426EA379E8412B"><enum>(4)</enum><text>in subsection (d), by striking <quote>If</quote> and inserting <quote>Except with respect to amounts collected pursuant to subsection (a)(3), if</quote>; and</text></paragraph> <paragraph id="H233AC9F1387A40F5A781CFDFB46EE4B"><enum>(5)</enum><text>by striking subsections (e) through (g) and inserting the following new subsections:</text> <quoted-block id="H1F3FBF792980409184423E05592B939F"> <subsection id="HC5BEC3F6FB2A42409D838202C41DEA89"><enum>(e)</enum><header>Working capital fund</header><text>At the end of each year for which an assessment under this section is made, the Director shall remit to each regulated entity any amount of assessment collected from such regulated entity that is attributable to subsection (a)(3) and is in excess of the amount the Director deems necessary to maintain a working capital fund.</text></subsection> <subsection id="HEAB68E3AEA504E319B825B1C4FD6D2DC"><enum>(f)</enum><header>Treatment of assessments</header> <paragraph id="HCAF88A5413524732B11836BA15AA4F"><enum>(1)</enum><header>Deposit</header><text>Amounts received by the Director from assessments under this section may be deposited by the Director in the manner provided in section 5234 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/12/192">12 U.S.C. 192</external-xref>) for monies deposited by the Comptroller of the Currency.</text></paragraph> <paragraph id="H88C7EBF8AF784A579BC8189D53F3302D"><enum>(2)</enum><header>Not government funds</header><text>The amounts received by the Director from any assessment under this section shall not be construed to be Government or public funds or appropriated money.</text></paragraph> <paragraph id="HC855F4E96F2A49689794D71123B12576"><enum>(3)</enum><header>No apportionment of funds</header><text>Notwithstanding any other provision of law, the amounts received by the Director from any assessment under this section shall not be subject to apportionment for the purpose of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, or under any other authority.</text></paragraph> <paragraph id="H77DF6111ADFD45AB9C7593CDA9BDE923"><enum>(4)</enum><header>Use of funds</header><text>The Director may use any amounts received by the Director from assessments under this section for compensation of the Director and other employees of the Agency and for all other expenses of the Director and the Agency.</text></paragraph> <paragraph id="HBAB6C15480F142EFA6FA04B640821839"><enum>(5)</enum><header>Availability of oversight fund amounts</header><text>Notwithstanding any other provision of law, any amounts remaining in the Federal Housing Enterprises Oversight Fund established under this section (as in effect before the effective date under section 185 of the Federal Housing Finance Reform Act of 2005), and any amounts remaining from assessments on the Federal Home Loan banks pursuant to section 18(b) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1438">12 U.S.C. 1438(b)</external-xref>), shall, upon such effective date, be treated for purposes of this subsection as amounts received from assessments under this section.</text></paragraph></subsection> <subsection id="H362D85CDDCB44DDD95616C77F9883D2C"><enum>(g)</enum><header>Budget and financial management</header> <paragraph id="H06BBD742E48144B99BDCDAE7AB872D00"><enum>(1)</enum><header>Financial operating plans and forecasts</header><text>The Director shall provide to the Director of the Office of Management and Budget copies of the Director’s financial operating plans and forecasts as prepared by the Director in the ordinary course of the Agency’s operations, and copies of the quarterly reports of the Agency’s financial condition and results of operations as prepared by the Director in the ordinary course of the Agency’s operations.</text></paragraph> <paragraph id="H7136110AD187401898FA66E6A1ED2CE0"><enum>(2)</enum><header>Financial statements</header><text>The Agency shall prepare annually a statement of assets and liabilities and surplus or deficit; a statement of income and expenses; and a statement of sources and application of funds.</text></paragraph> <paragraph id="HAF39A737171A4D5B91FE00BA52DE84D6"><enum>(3)</enum><header>Financial management systems</header><text>The Agency shall implement and maintain financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and that uses a general ledger system that accounts for activity at the transaction level.</text></paragraph> <paragraph id="H80590D5585414E9487F47D1100A5B64C"><enum>(4)</enum><header>Assertion of internal controls</header><text>The Director shall provide to the Comptroller General an assertion as to the effectiveness of the internal controls that apply to financial reporting by the Agency, using the standards established in section 3512 (c) of title 31, United States Code.</text></paragraph> <paragraph id="HD506A9A304FF4E6CB0CC2BA99D674200"><enum>(5)</enum><header>Rule of construction</header><text>This subsection may not be construed as implying any obligation on the part of the Director to consult with or obtain the consent or approval of the Director of the Office of Management and Budget with respect to any reports, plans, forecasts, or other information referred to in paragraph (1) or any jurisdiction or oversight over the affairs or operations of the Agency.</text></paragraph></subsection> <subsection id="HBEDC600465854C8A9790B70091AB4800"><enum>(h)</enum><header>Audit of Agency</header> <paragraph id="HA25DFC78330C46BF90E5E9D668AE3646"><enum>(1)</enum><header>In general</header><text>The Comptroller General shall annually audit the financial transactions of the Agency in accordance with the U.S. generally accepted government auditing standards as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where accounts of the Agency are normally kept. The representatives of the Government Accountability Office shall have access to the personnel and to all books, accounts, documents, papers, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to or under the control of or used or employed by the Agency pertaining to its financial transactions and necessary to facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. All such books, accounts, documents, records, reports, files, papers, and property of the Agency shall remain in possession and custody of the Agency. The Comptroller General may obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit without cost to the Comptroller General and the Comptroller General’s right of access to such information shall be enforceable pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/716">section 716(c)</external-xref> of title 31, United States Code.</text></paragraph> <paragraph id="H84AD0BE887854DC29F766F00EE00CA75"><enum>(2)</enum><header>Report</header><text>The Comptroller General shall submit to the Congress a report of each annual audit conducted under this subsection. The report to the Congress shall set forth the scope of the audit and shall include the statement of assets and liabilities and surplus or deficit, the statement of income and expenses, the statement of sources and application of funds, and such comments and information as may be deemed necessary to inform Congress of the financial operations and condition of the Agency, together with such recommendations with respect thereto as the Comptroller General may deem advisable. A copy of each report shall be furnished to the President and to the Agency at the time submitted to the Congress.</text></paragraph> <paragraph id="H562B68F1FF2E499FB1BF62CA32AB0475"><enum>(3)</enum><header>Assistance and costs</header><text>For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to <external-xref legal-doc="usc" parsable-cite="usc/41/5">section 5</external-xref> of title 41, United States Code, professional services of firms and organizations of certified public accountants for temporary periods or for special purposes. Upon the request of the Comptroller General, the Director of the Agency shall transfer to the Government Accountability Office from funds available, the amount requested by the Comptroller General to cover the full costs of any audit and report conducted by the Comptroller General. The Comptroller General shall credit funds transferred to the account established for salaries and expenses of the Government Accountability Office, and such amount shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HF23641D19E684746A2C6853FD7E00204"><enum>107.</enum><header>Examiners and accountants</header> <subsection id="H27458DB9F45F4858AF4874ECF23D383F"><enum>(a)</enum><header>Examinations</header><text>Section 1317 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended——</text> <paragraph id="H73A09E0A845041FBA4253CBB02B7ACAA"><enum>(1)</enum><text>in subsection (a), by adding after the period at the end the following: <quote>Each examination under this subsection of a regulated entity shall include a review of the procedures required to be established and maintained by the regulated entity pursuant to section 1314(c) (relating to fraudulent financial transactions) and the report regarding each such examination shall describe any problems with such procedures maintained by the regulated entity.</quote>; </text></paragraph> <paragraph id="H6CD2700F276249A1A3DA03C843CFEE0"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H064E5200532D4A4C87F8701E3281959E"><enum>(A)</enum><text>by inserting <quote>of a regulated entity</quote> after <quote>under this section</quote>; and</text></subparagraph> <subparagraph id="HF130C4A888864FEB94821B741F0043C0"><enum>(B)</enum><text>by striking <quote>to determine the condition of an enterprise for the purpose of ensuring its financial safety and soundness</quote> and inserting <quote>or appropriate</quote> ; and</text></subparagraph></paragraph> <paragraph id="H5E0F9FC8855C49CDB928BAE5004BE9D3"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="HAEFDC9AC6572449C9E1F543600FE4454"><enum>(A)</enum><text>in the second sentence, by inserting <quote>to conduct examinations under this section</quote> before the period; and</text></subparagraph> <subparagraph id="H3366A7573F5B4BA98DB369EC009734"><enum>(B)</enum><text>in the third sentence, by striking <quote>from amounts available in the Federal Housing Enterprises Oversight Fund</quote>.</text></subparagraph></paragraph></subsection> <subsection id="HCC7A6402E82241E4BFA2E930B13DEB11"><enum>(b)</enum><header>Enhanced authority to hire examiners and accountants</header><text>Section 1317 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H30251FCBD848421189BA2BEE68739FA8"> <subsection id="H93D2BBAF57484CC98289D43300474F7D"><enum>(g)</enum><header>Appointment of accountants, economists, specialists, and examiners</header> <paragraph id="H975BF3C50F364A3986EEAFFCE9AD84D0"><enum>(1)</enum><header>Applicability</header><text>This section applies with respect to any position of examiner, accountant, specialist in financial markets, specialist in technology, and economist at the Agency, with respect to supervision and regulation of the regulated entities, that is in the competitive service.</text></paragraph> <paragraph id="H687FF981DDA1406E92B54C472E8D230"><enum>(2)</enum><header>Appointment authority</header><text>The Director may appoint candidates to any position described in paragraph (1)—</text> <subparagraph id="HA9ADE23CF60048B4828F6BFED43410ED"><enum>(A)</enum><text>in accordance with the statutes, rules, and regulations governing appointments in the excepted service; and</text></subparagraph> <subparagraph id="HFCADB944C94F4B1DA116B30367FEAE15"><enum>(B)</enum><text>notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDBFF9C941A8D4E2BBBF6DC6029416FFB"><enum>(c)</enum><header>Repeal</header><text>Section 20 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1440">12 U.S.C. 1440</external-xref>) is amended—</text> <paragraph id="HA46DE328D9E14981AAB822035D7A2CA"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>reports</header-in-text>” and inserting “<header-in-text>gao audits</header-in-text>”;</text></paragraph> <paragraph id="H65EFED831ED546EB9097286EE95F32FE"><enum>(2)</enum><text>in the third sentence, by striking <quote>the Board and</quote> each place such term appears; and</text></paragraph> <paragraph id="H5E9AA4CCABF64467881F63CCAF8BBA65"><enum>(3)</enum><text>by striking the first two sentences and inserting the following: <quote>The Federal home loan banks shall be subject to examinations by the Director to the extent provided in section 1317 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>).</quote>.</text></paragraph></subsection></section> <section id="HEE4E51DAAC63432E9359D774DEC7CB29"><enum>108.</enum><header>Prohibition and withholding of executive compensation</header> <subsection id="H4936E26C2C5D48FEB987D28460413D17"><enum>(a)</enum><header>In General</header><text>Section 1318 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>) is amended—</text> <paragraph id="HB4160E6AF2B04BA7B2ED16A89FF8CD76"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>of excessive</header-in-text>” and inserting “<header-in-text>and withholding of executive</header-in-text>”;</text></paragraph> <paragraph id="H8AF250626C26455AAF4F69ADFAF59D75"><enum>(2)</enum><text>by redesignating subsection (b) as subsection (d); and</text></paragraph> <paragraph id="H1BF557601FF043D2AAA2E300BD9EEE76"><enum>(3)</enum><text>by inserting after subsection (a) the following new subsections:</text> <quoted-block id="H26DAD488180D4698B9008979E91D0614"> <subsection id="H0CEFDB993FC94D939C9FF94BF67352EA"><enum>(b)</enum><header>Factors</header><text>In making any determination under subsection (a), the Director may take into consideration any factors the Director considers relevant, including any wrongdoing on the part of the executive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. The approval of an agreement or contract pursuant to section 309(d)(3)(B) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)(3)(B)</external-xref>) or section 303(h)(2) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>) shall not preclude the Director from making any subsequent determination under subsection (a).</text></subsection> <subsection id="H52046B766F8044F392C800AC4ECFD51B"><enum>(c)</enum><header>Withholding of compensation</header><text>In carrying out subsection (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HBD0978AA581F4629AD3CD7CE6CFE885E"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H10828CF560DB4BA800032DEB299B5DBA"><enum>(1)</enum><header>Fannie mae</header><text>Section 309(d) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="Federal National Mortgage Association Charter Act" id="H16D843826E4344008C89F166817CDDCD"> <paragraph indent="subsection" id="H0F814E365F8142298EB340E1D6DC6043"><enum>(4)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HE80B5F9C4EE84590BD1CF5B900338E00"><enum>(2)</enum><header>Freddie mac</header><text>Section 303(h) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="Federal Home Loan Mortgage Corporation Act" id="HEEC9AC24ED564AB99E85886E016DCCF0"> <paragraph indent="subsection" id="HC01CFCB425EB4A80002D4C4B0344F8DF"><enum>(4)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the Corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H4AE1D6EF76C24386BF551D47D2ABBECE"><enum>(3)</enum><header>Federal Home Loan Banks</header><text>Section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Federal Home Loan Bank Act" id="H61F8AEF4E24243B19525C00A443C4E"> <subsection id="H6ED5834582A345328064CDB64EE95893"><enum>(l)</enum><header>Withholding of compensation</header><text>Notwithstanding any other provision of this section, a Federal home loan bank shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="HA65DC786CBCA4E59B41E3D3FE306E1F5"><enum>109.</enum><header>Reviews of regulated entities</header><text display-inline="no-display-inline">Section 1319 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4519">12 U.S.C. 4519</external-xref>) is amended—</text> <paragraph id="HB54BE477AEFE4F1888D4F5541C5672EB"><enum>(1)</enum><text>by striking the section designation and heading and inserting the following:</text> <quoted-block id="H22EBD7EAA9A147778165846F82973DE7"> <section id="HE61D4791376F44FDA88CE3149918A6A5"><enum>1319.</enum><header>Reviews of Regulated Entities</header></section><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H5B01148E70F64CF8A35F6C9CB5CAE0C0"><enum>(2)</enum><text>by inserting after <quote>any entity</quote> the following: <quote>that the Director considers appropriate, including an entity</quote>.</text></paragraph></section> <section id="H300EE1D88E7A46F3B0AB001424EDF925"><enum>110.</enum><header>Regulations and orders</header><text display-inline="no-display-inline">Section 1319G of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4526">12 U.S.C. 4526</external-xref>) is amended—</text> <paragraph id="H856E4F18244C45CFBC58FC9D386DF44C"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="H8A511512F5F24A0EA3761EF58614C3CE"> <subsection id="HEB1903209F05480DAE7D114300E33F79"><enum>(a)</enum><header>Authority</header><text>The Director shall issue any regulations, guidelines, and orders necessary to carry out the duties of the Director under this title and each of the authorizing statutes to ensure that the purposes of this title and such Acts are accomplished.</text></subsection><after-quoted-block>; </after-quoted-block></quoted-block></paragraph> <paragraph id="HAA5F810898E6407EA6E7E639D3880027"><enum>(2)</enum><text>in subsection (b), by inserting <quote>, this title, or any of the authorizing statutes</quote> after <quote>under this section</quote>; and </text></paragraph> <paragraph id="HC5FA321AD8D7488DA1BD90DFF85EE24E"><enum>(3)</enum><text>by striking subsection (c).</text></paragraph></section> <section id="HC881DE20823F436CBD9F24EA9363758"><enum>111.</enum><header>Risk-based capital requirements</header> <subsection id="H0AC1DCB4820F4F95AF7FC25525B7F510"><enum>(a)</enum><header>In General</header><text>Section 1361 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H568A344C1D0448CF92008D90F600B397"> <section id="H18CF3E4B0B4741719B8B537354D07FF7"><enum>1361.</enum><header>Risk-Based capital levels for Regulated Entities</header> <subsection id="HC386805F62FB45D89969092DFDFA179B"><enum>(a)</enum><header>In General</header> <paragraph id="HE25A5F4425E6468500719B8D13B2BEFE"><enum>(1)</enum><header>Enterprises</header><text>The Director shall, by regulation, establish risk-based capital requirements for the enterprises to ensure that the enterprises operate in a safe and sound manner, maintaining sufficient capital and reserves to support the risks that arise in the operations and management of the enterprises.</text></paragraph> <paragraph id="H5B69D83C55784D4996C8E4F662E23F8"><enum>(2)</enum><header>Federal Home Loan Banks</header><text>The Director shall establish risk-based capital standards under section 6 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> for the Federal home loan banks.</text></paragraph></subsection> <subsection id="HDA2D922623CE406998F4858CC8D5500"><enum>(b)</enum><header>Confidentiality of information</header><text>Any person that receives any book, record, or information from the Director or a regulated entity to enable the risk-based capital requirements established under this section to be applied shall—</text> <paragraph id="H8C6882C7AA1C40E5B6D78619E4C86965"><enum>(1)</enum><text>maintain the confidentiality of the book, record, or information in a manner that is generally consistent with the level of confidentiality established for the material by the Director or the regulated entity; and</text></paragraph> <paragraph id="H5EE08A092FF6404E8023A0006509D9C"><enum>(2)</enum><text>be exempt from <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States Code, with respect to the book, record, or information.</text></paragraph></subsection> <subsection id="H1B8F60FBD6674CA08C739769E973E157"><enum>(c)</enum><header>No limitation</header><text>Nothing in this section shall limit the authority of the Director to require other reports or undertakings, or take other action, in furtherance of the responsibilities of the Director under this Act.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF53394D621534BA4959100A6B51CB98"><enum>(b)</enum><header>Federal Home Loan Banks Risk-Based capital</header><text>Section 6(a)(3) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(3)</external-xref>) is amended—</text> <paragraph id="H8212533A050A4A1594CCC7BE52C15E24"><enum>(1)</enum><text>by striking subparagraph (A) and inserting the following new subparagraph:</text> <quoted-block id="HB0C4F2754271476FAD8E704C9F756423"> <subparagraph id="H576499983B834DB298A2E8FE00537576"><enum>(A)</enum><header>Risk-Based capital standards</header><text>The Director shall, by regulation, establish risk-based capital standards for the Federal home loan banks to ensure that the Federal home loan banks operate in a safe and sound manner, with sufficient permanent capital and reserves to support the risks that arise in the operations and management of the Federal home loans banks.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HB83112F6ABF8441A96ECFF22A1FEA87F"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>(A)(ii)</quote> and inserting <quote>(A)</quote>.</text></paragraph></subsection></section> <section id="HA784009FCA194730B22C0091F04E3480"><enum>112.</enum><header>Minimum and critical capital levels</header> <subsection id="HC3C61CE7A6CA43C800002FE285B1AD79"><enum>(a)</enum><header>Minimum capital level</header><text>Section 1362 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4612">12 U.S.C. 4612</external-xref>) is amended—</text> <paragraph id="HA883F966001442D598AC08371E39B548"><enum>(1)</enum><text>in subsection (a), by striking <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Enterprises</header-in-text></quote> ; and</text></paragraph> <paragraph id="HD0485DB2509146CE91ECB49CB20F091"><enum>(2)</enum><text>by striking subsection (b) and inserting the following new subsections:</text> <quoted-block id="H3BFADAD28F954418971D9045F77B411F"> <subsection id="H962155CE809F4580B2B059000202DB2D"><enum>(b)</enum><header>Federal Home Loan Banks</header><text>For purposes of this subtitle, the minimum capital level for each Federal home loan bank shall be the minimum capital required to be maintained to comply with the leverage requirement for the bank established under section 6(a)(2) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(2)</external-xref>).</text></subsection> <subsection id="H584861FA26624DC586566DD667147D46" commented="no"><enum>(c)</enum><header>Establishment of revised minimum capital levels</header><text display-inline="yes-display-inline">Notwithstanding subsections (a) and (b) and notwithstanding the capital classifications of the regulated entities, the Director may, by regulations issued under section 1319G(b), establish a minimum capital level for the enterprises, for the Federal home loan banks, or for both the enterprises and the banks, that is higher than the level specified in subsection (a) for the enterprises or the level specified in subsection (b) for the Federal home loan banks, to the extent needed to ensure that the regulated entities operate in a safe and sound manner.</text></subsection> <subsection id="H3BDA6722841B4375B34919E90971C6ED"><enum>(d)</enum><header>Authority to require temporary increase</header><text>Notwithstanding subsections (a) and (b) and any minimum capital level established pursuant to subsection (c), the Director may, by order, increase the minimum capital level for a regulated entity for such period as the Director may provide if the Director—</text> <paragraph id="H677B123F21F54D7FB9008F31AFAB65AC"><enum>(1)</enum><text>makes any of the determinations specified in subparagraphs (A) through (C) of section 1364(c)(1); or</text></paragraph> <paragraph id="H498D01F166B14801B97D7E6973D749C9"><enum>(2)</enum><text>determines that the regulated entity has violated any of the prudential management and operations standards established pursuant to section 1313A and, as a result of such violation, is operating in an unsafe and unsound manner.</text></paragraph></subsection> <subsection id="H380802643D45464BBCC8427EF591F032"><enum>(e)</enum><header>Authority to establish additional capital and reserve requirements for particular programs</header><text>The Director may, at any time by order or regulation, establish such capital or reserve requirements with respect to any program or activity of a regulated entity as the Director considers appropriate to ensure that the regulated entity operates in a safe and sound manner, with sufficient capital and reserves to support the risks that arise in the operations and management of the regulated entity.</text></subsection> <subsection id="H7BDFC8F82BD64FAB9D8BDD8EAB93B5DC" commented="no"><enum>(f)</enum><header>Periodic review</header><text display-inline="yes-display-inline">The Director shall periodically review the amount of core capital maintained by the enterprises, the amount of capital retained by the Federal home loan banks, and the minimum capital levels established for such regulated entities pursuant to this section. The Director may, by regulations issued under section 1319G(b), adjust the minimum capital levels as necessary, based on the Director’s review.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H453FF66271BA420DA04BE47FA3FF0396"><enum>(b)</enum><header>Critical capital levels</header> <paragraph id="H31B4074A78674F07B93D7BF000D4ADD6"><enum>(1)</enum><header>In General</header><text>Section 1363 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4613">12 U.S.C. 4613</external-xref>) is amended—</text> <subparagraph id="H17D1A09DB3614AEC86A2A124091D2F1D"><enum>(A)</enum><text>by striking <quote>For</quote> and inserting <quote>(a) Enterprises.—For</quote>; and</text></subparagraph> <subparagraph id="H99A5C8E590F8431087F6C07698C0098"><enum>(B)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="HF5EB5AEFB9084FC0B594FBF1BE39AE4C"> <subsection id="H0DD38981830049A6A4B02DEFA5339DE"><enum>(b)</enum><header>Federal Home Loan Banks</header> <paragraph id="HF7E0CFA53A4F4A1898364E1397BCB4B1"><enum>(1)</enum><header>In General</header><text>For purposes of this subtitle, the critical capital level for each Federal home loan bank shall be such amount of capital as the Director shall, by regulation require.</text></paragraph> <paragraph id="H5E3570885183458F85BA9BD7C1A1F4B5"><enum>(2)</enum><header>Consideration of other critical capital levels</header><text>In establishing the critical capital level under paragraph (1) for the Federal home loan banks, the Director shall take due consideration of the critical capital level established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H9EDD6787869F46D3B10050E74CA5F4CD"><enum>(2)</enum><header>Regulations</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 185, the Director of the Federal Housing Finance Agency shall issue regulations pursuant to section 1363(b) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as added by paragraph (1) of this subsection) establishing the critical capital level under such section.</text></paragraph></subsection></section> <section id="HAB48F00A567E442BAEA43537C3DE40"><enum>113.</enum><header>Review of and authority over enterprise assets and liabilities</header><text display-inline="no-display-inline">Subtitle B of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611 et seq.</external-xref>) is amended—</text> <paragraph id="H8D99E6EA604448BC994ED962445CF405"><enum>(1)</enum><text>by striking the subtitle designation and heading and inserting the following:</text> <quoted-block id="HBABBD5A95B4349B58700CD931FBCB138"> <subtitle id="HD3D179F513C94B4D9715822B2B85DAA1"><enum>B</enum><header>Required capital levels for Regulated Entities, special enforcement powers, and reviews of assets and liabilities</header></subtitle><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HA75F793BDD0D4A358BC3F9B01DA1A859"><enum>(2)</enum><text>by adding at the end the following new section:</text> <quoted-block id="H723AB11268984FD69044B7FBAFA01340"> <section id="HEEEEC86B573243FCBA4E5DBF8373F54F"><enum>1369E.</enum><header>Reviews of enterprise assets and liabilities</header> <subsection id="HA0BBD953AA6C41B6A97F7FA1DAC951B0"><enum>(a)</enum><header>In General</header><text>The Director shall conduct, on a periodic basis, a review of the on-balance sheet and off-balance sheet assets and liabilities of each enterprise.</text></subsection> <subsection id="H563D4C9B88C94A4FAE9B01510078CADD"><enum>(b)</enum><header>Authority to require disposition or acquisition</header><text display-inline="yes-display-inline">Pursuant to such a review and notwithstanding the capital classifications of the enterprises, the Director may by order require an enterprise, under such terms and conditions as the Director determines to be appropriate, to dispose of or acquire any asset or liability, if the Director determines that such action is consistent with the safe and sound operation of the enterprise or with the purposes of this Act or any of the authorizing statutes.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HAB92058F21A84B269428759FC79E2218"><enum>114.</enum><header>Corporate governance of enterprises</header><text display-inline="no-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting before section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H074E5CE330A540C8A8223D39113F32E7"> <section id="H05B2336CCDC9481787F8EEAD7B5769C6"><enum>1322A.</enum><header>Corporate governance of Enterprises</header> <subsection id="HAB5B95D83E1A4E75AF84DA01C497567F"><enum>(a)</enum><header>Board of Directors</header> <paragraph id="HE97B8046BF674A569CDF005C2543E220"><enum>(1)</enum><header>Independence</header><text>A majority of seated members of the board of directors of each enterprise shall be independent board members, as defined under rules set forth by the New York Stock Exchange, as such rules may be amended from time to time.</text></paragraph> <paragraph id="H662305AA06D34CE3BE1BAD92E6D65B5B"><enum>(2)</enum><header>Frequency of meetings</header><text>To carry out its obligations and duties under applicable laws, rules, regulations, and guidelines, the board of directors of an enterprise shall meet at least eight times a year and not less than once a calendar quarter.</text></paragraph> <paragraph id="H619B51EF096A42D9BD2D45BD43004CBB"><enum>(3)</enum><header>Non-management Board member meetings</header><text>The non-management directors of an enterprise shall meet at regularly scheduled executive sessions without management participation.</text></paragraph> <paragraph id="H9ECDB0AA8AE94B6EAE41D5FADAE0E1B1"><enum>(4)</enum><header>Quorum; prohibition on proxies</header><text>For the transaction of business, a quorum of the board of directors of an enterprise shall be at least a majority of the seated board of directors and a board member may not vote by proxy.</text></paragraph> <paragraph id="H2AE0C613504C40E8A4D50039EE537D57"><enum>(5)</enum><header>Information</header><text>The management of an enterprise shall provide a board member of the enterprise with such adequate and appropriate information that a reasonable board member would find important to the fulfillment of his or her fiduciary duties and obligations.</text></paragraph> <paragraph id="HD1A36E294C9947E1BEE3EB2ED4DF4188"><enum>(6)</enum><header>Annual review</header><text>At least annually, the board of directors of each enterprise shall review, with appropriate professional assistance, the requirements of laws, rules, regulations, and guidelines that are applicable to its activities and duties.</text></paragraph></subsection> <subsection id="HCCD31768D7464DFDAED20385495D922B"><enum>(b)</enum><header>Committees of boards of Directors</header> <paragraph id="H3594F9E2CD1E429686E0C5B64C6BE3CF"><enum>(1)</enum><header>Frequency of meetings</header><text>Any committee of the board of directors of an enterprise shall meet with sufficient frequency to carry out its obligations and duties under applicable laws, rules, regulations, and guidelines.</text></paragraph> <paragraph id="HDE970ECA3E724AF6B3BDA2C8C1A2AA30"><enum>(2)</enum><header>Required committees</header><text>Each enterprise shall provide for the establishment, however styled, of the following committees of the board of directors:</text> <subparagraph id="H72839C498D1940FC8E08960020C125A5"><enum>(A)</enum><text>Audit committee.</text></subparagraph> <subparagraph id="HEE149EDAC5284BE7A24D50871E5650DF"><enum>(B)</enum><text>Compensation committee.</text></subparagraph> <subparagraph id="H7EDCCC9F05954505ACD0684FE4D155A1"><enum>(C)</enum><text>Nominating/corporate governance committee.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such committees shall be in compliance with the charter, independence, composition, expertise, duties, responsibilities, and other requirements set forth under section 10A(m) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78j-1">15 U.S.C. 78j–1(m)</external-xref>), with respect to the audit committee, and under rules issued by the New York Stock Exchange, as such rules may be amended from time to time.</continuation-text></paragraph></subsection> <subsection id="H419F299FB1E94F0EB17331DA2748E16F"><enum>(c)</enum><header>Compensation</header> <paragraph id="HD839C5408CFD4834AECB4C54C4D5B390"><enum>(1)</enum><header>In General</header><text>The compensation of board members, executive officers, and employees of an enterprise—</text> <subparagraph id="H330B2C3FB0CC436382133338A2D9A604"><enum>(A)</enum><text>shall not be in excess of that which is reasonable and appropriate;</text></subparagraph> <subparagraph id="HF53CAB29CAE4445F85591C6966F47495"><enum>(B)</enum><text>shall be commensurate with the duties and responsibilities of such persons,</text></subparagraph> <subparagraph id="H0C4BA493C0F94EF0B62FBC6BDB58ADE8"><enum>(C)</enum><text>shall be consistent with the long-term goals of the enterprise;</text></subparagraph> <subparagraph id="H61DF7AB99FD94D5BA153FABFAF283D3B"><enum>(D)</enum><text>shall not focus solely on earnings performance, but shall take into account risk management, operational stability and legal and regulatory compliance as well; and</text></subparagraph> <subparagraph id="H5449F2A73A00406ABF1BB02843963C86"><enum>(E)</enum><text>shall be undertaken in a manner that complies with applicable laws, rules, and regulations.</text></subparagraph></paragraph> <paragraph id="HA0A12719557344EE86AD98D480BCCE8"><enum>(2)</enum><header>Reimbursement</header><text>If an enterprise is required to prepare an accounting restatement due to the material noncompliance of the enterprise, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the enterprise shall reimburse the enterprise as provided under section 304 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7243">15 U.S.C. 7243</external-xref>). This provision does not otherwise limit the authority of the Agency to employ remedies available to it under its enforcement authorities.</text></paragraph></subsection> <subsection id="H5DFA8A79203A46698D8F5DBEE2B6F3C"><enum>(d)</enum><header>Code of conduct and ethics</header> <paragraph id="HDC0F89E281B14D6784A32568C2E78E97"><enum>(1)</enum><header>In General</header><text>An enterprise shall establish and administer a written code of conduct and ethics that is reasonably designed to assure the ability of board members, executive officers, and employees of the enterprise to discharge their duties and responsibilities, on behalf of the enterprise, in an objective and impartial manner, and that includes standards required under section 406 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7264">15 U.S.C. 7264</external-xref>) and other applicable laws, rules, and regulations.</text></paragraph> <paragraph id="H32ACD65C8E244DAFAD3324FBECC93862"><enum>(2)</enum><header>Review</header><text>Not less than once every three years, an enterprise shall review the adequacy of its code of conduct and ethics for consistency with practices appropriate to the enterprise and make any appropriate revisions to such code.</text></paragraph></subsection> <subsection id="HA123F60A16BF43C490F2CD77B2B93B6B"><enum>(e)</enum><header>Conduct and responsibilities of Board of Directors</header><text>The board of directors of an enterprise shall be responsible for directing the conduct and affairs of the enterprise in furtherance of the safe and sound operation of the enterprise and shall remain reasonably informed of the condition, activities, and operations of the enterprise. The responsibilities of the board of directors shall include having in place adequate policies and procedures to assure its oversight of, among other matters, the following:</text> <paragraph id="H2B7EE931B5B3486D9BC2654DDF00BEB6"><enum>(1)</enum><text>Corporate strategy, major plans of action, risk policy, programs for legal and regulatory compliance and corporate performance, including prudent plans for growth and allocation of adequate resources to manage operations risk.</text></paragraph> <paragraph id="H45497003C0A6491F9E79BD5F632F243D"><enum>(2)</enum><text>Hiring and retention of qualified executive officers and succession planning for such executive officers.</text></paragraph> <paragraph id="H407848701BE74EDF00C393AB62495759"><enum>(3)</enum><text>Compensation programs of the enterprise.</text></paragraph> <paragraph id="HA4A01790C67245A5AAD8BCD991C60092"><enum>(4)</enum><text>Integrity of accounting and financial reporting systems of the enterprise, including independent audits and systems of internal control.</text></paragraph> <paragraph id="H4A56A73A8A7147A8B388487EAAB75150"><enum>(5)</enum><text>Process and adequacy of reporting, disclosures, and communications to shareholders, investors, and potential investors.</text></paragraph> <paragraph id="H0E4605BFA7AB4469856D04C7908BCDD"><enum>(6)</enum><text>Extensions of credit to board members and executive officers.</text></paragraph> <paragraph id="HD03601CB030940769543F63002F60F1"><enum>(7)</enum><text>Responsiveness of executive officers in providing accurate and timely reports to Federal regulators and in addressing the supervisory concerns of Federal regulators in a timely and appropriate manner.</text></paragraph></subsection> <subsection id="H44B429C201B94565A659F210984AF7E"><enum>(f)</enum><header>Prohibition of extensions of credit</header><text>An enterprise may not directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any board member or executive officer of the enterprise, as provided by section 13(k) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/78m">15 U.S.C. 78m(k)</external-xref>).</text></subsection> <subsection id="H6C3C011CD4C746C79964CFFA60EEB2CA"><enum>(g)</enum><header>Certification of disclosures</header><text>The chief executive officer and the chief financial officer of an enterprise shall review each quarterly report and annual report issued by the enterprise and such reports shall include certifications by such officers as required by section 302 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7241">15 U.S.C. 7241</external-xref>).</text></subsection> <subsection id="HED53B4B16E984F4BA765FE2904536C96"><enum>(h)</enum><header>Change of audit partner</header><text>An enterprise may not accept audit services from an external auditing firm if the lead or coordinating audit partner who has primary responsibility for the external audit of the enterprise, or the external audit partner who has responsibility for reviewing the external audit has performed audit services for the enterprise in each of the five previous fiscal years.</text></subsection> <subsection id="HFAC7BFB5C1DD486197BC652772D74852"><enum>(i)</enum><header>Compliance program</header> <paragraph id="H5CE9F35897E2443B8BDFE702CCB4CB07"><enum>(1)</enum><header>Requirement</header><text>Each enterprise shall establish and maintain a compliance program that is reasonably designed to assure that the enterprise complies with applicable laws, rules, regulations, and internal controls.</text></paragraph> <paragraph id="H4DAD8B2CC3D3407690E04956DA89E335"><enum>(2)</enum><header>Compliance officer</header><text>The compliance program of an enterprise shall be headed by a compliance officer, however styled, who reports directly to the chief executive officer of the enterprise. The compliance officer shall report regularly to the board of directors or an appropriate committee of the board of directors on compliance with and the adequacy of current compliance policies and procedures of the enterprise, and shall recommend any adjustments to such policies and procedures that the compliance officer considers necessary and appropriate.</text></paragraph></subsection> <subsection id="H825883BAB0D24E578CC369144C9FBF64"><enum>(j)</enum><header>Risk management program</header> <paragraph id="HE4A88ADFEDEC46B4BE015211B349800"><enum>(1)</enum><header>Requirement</header><text>Each enterprise shall establish and maintain a risk management program that is reasonably designed to manage the risks of the operations of the enterprise.</text></paragraph> <paragraph id="HA341937924E5444981DCFC55D34FDC99"><enum>(2)</enum><header>Risk management officer</header><text>The risk management program of an enterprise shall be headed by a risk management officer, however styled, who reports directly to the chief executive officer of the enterprise. The risk management officer shall report regularly to the board of directors or an appropriate committee of the board of directors on compliance with and the adequacy of current risk management policies and procedures of the enterprise, and shall recommend any adjustments to such policies and procedures that the risk management officer considers necessary and appropriate.</text></paragraph></subsection> <subsection id="H92FE830FA76340CCB2CED8CC8D3E8E3"><enum>(k)</enum><header>Compliance with other laws</header> <paragraph id="H12D651ED21824D83A9FB185E464FFC25"><enum>(1)</enum><header>Deregistered or unregistered common stock</header><text>If an enterprise deregisters or has not registered its common stock with the Securities and Exchange Commission under the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>, the enterprise shall comply or continue to comply with sections 10A(m) and 13(k) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/78j-1">15 U.S.C. 78j-1(m)</external-xref>, 78m(k)) and sections 302, 304, and 406 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7241">15 U.S.C. 7241</external-xref>, 7243, 7264), subject to such requirements as provided by subsection (l) of this section.</text></paragraph> <paragraph id="H4C1078740AC74001BF78ACC5F85500DA"><enum>(2)</enum><header>Registered common stock</header><text>An enterprise that has its common stock registered with the Securities and Exchange Commission shall maintain such registered status, unless it provides 60 days prior written notice to the Director stating its intent to deregister and its understanding that it will remain subject to the requirements of the sections of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and the Sarbanes-Oxley Act of 2002, subject to such requirements as provided by subsection (l) of this section.</text></paragraph></subsection> <subsection id="HEC14CB6E45FB412AA7075B5314BF8B81"><enum>(l)</enum><header>Other matters</header><text display-inline="yes-display-inline">The Director may from time to time establish standards, by regulation, order, or guideline, regarding such other corporate governance matters of the enterprises as the Director considers appropriate.</text></subsection> <subsection id="HBEF092DED8E847D68C156B4EC84EEBA2"><enum>(m)</enum><header>Modification of standards</header><text>In connection with standards of Federal or State law (including the Revised Model Corporation Act) or New York Stock Exchange rules that are made applicable to an enterprise by section 1710.10 of the Director’s rules (12 C.F.R. 1710.10) and by subsections (a), (b), (g), (i), (j), and (k) of this section, the Director, in the Director’s sole discretion, may modify the standards contained in this section or in part 1710 of the Director’s rules (12 U.S.C. Part 1710) in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code, and upon written notice to the enterprise.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H41D0DD2DC36E4BCCB29F9B88F97951D4"><enum>115.</enum><header>Required registration under Securities Exchange Act of 1934</header><text display-inline="no-display-inline">The Housing and Community Development Act of 1992 is amended by adding after section 1322A, as added by the preceding provisions of this Act, the following new section: </text> <quoted-block style="OLC" id="H67B5B095F1154CF59E963641CA452461" display-inline="no-display-inline"> <section id="H542186FE9BC445EF9BF7A700EB405C10"><enum>1322B.</enum><header>Required registration under Securities Exchange Act of 1934</header> <subsection id="H0D7808B357274B3E986774031DF8EFE"><enum>(a)</enum><header>In General</header><text>Each regulated entity shall register at least one class of the capital stock of such regulated entity, and maintain such registration with the Securities and Exchange Commission, under the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text></subsection> <subsection id="HA8A10FD079A64EC38036F0CF8488D324"><enum>(b)</enum><header>Enterprises</header><text>Each enterprise shall comply with sections 14 and 16 of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H0111122427B148DF8948B7EA96B95B61" display-inline="no-display-inline"><enum>116.</enum><header>Financial Institutions Examination Council</header><text display-inline="no-display-inline">The Federal Financial Institutions Examination Council Act of 1978 is amended—</text> <paragraph id="HCED5E12654734FDEA53324004D4E919D"><enum>(1)</enum><text>in section 1003 (<external-xref legal-doc="usc" parsable-cite="usc/12/3302">12 U.S.C. 3302</external-xref>)—</text> <subparagraph id="H0EB651E5DCC84CEFB5CCD283FF0002DE"><enum>(A)</enum><text>in paragraph (1), by inserting <quote>Director of the Federal Housing Finance Agency,</quote> after <quote>Supervision,</quote>; and</text></subparagraph> <subparagraph id="H3186858A083C442FA2E9F1D2FD8C87B"><enum>(B)</enum><text>in paragraph (3), by striking <quote>or a credit union;</quote> and inserting <quote>a credit union, or a regulated entity (as such term is defined in section 1303 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>)).</quote>;</text></subparagraph></paragraph> <paragraph id="H72E432F063834780A21455D8EC54E46"><enum>(2)</enum><text>in section 1004 (<external-xref legal-doc="usc" parsable-cite="usc/12/3303">12 U.S.C. 3303</external-xref>)—</text> <subparagraph id="H793B222E8C994A3CB00329C41DB0AEDD"><enum>(A)</enum><text>in paragraph (4), by inserting a semicolon at the end;</text></subparagraph> <subparagraph id="H2A0EBD48221349A19E71DBDC0651B305"><enum>(B)</enum><text>by redesignating paragraph (5) as paragraph (6); and</text></subparagraph> <subparagraph id="H9F374318C5384A9191A8AD4C96F2229"><enum>(C)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H6D6325D564D64AC6A8337488FC008E19" style="OLC"> <paragraph id="H02D8CA62CBFD4F97BCA7CD5FF618135F"><enum>(5)</enum><text>the Director of the Federal Housing Finance Agency; and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H6AA2A192DCAC4D9BB0896EDAB64EFE2D"><enum>(3)</enum><text>in section 1006(d) (<external-xref legal-doc="usc" parsable-cite="usc/12/3305">12 U.S.C. 3305(d)</external-xref>), by striking <quote>and employees of the Federal Housing Finance Board</quote>.</text></paragraph></section> <section id="H64651FB27B324A29006EF9CDB3503A2" display-inline="no-display-inline"><enum>117.</enum><header>Guarantee fee study</header> <subsection id="H77179D1BB35F4E15A1D6EE9F9E71C100"><enum>(a)</enum><header>In general</header><text>The Comptroller General of the United States, in consultation with the heads of the federal banking agencies and the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development, shall, not later than one year after the date of the enactment of this Act, submit to the Congress a study concerning the pricing, transparency and reporting of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal home loan banks with regard to guarantee fees and concerning analogous practices, transparency and reporting requirements (including advances pricing practices by the Federal Home Loan Banks) of other participants in the business of mortgage purchases and securitization.</text></subsection> <subsection id="H347A8BBC90C0402394FEB9B462055795"><enum>(b)</enum><header>Factors</header><text>The study required by this section shall examine various factors such as credit risk, counterparty risk considerations, economic value considerations, and volume considerations used by the regulated entities (as such term is defined in section 1303 of the Housing and Community Development Act of 1992) included in the study in setting the amount of fees they charge.</text></subsection> <subsection id="H057E4D3CF1D7478D85CBDE4F22534CCC"><enum>(c)</enum><header>Contents of report</header><text>The report required under subsection (a) shall identify and analyze—</text> <paragraph id="H6A1602B858BE44B5A4BAED2EEC1BF902"><enum>(1)</enum><text display-inline="yes-display-inline">the factors used by each enterprise (as such term is defined in section 1303 of the Housing and Community Development Act of 1992) in determining the amount of the guarantee fees it charges;</text></paragraph> <paragraph id="H392A5E2FEE52485AB7C0AF2B6B8E6E8F"><enum>(2)</enum><text>the total revenue the enterprises earn from guarantee fees;</text></paragraph> <paragraph id="HF6E8FC240B764B7B9BA613C288FF737B"><enum>(3)</enum><text>the total costs incurred by the enterprises for providing guarantees;</text></paragraph> <paragraph id="H7755D04578434EBF9BE65189CBD0733B"><enum>(4)</enum><text>the average guarantee fee charged by the enterprises;</text></paragraph> <paragraph id="H8B1267832FCC4D07BE24C35818A5363D"><enum>(5)</enum><text>an analysis of how and why the guarantee fees charged differ from such fees charged during the previous year;</text></paragraph> <paragraph id="H151075C7574E4766ADE2E87E66B704F"><enum>(6)</enum><text>a breakdown of the revenue and costs associated with providing guarantees, based on product type and risk classifications; and</text></paragraph> <paragraph id="HEFF0E33587C6454799C7001206B0B3F4"><enum>(7)</enum><text display-inline="yes-display-inline">other relevant information on guarantee fees with other participants in the mortgage and securitization business.</text></paragraph></subsection> <subsection id="HCCBD5DE1C82F45F3912222FB8CD90010"><enum>(d)</enum><header>Protection of information</header><text>Nothing in this section may be construed to require or authorize the Government Accounting Office, in connection with the study mandated by this section, to disclose information of the enterprises or other organization that is confidential or proprietary.</text></subsection></section> <section id="H96915720B40D42A4B5B581BD94008000"><enum>118.</enum><header>Conforming amendments</header> <subsection id="H066B07C58E974A1FBDC318DB885123B2"><enum>(a)</enum><header>1992 Act</header><text>Part 1 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4511">12 U.S.C. 4511 et seq.</external-xref>), as amended by the preceding provisions of this Act, is further amended—</text> <paragraph id="H7290EEFA9CE14FF1BD46934572B1EA4"><enum>(1)</enum><text>by striking <quote>an enterprise</quote> each place such term appears in such part (except in sections 1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), and 1316(b)(3)) and inserting <quote>a regulated entity</quote>;</text></paragraph> <paragraph id="H38B17F04BC5D4E8FB400D700D12D24F5"><enum>(2)</enum><text>by striking <quote>the enterprise</quote> each place such term appears in such part (except in section 1316(b)(3)) and inserting <quote>the regulated entity</quote>;</text></paragraph> <paragraph id="H5D79F27CEA4C4256B1DCC48F00FD8A8"><enum>(3)</enum><text>by striking <quote>the enterprises</quote> each place such term appears in such part (except in sections 1312(c)(2), 1312(e)(2), and 1319B(a)(4)(D)) and inserting <quote>the regulated entities</quote>;</text></paragraph> <paragraph id="HAD3F653850704B6FAC8E2D857F0007EE"><enum>(4)</enum><text>by striking <quote>each enterprise</quote> each place such term appears in such part and inserting <quote>each regulated entity</quote>;</text></paragraph> <paragraph id="HAA90F4F153F54E719D39EC3CE1E204EF"><enum>(5)</enum><text>by striking <quote>Office</quote> each place such term appears in such part (except in sections 1312(b)(5), 1315(b), and 1316(g), and section 1317(c)) and inserting <quote>Agency</quote>;</text></paragraph> <paragraph id="H4679361764534800003B4700DA75C332"><enum>(6)</enum><text>in section 1315 (<external-xref legal-doc="usc" parsable-cite="usc/12/4515">12 U.S.C. 4515</external-xref>)—</text> <subparagraph id="H86B1B31248BE45CB8433002C487BBFE"><enum>(A)</enum><text>in subsection (a)—</text> <clause id="H467A21692B0F4ABBADA7009FA6698C9E"><enum>(i)</enum><text>in the subsection heading, by striking <quote>Office Personnel</quote> and inserting <quote>In General</quote>; and</text></clause> <clause id="H68052A30F138463488BFC3018FE0231B"><enum>(ii)</enum><text>by striking <quote>The</quote> and inserting <quote>Subject to titles III and IV of the Federal Housing Finance Reform Act of 2005, the</quote>;</text></clause></subparagraph> <subparagraph id="H6306A3EFCF804BAA938F7E34886D73E2"><enum>(B)</enum><text>by striking subsections (d) and (f); and</text></subparagraph> <subparagraph id="HF65A6C94000849F28D803B37CF3751E9"><enum>(C)</enum><text>by redesignating subsection (e) as subsection (d);</text></subparagraph></paragraph> <paragraph id="H4B14A528619444419CABA63862A7C82F"><enum>(7)</enum><text>in section 1319A (<external-xref legal-doc="usc" parsable-cite="usc/12/4520">12 U.S.C. 4520</external-xref>)—</text> <subparagraph id="H41A946F135C14AAAA0E73CD8F82FF5A7"><enum>(A)</enum><text>by striking <quote>(a) In General.—Each enterprise</quote> and inserting <quote>Each regulated entity</quote>; and</text></subparagraph> <subparagraph id="HD990CD75ECDB4BB68E69B45ED1023E07"><enum>(B)</enum><text>by striking subsection (b);</text></subparagraph></paragraph> <paragraph id="H3087CCB74A5F461683C4C3DA3B8BE4A4"><enum>(8)</enum><text>in section 1319B (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521</external-xref>), by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Committee on Financial Services</quote>; and</text></paragraph> <paragraph id="HCA7FAB20C02346B0B84FDEEC4B94B06B"><enum>(9)</enum><text>in section 1319F (<external-xref legal-doc="usc" parsable-cite="usc/12/4525">12 U.S.C. 4525</external-xref>), striking all that follows <quote>United States Code</quote> and inserting <quote>, the Agency shall be considered an agency responsible for the regulation or supervision of financial institutions.</quote>.</text></paragraph></subsection> <subsection id="HD133B18E3EB249E5B400F91F1F2EEC52"><enum>(b)</enum><header>Amendments to fannie mae charter Act</header><text>The <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>) is amended—</text> <paragraph id="H33594DE03FF047C3821FECB03981148D"><enum>(1)</enum><text>by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> each place such term appears, and inserting <quote>Director of the Federal Housing Finance Agency</quote>, in—</text> <subparagraph id="HB9F8F32550F0445298E08F0000493734"><enum>(A)</enum><text>section 303(c)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1718">12 U.S.C. 1718(c)(2)</external-xref>);</text></subparagraph> <subparagraph id="HBE9A9874F1874316AC1D39E51F7DCBC3"><enum>(B)</enum><text>section 309(d)(3)(B) (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)(3)(B)</external-xref>); and</text></subparagraph> <subparagraph id="HC72AB5BF06F048088E8C509DF87CA700"><enum>(C)</enum><text>section 309(k)(1); and</text></subparagraph></paragraph> <paragraph id="H9C47D935C118436D8D2D9108166835AC"><enum>(2)</enum><text>in section 309—</text> <subparagraph id="H1C4A09325681494E0066D976A688F3C3"><enum>(A)</enum><text>in subsections (d)(3)(A) and (n)(1), by striking <quote>Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Financial Services</quote>; and</text></subparagraph> <subparagraph id="HA082FB01A7AD4146B026EB026D195EA7"><enum>(B)</enum><text>in subsection (m)—</text> <clause id="HFAA0BE772F49493CA10291E0024D211"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; </text></clause> <clause id="H13F6B2B125B54C66A99EB41532006089" display-inline="no-display-inline"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; and </text></clause> <clause id="HD02E29252FEB455F0096B52B6CA07BB0"><enum>(iii)</enum><text>by striking <quote>Secretary</quote> each other place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>; and</text></clause></subparagraph> <subparagraph id="H99986963795344549D36005200705D62"><enum>(C)</enum><text>in subsection (n), by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H6BB1780ACA5346459014B636E4B293B3"><enum>(c)</enum><header>Amendments to freddie mac Act</header><text>The <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> is amended—</text> <paragraph id="H1B0F5580614A43AEBB8382E671024F7D"><enum>(1)</enum><text>by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> each place such term appears, and inserting <quote>Director of the Federal Housing Finance Agency</quote>, in—</text> <subparagraph id="HDCED5F72BF1D4E189C3479A8DE3522E4"><enum>(A)</enum><text>section 303(b)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(b)(2)</external-xref>);</text></subparagraph> <subparagraph id="H8131B431C5924DDDB1EA8423418B5483"><enum>(B)</enum><text>section 303(h)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>); and</text></subparagraph> <subparagraph id="HFC4295474F8A49F0A09D1BE03FD6A0B7"><enum>(C)</enum><text>section 307(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(c)(1)</external-xref>);</text></subparagraph></paragraph> <paragraph id="HFD66854DE3F1432E96C5C56CF4EA2315"><enum>(2)</enum><text>in sections 303(h)(1) and 307(f)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(1)</external-xref>, 1456(f)(1)), by striking <quote>Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Financial Services</quote>;</text></paragraph> <paragraph id="H015F1999EDA04E088BA61295E7FA3E4"><enum>(3)</enum><text>in section 306(i) (<external-xref legal-doc="usc" parsable-cite="usc/12/1455">12 U.S.C. 1455(i)</external-xref>)—</text> <subparagraph id="H775A9DBE82354436A4F1615B62E83421"><enum>(A)</enum><text>by striking <quote>1316(c)</quote> and inserting <quote>306(c)</quote>; and</text></subparagraph> <subparagraph id="H13B279293A2E43CC8DB05BF073149500"><enum>(B)</enum><text>by striking <quote>section 106</quote> and inserting <quote>section 1316</quote>; and</text></subparagraph></paragraph> <paragraph id="HDCD25FA780BC48C2BABFE5D24DBFE7D"><enum>(4)</enum><text>in section 307 (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456</external-xref>))—</text> <subparagraph id="H189990C3AD0246689565352E38960033"><enum>(A)</enum><text>in subsection (e)—</text> <clause id="H2808F7FEA518478E942213E5F66BAF96"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; </text></clause> <clause id="HB504F4BE74B44BDE8793A3D513B2C997" display-inline="no-display-inline"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; and </text></clause> <clause id="HC19E2338D05041E3B9EBD5E3EA5BCF7"><enum>(iii)</enum><text>by striking <quote>Secretary</quote> each other place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>; and</text></clause></subparagraph> <subparagraph id="H7107458F83CA4ECE8FF94C294C37BF35"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (f), by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text></subparagraph></paragraph></subsection></section></subtitle> <subtitle id="HC3D439F294614090969563E82348B6D"><enum>B</enum><header>Improvement of mission supervision</header> <section id="H7123890C3BF74024BB603E6ED189D3AC"><enum>121.</enum><header>Transfer of program and activities approval and housing goal oversight</header><text display-inline="no-display-inline">Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text> <paragraph id="HDA337F2346B44D59951D8F5894EF7C08"><enum>(1)</enum><text>by striking the designation and heading for the part and inserting the following:</text> <quoted-block id="HB0282091C0674C5190E16CF6EE73E9A3"> <part id="H8625CEE28D124E2B8D30EF27A0D86654"><enum>2</enum><header>Program and activities approval by Director, corporate governance, and establishment of Housing goals</header></part><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H9FD85662BC00448D883DF7B7B828F33"><enum>(2)</enum><text>by striking sections 1321 and 1322.</text></paragraph></section> <section id="H9C1BE592333E454FA0A815A4581F1190"><enum>122.</enum><header>Review by Director of new programs and activities of enterprises</header> <subsection id="H1B0A29E04C6340B2B7081ECF7750BB1B"><enum>(a)</enum><header>In General</header><text>Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting before section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>) the following new section:</text> <quoted-block act-name="Housing" id="HB3BD53BCDCAD40409DD6711341CD00CD"> <section id="HEC7A8071A58C438781194772964303AB"><enum>1321.</enum><header>Review and approval by Director of new programs and business activities of Enterprises</header> <subsection id="H22017600F5E246E1A61C8D34BF5C30AC"><enum>(a)</enum><header>Limitation on authority to undertake programs and activities</header><text>An enterprise may not undertake any new program, including a pilot program, or any new business activity except in accordance with the procedures set forth in this section and orders and regulations issued under this section.</text></subsection> <subsection id="HDB9DC6A74FEE497D9346790192CDC89C"><enum>(b)</enum><header>New programs</header> <paragraph id="HA4BBE108EC5A45A5AFE000DBA949B00"><enum>(1)</enum><header>Prior approval requirement</header><text>An enterprise may not commence any new program before it has obtained the approval of the Director, pursuant to this subsection, for the new program.</text></paragraph> <paragraph id="HB60E37C9232348CB95E7849278B20056"><enum>(2)</enum><header>Application</header><text>The Director shall, by order or regulation, require that an enterprise shall, to obtain a determination by the Director regarding approval of a new program by the enterprise, submit to the Director a written application for the new program in a format as prescribed by the Director.</text></paragraph> <paragraph id="HB960D51C530F47E0B2966626398E146C"><enum>(3)</enum><header>Notice</header><text>Immediately upon receipt of a complete application for a new program, the Director shall cause to be published in the Federal Register notice of the receipt of such application and of the period for public comment pursuant to paragraph (4) regarding such new program, and a description of the new program proposed by the application.</text></paragraph> <paragraph id="H9AA4A4A6447D4C5EBF5779C5FD00014D"><enum>(4)</enum><header>Public comment period</header><text>During the 30-day period beginning upon publication pursuant to paragraph (3) of a notice regarding such an application, the Director shall receive public comments regarding the new program.</text></paragraph> <paragraph id="H311F4FF8DE91491BB6EE8320FA12AB7D"><enum>(5)</enum><header>Determination</header><text>Not less than 15 days after the conclusion of the public comment period pursuant to paragraph (4) regarding an application but not more than 30 days after the conclusion of such comment period, the Director shall approve, conditionally approve, or reject such program, in writing.</text></paragraph> <paragraph id="H072604ABCBD24BDE9700AFBE42F55730"><enum>(6)</enum><header>Standard for approval</header><text>The Director may approve, or conditionally approve, a new program of an enterprise only if the Director determines, taking into consideration any relevant information and comments received during the public comment period, that such new program—</text> <subparagraph id="HC80D26BC05DB4D1CACD6822426D755AC"><enum>(A)</enum><text>does not contravene and is not inconsistent with the purposes of this title, the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, as such purposes are determined taking into consideration the definitions of the terms <term>mortgage loan origination</term> and <term>secondary mortgage market</term> pursuant to section 1303;</text></subparagraph> <subparagraph id="H3BAB2DA08DB64B0E9400C47EFDAC899"><enum>(B)</enum><text>is not otherwise inconsistent with the safety and soundness of the enterprise; and</text></subparagraph> <subparagraph id="H9CC44AE1212242F3805DF4D429AA3EBB"><enum>(C)</enum><text>is in the public interest.</text></subparagraph></paragraph> <paragraph id="HA94FBE12A74B4CD182E53493144C9E4E" display-inline="no-display-inline"><enum>(7)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Director, in implementing this subsection, may not prevent an enterprise from continuing to offer the automated loan underwriting system in existence on the date of the enactment of the Federal Housing Finance Reform Act of 2005 or continuing to engage in counseling and education activities.</text></paragraph></subsection> <subsection id="H260C324F030140DABC74D3EFD500A5B7"><enum>(c)</enum><header>New business activities</header> <paragraph id="H5908F4A3CC38493AA901D0E81393A9A0"><enum>(1)</enum><header>Authority of Director to prohibit new business activities</header><text>The Director shall have authority to prohibit any new business activity by an enterprise if the Director determines, in writing, that such activity—</text> <subparagraph id="H892E950247034755BEC5DACD31508BE9"><enum>(A)</enum><text>contravenes or is inconsistent with the purposes of this title, the Federal National Mortgage Association Charter Act, or the Federal Home Loan Mortgage Corporation Act;</text></subparagraph> <subparagraph id="HA1F0030155F74D25A41F5BFB86110000"><enum>(B)</enum><text>is otherwise inconsistent with the safety and soundness of the enterprise; or</text></subparagraph> <subparagraph id="HF1BB2E633E61495386B81CE3B0061585"><enum>(C)</enum><text>is not in the public interest.</text></subparagraph></paragraph> <paragraph id="H06801814D6524DB183E59B26F1EFDCD8"><enum>(2)</enum><header>Notification of new business activities</header><text>An enterprise that undertakes any new business activity shall provide written notice of the activity to the Director and may commence the new business activity only in accordance with paragraph (4).</text></paragraph> <paragraph id="H9E45404C3532449E87B20081380088F7"><enum>(3)</enum><header>Director determination of applicable procedure</header> <subparagraph id="H4988566EDE4D47109DE52B6F76D5C5AF"><enum>(A)</enum><header>Timing</header><text>Immediately upon receipt of any notice under paragraph (2) regarding a new business activity, the Director shall undertake a determination under subparagraph (B) of this paragraph regarding the new business activity.</text></subparagraph> <subparagraph id="HF25370FC2D754568BB6E5BE400EBC4B"><enum>(B)</enum><header>Determination and treatment as new program</header><text>If the Director determines that any new business activity consists of, relates to, or involves any new program—</text> <clause id="H31BBA35B5E2E4CA488A773C8609325E1"><enum>(i)</enum><text>the Director shall notify the enterprise of the determination;</text></clause> <clause id="HB098C4B921794793B6FCAB1B001CC8EA"><enum>(ii)</enum><text>the new business activity described in the notice shall be considered a new program for purposes of this section; and</text></clause> <clause id="H4F5E18C728DB4A9A9D5EB24FF189A349"><enum>(iii)</enum><text>the Director shall prohibit the enterprise from carrying out the activity except to the extent that approval for the activity is obtained pursuant to subsection (b).</text></clause></subparagraph></paragraph> <paragraph id="H5253CB434EEC46528F7DE84F3D753956"><enum>(4)</enum><header>Commencement</header><text>An enterprise may commence a new business activity—</text> <subparagraph id="HFB752D6F1C4A4F97B31189D89456FA9"><enum>(A)</enum><text>if the Director issues a written approval regarding such new business activity, immediately upon such issuance or at such other time as provided by the Director in such letter; or</text></subparagraph> <subparagraph id="H9B55A17E8BFB45C1806490CA3D626000"><enum>(B)</enum><text>if, during the 30-day period beginning upon receipt by the Director of notice pursuant to paragraph (2) regarding a new business activity, the Director has not issued to the enterprise a written approval or denial of the new business activity, upon the expiration of such 30-day period.</text></subparagraph></paragraph></subsection> <subsection id="HAB7592FEDCFD4D5D009BA8A718FAA2BA"><enum>(d)</enum><header>Approval and conditional approval</header><text>The Director may at any time conditionally approve the undertaking of a particular new program or new business activity by an enterprise and set forth the terms and conditions that apply to the program or activity with which the enterprise shall comply if it undertakes the new program or activity. Such approval may, in the discretion of the Director, be in the form of a written agreement between the enterprise and the Director and shall be subject to such terms and conditions therein. Such a written agreement or conditional approval shall be enforceable under subtitle C.</text></subsection> <subsection id="H3CD8533756D24C16B03BAB96F1F2C972" commented="no"><enum>(e)</enum><header>Determination and treatment of activity as new business activity</header><text>If the Director determines that any activity of an enterprise consists of, relates to, or involves any new business activity—</text> <paragraph id="HAB77F671C78943F6A5673153AFF23F9" commented="no"><enum>(1)</enum><text>the Director shall notify the enterprise of the determination;</text></paragraph> <paragraph id="HC362A5885A14407C8D8FF0486D7D29" commented="no"><enum>(2)</enum><text>such activity shall be considered a new business activity for purposes of this section; and</text></paragraph> <paragraph id="HFABB3F9C9A8C4F9ABE4CE29C00EE106D" commented="no"><enum>(3)</enum><text>the Director shall prohibit the enterprise from carrying out the activity except to the extent that approval for the activity is obtained pursuant to subsection (c).</text></paragraph></subsection> <subsection id="HB5E6E81E813B424D9228AD131D511BC8"><enum>(f)</enum><header>Effect on other authorities</header> <paragraph id="HEA83EC286BB64B2F8085034977F13EBD"><enum>(1)</enum><header>Examinations</header><text>Nothing in this section may be construed to limit, in any manner, any other authority or right the Director may have under other provisions of law to conduct an examination of an enterprise.</text></paragraph> <paragraph id="H97C76CF0C9394E9DB534D8B45DDFCB78"><enum>(2)</enum><header>Requests for information</header><text>Nothing in this section may be construed to limit the right of the Director at any time to request additional information from an enterprise concerning any business activity.</text></paragraph> <paragraph id="H34DC257B1D1B47A9BDD03000C27EAB24"><enum>(3)</enum><header>No implied right of action</header><text>This section shall not create any private right of action against an enterprise or any director or executive officer of an enterprise, or impair any private right of action under other applicable law.</text></paragraph> <paragraph id="H1D615E263A1143F88BB6D57571EE01DF"><enum>(4)</enum><header>No limitation</header><text>Nothing in this section may be construed to restrict the general supervisory and regulatory authority of the Director over all programs, products, activities, or business operations of any kind.</text></paragraph></subsection> <subsection id="H491C9863C41A41EBB21D24E7D2B2C08"><enum>(g)</enum><header>Report on programs and business activities</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, each enterprise shall submit to the Director a report identifying and describing each program and business activity of the enterprise engaged in or existing as of the submission of the report.</text></subsection> <subsection id="H3E73BCFF382F4061BA4C6328ADA9F6F"><enum>(h)</enum><header>Regulations</header><text>The Director shall by order or regulation issue rules and procedures to implement this section, including in the discretion of the Director, such definitions, interpretations, forms, and other guidances as the Director considers appropriate.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5D423D3F12DF480D82B7F2800DFC378"><enum>(b)</enum><header>Definitions</header><text>Section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>), as amended by section 2 of this Act, is further amended—</text> <paragraph id="HCCA8A0E22493411B8C80CAA11904105"><enum>(1)</enum><text>by redesignating paragraphs (17) through (23) as paragraphs (20) through (26), respectively;</text></paragraph> <paragraph id="H9C2230FDED0C41BA8FA712C09500C3B8"><enum>(2)</enum><text>by inserting after paragraph (16) the following new paragraph:</text> <quoted-block id="HED9D03E6586F465F9E46908352EA4B92"> <paragraph id="H57A082F82FF64D75BE7181BC0000152F" commented="no"><enum>(19)</enum><header>New business activity</header><text display-inline="yes-display-inline">The term <term>new business activity</term> means, with respect to an enterprise, a business activity that—</text> <subparagraph id="HC7AB258F56E341AC0002C9A82C3DE796" commented="no"><enum>(A)</enum><text>is materially changed or materially different from any of the business activities that the enterprise was engaging in on the effective date under section 185 of the Federal Housing Finance Reform Act of 2005; and</text></subparagraph> <subparagraph id="HEDEE6AD25A9A49CE9FBFB13BBC6B81B5" commented="no"><enum>(B)</enum><text>the enterprise has not previously obtained authorization, pursuant to the provisions of section 1321(c), to offer, undertake, transact, conduct, or engage in.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HEBCC8EE82B744BCEBA7C8D911530E34E"><enum>(3)</enum><text>by redesignating paragraphs (15) and (16) as paragraphs (17) and (18), respectively;</text></paragraph> <paragraph id="H1084CBC2D80641CD85A500A7FEDBF9A1"><enum>(4)</enum><text>by inserting after paragraph (14) the following new paragraph:</text> <quoted-block id="HEC4C677B72C44EE6AB7DCD71D66876DC"> <paragraph id="HD2DB606FE0CD4F82B6B469CB6778BE98"><enum>(16)</enum><header>Mortgage markets</header><text>The terms <term>mortgage loan origination</term> and <term>secondary mortgage market</term> shall have such meanings as the Director shall, by regulation, prescribe consistent with the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> and the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>. The Director shall issue such regulations not later than the expiration of the 12-month period beginning on the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, and the Director shall review such regulations on a periodic basis.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HC8E965D475654CDD97B32C121268188B"><enum>(5)</enum><text>by redesignating paragraphs (5) through (14) as paragraphs (6) through (15), respectively; and</text></paragraph> <paragraph id="H0259E6C1C99447B6B46B9373A8890455"><enum>(6)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H14ACB42742F1447DA8A3EA766B604964"> <paragraph id="HE0FEEF856E5B46219EC8EB2195F289A4"><enum>(5)</enum><header>Business activity</header><text display-inline="yes-display-inline">The term <term>business activity</term> means, with respect to an enterprise, any offering, undertaking, transacting, conducting, or engaging in any conduct, activity, or product by the enterprise, as the Director shall provide.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HA71B3B0049BF4A84A5007900D7BBC2C"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H72E2599012E24CD297E960C354BB9FE0"><enum>(1)</enum><header>Fannie mae</header><text>Section 302(b)(6) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(6)</external-xref>) is amended—</text> <subparagraph id="HEF62276964EA467DB69E35246BD0F1F5"><enum>(A)</enum><text>by striking <quote>new program (as such term is</quote> and inserting <quote>new program or new business activity (as such terms are</quote>; and</text></subparagraph> <subparagraph id="H79C49A2A9C574F169300897537903CC5"><enum>(B)</enum><text>by striking <quote>before obtaining the approval of the Secretary under section 1322</quote> and inserting <quote>except in accordance with section 1321</quote>.</text></subparagraph></paragraph> <paragraph id="H5D749A1444994A91AFE2DF9F9E0028C2" display-inline="no-display-inline"><enum>(2)</enum><header>Freddie mac</header><text>Section 305(c) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(c)</external-xref>) is amended—</text> <subparagraph id="H53A8CD28EFF4497EA4A07B89F9F4EA34"><enum>(A)</enum><text>by striking <quote>new program (as such term is</quote> and inserting <quote>new program or new business activity (as such terms are</quote>; and</text></subparagraph> <subparagraph id="HE1432315C5174F868600768C92C9E2A6"><enum>(B)</enum><text>by striking <quote>before obtaining the approval of the Secretary under section 1322</quote> and inserting <quote>except in accordance with section 1321</quote>. </text></subparagraph></paragraph></subsection></section> <section id="HD4C887045A5B4707A0BA6DCDB5007F6F"><enum>123.</enum><header>Conforming loan limits</header> <subsection id="H7044BAFD71B34BD787AEE8A22A9FEC5"><enum>(a)</enum><header>Fannie mae</header> <paragraph id="HB63708C3B4824678A852D73C54A4A4B2"><enum>(1)</enum><header>General limit</header><text>Section 302(b)(2) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) is amended by striking the 7th and 8th sentences and inserting the following new sentences: <quote>Such limitations shall not exceed $359,650 for a mortgage secured by a single-family residence, $460,400 for a mortgage secured by a 2-family residence, $556,500 for a mortgage secured by a 3-family residence, and $691,600 for a mortgage secured by a 4-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>, subject to the limitations in this paragraph. Each adjustment shall be made by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recent 12-month or fourth-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained by the Director of the Federal Housing Finance Agency (pursuant to section 1322 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541</external-xref>)).</quote>.</text></paragraph> <paragraph id="HED793C073D0D483683F4D00009AFB32C"><enum>(2)</enum><header>High-cost area limit</header><text display-inline="yes-display-inline">Section 302(b)(2) of the Federal National Mortgage Association Charter Act is (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) is amended by adding after the period at the end the following: <quote>Such foregoing limitations shall also be increased with respect to properties of a particular size located in any area for which the median price for such size residence exceeds the foregoing limitation for such size residence, to the lesser of 150 percent of such foregoing limitation for such size residence or the amount that is equal to the median price in such area for such size residence, except that, subject to the order, if any, issued by the Director of the Federal Housing Finance Agency pursuant to section 123(d)(3) of the Federal Housing Finance Reform Act of 2005, such increase shall apply only with respect to mortgages on which are based securities issued and sold by the corporation.</quote></text></paragraph></subsection> <subsection id="HC65C3C450D114FCC98899514314D001F"><enum>(b)</enum><header>Freddie mac</header> <paragraph id="H3ED386185CB84A75995F3B4B6D8CFF5F"><enum>(1)</enum><header>General limit</header><text> Section 305(a)(2) of the <act-name parsable-cite="FNMACA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)(2)</external-xref>) is amended by striking the 6th and 7th sentences and inserting the following new sentences: <quote>Such limitations shall not exceed $359,650 for a mortgage secured by a single-family residence, $460,400 for a mortgage secured by a 2-family residence, $556,500 for a mortgage secured by a 3-family residence, and $691,600 for a mortgage secured by a 4-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>, subject to the limitations in this paragraph. Each adjustment shall be made by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recent 12-month or fourth-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained by the Director of the Federal Housing Finance Agency (pursuant to section 1322 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541</external-xref>)).</quote>.</text></paragraph> <paragraph id="HF4B6B8664ADD4DF9A3F9EBA45F0014C3"><enum>(2)</enum><header>High-cost area limit</header><text display-inline="yes-display-inline">Section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act is amended by adding after the period at the end the following: <quote>Such foregoing limitations shall also be increased with respect to properties of a particular size located in any area for which the median price for such size residence exceeds the foregoing limitation for such size residence, to the lesser of 150 percent of such foregoing limitation for such size residence or the amount that is equal to the median price in such area for such size residence, except that, subject to the order, if any, issued by the Director of the Federal Housing Finance Agency pursuant to section 123(d)(3) of the Federal Housing Finance Reform Act of 2005, such increase shall apply only with respect to mortgages on which are based securities issued and sold by the Corporation.</quote></text></paragraph></subsection> <subsection id="H267DC7B2B8B94684A56EF2B5876F1BC6"><enum>(c)</enum><header>Housing price index</header><text>Subpart A of part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as amended by the preceding provisions of this Act) is amended by inserting after section 1321 (as added by section 122 of this Act) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H0F36AE5C474747F900B5970153D4A410"> <section id="H484D9D6CDB8A4FBBA766325F6800CDB"><enum>1322.</enum><header>Housing price index</header> <subsection id="H68FCAF35CC5F43198617D8F24296940"><enum>(a)</enum><header>In General</header><text>The Director shall establish and maintain a method of assessing the national average 1-family house price for use for adjusting the conforming loan limitations of the enterprises. In establishing such method, the Director shall take into consideration the monthly survey of all major lenders conducted by the Federal Housing Finance Agency to determine the national average 1-family house price, the House Price Index maintained by the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development before the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, any appropriate house price indexes of the Bureau of the Census of the Department of Commerce, and any other indexes or measures that the Director considers appropriate.</text></subsection> <subsection id="H697A1365A3534D6EB4DE667053BC8D87"><enum>(b)</enum><header>GAO audit</header> <paragraph id="H4D8CE7C741054CB7B21579022048B46E"><enum>(1)</enum><header>In General</header><text>At such times as are required under paragraph (2), the Comptroller General of the United States shall conduct an audit of the methodology established by the Director under subsection (a) to determine whether the methodology established is an accurate and appropriate means of measuring changes to the national average 1-family house price.</text></paragraph> <paragraph id="H5218CE3658A54E18805CDFAE01F3C1E9"><enum>(2)</enum><header>Timing</header><text>An audit referred to in paragraph (1) shall be conducted and completed not later than the expiration of the 180-day period that begins upon each of the following dates:</text> <subparagraph id="HDCC097FC09264456944946681433ECF6"><enum>(A)</enum><header>Establishment</header><text>The date upon which such methodology is initially established under subsection (a) in final form by the Director.</text></subparagraph> <subparagraph id="H1ECAB5081F9A49D8A8200700A1E47727"><enum>(B)</enum><header>Modification or amendment</header><text>Each date upon which any modification or amendment to such methodology is adopted in final form by the Director.</text></subparagraph></paragraph> <paragraph id="HE5AC012D06DC452A8730CDCC8A27422"><enum>(3)</enum><header>Report</header><text>Within 30 days of the completion of any audit conducted under this subsection, the Comptroller General shall submit a report detailing the results and conclusions of the audit to the Director, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5940061FA43C4D8495401B3CA497C23E"><enum>(d)</enum><header>Conditions on conforming loan limit for high-cost areas</header> <paragraph id="H847305CE2D4B4E07942B8162B688B5F2"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">The Director of the Federal Housing Finance Agency shall conduct a study under this subsection during the six-month period beginning on the effective date under section 185 of this Act.</text></paragraph> <paragraph id="HE67681E24F004E79BCDCA77E3BF9A59C"><enum>(2)</enum><header>Issues</header><text>The study under this subsection shall determine—</text> <subparagraph id="HA786595C167B4D6394CF6BAEE7AC2493"><enum>(A)</enum><text display-inline="yes-display-inline">the effect that restricting the conforming loan limits for high-cost areas only to mortgages on which are based securities issued and sold by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (as provided in the last sentence of section 302(b)(2) of the Federal National Mortgage Association Charter Act and the last sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, pursuant to the amendments made by subsections (a)(2) and (b)(2) of this section) would have on the cost to borrowers for mortgages on housing in such high-cost areas;</text></subparagraph> <subparagraph id="H9BE6F7926E164C0CB757499E00E12C77"><enum>(B)</enum><text>the effects that such restrictions would have on the availability of mortgages for housing in such high-cost areas; and</text></subparagraph> <subparagraph id="HD3435E2AA41B4BA685C37C0B988A06E"><enum>(C)</enum><text>the extent to which the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation will be able to issue and sell securities based on mortgages for housing located in such high-cost areas.</text></subparagraph></paragraph> <paragraph id="H548956C2E6E44507A912ACCE9B51BAA6"><enum>(3)</enum><header>Determination</header> <subparagraph id="H3F82A1808A2F403500F6B78F6C7D1934"><enum>(A)</enum><header>In general</header><text>Not later than the expiration of the six-month period specified in paragraph (1), the Director of the Federal Housing Finance Agency shall make a determination, based on the results of the study under this subsection, of whether the restriction of conforming loan limits for high-cost areas only to mortgages on which are based securities issued and sold by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (as provided in the amendments made by subsections (a)(2) and (b)(2) of this section) will result in an increase in the cost to borrowers for mortgages on housing in such high-cost areas.</text></subparagraph> <subparagraph id="H09231A201135455C816F1420EF04111"><enum>(B)</enum><header>Order</header><text> If such determination is that costs to borrowers on housing in such high-cost areas will be increased by such restrictions, the Director may issue an order terminating such restrictions, in whole or in part.</text></subparagraph></paragraph> <paragraph id="H3E78158E04F441A28D8E7C6EC3630E2"><enum>(4)</enum><header>Publication</header><text> Not later than the expiration of the six-month period specified in paragraph (1), the Director of the Federal Housing Finance Agency shall cause to be published in the Federal Register—</text> <subparagraph id="H41A53BF2C8524A2387601900476876D6"><enum>(A)</enum><text>a report that—</text> <clause id="HC6AC56D019CC4E61879030B4CD0C5DD"><enum>(i)</enum><text>describes the study under this subsection; and</text></clause> <clause id="HFDDBCBBABA76463590CC91C3543B1D83"><enum>(ii)</enum><text>sets forth the conclusions of the study regarding the issues to be determined under paragraph (2); and</text></clause></subparagraph> <subparagraph id="H169DEA0FEDC34452B1EC1246C8FC42DE"><enum>(B)</enum><text>notice of the determination of the Director under paragraph (3); and</text></subparagraph> <subparagraph id="H5D1F5691C9F248F3B7B85FF4A02E5FA0"><enum>(C)</enum><text display-inline="yes-display-inline">the order of the Director under paragraph (3).</text></subparagraph></paragraph> <paragraph id="HFF2FD65BD8514B7F0015E3C65DEF20B3"><enum>(5)</enum><header>Definition</header><text>For purposes of this subsection, the term <quote>conforming loan limits for high-cost areas</quote> means the dollar amount limitations applicable under the section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (as amended by subsections (a) and (b) of this section) for areas described in the last sentence of such sections (as so amended).</text></paragraph></subsection> <subsection id="HF33BC40E74A847228336263B57CACD23"><enum>(e)</enum><header>Regular adjustment of conforming loan limits</header> <paragraph id="H5253F07B32314D6000947B9F86878266"><enum>(1)</enum><header>Adjustment for year intervening before effective date</header><text display-inline="yes-display-inline">Notwithstanding section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, as amended by this section, the maximum dollar amount limitations in such sections shall be adjusted on the effective date under section 185 of this Act, and the limitations as so adjusted shall be immediately effective, so that the limitations under such sections applicable to the year in which such effective date occurs are equal to the limitations in effect under such sections immediately before such effective date.</text></paragraph> <paragraph id="H0B181A5BCBFF45C3B9C29DCD48DEBB"><enum>(2)</enum><header>Further adjustments</header><text display-inline="yes-display-inline">After such effective date, the dollar amount limitations as adjusted pursuant to paragraph (1) shall be considered <quote>such amount (as it may have been previously adjusted</quote> for purposes of section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.</text></paragraph></subsection></section> <section id="H3298AA33767F40D093DA53A2CC3E114"><enum>124.</enum><header>Annual housing report regarding regulated entities</header> <subsection id="HDBF9CE69559846629F86E48C9CDBB0AB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking section 1324 (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544</external-xref>) and inserting the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H3E701AB9C60B40F2A3DF4E46FB2B513"> <section id="HCB2C33E159A54830A4F6CDA6A883AEA"><enum>1324.</enum><header>Annual housing report regarding regulated entities</header> <subsection id="H5A4E2F8FE5C14684B60041F3C12BBAA0"><enum>(a)</enum><header>In General</header><text>After reviewing and analyzing the reports submitted under section 309(n) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, section 307(f) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, and section 10(j)(11) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)(11)</external-xref>), the Director shall submit a report, not later than October 30 of each year, to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, on the activities of each regulated entity.</text></subsection> <subsection id="H991A53FC1AA6464EADB3002BDFFB756B"><enum>(b)</enum><header>Contents</header><text>The report shall—</text> <paragraph id="H4E9F6F0657DB461D9D8F25F4108CB7F3"><enum>(1)</enum><text>discuss the extent to which—</text> <subparagraph id="HADCDE07E2AF847FF9094DB10D4FE4225"><enum>(A)</enum><text>each enterprise is achieving the annual housing goals established under subpart B of this part;</text></subparagraph> <subparagraph id="H7FD2998B6A8443A694DD05A2CB14E77B"><enum>(B)</enum><text>each enterprise is complying with section 1337;</text></subparagraph> <subparagraph id="H11E74AD14C374F78B24CDA18D339126"><enum>(C)</enum><text>each Federal home loan bank is complying with section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>; and</text></subparagraph> <subparagraph id="HB492E2DE7DFF4F4D9F9C84008252FE90"><enum>(D)</enum><text>each regulated entity is achieving the purposes of the regulated entity established by law;</text></subparagraph></paragraph> <paragraph id="H7FED43F952634543AA9C98FBAB2A27B"><enum>(2)</enum><text>aggregate and analyze relevant data on income to assess the compliance by each enterprise with the housing goals established under subpart B;</text></paragraph> <paragraph id="H4173B5E892FD4105BA005F00CF00A61C"><enum>(3)</enum><text>aggregate and analyze data on income, race, and gender by census tract and other relevant classifications, and compare such data with larger demographic, housing, and economic trends;</text></paragraph> <paragraph id="H982F4E7D48A94EFCBB64002C1245D435"><enum>(4)</enum><text>examine actions that—</text> <subparagraph id="H8D89CB89D5714C4D00D109EF7C8354AD"><enum>(A)</enum><text>each enterprise has undertaken or could undertake to promote and expand the annual goals established under subpart B and the purposes of the enterprise established by law; and</text></subparagraph> <subparagraph id="HA1CEC424B96B4968A3F6646647BF23B0"><enum>(B)</enum><text>each Federal home loan bank has taken or could undertake to promote and expand the community investment program and affordable housing program of the bank established under section subsections (i) and (j) of section 10 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></subparagraph></paragraph> <paragraph id="H5ECF09AD10EE4680BF1471B9147C1404"><enum>(5)</enum><text>examine the primary and secondary multifamily housing mortgage markets and describe—</text> <subparagraph id="H4BFB8EA003874A4881EAABC91E4052FB"><enum>(A)</enum><text>the availability and liquidity of mortgage credit;</text></subparagraph> <subparagraph id="H38480F616FD84FE585C41684DBEDB2D4"><enum>(B)</enum><text>the status of efforts to provide standard credit terms and underwriting guidelines for multifamily housing and to securitize such mortgage products; and</text></subparagraph> <subparagraph id="HC201BC173A434DB2A41D015942E93606"><enum>(C)</enum><text>any factors inhibiting such standardization and securitization;</text></subparagraph></paragraph> <paragraph id="HAB41A0D6806F4AB8862B9E69364D8B4E"><enum>(6)</enum><text>examine actions each regulated entity has undertaken and could undertake to promote and expand opportunities for first-time homebuyers;</text></paragraph> <paragraph id="HBD0A13889B0E4843A5D25D7D7DF4CA8F"><enum>(7)</enum><text>describe any actions taken under section 1325(5) with respect to originators found to violate fair lending procedures;</text></paragraph> <paragraph id="H2311936FAD46466589F6D622D5828430"><enum>(8)</enum><text>discuss and analyze existing conditions and trends, including conditions and trends relating to pricing, in the housing markets and mortgage markets; and</text></paragraph> <paragraph id="H9F1D4EB5B26D4E9599339F57513F487F"><enum>(9)</enum><text>identify the extent to which each enterprise is involved in mortgage purchases and secondary market activities involving subprime loans (as identified in accordance with the regulations issued pursuant to section 124(b) of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>) and compare the characteristics of subprime loans purchased and securitized by the enterprises to other loans purchased and securitized by the enterprises</text></paragraph></subsection> <subsection id="HA94F0BED47CA48D6859B001D6BBDE88C"><enum>(c)</enum><header>Data collection and reporting</header> <paragraph id="HA373B6F4D70841408958091B7D108605"><enum>(1)</enum><header>In General</header><text>To assist the Director in analyzing the matters described in subsection (b) and establishing the methodology described in section 1322, the Director shall conduct, on a monthly basis, a survey of mortgage markets in accordance with this subsection.</text></paragraph> <paragraph id="HE375543605994582A103613B68E95ED5"><enum>(2)</enum><header>Data points</header><text>Each monthly survey conducted by the Director under paragraph (1) shall collect data on—</text> <subparagraph id="H2A56FA66FD594130A8D400CCE4FE28A5"><enum>(A)</enum><text>the characteristics of individual mortgages that are eligible for purchase by the enterprises and the characteristics of individual mortgages that are not eligible for purchase by the enterprises including, in both cases, information concerning—</text> <clause id="H3D9E57E649C5448188EA3200D71C195E"><enum>(i)</enum><text>the price of the house that secures the mortgage;</text></clause> <clause id="H9447BCA38D054C4CA77C1D44AD6FAAA9"><enum>(ii)</enum><text>the loan-to-value ratio of the mortgage, which shall reflect any secondary liens on the relevant property;</text></clause> <clause id="H2C62F6525ACD44D69214935233081302"><enum>(iii)</enum><text>the terms of the mortgage;</text></clause> <clause id="HF2F06210C7B24948A55456F9153F859B"><enum>(iv)</enum><text>the creditworthiness of the borrower or borrowers; and</text></clause> <clause id="H1301B6564EA94AA5A976642EF6E5BE00"><enum>(v)</enum><text>whether the mortgage, in the case of a conforming mortgage, was purchased by an enterprise; and</text></clause></subparagraph> <subparagraph id="HAAD5072828FC4B578542001903ECA16"><enum>(B)</enum><text>such other matters as the Director determines to be appropriate.</text></subparagraph></paragraph> <paragraph id="H28B1628FD3D54C1900CB44F2EBA60035"><enum>(3)</enum><header>Public availability</header><text>The Director shall make any data collected by the Director in connection with the conduct of a monthly survey available to the public in a timely manner, provided that the Director may modify the data released to the public to ensure that the data is not released in an identifiable form.</text></paragraph> <paragraph id="H4E9FFC4027ED4285ABA107D104233673"><enum>(4)</enum><header>Definition</header><text>For purposes of this subsection, the term <term>identifiable form</term> means any representation of information that permits the identity of a borrower to which the information relates to be reasonably inferred by either direct or indirect means.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBBEE7FD4969046B48602F19832FD4410"><enum>(b)</enum><header>Standards for subprime loans</header><text display-inline="yes-display-inline">The Director shall, not later than one year after the effective date under section 185, by regulations issued under section 1316G of the Housing and Community Development Act of 1992, establish standards by which mortgages purchased and mortgages purchased and securitized shall be characterized as subprime for the purpose of, and only for the purpose of, complying with the reporting requirement under section 1324(b)(9) of such Act.</text></subsection></section> <section id="H12C67EA07A58498E91F072B6FB4DCC4E" display-inline="no-display-inline" section-type="subsequent-section"><enum>125.</enum><header>Revision of housing goals</header> <subsection id="HFB22E76949164F7CA67632C7E92C9233"><enum>(a)</enum><header>Housing goals</header><text>The Housing and Community Development Act of 1992 is amended by striking sections 1331 through 1334 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561-4">12 U.S.C. 4561-4</external-xref>) and inserting the following new sections: </text> <quoted-block style="OLC" id="H5830CC0142F9435EBC007F61C177F52D" display-inline="no-display-inline"> <section id="H31ECB39A2CE54A0000B3A5DD0413D3F0"><enum>1331.</enum><header> Establishment of housing goals</header> <subsection id="HFA82F1954E2A45C50052CC946DC1192E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director shall establish, effective for the first year that begins after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title> and each year thereafter, annual housing goals, with respect to the mortgage purchases by the enterprises, as follows:</text> <paragraph id="H071E695D84C843E1A28B8308B289003C"><enum>(1)</enum><header>Single family housing goals</header><text>Three single-family housing goals under section 1332.</text></paragraph> <paragraph id="H2EF645AA1647465C9BD5A134FCE63BF5"><enum>(2)</enum><header>Multifamily special affordable housing goals</header><text display-inline="yes-display-inline">A multifamily special affordable housing goal under section 1333.</text></paragraph></subsection> <subsection id="HCB2F1767A78146E8820093F3D52E3DC9"><enum>(b)</enum><header>Eliminating interest rate disparities</header> <paragraph id="HC0A9BD2A585E429CA15CCCABD99DE13"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In establishing and implementing the housing goals under this subpart, the Director shall require the enterprises to disclose appropriate information to allow the Director to assess if there are any disparities in interest rates charged on mortgages to borrowers who are minorities as compared with borrowers of similar creditworthiness who are not minorities, as evidenced in reports pursuant to the Home Mortgage Disclosure Act of 1975.</text></paragraph> <paragraph id="HED199C494EEA4D20963DC640F588C0AF"><enum>(2)</enum><header>Report and remedy</header><text display-inline="yes-display-inline">Upon a finding by the Director, pursuant to the information provided by an enterprise in paragraph (1), that a pattern of disparities in interest rates exists, the Director shall—</text> <subparagraph id="HFEBF04573C3441B8B46E90AE42C27391"><enum>(A)</enum><text>submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report detailing the disparities; and</text></subparagraph> <subparagraph id="HBC380A8C837C4A4D9F895680241BD8AA"><enum>(B)</enum><text>require the enterprise to take such action as the Director deems appropriate pursuant to this Act to remedy the interest rate disparities identified.</text></subparagraph></paragraph> <paragraph id="H612D0CEFC6A84D4900FB50358957D800"><enum>(3)</enum><header>Protection of identity</header><text display-inline="yes-display-inline">In carrying out this subsection, the Director shall ensure that no information is made public that would reasonably allow identification, directly or indirectly, of an individual borrower.</text></paragraph></subsection> <subsection id="H86A45350F5DF4BD3ABF6D9EF57C268E"><enum>(c)</enum><header>Timing</header><text display-inline="yes-display-inline">The Director shall establish an annual deadline by which the Director shall establish the annual housing goals under this subpart for each year, taking into consideration the need for the enterprises to reasonably and sufficiently plan their operations and activities in advance, including operations and activities necessary to meet such annual goals.</text></subsection></section> <section id="H579639086FF94A5594AF597C4B10AFBD"><enum>1332.</enum><header>Single-family housing goals</header> <subsection id="H941B737FDDEF4519AD49E4B6F51EE4A7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director shall establish an annual goal for the purchase by each enterprise of conventional, conforming, single-family, owner-occupied, purchase money mortgages financing housing for each of the following categories of families:</text> <paragraph id="HC5A3F115044246A792AE74CE7B70F6B"><enum>(1)</enum><text>Low-income families.</text></paragraph> <paragraph id="H23ADD12931374A69A822179F3C64CF3F"><enum>(2)</enum><text>Families that reside in low-income areas.</text></paragraph> <paragraph id="HED57B6194B6344D29F7400CCE263F65F"><enum>(3)</enum><text>Very low-income families.</text></paragraph></subsection> <subsection id="HF7B4C9EDB541472CBFCCA33B3FD22321"><enum>(b)</enum><header>Determination of compliance</header><text display-inline="yes-display-inline">The Director shall determine, for each year that the housing goal under this section is in effect pursuant to section 1331(a), whether each enterprise has complied with the single-family housing goal established under this section for such year. An enterprise shall be considered to be in compliance with such a goal for a year only if—</text> <paragraph id="H38B98B8630CA4B8700EEB4BDE5805700"><enum>(1)</enum><text display-inline="yes-display-inline">for each of the types of families described in subsection (a), the percentage of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by each enterprise in such year that serve such families, meets or exceeds</text></paragraph> <paragraph id="HFA7D7AEC1EE6411CAFFFEB6300245302"><enum>(2)</enum><text>the target for the year for such type of family that is established under subsection (c).</text></paragraph></subsection> <subsection id="HFF7FDE0EBA414B17AAFE447542F762D3"><enum>(c)</enum><header>Annual targets</header> <paragraph id="H88E148D47FA54425B1D170D8F74D81C6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), for each of the types of families described in subsection (a), the target under this subsection for a year shall be the average percentage, for the three years that most recently precede such year and for which information under the Home Mortgage Disclosure Act of 1975 is publicly available, of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages originated in such year that serves such type of family, as determined by the Director using the information obtained and determined pursuant to paragraphs (3) and (4).</text></paragraph> <paragraph id="H0E04D62A7C62478BB19F6D33BB381677" display-inline="no-display-inline"><enum>(2)</enum><header>Authority to increase targets</header> <subparagraph id="H6A2C17CD957041D186B79720B29D313B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Director may, for any year, establish by regulation, for any or all of the types of families described in subsection (a), percentage targets that are higher than the percentages for such year determined pursuant to paragraph (1), to reflect expected changes in market performance related to such information under the Home Mortgage Disclosure Act of 1975.</text></subparagraph> <subparagraph id="HC39B5B22BDB9478E8EDAEBDDCA7443F5"><enum>(B)</enum><header>Factors</header><text display-inline="yes-display-inline">In establishing any targets pursuant to subparagraph (A), the Director shall consider the following factors:</text> <clause id="H9EB68BF3A95F477B00B42F5CFB2056E0"><enum>(i)</enum><text>National housing needs.</text></clause> <clause id="HD3E4E804EA96482AB9A48822FF861713"><enum>(ii)</enum><text>Economic, housing, and demographic conditions.</text></clause> <clause id="HBE27BE782BC745E1A71B00BB929FD35F"><enum>(iii)</enum><text>The performance and effort of the enterprises toward achieving the housing goals under this section in previous years.</text></clause> <clause id="H8395B65534304CE7AA823FC57836832B"><enum>(iv)</enum><text display-inline="yes-display-inline">The size of the conventional mortgage market serving each of the types of families described in subsection (a) relative to the size of the overall conventional mortgage market.</text></clause> <clause id="H5542D0B4CA1C462E98A5A50045EBB7F"><enum>(v)</enum><text>The need to maintain the sound financial condition of the enterprises.</text></clause></subparagraph></paragraph> <paragraph id="H84B9E1C25E2C4A0FA39656119D274403"><enum>(3)</enum><header>HMDA information</header><text display-inline="yes-display-inline">The Director shall annually obtain information submitted in compliance with the Home Mortgage Disclosure Act of 1975 regarding conventional, conforming, single-family, owner-occupied, purchase money mortgages originated and purchased for the previous year.</text></paragraph> <paragraph id="HBF411451D83D4C009390D424F207E649"><enum>(4)</enum><header>Conforming mortgages</header><text display-inline="yes-display-inline">In determining whether a mortgage is a conforming mortgage for purposes of this paragraph, the Director shall consider the original principal balance of the mortgage loan to be the principal balance as reported in the information referred to in paragraph (3), as rounded to the nearest thousand dollars.</text></paragraph></subsection> <subsection id="HC5F5682B62314B9587A5E0E438B676CB"><enum>(d)</enum><header>Notice of determination and enterprise comment</header> <paragraph id="H3B53B3DCD58A4AEDB800C0CFEB443BA4"><enum>(1)</enum><header>Notice</header><text>Within 30 days of making a determination under subsection (b) regarding a compliance of an enterprise for a year with the housing goal established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the targets for the year under subsection (c).</text></paragraph> <paragraph id="HA36B0F0E08644B64B462E6095B9B654C"><enum>(2)</enum><header>Comment period</header><text display-inline="yes-display-inline">The Director shall provide each enterprise an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice.</text></paragraph></subsection> <subsection id="H07F814041EDB47019792AE6300CAD681"><enum>(e)</enum><header>Use of borrower income</header><text display-inline="yes-display-inline">In monitoring the performance of each enterprise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 1336), the Director shall consider a mortgagor’s income to be such income at the time of origination of the mortgage.</text></subsection></section> <section id="HAF3918820755441286B580F458B14CAD"><enum>1333.</enum><header> Multifamily special affordable goal</header> <subsection id="HEE78194F247F4496AA7B1D7374F07546"><enum>(a)</enum><header>Establishment</header> <paragraph id="HC845B3112013408BBF85C666C5AB2BAA"><enum>(1)</enum><header>In general</header><text>The Director shall establish, by regulation, an annual goal for the purchase by each enterprise of each of the following types of mortgages on multifamily housing:</text> <subparagraph id="HD1917D4B827340F9A44B527862306B29"><enum>(A)</enum><text display-inline="yes-display-inline">Mortgages that finance dwelling units for very low-income families.</text></subparagraph> <subparagraph id="HA6B03B3C03EB44189CF79EDB53703EB"><enum>(B)</enum><text display-inline="yes-display-inline">Mortgages that finance dwelling units assisted by the low-income housing tax credit under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986.</text></subparagraph></paragraph> <paragraph id="HA49479744DB346EFB1B277BBD9038EA"><enum>(2)</enum><header>Additional requirements for smaller projects</header><text>The Director shall establish, within the goal under this section, additional requirements for the purchase by each enterprise of mortgages described in paragraph (1) for multifamily housing projects of a smaller or limited size, which may be based on the number of dwelling units in the project or the amount of the mortgage, or both, and shall include multifamily housing projects of such smaller sizes as are typical among such projects that serve rural areas.</text></paragraph> <paragraph id="H329D03078E98471399D69C3F012246A4"><enum>(3)</enum><header>Factors</header><text>In establishing the goal under this section relating to mortgages on multifamily housing for an enterprise, the Director shall consider—</text> <subparagraph id="H0D8EA0EF0C4D457290D1A383A8C3AE8B"><enum>(A)</enum><text>national multifamily mortgage credit needs;</text></subparagraph> <subparagraph id="H39D06DA3BD8147AA96FB7200DDB4A2F5"><enum>(B)</enum><text>the performance and effort of the enterprise in making mortgage credit available for multifamily housing in previous years;</text></subparagraph> <subparagraph id="H3180CD1153B34CA1BAB513008300E268"><enum>(C)</enum><text>the size of the multifamily mortgage market;</text></subparagraph> <subparagraph id="H8621D308852A4D2600A75C18624754F9"><enum>(D)</enum><text>the ability of the enterprise to lead the industry in making mortgage credit available, especially for underserved markets, such as for small multifamily projects of 5 to 50 units, multifamily properties in need of rehabilitation, and multifamily properties located in rural areas; and</text></subparagraph> <subparagraph id="H208AF70B6DD8418AB9309433FDCFCAB"><enum>(E)</enum><text>the need to maintain the sound financial condition of the enterprise.</text></subparagraph></paragraph></subsection> <subsection id="HD5580EF266C34E52B1E8543700C5F6A3"><enum>(b)</enum><header>Units financed by housing finance agency bonds</header><text>The Director shall give full credit toward the achievement of the multifamily special affordable housing goal under this section (for purposes of section 1336) to dwelling units in multifamily housing that otherwise qualifies under such goal and that is financed by tax-exempt or taxable bonds issued by a State or local housing finance agency, but only if—</text> <paragraph id="HA544B6ADCB1B4C0F00A9936976FC68DD"><enum>(1)</enum><text>such bonds are secured by a guarantee of the enterprise; or</text></paragraph> <paragraph id="H8F635546C5B64ED39D8003C0FEB89368"><enum>(2)</enum><text>are not investment grade and are purchased by the enterprise.</text></paragraph></subsection> <subsection id="H0DD817F801204007B1CDD657B5265A4"><enum>(c)</enum><header>Use of tenant income or rent</header><text display-inline="yes-display-inline">The Director shall monitor the performance of each enterprise in meeting the goals established under this section and shall evaluate such performance (for purposes of section 1336) based on—</text> <paragraph id="H834165EB09594B53863D27997B3477C1"><enum>(1)</enum><text>the income of the prospective or actual tenants of the property, where such data are available; or</text></paragraph> <paragraph id="H1784A14FE203466D8CFCA273F7D4BB8C"><enum>(2)</enum><text>where the data referred to in paragraph (1) are not available, rent levels affordable to low-income and very low-income families.</text></paragraph><continuation-text continuation-text-level="subsection">A rent level shall be considered to be affordable for purposes of this subsection for an income category referred to in this subsection if it does not exceed 30 percent of the maximum income level of such income category, with appropriate adjustments for unit size as measured by the number of bedrooms.</continuation-text></subsection> <subsection id="H8217A9743E754B1F891FA5B8474B2669"><enum>(d)</enum><header>Determination of compliance</header><text display-inline="yes-display-inline">The Director shall, for each year that the housing goal under this section is in effect pursuant to section 1331(a), determine whether each enterprise has complied with such goal and the additional requirements under subsection (a)(2).</text></subsection></section> <section id="H05E81C9EC35A473CAA92FE337BD01C5C"><enum>1334.</enum><header>Discretionary adjustment of housing goals</header></section> <subsection id="HD4D58C49E19D468C8FF5592E21B44F3"><enum>(a)</enum><header>Authority</header><text>An enterprise may petition the Director in writing at any time during a year to reduce the level of any goal for such year established pursuant to this subpart.</text></subsection> <subsection id="HD7AE837BC6594717B87D74A30853A868"><enum>(b)</enum><header>Standard for reduction</header><text>The Director may reduce the level for a goal pursuant to such a petition only if—</text> <paragraph id="HEA2E249FB0244E63B200DDA2060010BC"><enum>(1)</enum><text>market and economic conditions or the financial condition of the enterprise require such action; or</text></paragraph> <paragraph id="HD5816638A6124E558D2E50EA0000F2D9"><enum>(2)</enum><text>efforts to meet the goal would result in the constraint of liquidity, over-investment in certain market segments, or other consequences contrary to the intent of this subpart, or section 301(3) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716(3)</external-xref>) or section 301(3) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note), as applicable.</text></paragraph></subsection> <subsection id="H2DBC9A1486274B20B4EAB4A2271C6CEE"><enum>(c)</enum><header>Determination</header><text display-inline="yes-display-inline">The Director shall make a determination regarding any proposed reduction within 30 days of receipt of the petition regarding the reduction. The Director may extend such period for a single additional 15-day period, but only if the Director requests additional information from the enterprise. A denial by the Director to reduce the level of any goal under this section may be appealed to the United States District Court for the District of Columbia or the United States district court in the jurisdiction in which the headquarters of an enterprise is located.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H792154EDBF0E4A779DF8CEF86BFE7F05"><enum>(b)</enum><header>Conforming amendments</header><text>The Housing and Community Development Act of 1992 is amended——</text> <paragraph id="H0385DED8A6444848A03552C52438A606"><enum>(1)</enum><text>in section 1335(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565(a)</external-xref>), in the matter preceding paragraph (1), by striking <quote>low- and moderate-income housing goal</quote> and all that follows through <quote>section 1334</quote> and inserting <quote>housing goals established under this subpart</quote>; and</text></paragraph> <paragraph id="H2F989FC41B034E3FB8576750A8A5827F"><enum>(2)</enum><text>in section 1336(a)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)(1)</external-xref>), by striking <quote>sections 1332, 1333, and 1334,</quote> and inserting <quote>this subpart</quote> .</text> </paragraph></subsection> <subsection id="H387C771227C94C6900CB9506CFF13B22" display-inline="no-display-inline"><enum>(c)</enum><header>Definitions</header><text>Section 1303 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>), as amended by the preceding provisions of this Act, is further amended—</text> <paragraph id="H25000B07B81B4754B21302D7C7360260"><enum>(1)</enum><text>in paragraph (26), by striking <quote>60 percent</quote> each place such term appears and inserting <quote>50 percent</quote>; </text></paragraph> <paragraph id="HAF77D4D254A548908188C79759366B45"><enum>(2)</enum><text>by redesignating paragraphs (23) through (26) as paragraphs (27) through (30), respectively;</text></paragraph> <paragraph id="H6FB0443757854E3084A8C262ECF8215" display-inline="no-display-inline"><enum>(3)</enum><text>by inserting after paragraph (22) the following new paragraph:</text> <quoted-block style="OLC" id="H0A632379B59D460B87B9F91D6F047D" display-inline="no-display-inline"> <paragraph id="HC40965053D9E42EC83F0DB85F172B8A9"><enum>(26)</enum><header>Rural areas</header><text display-inline="yes-display-inline">The term <quote>rural areas</quote> means any areas that are non-metropolitan areas (as such term is defined by the Director of the Office of Management and Budget), including micropolitan areas and tribal trust lands.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF9769DC91B634866B1E0151EBD00AA31"><enum>(4)</enum><text>by redesignating paragraphs (14) through (22) as paragraphs (17) through (25), respectively; and</text></paragraph> <paragraph id="HDBD3C10564AF4CE98F9F446E0609F828"><enum>(5)</enum><text>by inserting after paragraph (13) the following new paragraph:</text> <quoted-block style="OLC" id="HD1AEC17CB99D40C59695FEE308592733" display-inline="no-display-inline"> <paragraph id="HD662BB9FC3244E70801E90BE6D795B2E"><enum>(16) </enum><header>Low-income area</header><text>The term ‘low income area’ means a census tract or block numbering area in which the median income does not exceed 80 percent of the median income for the area in which such census tract or block numbering area is located, and, for the purposes of section 1332(a)(2), shall include families having incomes not greater than 100 percent of the area median income who reside in minority census tracts.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HB73AECFEF2B544E380837466EDF94D65"><enum>(6)</enum><text>by redesignating paragraphs (12) and (13) as paragraphs (14) and (15), respectively;</text></paragraph> <paragraph id="H41D3582D96B444DD8783D9C227001F28"><enum>(7)</enum><text>by inserting after paragraph (11) the following new paragraph:</text> <quoted-block style="OLC" id="H8F4B387912664DF5A1A4A1DC5DB16899" display-inline="no-display-inline"> <paragraph id="H0084E9525FA74532827968197B55D9D8"><enum>(13)</enum><header>Extremely low-income</header><text>The term <quote>extremely low-income</quote> means—</text> <subparagraph id="HFCA1908B57A64FF18B55A58D40C1FDED"><enum>(A)</enum><text>in the case of owner-occupied units, income not in excess of 30 percent of the area median income; and</text></subparagraph> <subparagraph id="H23540CD3B1AF4D80B3E363DA7CF8AB42"><enum>(B)</enum><text>in the case of rental units, income not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Secretary.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H57A4751A4D444C35B2BBD3431314A780"><enum>(8)</enum><text>by redesignating paragraphs (8) through (11) as paragraphs (9) through (12), respectively; and</text></paragraph> <paragraph id="H2AA9532F834C413884FFAAC9480382FF" commented="no"><enum>(9)</enum><text>by inserting after paragraph (7) the following new paragraph:</text> <quoted-block style="OLC" id="H7EC86CFCCC8B4949885F55BBD2776D39" display-inline="no-display-inline"> <paragraph id="H30741A0896564F50A2C95C1FABEF8402" commented="no"><enum>(8)</enum><header>Conforming mortgage</header><text>The term <quote>conforming mortgage</quote> means, with respect to an enterprise, a conventional mortgage having an original principal obligation that does not exceed the dollar limitation, in effect at the time of such origination, under, as applicable—</text> <subparagraph id="H31A9C2A5D43D4281A878F0814FD6F741" commented="no"><enum>(A)</enum><text>section 302(b)(2) of the Federal National Mortgage Association Charter Act; or</text></subparagraph> <subparagraph id="HD198F570DFFF48C7BC76C5C83189A314" commented="no"><enum>(B)</enum><text>section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H113C9350C3CC4376AED155EE33EBFE00" display-inline="no-display-inline" section-type="subsequent-section"><enum>126.</enum><header>Duty to serve underserved markets</header> <subsection id="H0319070B93D94AE6B1B0597ED044B15"><enum>(a)</enum><header>Establishment and evaluation of performance</header><text>Section 1335 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565</external-xref>) is amended—</text> <paragraph id="H087F9237C4824EA4929F69B917AA3FD"><enum>(1)</enum><text>in the section heading, by inserting <quote><header-in-text level="section">duty to serve underserved markets and</header-in-text></quote> before <quote><header-in-text level="section">other</header-in-text></quote>;</text></paragraph> <paragraph id="HA1B4941F74024B3CBF13BF3B0024999F"><enum>(2)</enum><text>by striking subsection (b);</text></paragraph> <paragraph id="HC41E8C9AE961468F8DE3482ED2EE5DFE"><enum>(3)</enum><text>in subsection (a)—</text> <subparagraph id="H192E66B1A5E04984ABD6DA810061E03E"><enum>(A)</enum><text>in the matter preceding paragraph (1), by inserting <quote>and to carry out the duty under subsection (a) of this section</quote> before <quote>, each enterprise shall</quote>; </text></subparagraph> <subparagraph id="H1FA1F54EE11449EF93E309FED3DE72F"><enum>(B)</enum><text>in paragraph (3), by inserting <quote>and</quote> after the semicolon at the end;</text></subparagraph> <subparagraph id="H86D1AD6179D74AF7B52EE460D9009F89"><enum>(C)</enum><text>in paragraph (4), by striking <quote>; and</quote> and inserting a period;</text></subparagraph> <subparagraph id="H96D00F725C6A41B8B032E0DF7CCA8729"><enum>(D)</enum><text>by striking paragraph (5); and</text></subparagraph> <subparagraph id="H6BEA4165D5FD46AC88F2FFA25DC7A659"><enum>(E)</enum><text>by redesignating such subsection as subsection (b);</text></subparagraph></paragraph> <paragraph id="HAC7D3D653A8741FA849853A61CECE7BD"><enum>(4)</enum><text>by inserting before subsection (b) (as so redesignated by paragraph (3)(E) of this subsection) the following new subsection:</text> <quoted-block style="OLC" id="H36C17025D8B14A43B21C7574290004D7" display-inline="no-display-inline"> <subsection id="H3F3E109BAEE24F11819F07AC1CAE3364"><enum>(a)</enum><header>Duty to serve underserved markets</header> <paragraph id="H651A9ACB0C524A42934973835D7B8137"><enum>(1)</enum><header>Duty</header><text>In accordance with the purpose of the enterprises under section 301(3) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716</external-xref>) and section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note) to undertake activities relating to mortgages on housing for very low-, low-, and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities, each enterprise shall have the duty to increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for underserved markets.</text></paragraph> <paragraph id="HEC4602636EC042CC86FA495673C36920"><enum>(2)</enum><header>Underserved markets</header><text>To meet its duty under paragraph (1), each enterprise shall comply with the following requirements with respect to the following underserved markets:</text> <subparagraph id="H44AAC5B9151F4AE08C8D76D66DCD86DE"><enum>(A)</enum><header>Manufactured housing</header><text>The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families.</text></subparagraph> <subparagraph id="H1DA81D0B82734063829446C2BAE50277"><enum>(B)</enum><header>Affordable housing preservation</header><text display-inline="yes-display-inline">The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and moderate-income families, including housing projects subsidized under—</text> <clause id="H6E4D7465C6834946B53D24353C3C6C65"><enum>(i)</enum><text>the project-based and tenant-based rental assistance programs under section 8 of the United States Housing Act of 1937;</text></clause> <clause id="H2C9297097E9F45B294696800C6FE00EE"><enum>(ii)</enum><text>the program under section 236 of the National Housing Act;</text></clause> <clause id="H727C08F44B6B4E5EB9B81FBAFA4B34F"><enum>(iii)</enum><text>the below-market interest rate mortgage program under section 221(d)(4) of the National Housing Act; </text></clause> <clause id="H2C14DD4F637A40B7BE8D59D52646EBB1"><enum>(iv)</enum><text>the supportive housing for the elderly program under section 202 of the Housing Act of 1959;</text></clause> <clause id="H72895BBEFFE84A22AC8234B564038FC"><enum>(v)</enum><text>the supportive housing program for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act; and</text></clause> <clause id="HF223081E3F7848319CE720D41B773CC3"><enum>(vi)</enum><text>the rural rental housing program under section 515 of the Housing Act of 1949.</text></clause></subparagraph> <subparagraph id="H355556C3124245B595D0205B82390197"><enum>(C)</enum><header>Rural and other underserved markets</header><text display-inline="yes-display-inline">The enterprise shall lead the industry in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in rural areas, and for mortgages for housing for any other underserved market for very low-, low-, and moderate-income families that the Secretary identifies as lacking adequate credit through conventional lending sources. Such underserved markets may be identified by borrower type, market segment, or geographic area.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H35FD5E61FFC24F5BB49C39E989A900D9"><enum>(5)</enum><text>by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H009A8A2E1D284CA492BEC07C026E5FB8" display-inline="no-display-inline"> <subsection id="HDC696EB280C644ADB9E5FF473F1D8790"><enum>(c)</enum><header>Evaluation and reporting of compliance</header> <paragraph id="H0D07C2F8D71C45C88549FD29114D2DCA"><enum>(1)</enum><header>In general</header><text>Not later than 6 months after the effective date under section 185 of the <short-title>Federal Housing Finance Reform Act of 2005</short-title>, the Director shall establish a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under subsection (a) to serve underserved markets and for rating the extent of such compliance. Using such method, the Director shall, for each year, evaluate such compliance and rate the performance of each enterprise as to extent of compliance. The Director shall include such evaluation and rating for each enterprise for a year in the report for that year submitted pursuant to section 1319B(a).</text></paragraph> <paragraph id="H400B1A9BD5A6422982D1D3D02D5ED12C"><enum>(2)</enum><header>Separate evaluations</header><text>In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director shall separately evaluate whether the enterprise has complied with such duty with respect to each of the underserved markets identified in subsection (a), taking into consideration—</text> <subparagraph id="H8395268D0ACC44799D8EE6F1DE9EF1BE"><enum>(A)</enum><text display-inline="yes-display-inline">the development of loan products and more flexible underwriting guidelines;</text></subparagraph> <subparagraph id="H5A9AD08CFA914C59B0CF3007592A7DA"><enum>(B)</enum><text display-inline="yes-display-inline">the extent of outreach to qualified loan sellers in each of such underserved markets; and</text></subparagraph> <subparagraph id="HAA3015D3338448D0BDEA7CE6B9D6CD89"><enum>(C)</enum><text>the volume of loans purchased in each of such underserved markets.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H93C33F2F91B24C2898DAAE9EA3E7017"><enum>(b)</enum><header>Enforcement</header><text>Subsection (a) of section 1336 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)</external-xref>) is amended—</text> <paragraph id="HF0DF5B70030644AA0007BACD66523FF"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>and with the duty under section 1335A of each enterprise with respect to underserved markets,</quote> before <quote>as provided in this section,</quote>; and</text></paragraph> <paragraph id="H59781A55241C4C99B6AF9EAC347C615"><enum>(2)</enum><text>by adding at the end of such subsection, as amended by the preceding provisions of this title, the following new paragraph:</text> <quoted-block id="HF3F6469A97E548DA8C5FA44D008743D1"> <paragraph id="HA4304FFAFA4C48C1B280B036063B000"><enum>(4)</enum><header>Enforcement of duty to provide mortgage credit to underserved markets</header><text>The duty under section 1335(a) of each enterprise to serve underserved markets (as determined in accordance with section 1335(c)) shall be enforceable under this section to the same extent and under the same provisions that the housing goals established under sections 1332, 1333, and 1334 are enforceable. Such duty shall not be enforceable under any other provision of this title (including subpart C of this part) other than this section or under any provision of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H7D69C357B4C84A6B97004824DD00EF00" display-inline="no-display-inline" section-type="subsequent-section"><enum>127.</enum><header>Monitoring and enforcing compliance with housing goals</header><text display-inline="no-display-inline">Section 1336 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566</external-xref>) is amended—</text> <paragraph id="H641FA419F52C4E7586B05B435E926703"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="HD9A3B8ED61B04D4BA9D16FD7F3A98576"><enum>(A)</enum><text>in the subsection heading, by inserting <quote>Preliminary</quote> before <quote>Determination</quote>;</text></subparagraph> <subparagraph id="H409E70B3557147E68C7351B63B9186F1"><enum>(B)</enum><text>by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block id="HFF14E95A9E184454834CC046FB969EEA"> <paragraph id="H5C24EF8320374E52AEDDA3606E5DB186"><enum>(1)</enum><header>Notice</header><text>If the Director preliminarily determines that an enterprise has failed, or that there is a substantial probability that an enterprise will fail, to meet any housing goal established under this subpart, the Director shall provide written notice to the enterprise of such a preliminary determination, the reasons for such determination, and the information on which the Director based the determination.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H23ED514688174C7F8F26B9D7E9D38BA9"><enum>(C)</enum><text>in paragraph (2)—</text> <clause id="H63F8641828C64447B5E9E1B0046BB56"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>finally</quote> before <quote>determining</quote>;</text></clause> <clause id="HCE07FF7A9BB44A94A14BD1260755738C"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C) and inserting the following new subparagraph:</text> <quoted-block id="H9E918D13A10A429CB98413097336B82E"> <subparagraph id="H543DAE58BD9644A99B7BD46F3EF4CD6"><enum>(B)</enum><header>Extension or shortening of period</header><text>The Director may—</text> <clause id="HB32EF11CCD5C4589AD5B18A000AA0079"><enum>(i)</enum><text>extend the period under subparagraph (A) for good cause for not more than 30 additional days; and</text></clause> <clause id="H75BA4F9CB1D74A40943FC62FC85D0798"><enum>(ii)</enum><text>shorten the period under subparagraph (A) for good cause.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause> <clause id="H7B476F2F266F4D4B97ABA9ED00D83D00"><enum>(iii)</enum><text>by redesignating subparagraph (D) as subparagraph (C); and</text></clause></subparagraph> <subparagraph id="HDDDA78D19AC945EA8BE8FA44431FFA5F"><enum>(D)</enum><text>in paragraph (3)—</text> <clause id="HE885EE96FE9249728C1700DEBDE01BFC"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>determine</quote> and inserting <quote>issue a final determination of</quote>;</text></clause> <clause id="HEF6CFC9E6ADC402197467FC70062D735"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>final</quote> before <quote>determinations</quote>; and</text></clause> <clause id="H7EBC0B4229434687AB5F27BCFB26D98"><enum>(iii)</enum><text>in subparagraph (C)—</text> <subclause id="H345A71D8ED174A259C8C1577863595E2"><enum>(I)</enum><text>by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> and inserting <quote>Committee on Financial Services</quote>; and</text></subclause> <subclause id="HBB3855B3E4774C569856DA6C70C19E91"><enum>(II)</enum><text>by inserting <quote>final</quote> before <quote>determination</quote> each place such term appears; and</text></subclause></clause></subparagraph></paragraph> <paragraph id="H4CC2C81FA2794555B8E2193568525EF"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H706B425C5BCE41958352008D16D25900"><enum>(A)</enum><text>by striking the subsection designation and heading and all that follows through the end of paragraph (1) and inserting the following:</text> <quoted-block id="H18043AC48E55426D8506D008BF7423"> <subsection id="H05E3F34C28C74B8EA9E313CAA828DB41"><enum>(c)</enum><header>Cease and desist orders, civil money penalties, and remedies including Housing plans</header> <paragraph id="HF8F53D07793A49EA95B04C1B2E885D04"><enum>(1)</enum><header>Requirement</header><text>If the Director finds, pursuant to subsection (b), that there is a substantial probability that an enterprise will fail, or has actually failed, to meet any housing goal under this subpart and that the achievement of the housing goal was or is feasible, the Director may require that the enterprise submit a housing plan under this subsection. If the Director makes such a finding and the enterprise refuses to submit such a plan, submits an unacceptable plan, fails to comply with the plan or the Director finds that the enterprise has failed to meet any housing goal under this subpart, in addition to requiring an enterprise to submit a housing plan, the Director may issue a cease and desist order in accordance with section 1341, impose civil money penalties in accordance with section 1345, or order other remedies as set forth in paragraph (7) of this subsection.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HBC37239FC08041668763A18852F933E"><enum>(B)</enum><text>in paragraph (2)—</text> <clause id="H35749927AE45432A99B808FE40EAF68E"><enum>(i)</enum><text>by striking “<header-in-text>Contents</header-in-text>.—Each housing plan” and inserting “<header-in-text>Housing plan</header-in-text>.—If the Director requires a housing plan under this section, such a plan”; and</text></clause> <clause id="H0FEADE3649354E9E90D0DAC50B96CDE"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>and changes in its operations</quote> after <quote>improvements</quote>;</text></clause></subparagraph> <subparagraph id="H66A547C863EC4686BAA99438EC55C78"><enum>(C)</enum><text>in paragraph (3)—</text> <clause id="HF9246CAED79B490700366661292858C0"><enum>(i)</enum><text>by inserting <quote>comply with any remedial action or</quote> before <quote>submit a housing plan</quote>; and</text></clause> <clause id="H33A79F07B5B241E686D2F6485B123BC7"><enum>(ii)</enum><text>by striking <quote>under subsection (b)(3) that a housing plan is required</quote>;</text></clause></subparagraph> <subparagraph id="HB3993B9078D6479089960038002CE53"><enum>(D)</enum><text>in paragraph (4), by striking the first two sentences and inserting the following: <quote>The Director shall review each submission by an enterprise, including a housing plan submitted under this subsection, and not later than 30 days after submission, approve or disapprove the plan or other action. The Director may extend the period for approval or disapproval for a single additional 30-day period if the Director determines such extension necessary.</quote>; and</text></subparagraph> <subparagraph id="H5AD15F667293455F96D1245CFDA4E751"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="H79B6CB4682074631A5EBA2957D27BAF8"> <paragraph id="H1D8EEEA8175244299E17B69737DC8FC0"><enum>(7)</enum><header>Additional remedies for failure to meet goals</header><text>In addition to ordering a housing plan under this section, issuing cease and desist orders under section 1341, and ordering civil money penalties under section 1345, the Director may seek other actions when an enterprise fails to meet a goal, and exercise appropriate enforcement authority available to the Director under this Act to prohibit the enterprise from entering into new programs and new business activities and to order the enterprise to suspend programs and business activities pending its achievement of the goal.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section> <section id="HC7F76D8B79A242FF93427E9837AE4749" display-inline="no-display-inline" section-type="subsequent-section"><enum>128.</enum><header>Affordable housing fund</header> <subsection id="HE751C7DAD6454AFD88532E27CA576786"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Housing and Community Development Act of 1992 is amended by striking sections 1337 and 1338 (<external-xref legal-doc="usc" parsable-cite="usc/12/4562">12 U.S.C. 4562</external-xref> note) and inserting the following new section:</text> <quoted-block style="OLC" id="H908BF8E3C5394C09A3BF8FC9E5D0862" display-inline="no-display-inline"> <section id="HBA4D9E0946324D1994A83730B2B28EB"><enum>1337. </enum><header>Affordable housing fund</header> <subsection id="H51A9AAC62328471CA944C7FFFA00CEA4"><enum>(a)</enum><header>Establishment and purpose</header><text>Each enterprise shall establish and manage an affordable housing fund in accordance with this section. The purpose of the affordable housing fund shall be—</text> <paragraph id="H7466B98802584C39A09DA738C1E98443"><enum>(1)</enum><text>to increase homeownership for extremely low-and very low-income families;</text></paragraph> <paragraph id="H7C72E44699F2421A9FCFD96824AAFFD5"><enum>(2)</enum><text>to increase investment in housing in low-income areas, and areas designated as qualified census tracts or an area of chronic economic distress pursuant to <external-xref legal-doc="usc" parsable-cite="usc/26/143">section 143(j)</external-xref> of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/143">26 U.S.C. 143(j)</external-xref>);</text></paragraph> <paragraph id="H5D8F30799FDC41EEB4268F94E7E01025"><enum>(3)</enum><text>to increase and preserve the supply of rental and owner-occupied housing for extremely low- and very low-income families; and</text></paragraph> <paragraph id="H34E9C6B6ADB14DCBA5006E99B461E6C7"><enum>(4)</enum><text>to increase investment in economic and community development in economically underserved areas.</text></paragraph></subsection> <subsection id="H5A9DEB8ABA134B948639D9D7FDBD3BD0"><enum>(b)</enum><header>Allocation of amounts by enterprises</header> <paragraph id="H3A7F42C533FF4D958F7B0066F2FE00AD"><enum>(1)</enum><header>In general</header><text>In accordance with regulations issued by the Director under subsection (l) and subject to paragraph (2) of this subsection, each enterprise shall allocate to the affordable housing fund established under subsection (a) by the enterprise, in each year beginning after the effective date under section 185 of the Federal Housing Finance Reform Act of 2005, 5 percent of the after-tax income of the enterprise for the preceding year.</text></paragraph> <paragraph id="H45D625826B91441C9B6770A21551AFC7"><enum>(2)</enum><header>Limitation</header><text>An enterprise shall not be required to make an allocation for a year to the affordable housing fund of the enterprise established under subsection (a) unless—</text> <subparagraph id="H55EBDBC284CB4D88ABF172E7D606DF39"><enum>(A)</enum><text display-inline="yes-display-inline">the enterprise is classified by the Director at the time of such allocation as adequately capitalized; and</text></subparagraph> <subparagraph id="H4CD6308F58544CD7BB32CA00E300C998"><enum>(B)</enum><text>the enterprise generated after-tax income for the preceding year.</text></subparagraph></paragraph> <paragraph id="H85DA9B0469CB4E4DB03489EAE500EA9E" display-inline="no-display-inline"><enum>(3)</enum><header>Determination of after-tax income</header><text>For purposes of this section, the term <quote>after-tax income</quote> means, with respect to an enterprise for a year, the amount reported by the enterprise for such year in the enterprise’s annual report for such year that is filed with the Securities and Exchange Commission, except that for any year in which no such filing is made by an enterprise or such filing is not timely made, such term means the amount determined by the Director based on the income tax return filings of the enterprise.</text></paragraph></subsection> <subsection id="HF2AFB0C39708498FACF15FBE206BCA4E"><enum>(c)</enum><header>Selection of activities funded using affordable housing fund amounts</header><text>Amounts from the affordable housing fund of the enterprise may be used, or committed for use, only for activities that—</text> <paragraph id="HCEBBAE71532B47B0833266B8D71E9F75"><enum>(1)</enum><text>are eligible under subsection (d) for such use; and</text></paragraph> <paragraph id="H62D76ABB7BC54DD8B8188B617EBF15BC"><enum>(2)</enum><text display-inline="yes-display-inline">are selected for funding by the enterprise in accordance with the process and criteria for such selection established pursuant to subsection (l)(2)(C).</text></paragraph></subsection> <subsection id="HCF3ED4C3F26443379007987668FA88DA"><enum>(d)</enum><header>Eligible activities</header><text display-inline="yes-display-inline">Amounts from the affordable housing fund of an enterprise shall be eligible for use, or for commitment for use, only for assistance for—</text> <paragraph id="H6BAEDE8234114802B8A6B80081792FF0"><enum>(1)</enum><text display-inline="yes-display-inline">the production, preservation, and rehabilitation of rental housing, including housing under the programs identified in section 1335(a)(2)(B), except that amounts provided from the Fund may be used for the benefit only of extremely low- and very low-income families;</text></paragraph> <paragraph id="H33092A3C5C4B49C497C3B1BA43610071"><enum>(2)</enum><text display-inline="yes-display-inline">the production, preservation, and rehabilitation of housing for homeownership, including such forms as downpayment assistance, closing cost assistance, and assistance for interest-rate buy-downs, that—</text> <subparagraph id="HB5460A5C6328422095C92691A06EF423"><enum>(A)</enum><text display-inline="yes-display-inline">is available for purchase only for use as a principal residence by families that qualify both as—</text> <clause id="H250418E86FBD4FFE8F23004E03A9B05C"><enum>(i)</enum><text>extremely low- and very-low income families at the times described in subparagraphs (A) through (C) of section 215(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12745">42 U.S.C. 12745(b)(2)</external-xref>); and</text></clause> <clause id="HE71B2393009C42D18BD4A7CA6117BAA6"><enum>(ii)</enum><text>first-time homebuyers, as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704</external-xref>), except that any reference in such section to assistance under title II of such Act shall for purposes of this section be considered to refer to assistance from the affordable housing fund of the enterprise;</text></clause></subparagraph> <subparagraph id="H84FDB4E5C2D04FFC87BCB2552F00A7FF"><enum>(B)</enum><text>has an initial purchase price that meets the requirements of section 215(b)(1) of the Cranston-Gonzalez National Affordable Housing Act; and</text></subparagraph> <subparagraph id="HBDFF746917504CD89C0004B3651235C0"><enum>(C)</enum><text>is subject to the same resale restrictions established under section 215(b)(3) of the Cranston-Gonzalez National Affordable Housing Act and applicable to the participating jurisdiction that is the State in which such housing is located; and</text></subparagraph></paragraph> <paragraph id="H7B964566BE6042D0856B7BD2F2878CC8"><enum>(3)</enum><text>leveraged grants under subsection (e).</text></paragraph></subsection> <subsection id="H15F890BDF6D340418E62031DEE9E8B88" display-inline="no-display-inline"><enum>(e)</enum><header>Leveraged grants</header> <paragraph id="HEBE0614E8EBD413AB2A3DA26A2DDCB6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Pursuant to regulations issued by the Director, each enterprise shall carry out a program under this subsection to make leveraged grants from amounts in the affordable housing fund of the enterprise, subject to the requirements under this subsection.</text></paragraph> <paragraph id="H3F9931AF19084B26B7321BB949BDE700"><enum>(2)</enum><header>Eligible purposes</header><text display-inline="yes-display-inline">Amounts from the affordable housing fund of an enterprise may be used only for leveraged grants under paragraph (4) for—</text> <subparagraph id="H8114C43B1FA548D9B92C19A0DC978177"><enum>(A)</enum><text>the development, preservation, rehabilitation, or purchase of affordable housing that meets underserved needs for affordable housing;</text></subparagraph> <subparagraph id="HAE38B6CEDCD946B8B107601BA1028162"><enum>(B)</enum><text>community or economic development activities in economically underserved areas; or</text></subparagraph> <subparagraph id="HE1CF30937BF64E3EA119A68195AA0002"><enum>(C)</enum><text>a combination of the activities identified in subparagraphs (A) and (B).</text></subparagraph></paragraph> <paragraph id="H0DF73CE9D4884A9F0099DBC012BDD71E" commented="no"><enum>(3)</enum><header>Eligible sponsors</header><text display-inline="yes-display-inline">A leveraged grant under this subsection may be made only on behalf of a sponsor that meets such requirements as the Director shall establish for experience and success in carrying out the types of activities proposed under the application of the sponsor, such as the following entities:</text> <subparagraph id="H7240980162EC4637929810254992EAA6" commented="no"><enum>(A)</enum><text>A low-income housing fund.</text></subparagraph> <subparagraph id="H90AABD840D8143F492B3CF59D883DE55" commented="no"><enum>(B)</enum><text>A housing finance agency of a State or unit of general local government.</text></subparagraph> <subparagraph id="H1D241F0ADCD54E0188AE8B190722EF4B" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">A non-profit organization having as one of its principal purposes the development or management of affordable housing.</text></subparagraph> <subparagraph id="H3C1EB66495244403BBEF81844F64277" commented="no"><enum>(D)</enum><text>A community development financial institution.</text></subparagraph> <subparagraph id="H579F5EE1A9544442003C1EB0BDDC6FC4" commented="no"><enum>(E)</enum><text>A national non-profit housing intermediary.</text></subparagraph> <subparagraph id="H8474BDEF379A4DEEA744CD5900125441"><enum>(F)</enum><text>A community development corporation.</text></subparagraph> <subparagraph id="HEE725DE09E7C450C8EC15618E7063CF0"><enum>(G)</enum><text>A community development entity.</text></subparagraph></paragraph> <paragraph id="HD33A7A59ECD24BED9C467303D8A14109"><enum>(4)</enum><header>Eligible uses</header><text>Amounts from the affordable housing fund of an enterprise may be used under this subsection only for the following types of leveraged grants:</text> <subparagraph id="H29B0F73A846242D883E98737DF37E25"><enum>(A)</enum><text>To provide loan loss reserves.</text></subparagraph> <subparagraph id="HC3DD2BAF42FC41DA998BE85893003D64"><enum>(B)</enum><text>To capitalize a revolving loan fund.</text></subparagraph> <subparagraph id="H78D0CF282A104C060078DD6BA4A4A27D"><enum>(C)</enum><text>To provide equity capitalization of an affordable housing fund.</text></subparagraph> <subparagraph id="HD28CB1D6C8C34933B8647033C8F36C6B"><enum>(D)</enum><text>To provide equity capitalization of a community development or economic development fund.</text></subparagraph> <subparagraph id="HEDC9F3772D0C4B3C98977C5658CD398D"><enum>(E)</enum><text>For risk sharing loans.</text></subparagraph> <subparagraph id="HEF72B65BA20B4A47ACD7F4B2CB00811D"><enum>(F)</enum><text>For the funding of a specific, detailed investment plan that identifies the specific types of uses and the expected timeframes with respect to such uses.</text></subparagraph></paragraph> <paragraph id="H11E3FB09236E423283C8046359FDC2E5"><enum>(5)</enum><header>Applications</header><text>The Director shall provide, in the application process established pursuant to subsection (l)(2)(C), for eligible sponsors under paragraph (3) of this subsection to submit applications to an enterprise for leveraged grants pursuant to this subsection, which shall include a detailed description of—</text> <subparagraph id="HA7B6993136904F1EA3075043901F1BD"><enum>(A)</enum><text>the types of affordable housing or community or economic development activities for which the leveraged grant is made;</text></subparagraph> <subparagraph id="H98376442C4FC4864AFF7D1C937E2D7FB"><enum>(B)</enum><text>the type of eligible leveraged grants under paragraph (4) to be made in the project;</text></subparagraph> <subparagraph id="HF64948A07C15463193C604173F9B65E6"><enum>(C)</enum><text>the types, sources, and amounts of other funding for the project;</text></subparagraph> <subparagraph id="H18BAB71B71824EACBCB74002D918592"><enum>(D)</enum><text>and the expected time frame of the leveraged grant under this subsection.</text></subparagraph></paragraph> <paragraph id="HE8767EC545F54B7BB7A26C5D73DF2440" display-inline="no-display-inline"><enum>(6)</enum><header>Limitations</header><text>The Director shall by regulation—</text> <subparagraph id="HCD0C785BB91F4E94ADAAC7E2A842AACB"><enum>(A)</enum><text display-inline="yes-display-inline">ensure that leveraged grants pursuant to this subsection are designed to alleviate need for affordable housing in underserved markets identified in section 1335(a) having the greatest need for such housing or to address community and economic development needs in economically underserved areas having the greatest need; and</text></subparagraph> <subparagraph id="H96C78878D48249E194A16D6184E0A6F9"><enum>(B) ensure that</enum><text display-inline="yes-display-inline">any returns from leveraged grants under this subsection accrue to the affordable housing fund of the enterprise and are available for use only as provided under this section.</text></subparagraph></paragraph></subsection> <subsection id="H7F990A7C78E9427E80FF5C919C1CFCFC"><enum>(f)</enum><header>Limitations on use</header> <paragraph id="H87F2CF56A90B4DDCAC0807A5E63D19E"><enum>(1)</enum><header>Amounts for homeownership</header><text>Of any amounts allocated pursuant to subsection (b) in each year to the affordable housing fund of an enterprise, not less than 10 percent shall be used for activities under paragraph (2) of subsection (d).</text></paragraph> <paragraph id="H2E5F0FB527744DA99F73CF7CB5C0B8D7" display-inline="no-display-inline"><enum>(2)</enum><header>Amounts for leveraged grants</header><text>Of any amounts allocated pursuant to subsection (b) in each year to the affordable housing fund of an enterprise, not more than 12.5 percent shall be used for leveraged grants under subsection (e).</text></paragraph> <paragraph id="HF4CB4D7C12244895911D58311CBAEBD6"><enum>(3)</enum><header>Deadline for commitment or use</header><text display-inline="yes-display-inline">Any amounts allocated to the affordable housing fund of an enterprise shall be used or committed for use within two years of the date of such allocation.</text></paragraph> <paragraph id="H611D30B7D81D45ECA346936E21EC81A8"><enum>(4)</enum><header>Use of returns</header><text display-inline="yes-display-inline">Any return on investment of any amounts allocated pursuant to subsection (b) to the affordable housing fund of an enterprise shall be available for use by the enterprise only for eligible activities under subsection (d).</text></paragraph> <paragraph id="H6C658720494C498ABC303B00BF00E0E6" display-inline="no-display-inline"><enum>(5)</enum><header>Administrative costs</header><text>The Director shall, by regulation—</text> <subparagraph id="H92C2C75C4A2A442E855CC2D31077B859"><enum>(A)</enum><text display-inline="yes-display-inline">provide that, except as provided in subparagraph (B), amounts allocated to the affordable housing fund of an enterprise may not be used for administrative, outreach, or other costs of—</text> <clause id="HB627E2655A5A4F9686A971F3B3B95786"><enum>(i)</enum><text>the enterprise; or</text></clause> <clause id="H00B5FE89AEEB4EACBD8644D000616242"><enum>(ii)</enum><text>any recipient of amounts from the affordable housing fund; and</text></clause></subparagraph> <subparagraph id="H6EC8D607EA86455C82A83552CB55E861"><enum>(B)</enum><text>limit the amount of any such contributions that may be used for administrative costs of the enterprise of maintaining the affordable housing fund and carrying out the program under this section.</text></subparagraph></paragraph> <paragraph id="H1CE5C01419BA465BA4077227CA3DE6E6"><enum>(6)</enum><header>Prohibition of consideration of use for meeting housing goals</header><text>In determining compliance with the housing goals under this subpart, the Director may not consider amounts used under this section for eligible activities under subsection (d). The Director shall give credit toward the achievement of such housing goals to purchases of mortgages for housing that receives funding under this section, but only to the extent that such purchases are funded other than under this section.</text></paragraph> <paragraph id="H683E3B0FEF844E4DA35336C61DDB2644"><enum>(7)</enum><header>Prohibition of certain subgrants</header><text>The Director shall, by regulation, ensure that amounts from the affordable housing fund of an enterprise awarded under this section to a national non-profit housing intermediary are not used for the purpose of distributing subgrants to other non-profit entities.</text></paragraph></subsection> <subsection id="HACFC790D88964EBC935F5DC5A254BF17"><enum>(g)</enum><header>Consistency of use with housing needs</header> <paragraph id="HEB4D34ACBCEE49D7A148D085632927BC"><enum>(1)</enum><header>Quarterly reports</header><text>The Director shall require each enterprise to submit a report, on a quarterly basis, to the Director and the affordable housing board established under subsection (j) describing the activities funded under this section during such quarter with amounts from the affordable housing fund of the enterprise established under this section. The Director shall make such reports publicly available. The affordable housing board shall review each report by an enterprise to determine the consistency of such activities funded with the criteria for selection of such activities established pursuant to subsection (l)(2)(C).</text></paragraph> <paragraph id="HEE632AAC01F146BCB2298CC000DEFB3B"><enum>(2)</enum><header>Replenishment</header><text display-inline="yes-display-inline">If the affordable housing board determines that an activity funded by an enterprise with amounts from the affordable housing fund of the enterprise is not consistent with the criteria established pursuant to subsection (l)(2)(C), the board shall notify the Director and the Director shall require the enterprise to allocate to such affordable housing fund (in addition to amounts allocated in compliance with subsection (b)) an amount equal to the sum of the amounts from the affordable housing fund used and further committed for use for such activity.</text></paragraph></subsection> <subsection id="H2C82E7B06BD441B28D003F48DE00A1FA"><enum>(h)</enum><header>Capital requirements</header><text>The utilization or commitment of amounts from the affordable housing fund of an enterprise shall not be subject to the risk-based capital requirements established pursuant to section 1361(a).</text></subsection> <subsection id="H7ED36E22E06A4C11AA09EAF130F2709C"><enum>(i)</enum><header>Reporting requirement</header><text>Each enterprise shall include, in the report required under section 309(m) of the Federal National Mortgage Association Charter Act or section 307(f) of the Federal Home Loan Mortgage Corporation Act, as applicable, a description of the actions taken by the enterprise to utilize or commit amounts allocated under this section to the affordable housing fund of the enterprise established under this section.</text></subsection> <subsection id="H129E5F52BD624E80B6DBFD127118215"><enum>(j)</enum><header>Affordable housing board</header> <paragraph id="HC61AD533CB46484BBF790344128E166D"><enum>(1)</enum><header>Appointment</header><text>The Director shall appoint an affordable housing board of 7, 9, or 11 persons, who shall include—</text> <subparagraph id="HB64EAA86E9984DF8BDE34D810100ADEE"><enum>(A)</enum><text>the Director, or the Director’s designee;</text></subparagraph> <subparagraph id="H6BC7FD4C2F82479B82398D76A1214954"><enum>(B)</enum><text>the Secretary of Housing and Urban Development, or the Secretary’s designee;</text></subparagraph> <subparagraph id="H40568088B07042C0922F48AA5B49CC93"><enum>(C)</enum><text>the Secretary of Agriculture, or the Secretary’s designee;</text></subparagraph> <subparagraph id="H83FD75871932426DBD3C53530058C2CB"><enum>(D)</enum><text>2 persons from for-profit organizations or businesses actively involved in providing or promoting affordable housing for extremely low- and very low-income households; and</text></subparagraph> <subparagraph id="H368D8D6AFA784E80B9401C74BAB5B8A1"><enum>(E)</enum><text display-inline="yes-display-inline">2 persons from nonprofit organizations actively involved in providing or promoting affordable housing for extremely low- and very low-income households.</text></subparagraph></paragraph> <paragraph id="H250B7E3F2AD34ABAA44987B77D7EE4B4"><enum>(2)</enum><header>Terms</header> <subparagraph id="H6831F64F20C748C6BA28ADBCDC88F5EB"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term of each member of the affordable housing board appointed pursuant to paragraph (1) (but not including members appointed pursuant to subparagraphs (A), (B), and (C)) shall be 3 years.</text></subparagraph> <subparagraph id="H3421C039E0764840A600A6C8B6FCFA36"><enum>(B)</enum><header>Initial appointees</header><text display-inline="yes-display-inline">The Director shall appoint the initial members of the affordable housing board not later than the expiration of the 60-day period beginning on the date of the enactment of this Act. As designated by the Director at the time of appointment, of the members of the affordable housing board first appointed pursuant to paragraph (1) (but not including members appointed pursuant to subparagraphs (A), (B), and (C))—</text> <clause id="H6BD62D108E0944E087ED6641BA1E96AC"><enum>(i)</enum><text>in the case of a board having 7 members—</text> <subclause id="H86BEA392033E4F36B58FA3C2B99FED71"><enum>(I)</enum><text>one shall be appointed for a term of one year; and</text></subclause> <subclause id="HDB34C60E8BEA496585FC2E5D53DE00D5"><enum>(II)</enum><text>one shall be appointed for a term of two years;</text></subclause></clause> <clause id="H9CA03C643AEB4B758E46AFE157C5A8D6" display-inline="no-display-inline"><enum>(ii)</enum><text>in the case of a board having 9 members—</text> <subclause id="H8F0B3FDACE784EEE89AE8B615914DE58"><enum>(I)</enum><text>two shall be appointed for a term of one year; and</text></subclause> <subclause id="H389C20F04DDB4351A65E4EB8785B60D9"><enum>(II)</enum><text>two shall be appointed for a term of two years; and</text></subclause></clause> <clause id="H96DD947357814B2997198FEED31166B3" display-inline="no-display-inline"><enum>(iii)</enum><text>in the case of a board having 11 members—</text> <subclause id="HD528D71AED5C454BA27B157C4B040093"><enum>(I)</enum><text>two shall be appointed for a term of one year; and</text></subclause> <subclause id="HB00D3B9A5035409793186029611085A5"><enum>(II)</enum><text>three shall be appointed for a term of two years;</text></subclause></clause></subparagraph></paragraph> <paragraph id="H62915D57AC0F48E7B7FAF1FF98F86F99"><enum>(3)</enum><header>Duties</header><text>The affordable housing board shall meet not less than quarterly—</text> <subparagraph id="HB8602D7A96E445E2AE59C343E2D70355"><enum>(A)</enum><text>to determine extremely low- and very low-income housing needs;</text></subparagraph> <subparagraph id="HB802D164D3174363BABA4F6F9127E3E2"><enum>(B)</enum><text>to advise the Director with respect to—</text> <clause id="H56C71990C93C4201AFBAF8C2001E83DB"><enum>(i)</enum><text>establishment of the selection criteria under subsection (l)(2)(C) that provide for appropriate use of amounts from the affordable housing funds of the enterprises to meet such needs; and</text></clause> <clause id="H506A303936E641DBA54CF0ACB677AB2"><enum>(ii)</enum><text>operation of, and changes to, the program under this section appropriate to meet such needs; and</text></clause></subparagraph> <subparagraph id="HF635B6D9A0AA4EAAB90041E0CFDC7467"><enum>(C)</enum><text>to review the reports submitted by the enterprises pursuant to subsection (g)(1) to determine whether the activities funded using amounts from the affordable housing funds of the enterprises comply with the regulations issued pursuant to subsection (l)(2)(C) and inform the Director of such determinations, for purposes of subsection (g)(2).</text></subparagraph></paragraph> <paragraph id="HD051DE9BEE39466CB40044EF280900D4"><enum>(4)</enum><header>Expenses and per diem</header><text>Members of the board shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections <external-xref legal-doc="usc" parsable-cite="usc/5/5702">5702</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/5/5703">5703</external-xref> of title 5, United States Code.</text></paragraph> <paragraph id="H84369977B6184E7A9BF3D00942C742B"><enum>(5)</enum><header>Advisory committee</header><text>The board shall be considered an advisory committee for purposes of the Federal Advisory Committee Act (5 U.S.C. App.).</text></paragraph> <paragraph id="H0393F4570D604DF6008BC9E6FBD9F1C"><enum>(6)</enum><header>Duration</header><text> The board shall have continued existence until terminated by law.</text></paragraph></subsection> <subsection id="H213EDE2F35444EA684B311EBE5A25D41" display-inline="no-display-inline"><enum>(k)</enum><header>Definition</header><text>For purposes of this section, the term <quote>economically underserved area</quote> means an area that predominantly includes census tracts for which—</text> <paragraph id="HA5FFF842882C4EB8BCD0D7A5E1334B3E"><enum>(1)</enum><text>at least 20 percent of the population is below the poverty line (as such term is defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>), including any revision required by such section), applicable to a family of the size involved; or</text></paragraph> <paragraph id="H92E08C41EC644B9CA2E8A17F0000FC2C"><enum>(2)</enum><text>median family income does not exceed the greater of—</text> <subparagraph id="HC07F6B9D35294D139CF743E800A3ED13"><enum>(A)</enum><text>80 percent of the median family income for the metropolitan statistical area in which such census tracts are located; or</text></subparagraph> <subparagraph id="HF65F041B306342858452F6D7858C29F4"><enum>(B)</enum><text>80 percent of the median family income for the State in which such census tracts are located.</text></subparagraph></paragraph></subsection> <subsection id="H2E2BD83E5F374CAEB2AE275DBB2FBC82"><enum>(l)</enum><header>Regulations</header> <paragraph id="H59FF23CBE36842409921AD955F00F9F1"><enum>(1)</enum><header>In general</header><text>The Director shall issue regulations to carry out this section.</text></paragraph> <paragraph id="HDB381F365D3A4239B63DE4229F7FC625"><enum>(2)</enum><header>Required contents</header><text>The regulations issued under this subsection shall include—</text> <subparagraph id="H97194CE1A3664FA69C5E69A7F82E62FC"><enum>(A)</enum><text>authority for the Director to audit, provide for an audit, or otherwise verify an enterprise’s activities, to ensure compliance with this section;</text></subparagraph> <subparagraph id="HC1E668FE77984A8CB9C3B26233ADD93"><enum>(B)</enum><text>a requirement that the Director ensure that the affordable housing fund of each enterprise is audited not less than annually to ensure compliance with this section;</text></subparagraph> <subparagraph id="H886F48F338F7426C928829A5C379BFC4"><enum>(C)</enum><text>requirements for a process for application to, and selection by, an enterprise for activities to be funded with amounts from the affordable housing fund, which shall provide that—</text> <clause id="H2F2CB60033E4434E977F7BB85483A020"><enum>(i)</enum><text>selection shall based upon specific criteria, including a prioritization of funding based upon—</text> <subclause id="H1529C7A38CB9414CB743CCF22E788400"><enum>(I)</enum><text>greatest impact;</text></subclause> <subclause id="H66CC121A2F164B26A86CC58FE94881D0"><enum>(II)</enum><text>geographic diversity;</text></subclause> <subclause id="H2C866DC584CD47D0B25056E115711CFE"><enum>(III)</enum><text>ability to obligate amounts and undertake activities so funded in a timely manner;</text></subclause> <subclause id="HDC9ABA3594284EE9994521679E585BE9" commented="no" display-inline="no-display-inline"><enum>(IV)</enum><text display-inline="yes-display-inline">in the case of rental housing projects under subsection (d)(1), the extent to which rents for units in the project funded are affordable, especially for extremely low-income families; and</text></subclause> <subclause id="H1B5DC08F02724FD0857FE35456636E00" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">in the case of rental housing projects under subsection (d)(1), the extent of the duration for which such rents will remain affordable; and</text></subclause></clause> <clause id="H459E1267570C4EBEA2AAC6F19C37B512"><enum>(ii)</enum><text display-inline="yes-display-inline">an enterprise may not require for such selection that an activity involve financing or underwriting of any kind by the enterprise (other than funding through the affordable housing fund of the enterprise) and may not give preference in such selection to activities that involve such financing; and</text></clause></subparagraph> <subparagraph id="HB0F996B9651B4B8C84E781629F57D3FA"><enum>(D)</enum><text display-inline="yes-display-inline">requirements to ensure that amounts from the affordable housing funds of the enterprises used for rental housing under subsection (d)(1) are used only for the benefit of extremely low- and very-low income families.</text></subparagraph></paragraph> <paragraph id="H6886BCE3453C49FC952644873FC6907F"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">Any regulations issued by the Director pursuant to this section shall be no more restrictive on the enterprises’ activities in connection with the allocation of after-tax income under this section than the regulations issued to implement the affordable housing program of the Federal home loan banks pursuant to section 10(j) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)</external-xref>).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4054804001EC48F4A51430FC1157AD08"><enum>(b)</enum><header>Contributions for 2006</header> <paragraph id="H546B3167E0B54300883079EA65091D2C"><enum>(1)</enum><header>Reservation and contribution</header><text display-inline="yes-display-inline">In 2006, each enterprise (as such term is defined in section 1303 of the Housing and Community Development Act of 1992) shall reserve for contribution to the affordable housing fund to be established by the enterprise pursuant to section 1337 of such Act (as amended by subsection (a) of this section), an amount equal to 3.5 percent of the after-tax income of the enterprise for 2005. Upon the establishment of such affordable housing fund, each enterprise shall allocate to such fund the amounts reserved under this subsection by the enterprise.</text></paragraph> <paragraph id="H4CDC10EA45984B76A8247E785327DF42"><enum>(2)</enum><header>Exception to deadline for commitment</header><text>Section 1337(e)(2) of the Housing and Community Development Act of 1992 (as amended by subsection (a) of this section) shall not apply to amounts allocated to the affordable housing fund of an enterprise pursuant to paragraph (1).</text></paragraph> <paragraph id="HE7CE1D910AD449D9838358D00279CF"><enum>(3)</enum><header>After-tax income</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>after-tax income</quote> has the meaning provided in subsection (b)(3) of the new section 1337 to be inserted by the amendment made by subsection (a) of this section.</text></paragraph> <paragraph id="HEE9C5D048BF74B889920EA46E7AABE3F"><enum>(4)</enum><header>Effective date</header><text>This subsection shall take effect on the date of the enactment of this Act.</text></paragraph></subsection></section> <section id="H665C6AF2156F488885EC672DA34640C4" display-inline="no-display-inline" section-type="subsequent-section"><enum>129.</enum><header>Consistency with mission</header><text display-inline="no-display-inline">Subpart B of part 2 of subtitle A of title XIII of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561">12 U.S.C. 4561 et seq.</external-xref>) is amended by adding after section 1337, as added by section 127 of this Act, the following new section:</text> <quoted-block style="OLC" id="H4EAE47B78F2A4799A6C22F62BB0600F1" display-inline="no-display-inline"> <section id="HC1A7F85D1A514A7DB1F0ED407C1DF93D"><enum>1338.</enum><header>Consistency with mission</header><text display-inline="no-display-inline">This subpart may not be construed to authorize an enterprise to engage in any program or activity that contravenes or is inconsistent with the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H787BC32239564B19BD61E500A63225B1"><enum>130.</enum><header>Enforcement</header> <subsection id="H9C41C5DA5DEA487B97AA4C8D91A0E8C8"><enum>(a)</enum><header>Cease-and-Desist proceedings</header><text>Section 1341 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4581">12 U.S.C. 4581</external-xref>) is amended—</text> <paragraph id="HF25449E53EBA4FF5864549D23CB6783"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HCA8815AD09F5421694706E1C81F939A0"> <subsection id="H49C6F32B2F9A47D885A819AC284DB094"><enum>(a)</enum><header>Grounds for issuance</header><text>The Director may issue and serve a notice of charges under this section upon an enterprise if the Director determines—</text> <paragraph id="HEEB8507F9904460989A5F03C5433FDD"><enum>(1)</enum><text>the enterprise has failed to meet any housing goal established under subpart B, following a written notice and determination of such failure in accordance with section 1336;</text></paragraph> <paragraph id="H34015AE47E8F4A178566459682568C25"><enum>(2)</enum><text>the enterprise has failed to submit a report under section 1314, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;</text></paragraph> <paragraph id="H4E0CDC4610E14D7EAE486300E7895525"><enum>(3)</enum><text>the enterprise has failed to submit the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>;</text></paragraph> <paragraph id="HB966BFAD71D244AD87CFD9AD6B167"><enum>(4)</enum><text>the enterprise has violated any provision of this part or any order, rule or regulation under this part;</text></paragraph> <paragraph id="H43230AFEB5784AE7AC9D42E16BA6FD8"><enum>(5)</enum><text>the enterprise has failed to submit a housing plan that complies with section 1336(c) within the applicable period; or</text></paragraph> <paragraph id="H1171C470F0264A9DA7BAE3A9705D3089"><enum>(6)</enum><text>the enterprise has failed to comply with a housing plan under section 1336(c).</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H44A3C4B205964882B5C6009DAB0491C" display-inline="no-display-inline"><enum>(2)</enum><text>in subsection (b)(2), by striking <quote>requiring the enterprise to</quote> and all that follows through the end of the paragraph and inserting the following:</text> <quoted-block style="OLC" id="HF4C97EFBA2CF4B01832E7EB18F4F08BA" display-inline="yes-display-inline"><text display-inline="yes-display-inline">requiring the enterprise to—</text> <subparagraph id="H543BC1EE96A147109B3311354155057E"><enum>(A)</enum><text>comply with the goal or goals;</text></subparagraph> <subparagraph id="H12D1B5CDE4354C8C9F9C533E63EF26F3"><enum>(B)</enum><text>submit a report under section 1314;</text></subparagraph> <subparagraph id="HDE16EA1A09284296A1A856A635621217"><enum>(C)</enum><text>comply with any provision this part or any order, rule or regulation under such part;</text></subparagraph> <subparagraph id="H68C63537C11E43B884AE6F991B0B448"><enum>(D)</enum><text>submit a housing plan in compliance with section 1336(c);</text></subparagraph> <subparagraph id="H063EE17A7E99442A81101000A1C3FAA8"><enum>(E)</enum><text>comply with a housing plan submitted under section 1336(c); or</text></subparagraph> <subparagraph id="H962324B6B6DE4F3AB9F6A720A540930"><enum>(F)</enum><text>provide the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, as applicable.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HCDD8FDB0B43F425385E6F939FFDD81C2"><enum>(3)</enum><text>in subsection (c), by inserting <quote>date of the</quote> before <quote>service of the order</quote>; and</text></paragraph> <paragraph id="HF31C803E6FE54449AD8F1913C15EA887"><enum>(4)</enum><text>by striking subsection (d).</text></paragraph></subsection> <subsection id="H07C3F681D5614F65B25D1E704F00B151"><enum>(b)</enum><header>Authority of Director to enforce notices and orders</header><text>Section 1344 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4584">12 U.S.C. 4584</external-xref>) is amended by striking subsection (a) and inserting the following new subsection:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H7D8F76C1D13F4744BA35DE628600D5E5"> <subsection id="H74D9EB0D6CDE4822A0FB32047C3C9696"><enum>(a)</enum><header>Enforcement</header><text>The Director may, in the discretion of the Director, apply to the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the enterprise is located, for the enforcement of any effective and outstanding notice or order issued under section 1341 or 1345, or request that the Attorney General of the United States bring such an action. Such court shall have jurisdiction and power to order and require compliance with such notice or order.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H34A4F5B351A244CDB7007771F7AAD36B"><enum>(c)</enum><header>Civil money penalties</header><text>Section 1345 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585</external-xref>) is amended—</text> <paragraph id="H19A0129DFB21464EA9DA9089FA00DFAB"><enum>(1)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="HEC85D34F04A6438588AF338811D616C8"> <subsection id="H7A34474BFCF54F8882BCD377F8FFD100"><enum>(a)</enum><header>Authority</header><text>The Director may impose a civil money penalty, in accordance with the provisions of this section, on any enterprise that has failed to—</text> <paragraph id="H2120CF060DE7437399DBD437EE805A8"><enum>(1)</enum><text>meet any housing goal established under subpart B, following a written notice and determination of such failure in accordance with section 1336(b);</text></paragraph> <paragraph id="H9307F091CB3543DD946386FF568ECFBD"><enum>(2)</enum><text>submit a report under section 1314, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;</text></paragraph> <paragraph id="HEB2C14E491DA4FE9B1B4FFE4006B4E00"><enum>(3)</enum><text>submit the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>;</text></paragraph> <paragraph id="HE4524C645DCB4699B19E2800E0FC9E6E"><enum>(4)</enum><text>comply with any provision of this part or any order, rule or regulation under this part;</text></paragraph> <paragraph id="H16D92181099248EEB2EC8CB2CBD9B97"><enum>(5)</enum><text>submit a housing plan pursuant to section 1336(c) within the required period; or</text></paragraph> <paragraph id="HEB97DE7FEFA346CAB8233FB8CF6774F6"><enum>(6)</enum><text>comply with a housing plan for the enterprise under section 1336(c).</text></paragraph></subsection> <subsection id="H9E0BEC6DD49B4393B4B53FE205D76233"><enum>(b)</enum><header>Amount of penalty</header><text>The amount of the penalty, as determined by the Director, may not exceed—</text> <paragraph id="H8ED1BB72AF674F7088B733FF87D90830"><enum>(1)</enum><text>for any failure described in paragraph (1), (5), or (6) of subsection (a), $50,000 for each day that the failure occurs; and</text></paragraph> <paragraph id="HDC35BAC1C88B43899D3D6E35DCE9D841"><enum>(2)</enum><text>for any failure described in paragraph (2), (3), or (4) of subsection (a), $20,000 for each day that the failure occurs.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HBDF1A3703E0C4635BDBA89EE9F093C34"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H101AD3420ADF4D37B36171D0014008C1"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="H863E44D913244952BEAD7063C9E100BA"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon at the end;</text></clause> <clause id="H7FE8E1248C1442B087D2FAEC7BAC11C"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>; and</quote> and inserting a period; and</text></clause> <clause id="H9DFC86D8A3C04F9A81A80E25E806B3"><enum>(iii)</enum><text>by striking subparagraph (C); and</text></clause></subparagraph> <subparagraph id="HC60019A709BB42C9A1BFC294CFECAE7B"><enum>(B)</enum><text>in paragraph (2), by inserting after the period at the end the following: <quote>In determining the penalty under subsection (a)(1), the Director shall give consideration to the length of time the enterprise should reasonably take to achieve the goal.</quote>;</text></subparagraph></paragraph> <paragraph id="H3EBF175EB3FC4E0985DBABC172C366D2"><enum>(3)</enum><text>in the first sentence of subsection (d)—</text> <subparagraph id="H520422811DA0445584C4AB0015084800"><enum>(A)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; and</text></subparagraph> <subparagraph id="H497644D8F2CE4F0FAFA030BC002FBC1E"><enum>(B)</enum><text>by inserting <quote>, or request that the Attorney General of the United States bring such an action</quote> before the period at the end;</text></subparagraph></paragraph> <paragraph id="H91F59D84885845529979D5D0E028D888"><enum>(4)</enum><text>by striking subsection (f); and</text></paragraph> <paragraph id="HB8F651289F8B4EFEBA64DF424B2836E9"><enum>(5)</enum><text>by redesignating subsection (g) as subsection (f).</text></paragraph></subsection> <subsection id="H2F6E8D6FC35F44F9BBB23D9472565934"><enum>(d)</enum><header>Enforcement of subpoenas</header><text>Section 1348(c) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4588">12 U.S.C. 4588(c)</external-xref>) is amended—</text> <paragraph id="HA28F6650401A4C209E9238F7005812B7"><enum>(1)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; and</text></paragraph> <paragraph id="H47CD0F368DDC4124B1F7A14C233FC5CA"><enum>(2)</enum><text>by inserting <quote>or request that the Attorney General of the United States bring such an action,</quote> after <quote>District of Columbia,</quote></text></paragraph></subsection> <subsection id="HE0C91B9A2E784837BF30FB947BFD9EF8"><enum>(e)</enum><header>Conforming amendment</header><text>The heading for subpart C of part 2 of subtitle A of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended to read as follows:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H62966DAF84F64846926649FD7D90E1E"> <subpart id="H21CF403477104AA5BCB3CD311CEC33F5"><enum>C</enum><header>Enforcement</header></subpart><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HA2D264B8E98F469E9651B571ED48F272"><enum>131.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text> <paragraph id="H6FD38220E11B4F3F8F864B005B4B3DAF"><enum>(1)</enum><text>by striking <quote>Secretary</quote> each place such term appears in such part and inserting <quote>Director</quote>;</text></paragraph> <paragraph id="HAB40CC34D6F449AA96EE6207627C7FAA"><enum>(2)</enum><text>in the section heading for section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>), by inserting “<header-in-text>of enterprises</header-in-text>” before the period at the end;</text></paragraph> <paragraph id="H4E12AEF4163040C88CA8B626EA81175"><enum>(3)</enum><text>by striking section 1327 (<external-xref legal-doc="usc" parsable-cite="usc/12/4547">12 U.S.C. 4547</external-xref>);</text></paragraph> <paragraph id="H084E449A71A44CB6896B491E8E07F943"><enum>(4)</enum><text>by striking section 1328 (<external-xref legal-doc="usc" parsable-cite="usc/12/4548">12 U.S.C. 4548</external-xref>);</text></paragraph> <paragraph id="H2F007B64C44741F0B400555FF96902C8"><enum>(5)</enum><text>in sections 1345(c)(1)(A) and 1346(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585(c)(1)(A)</external-xref>, 4586(b)), by striking <quote>Secretary’s</quote> each place such term appears and inserting <quote>Director’s</quote>; and</text></paragraph> <paragraph id="HB73CC81B7F074FB3BCBDE4593214F76"><enum>(6)</enum><text>by striking section 1349 (<external-xref legal-doc="usc" parsable-cite="usc/12/4589">12 U.S.C. 4589</external-xref>).</text></paragraph></section></subtitle> <subtitle id="H8A6D01AFD6A848759477D7C610007E83"><enum>C</enum><header>Prompt corrective action</header> <section id="HE501157A0B71430E8D06DBFA6740565"><enum>141.</enum><header>Capital classifications</header> <subsection id="H15DCC58CD87E49E6AAF714485FA95BA6"><enum>(a)</enum><header>In General</header><text>Section 1364 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614</external-xref>) is amended—</text> <paragraph id="H5C400134B07F46AF9D8992E5065E00C9"><enum>(1)</enum><text>in the heading for subsection (a) by striking <quote>In General</quote> and inserting <quote>Enterprises</quote>;</text></paragraph> <paragraph id="H45187B2F8C7C4BD0A3DDC9BF786800A2"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="HD62ED9FC62F042A09D422C00F00B302"><enum>(A)</enum><text>by striking <quote>subsection (b)</quote> and inserting <quote>subsection (c)</quote>;</text></subparagraph> <subparagraph id="H4D10D7AD7EBD449993E9319B12C88146"><enum>(B)</enum><text>by striking <quote>enterprises</quote> and inserting <quote>regulated entities</quote>; and</text></subparagraph> <subparagraph id="H963E845B26AB4EFDAB42830064FDE6AC"><enum>(C)</enum><text>by striking the last sentence;</text></subparagraph></paragraph> <paragraph id="H004C0C0495A84FFF9BAD536FFE071EAD"><enum>(3)</enum><text>by redesignating subsections (c) (as so amended by paragraph (2) of this subsection) and (d) as subsections (d) and (f), respectively;</text></paragraph> <paragraph id="HD555F0E5AE2C48859034B191793E64E9"><enum>(4)</enum><text>by striking subsection (b) and inserting the following new subsections:</text> <quoted-block id="HB52746E97A8848B6BECE328DCE8EC5F7"> <subsection id="H2096E96574764ADE8068592EAAC92534"><enum>(b)</enum><header>Federal Home Loan Banks</header> <paragraph id="H9394B9D1911D47FC9778F5C2ABC95F59"><enum>(1)</enum><header>Establishment and criteria</header><text>For purposes of this subtitle, the Director shall, by regulation—</text> <subparagraph id="H07537B7986154430B35016C005BB59C9"><enum>(A)</enum><text>establish the capital classifications specified under paragraph (2) for the Federal home loan banks;</text></subparagraph> <subparagraph id="H5E6E072E4A4E4D63B3B465DF85C4869D"><enum>(B)</enum><text>establish criteria for each such capital classification based on the amount and types of capital held by a bank and the risk-based, minimum, and critical capital levels for the banks and taking due consideration of the capital classifications established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate to reflect the difference in operations between the banks and the enterprises; and</text></subparagraph> <subparagraph id="H1FF42CE9033244EA9DFF6B82BD44751C"><enum>(C)</enum><text>shall classify the Federal home loan banks according to such capital classifications.</text></subparagraph></paragraph> <paragraph id="HE892B07B27CA47EA82DFCE293E72A22C"><enum>(2)</enum><header>Classifications</header><text>The capital classifications specified under this paragraph are—</text> <subparagraph id="H78698FE9126743759C65708F002B0580"><enum>(A)</enum><text>adequately capitalized;</text></subparagraph> <subparagraph id="H838795B30B43482AA73D204500B61947"><enum>(B)</enum><text>undercapitalized;</text></subparagraph> <subparagraph id="H78712CDA6EFE422F8C7D6100A0005FF4"><enum>(C)</enum><text>significantly undercapitalized; and</text></subparagraph> <subparagraph id="H230A2C92778B46B196C17B0179A52833"><enum>(D)</enum><text>critically undercapitalized.</text></subparagraph></paragraph></subsection> <subsection id="HE83193A0174B4205A5002C7FDD362598"><enum>(c)</enum><header>Discretionary classification</header> <paragraph id="HB9A949C1EFAA41CCBF183FD16500FDF0"><enum>(1)</enum><header>Grounds for reclassification</header><text>The Director may reclassify a regulated entity under paragraph (2) if—</text> <subparagraph id="H6BADDAB871AE40F6846583C4BF32A5C4"><enum>(A)</enum><text>at any time, the Director determines in writing that the regulated entity is engaging in conduct that could result in a rapid depletion of core or total capital or, in the case of an enterprise, that the value of the property subject to mortgages held or securitized by the enterprise has decreased significantly;</text></subparagraph> <subparagraph id="H97DD8CDAD7B349EB8063A1582B27E77E"><enum>(B)</enum><text>after notice and an opportunity for hearing, the Director determines that the regulated entity is in an unsafe or unsound condition; or</text></subparagraph> <subparagraph id="HC9FA1B20C5F840338586642CA39B8CE1"><enum>(C)</enum><text>pursuant to section 1371(b), the Director deems the regulated entity to be engaging in an unsafe or unsound practice.</text></subparagraph></paragraph> <paragraph id="H4B130707E2FC445BA6A6679483DFF35F"><enum>(2)</enum><header>Reclassification</header><text>In addition to any other action authorized under this title, including the reclassification of a regulated entity for any reason not specified in this subsection, if the Director takes any action described in paragraph (1) the Director may classify a regulated entity—</text> <subparagraph id="H2EE0C02FB96A4E789200592BF804D8B2"><enum>(A)</enum><text>as undercapitalized, if the regulated entity is otherwise classified as adequately capitalized;</text></subparagraph> <subparagraph id="H5B67CEC4AD674E3DABFB30BC59EFAC35"><enum>(B)</enum><text>as significantly undercapitalized, if the regulated entity is otherwise classified as undercapitalized; and</text></subparagraph> <subparagraph id="H161866F33CDF44FF9840AF7D6500FD75"><enum>(C)</enum><text>as critically undercapitalized, if the regulated entity is otherwise classified as significantly undercapitalized.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HEC41BD4DF2ED480AB84BCDD34CE98E7E"><enum>(5)</enum><text>by inserting after subsection (d) (as so redesignated by paragraph (3) of this subsection), the following new subsection:</text> <quoted-block id="H95334EC0D8024D18AEC39E349D47A23E"> <subsection id="H9444B32ECD3F4E3F8BD233B82382909"><enum>(e)</enum><header>Restriction on capital distributions</header> <paragraph id="H0DDF99E4CD1A429EAE98F3CE7B5073F"><enum>(1)</enum><header>In General</header><text>A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized.</text></paragraph> <paragraph id="HC313E886DC2D4E6CA3316C9003EBB639"><enum>(2)</enum><header>Exception</header><text>Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition—</text> <subparagraph id="H5A10186E4E084974B3B5D0D5DA57B9BF"><enum>(A)</enum><text>is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and</text></subparagraph> <subparagraph id="H1D24ACA0E53C43AEB114F37EC28B9572"><enum>(B)</enum><text>will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HAB25741F48E14239840412AE00E8D6AF"><enum>(b)</enum><header>Regulations</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 185, the Director of the Federal Housing Finance Agency shall issue regulations to carry out section 1364(b) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as added by paragraph (4) of this subsection), relating to capital classifications for the Federal home loan banks.</text></subsection></section> <section id="HEADCFE8FC341444DA7913DB2693D5C0"><enum>142.</enum><header>Supervisory actions applicable to undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1365 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) is amended—</text> <paragraph id="H00E3BDB65B57404AAD40CCB9A9AD1F92"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>enterprises</header-in-text>” and inserting “<header-in-text>regulated entities</header-in-text>”;</text></paragraph> <paragraph id="H544F0D30F70A4CCAB038019DB6D22E2C"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="HD155F6B9D4DA4CD4B3C05991574CDA6"><enum>(A)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;</text></subparagraph> <subparagraph id="H0EC96BAEBC11447CA45C0022A57697FC"><enum>(B)</enum><text>by inserting before paragraph (2) the following paragraph:</text> <quoted-block id="H97B6E5DB2FFB4EB3AF9C536C62B702EB"> <paragraph id="H7BD2E36659A942DCA3E958FB0B83DB9"><enum>(1)</enum><header>Required monitoring</header><text>The Director shall—</text> <subparagraph id="HBA9A2AA166C14E5B932BCA3374088EA1"><enum>(A)</enum><text>closely monitor the condition of any regulated entity that is classified as undercapitalized;</text></subparagraph> <subparagraph id="H106BCDC04EBA420AAD11975FCB4BB3D1"><enum>(B)</enum><text>closely monitor compliance with the capital restoration plan, restrictions, and requirements imposed under this section; and</text></subparagraph> <subparagraph id="H1AC119D74592487A80C4EE213E30FEE2"><enum>(C)</enum><text>periodically review the plan, restrictions, and requirements applicable to the undercapitalized regulated entity to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HAF81FEF0C4744593A31FE2F4276E94F1"><enum>(C)</enum><text>by inserting at the end the following new paragraphs:</text> <quoted-block id="H7D527DF26BCB495E93F382A18DB37E9"> <paragraph id="HD4DA43EFAD484A78931E177C4D749200"><enum>(4)</enum><header>Restriction of asset growth</header><text>A regulated entity that is classified as undercapitalized shall not permit its average total assets (as such term is defined in section 1316(b) during any calendar quarter to exceed its average total assets during the preceding calendar quarter unless—</text> <subparagraph id="H4A657051B0C54DBCBA3E20C0AED8B3AF"><enum>(A)</enum><text>the Director has accepted the capital restoration plan of the regulated entity;</text></subparagraph> <subparagraph id="HA455C814C0F94491B920B92CAAEE671"><enum>(B)</enum><text>any increase in total assets is consistent with the plan; and</text></subparagraph> <subparagraph id="HCAF8D365D3904C1BB176EF2600495141"><enum>(C)</enum><text>the ratio of total capital to assets for the regulated entity increases during the calendar quarter at a rate sufficient to enable the entity to become adequately capitalized within a reasonable time.</text></subparagraph></paragraph> <paragraph id="H48215C1F9C1B4C24B16CA24FEDC93CB3"><enum>(5)</enum><header>Prior approval of acquisitions, new programs, and new business activities</header><text>A regulated entity that is classified as undercapitalized shall not, directly or indirectly, acquire any interest in any entity or engage in any new program or new business activity unless—</text> <subparagraph id="HC05FE65549E14B1A909D725FC3BD19F2"><enum>(A)</enum><text>the Director has accepted the capital restoration plan of the regulated entity, the entity is implementing the plan, and the Director determines that the proposed action is consistent with and will further the achievement of the plan; or</text></subparagraph> <subparagraph id="HC662EAC36E254DD3986F1B7F5DE2935"><enum>(B)</enum><text>the Director determines that the proposed action will further the purpose of this section.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H4AEC8EF6ECAD4082B002C2EF88C6E8E0"><enum>(3)</enum><text>in the subsection heading for subsection (b), by striking <quote><header-in-text level="subsection" style="OLC">From undercapitalized to significantly undercapitalized</header-in-text></quote>; and</text></paragraph> <paragraph id="HC32D85BD1D494DF593A3247C4264F376"><enum>(4)</enum><text>by striking subsection (c) and inserting the following new subsection:</text> <quoted-block id="H52DBA848B17E4860BBD1BE308B8251F9"> <subsection id="H6B0E67D9B1544473B6602295E699BDEF"><enum>(c)</enum><header>Other discretionary safeguards</header><text>The Director may take, with respect to a regulated entity that is classified as undercapitalized, any of the actions authorized to be taken under section 1366 with respect to a regulated entity that is classified as significantly undercapitalized, if the Director determines that such actions are necessary to carry out the purpose of this subtitle.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H9488AA0B92A2493EA496006339CA3C0"><enum>143.</enum><header>Supervisory actions applicable to significantly undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1366 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>) is amended—</text> <paragraph id="HD60332C53ADE43A2AE858167AA7E7DA4"><enum>(1)</enum><text>in the section heading, by striking “<header-in-text>enterprises</header-in-text>” and inserting “<header-in-text>entities</header-in-text>”;</text></paragraph> <paragraph id="H0AB14E11752E445391A884E4106D731E"><enum>(2)</enum><text>in subsection (a)(2)(A), by striking <quote>enterprise</quote> the last place such term appears;</text></paragraph> <paragraph id="H398481A6438F4C27B9E1B4EAC7C27D26"><enum>(3)</enum><text>in subsection (b)—</text> <subparagraph id="H2A6A2D6310364B2C9040CA6B42AD17B4"><enum>(A)</enum><text>in the subsection heading, by striking <quote>Discretionary Supervisory Actions</quote> and inserting <quote>Specific Actions</quote>;</text></subparagraph> <subparagraph id="H627B6912C92648E594F08CF8ABD4E192"><enum>(B)</enum><text>in the matter preceding paragraph (1), by striking <quote>may, at any time, take any</quote> and inserting <quote>shall carry out this section by taking, at any time, one or more</quote>;</text></subparagraph> <subparagraph id="H9D18DEA1BF10452B90ECEDE81EE40033"><enum>(C)</enum><text>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively;</text></subparagraph> <subparagraph id="H4C1785C9AB8142738C15ED0233E35529"><enum>(D)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H8EA4D2DF77484539BCF7BE00F4A0D22C"> <paragraph id="HCCED89AF48E74DA68CD901EB4042E57B"><enum>(5)</enum><header>Improvement of management</header><text>Take one or more of the following actions:</text> <subparagraph id="H767F717637C34382B30476D195E80729"><enum>(A)</enum><header>New election of Board</header><text>Order a new election for the board of directors of the regulated entity.</text></subparagraph> <subparagraph id="H95212FF010E84E2897E5396BFDAC3B42"><enum>(B)</enum><header>Dismissal of Directors or executive officers</header><text>Require the regulated entity to dismiss from office any director or executive officer who had held office for more than 180 days immediately before the entity became undercapitalized. Dismissal under this subparagraph shall not be construed to be a removal pursuant to the Director’s enforcement powers provided in section 1377.</text></subparagraph> <subparagraph id="H6753637D1D98419C951FC3F7D834431D"><enum>(C)</enum><header>Employ qualified executive officers</header><text>Require the regulated entity to employ qualified executive officers (who, if the Director so specifies, shall be subject to approval by the Director).</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HDC6C697990B84FFB81B7A59652536BA6"><enum>(E)</enum><text>by inserting at the end the following new paragraph:</text> <quoted-block id="H3A84064661184BB1B48E57E6D84C5CCF"> <paragraph id="HCCD0A2958ED44A50887740B1ADBF5998"><enum>(8)</enum><header>Other action</header><text>Require the regulated entity to take any other action that the Director determines will better carry out the purpose of this section than any of the actions specified in this paragraph.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H1887CDB702D840779458B4CC510243D"><enum>(4)</enum><text>by redesignating subsection (c) as subsection (d); and</text></paragraph> <paragraph id="HCC86038CA68A46878CBBD69601E76981"><enum>(5)</enum><text>by inserting after subsection (b) the following new subsection:</text> <quoted-block id="H552886E2A90F499DB300F239AC00523C"> <subsection id="H912D698B28CC4D17A9E621E2AE440551"><enum>(c)</enum><header>Restriction on compensation of executive officers</header><text>A regulated entity that is classified as significantly undercapitalized may not, without prior written approval by the Director—</text> <paragraph id="H8543486F9D6D4AC2AC718D132F49B7A9"><enum>(1)</enum><text>pay any bonus to any executive officer; or</text></paragraph> <paragraph id="H474873A3C55D47618D2E037FB387073F"><enum>(2)</enum><text>provide compensation to any executive officer at a rate exceeding that officer’s average rate of compensation (excluding bonuses, stock options, and profit sharing) during the 12 calendar months preceding the calendar month in which the regulated entity became undercapitalized.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H19476EEEE809471FBB46E0335D7F818D" section-type="subsequent-section" display-inline="no-display-inline"><enum>144.</enum><header>Authority over critically undercapitalized regulated entities</header> <subsection id="H7D01E0B5718149E9A7B29860D696E377"><enum>(a)</enum><header>In general</header><text>Section 1367 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) is amended to read as follows:</text> <quoted-block id="HE01D866F87FC4586943355E89814BE04" style="OLC"> <section id="H5B1BE164DE9D4BF487F6B85003DE852"><enum>1367.</enum><header>Authority over critically undercapitalized regulated entities</header> <subsection id="HAEC3572EB9E04512B676A423A84D6064"><enum>(a)</enum><header>Appointment of Agency as Conservator or Receiver</header> <paragraph id="H1DDAC87BF7F54465BD00AED6A3C9E3BD"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of Federal or State law, if any of the grounds under paragraph (3) exist, at the discretion of the Director, the Director may establish a conservatorship or receivership, as appropriate, for the purpose of reorganizing, rehabilitating, or winding up the affairs of a regulated entity.</text></paragraph> <paragraph id="H69218D1BE70F4FD99DD1D00AE64C17F"><enum>(2)</enum><header>Appointment</header><text>In any conservatorship or receivership established under this section, the Director shall appoint the Agency as conservator or receiver.</text></paragraph> <paragraph id="H2C16BAFD36344975A8803D7799921B57"><enum>(3)</enum><header>Grounds for appointment</header><text>The grounds for appointing a conservator or receiver for a regulated entity are as follows:</text> <subparagraph id="H72994BF321084CC8AC3F3872E83198C8"><enum>(A)</enum><header>Assets insufficient for obligations</header><text>The assets of the regulated entity are less than the obligations of the regulated entity to its creditors and others.</text></subparagraph> <subparagraph id="H19FCA6DD4E744D9498A7308913CC76A5"><enum>(B)</enum><header>Substantial dissipation</header><text>Substantial dissipation of assets or earnings due to—</text> <clause id="H7E264F8FB3B84CBBABC0ABCB05D8E4E2"><enum>(i)</enum><text>any violation of any provision of Federal or State law; or</text></clause> <clause id="H7092891D747A46848B925CBAFFB869D7"><enum>(ii)</enum><text>any unsafe or unsound practice.</text></clause></subparagraph> <subparagraph id="HB245D2075DE6465EAFECE80027F3D138"><enum>(C)</enum><header>Unsafe or unsound condition</header><text>An unsafe or unsound condition to transact business.</text></subparagraph> <subparagraph id="HB0436026C1CD4F5EB585ACACA243A2EF"><enum>(D)</enum><header>Cease-and-desist orders</header><text>Any willful violation of a cease-and-desist order that has become final.</text></subparagraph> <subparagraph id="H18DFB96B7F5E4C0B9831C59CEE1C0091"><enum>(E)</enum><header>Concealment</header><text>Any concealment of the books, papers, records, or assets of the regulated entity, or any refusal to submit the books, papers, records, or affairs of the regulated entity, for inspection to any examiner or to any lawful agent of the Director.</text></subparagraph> <subparagraph id="H2667EAF4AD7E4384AFE61700F740E400"><enum>(F)</enum><header>Inability to meet obligations</header><text>The regulated entity is likely to be unable to pay its obligations or meet the demands of its creditors in the normal course of business.</text></subparagraph> <subparagraph id="HEAE977B72A35464FBA44FE923C00F8FA"><enum>(G)</enum><header>Losses</header><text>The regulated entity has incurred or is likely to incur losses that will deplete all or substantially all of its capital, and there is no reasonable prospect for the regulated entity to become adequately capitalized (as defined in section 1364(a)(1)).</text></subparagraph> <subparagraph id="H03909CD9130A488EBFC1B3D3198636BB"><enum>(H)</enum><header>Violations of law</header><text>Any violation of any law or regulation, or any unsafe or unsound practice or condition that is likely to—</text> <clause id="H294B4F01D0214CF7869E5F38CDBF4CEE"><enum>(i)</enum><text>cause insolvency or substantial dissipation of assets or earnings; or</text></clause> <clause id="H51126C31C5FD4478A83F1D68F7877BB5"><enum>(ii)</enum><text>weaken the condition of the regulated entity.</text></clause></subparagraph> <subparagraph id="HC1C46ED042884B90A11D0047104B6791"><enum>(I)</enum><header>Consent</header><text>The regulated entity, by resolution of its board of directors or its shareholders or members, consents to the appointment.</text></subparagraph> <subparagraph id="HDF5FEF914D0742B58D7642F10ADAD"><enum>(J)</enum><header>Undercapitalization</header><text>The regulated entity is undercapitalized or significantly undercapitalized (as defined in section 1364(a)(3) or in regulations issued pursuant to section 1364(b), as applicable), and—</text> <clause id="H3E60F028A969486EB6E7E5F8B618ED03"><enum>(i)</enum><text>has no reasonable prospect of becoming adequately capitalized;</text></clause> <clause id="H156EBCB5448D4DA888B857F7272D9B13"><enum>(ii)</enum><text>fails to become adequately capitalized, as required by—</text> <subclause id="HDB735068C59147858F8DB854C0C0D9F2"><enum>(I)</enum><text>section 1365(a)(1) with respect to an undercapitalized regulated entity; or</text></subclause> <subclause id="HB4474A93E29F46319D783700E168D7D5"><enum>(II)</enum><text>section 1366(a)(1) with respect to a significantly undercapitalized regulated entity;</text></subclause></clause> <clause id="H8DCDE2239A574735B95067D10001B4FB"><enum>(iii)</enum><text>fails to submit a capital restoration plan acceptable to the Agency within the time prescribed under section 1369C; or</text></clause> <clause id="H5ACAB5C830D842D2BEDD39D044848E63"><enum>(iv)</enum><text>materially fails to implement a capital restoration plan submitted and accepted under section 1369C.</text></clause></subparagraph> <subparagraph id="H30BD1AB92D52496B00F53B3D95D51B36"><enum>(K)</enum><header>Critical undercapitalization</header><text display-inline="yes-display-inline">The regulated entity is critically undercapitalized, as defined in section 1364(a)(4) or in regulations issued pursuant to section 1364(b), as applicable.</text></subparagraph> <subparagraph id="H6E355EBE03CB4B6D89B0A5FA914729B1"><enum>(L)</enum><header>Money laundering</header><text>The Attorney General notifies the Director in writing that the regulated entity has been found guilty of a criminal offense under section <external-xref legal-doc="usc" parsable-cite="usc/18/1956">1956</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/18/1957">1957</external-xref> of title 18, United States Code, or section <external-xref legal-doc="usc" parsable-cite="usc/31/5322">5322</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/31/5324">5324</external-xref> of title 31, United States Code.</text></subparagraph></paragraph> <paragraph id="HD5090A15978F4E1D9E8C49963D2C00DE"><enum>(4)</enum><header>Judicial review</header> <subparagraph id="H65D69B402EA14AE5B440FE7D6B32972C"><enum>(A)</enum><header>In general</header><text>If the Agency is appointed conservator or receiver under this section, the regulated entity may, within 30 days of such appointment, bring an action in the United States District Court for the judicial district in which the principal place of business of such regulated entity is located, or in the United States District Court for the District of Columbia, for an order requiring the Agency to remove itself as conservator or receiver.</text></subparagraph> <subparagraph id="HDDCD9D6F768A400A973273F90077E62C"><enum>(B)</enum><header>Review</header><text>Upon the filing of an action under subparagraph (A), the court shall, upon the merits, dismiss such action or direct the Agency to remove itself as such conservator or receiver.</text></subparagraph></paragraph> <paragraph id="H704BFDC210BE464C9796E0ADEA675426"><enum>(5)</enum><header>Directors not liable for acquiescing in appointment of conservator or receiver</header><text>The members of the board of directors of a regulated entity shall not be liable to the shareholders or creditors of the regulated entity for acquiescing in or consenting in good faith to the appointment of the Agency as conservator or receiver for that regulated entity.</text></paragraph> <paragraph id="H136B35C1A0C342C08046D0BB49F1C7D"><enum>(6)</enum><header>Agency not subject to any other federal agency</header><text>When acting as conservator or receiver, the Agency shall not be subject to the direction or supervision of any other agency of the United States or any State in the exercise of the rights, powers, and privileges of the Agency.</text></paragraph></subsection> <subsection id="HD0563628998A45E9BEAC1745ED6C02D"><enum>(b)</enum><header>Powers and Duties of the Agency as Conservator or Receiver</header> <paragraph id="H78AD4E81A07543DEB8B9EF5BF3AF4BBF"><enum>(1)</enum><header>Rulemaking authority of the agency</header><text>The Agency may prescribe such regulations as the Agency determines to be appropriate regarding the conduct of conservatorships or receiverships.</text></paragraph> <paragraph id="HE5072339D2F14AD880D7F3FDF0A18026"><enum>(2)</enum><header>General powers</header> <subparagraph id="H7D5FE39E54EF4BB4AD93EC76ADAEEFAE"><enum>(A)</enum><header>Successor to regulated entity</header><text>The Agency shall, as conservator or receiver, and by operation of law, immediately succeed to—</text> <clause id="HBC2895952E604175A3C4ED2BDC0085AB"><enum>(i)</enum><text>all rights, titles, powers, and privileges of the regulated entity, and of any stockholder, officer, or director of such regulated entity with respect to the regulated entity and the assets of the regulated entity; and</text></clause> <clause id="HCEE240EBD8274BE6B896FDEA541FD263"><enum>(ii)</enum><text>title to the books, records, and assets of any other legal custodian of such regulated entity.</text></clause></subparagraph> <subparagraph id="HD27D04728E9F489692068DCB6538BA82"><enum>(B)</enum><header>Operate the regulated entity</header><text>The Agency may, as conservator or receiver—</text> <clause id="H36DC963F3B9E4ECE83CA06924CA8B6B0"><enum>(i)</enum><text>take over the assets of and operate the regulated entity with all the powers of the shareholders, the directors, and the officers of the regulated entity and conduct all business of the regulated entity;</text></clause> <clause id="H5CCA6EF3539C4CB98500517286636556"><enum>(ii)</enum><text>collect all obligations and money due the regulated entity;</text></clause> <clause id="HD6D0E04A5453410188F6DE91E784146"><enum>(iii)</enum><text>perform all functions of the regulated entity in the name of the regulated entity which are consistent with the appointment as conservator or receiver; and</text></clause> <clause id="HD2E9AC80B4B14687A110633E185E9D7C"><enum>(iv)</enum><text>preserve and conserve the assets and property of such regulated entity.</text></clause></subparagraph> <subparagraph id="HA540A2F9C8FF4C5898B6BD462D5003CE"><enum>(C)</enum><header>Functions of officers, directors, and shareholders of a regulated entity</header><text>The Agency may, by regulation or order, provide for the exercise of any function by any stockholder, director, or officer of any regulated entity for which the Agency has been named conservator or receiver.</text></subparagraph> <subparagraph id="HC50FFDB1D6DD463F91DBF6D1C4F98690"><enum>(D)</enum><header>Powers as conservator</header><text>The Agency may, as conservator, take such action as may be—</text> <clause id="H4293B99B4F2243E89B74BF4E45570073"><enum>(i)</enum><text>necessary to put the regulated entity in a sound and solvent condition; and</text></clause> <clause id="H76E5A92A3FF54B19AD7507BE9F90DB14"><enum>(ii)</enum><text>appropriate to carry on the business of the regulated entity and preserve and conserve the assets and property of the regulated entity.</text></clause></subparagraph> <subparagraph id="HF8BF22C0F7E54EF58F1630F2C41207E0"><enum>(E)</enum><header>Additional powers as receiver</header><text>The Agency may, as receiver, place the regulated entity in liquidation and proceed to realize upon the assets of the regulated entity, having due regard to the conditions of the housing finance market.</text></subparagraph> <subparagraph id="HB8ACF8D9A80545048299B8FE7C7541EA"><enum>(F)</enum><header>Organization of new regulated entities</header><text>The Agency may, as receiver, organize a successor regulated entity that will operate pursuant to subsection (i).</text></subparagraph> <subparagraph id="H8992CE02418D4CC18D488BA4F861CA21"><enum>(G)</enum><header>Transfer of assets and liabilities</header><text>The Agency may, as conservator or receiver, transfer any asset or liability of the regulated entity in default without any approval, assignment, or consent with respect to such transfer. Any Federal home loan bank may, with the approval of the Agency, acquire the assets of any Bank in conservatorship or receivership, and assume the liabilities of such Bank</text></subparagraph> <subparagraph id="H8137CE9C1D0E43F0BC5BC2536EBAC270"><enum>(H)</enum><header>Payment of valid obligations</header><text>The Agency, as conservator or receiver, shall, to the extent of proceeds realized from the performance of contracts or sale of the assets of a regulated entity, pay all valid obligations of the regulated entity in accordance with the prescriptions and limitations of this section.</text></subparagraph> <subparagraph id="H2B7F275988E746CEBFED00C43976D7B9"><enum>(I)</enum><header>Subpoena authority</header> <clause id="H6227A8F80AC8498BA88F5178D795D500"><enum>(i)</enum><header>In general</header> <subclause id="HDB577A467F3A4C17805DC642BA51203B"><enum>(I)</enum><header>In general</header><text>The Agency may, as conservator or receiver, and for purposes of carrying out any power, authority, or duty with respect to a regulated entity (including determining any claim against the regulated entity and determining and realizing upon any asset of any person in the course of collecting money due the regulated entity), exercise any power established under section 1348.</text></subclause> <subclause id="H3C3B430C0E7044719271D720D1BC6BDB"><enum>(II)</enum><header>Applicability of law</header><text>The provisions of section 1348 shall apply with respect to the exercise of any power exercised under this subparagraph in the same manner as such provisions apply under that section.</text></subclause></clause> <clause id="H08F8E9048A9446259E3F9B3C918408A"><enum>(ii)</enum><header>Authority of director</header><text>A subpoena or subpoena duces tecum may be issued under clause (i) only by, or with the written approval of, the Director, or the designee of the Director.</text></clause> <clause id="HF6CD812852C84C58AECDCBD2A591FDB6"><enum>(iii)</enum><header>Rule of construction</header><text>This subsection shall not be construed to limit any rights that the Agency, in any capacity, might otherwise have under section 1317 or 1379D.</text></clause></subparagraph> <subparagraph id="H6D32935E413541CC96BFFFBF01BB3378"><enum>(J)</enum><header>Contracting for services</header><text>The Agency may, as conservator or receiver, provide by contract for the carrying out of any of its functions, activities, actions, or duties as conservator or receiver.</text></subparagraph> <subparagraph id="H5550912503244CDBAB866D6100707889"><enum>(K)</enum><header>Incidental powers</header><text>The Agency may, as conservator or receiver—</text> <clause id="H7530C964CD284132B1C9D4E543A4D239"><enum>(i)</enum><text>exercise all powers and authorities specifically granted to conservators or receivers, respectively, under this section, and such incidental powers as shall be necessary to carry out such powers; and</text></clause> <clause id="H5A9CCEDC3FAD42D7A7447F00B7410096"><enum>(ii)</enum><text>take any action authorized by this section, which the Agency determines is in the best interests of the regulated entity or the Agency.</text></clause></subparagraph></paragraph> <paragraph id="HA5EA9E7819DC4171BA3899DD124EE7D6"><enum>(3)</enum><header>Authority of receiver to determine claims</header> <subparagraph id="HAD5895E0B94C4340B075A0E9C6BAC93F"><enum>(A)</enum><header>In general</header><text>The Agency may, as receiver, determine claims in accordance with the requirements of this subsection and any regulations prescribed under paragraph (4).</text></subparagraph> <subparagraph id="H951C8B6A11E94F5E9F658481F14EA47B"><enum>(B)</enum><header>Notice requirements</header><text>The receiver, in any case involving the liquidation or winding up of the affairs of a closed regulated entity, shall—</text> <clause id="H46D206C6401945E7B7A5AFE9DE64F980"><enum>(i)</enum><text>promptly publish a notice to the creditors of the regulated entity to present their claims, together with proof, to the receiver by a date specified in the notice which shall be not less than 90 days after the publication of such notice; and</text></clause> <clause id="HC597533BF13F405680DB23E9FFB7A9FB"><enum>(ii)</enum><text>republish such notice approximately 1 month and 2 months, respectively, after the publication under clause (i).</text></clause></subparagraph> <subparagraph id="HA1566CDF906F4563BBDA11FD7370FF47"><enum>(C)</enum><header>Mailing required</header><text>The receiver shall mail a notice similar to the notice published under subparagraph (B)(i) at the time of such publication to any creditor shown on the books of the regulated entity—</text> <clause id="HF0475F3BF7C84D039074DC16E2DA693"><enum>(i)</enum><text>at the last address of the creditor appearing in such books; or</text></clause> <clause id="H7AC9CA1E601F481DAE0610DCD69B2D00"><enum>(ii)</enum><text>upon discovery of the name and address of a claimant not appearing on the books of the regulated entity within 30 days after the discovery of such name and address.</text></clause></subparagraph></paragraph> <paragraph id="H9BC7CEBADA9A4E41A65DBFDC4E089798"><enum>(4)</enum><header>Rulemaking authority relating to determination of claims</header><text>Subject to subsection (c), the Director may prescribe regulations regarding the allowance or disallowance of claims by the receiver and providing for administrative determination of claims and review of such determination.</text></paragraph> <paragraph id="H7352402CA2AE40BD97DACDECFEBF0500"><enum>(5)</enum><header>Procedures for determination of claims</header> <subparagraph id="HFB2D7568ACC944F7B29642AFC609B903"><enum>(A)</enum><header>Determination period</header> <clause id="H1ACE85004ABA4BE692168D1B8CD2B912"><enum>(i)</enum><header>In general</header><text>Before the end of the 180-day period beginning on the date on which any claim against a regulated entity is filed with the Agency as receiver, the Agency shall determine whether to allow or disallow the claim and shall notify the claimant of any determination with respect to such claim.</text></clause> <clause id="HF984E6F52B784DCDA9D3EBEE4D185136"><enum>(ii)</enum><header>Extension of time</header><text>The period described in clause (i) may be extended by a written agreement between the claimant and the Agency.</text></clause> <clause id="H71BF9042AA764434B6F7953C46FDC051"><enum>(iii)</enum><header>Mailing of notice sufficient</header><text>The notification requirements of clause (i) shall be deemed to be satisfied if the notice of any determination with respect to any claim is mailed to the last address of the claimant which appears—</text> <subclause id="H62DB43DF15074900888F4BF6F628E40"><enum>(I)</enum><text>on the books of the regulated entity;</text></subclause> <subclause id="HCB58C65227594B08A3DBDC1EB4888D05"><enum>(II)</enum><text>in the claim filed by the claimant; or</text></subclause> <subclause id="HBF1F6516592D41A5936C2C771849CEFD"><enum>(III)</enum><text>in documents submitted in proof of the claim.</text></subclause></clause> <clause id="H60204CB9D51D4BF6AB848C6551685DC"><enum>(iv)</enum><header>Contents of notice of disallowance</header><text>If any claim filed under clause (i) is disallowed, the notice to the claimant shall contain—</text> <subclause id="HB8075CDB81DD4723A3433299D0CB7EB2"><enum>(I)</enum><text>a statement of each reason for the disallowance; and</text></subclause> <subclause id="HD88D1FDEEA584136A5CD3B93CB8B50A8"><enum>(II)</enum><text>the procedures available for obtaining agency review of the determination to disallow the claim or judicial determination of the claim.</text></subclause></clause></subparagraph> <subparagraph id="HD43950DEE8BC408FB5B6EB4282340035"><enum>(B)</enum><header>Allowance of proven claim</header><text>The receiver shall allow any claim received on or before the date specified in the notice published under paragraph (3)(B)(i), or the date specified in the notice required under paragraph (3)(C), which is proved to the satisfaction of the receiver.</text></subparagraph> <subparagraph id="H019829A2694C4FCAB6FF139819B021F8"><enum>(C)</enum><header>Disallowance of claims filed after end of filing period</header><text>Claims filed after the date specified in the notice published under paragraph (3)(B)(i), or the date specified under paragraph (3)(C), shall be disallowed and such disallowance shall be final.</text></subparagraph> <subparagraph id="H6F32C06FEFCE4E58003CB7CF00760485"><enum>(D)</enum><header>Authority to disallow claims</header> <clause id="H392745762806494193D336C74FFEFFA7"><enum>(i)</enum><header>In general</header><text>The receiver may disallow any portion of any claim by a creditor or claim of security, preference, or priority which is not proved to the satisfaction of the receiver.</text></clause> <clause id="H60B266875CDF4CEE9FB9017D337B17E7"><enum>(ii)</enum><header>Payments to less than fully secured creditors</header><text>In the case of a claim of a creditor against a regulated entity which is secured by any property or other asset of such regulated entity, the receiver—</text> <subclause id="HA96937E10C5C4C67A1ECA9E11D006E73"><enum>(I)</enum><text>may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim against the regulated entity; and</text></subclause> <subclause id="HA0AEE98E67FF49139546E56E3987BFB2"><enum>(II)</enum><text>may not make any payment with respect to such unsecured portion of the claim other than in connection with the disposition of all claims of unsecured creditors of the regulated entity.</text></subclause></clause> <clause id="H3030FD82D20B4066AC3F4DF693421C6C"><enum>(iii)</enum><header>Exceptions</header><text display-inline="yes-display-inline">No provision of this paragraph shall apply with respect to any extension of credit from any Federal Reserve Bank, Federal home loan bank, or the Treasury of the United States.</text></clause></subparagraph> <subparagraph id="H3E8854EC5ECB46AEB775F46FA7DE3ECE"><enum>(E)</enum><header>No judicial review of determination pursuant to subparagraph (<enum-in-header>D</enum-in-header>)</header><text>No court may review the determination of the Agency under subparagraph (D) to disallow a claim. This subparagraph shall not effect the authority of a claimant to obtain de novo judicial review of a claim pursuant to paragraph (6).</text></subparagraph> <subparagraph id="HA7E1340DF50A420D98C06E4D33AE438F"><enum>(F)</enum><header>Legal effect of filing</header> <clause id="H7959CC0EB1FD4BB189E69D7644E76C69"><enum>(i)</enum><header>Statute of limitation tolled</header><text>For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action.</text></clause> <clause id="H531B6D311C8F4FE9A816AF0739225699"><enum>(ii)</enum><header>No prejudice to other actions</header><text>Subject to paragraph (10), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the date of the appointment of the receiver, subject to the determination of claims by the receiver.</text></clause></subparagraph></paragraph> <paragraph id="HB0DCCF672C604278A75900CF794B88B5"><enum>(6)</enum><header>Provision for judicial determination of claims</header> <subparagraph id="H32C1E817E31A4BF1AA4507A8BE05F1E2"><enum>(A)</enum><header>In general</header><text>The claimant may file suit on a claim (or continue an action commenced before the appointment of the receiver) in the district or territorial court of the United States for the district within which the principal place of business of the regulated entity is located or the United States District Court for the District of Columbia (and such court shall have jurisdiction to hear such claim), before the end of the 60-day period beginning on the earlier of—</text> <clause id="HE1FFA76E4177410EB213641BD2542D00"><enum>(i)</enum><text>the end of the period described in paragraph (5)(A)(i) with respect to any claim against a regulated entity for which the Agency is receiver; or</text></clause> <clause id="H6DC5980CEA7F428D8215E5BC163DCDB2"><enum>(ii)</enum><text>the date of any notice of disallowance of such claim pursuant to paragraph (5)(A)(i).</text></clause></subparagraph> <subparagraph id="HD6F50704D54349F1B741885B15EA0597"><enum>(B)</enum><header>Statute of limitations</header><text>A claim shall be deemed to be disallowed (other than any portion of such claim which was allowed by the receiver), and such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim, if the claimant fails, before the end of the 60-day period described under subparagraph (A), to file suit on such claim (or continue an action commenced before the appointment of the receiver).</text></subparagraph></paragraph> <paragraph id="H11CDB1EAA7E34C199199BF3836B78DEB"><enum>(7)</enum><header>Review of claims</header> <subparagraph id="HB16BBF2EA2C6492295B4FFF4AD081724"><enum>(A)</enum><header>Other review procedures</header> <clause id="H12F511ED8E0541B1B65FAE2B00EAE2D8"><enum>(i)</enum><header>In general</header><text>The Agency shall establish such alternative dispute resolution processes as may be appropriate for the resolution of claims filed under paragraph (5)(A)(i).</text></clause> <clause id="H90C3FC557914476B00ED29CB7E84A27F"><enum>(ii)</enum><header>Criteria</header><text>In establishing alternative dispute resolution processes, the Agency shall strive for procedures which are expeditious, fair, independent, and low cost.</text></clause> <clause id="H085CE08DD3CC4EBA95B288369FFD47AF"><enum>(iii)</enum><header>Voluntary binding or nonbinding procedures</header><text>The Agency may establish both binding and nonbinding processes, which may be conducted by any government or private party. All parties, including the claimant and the Agency, must agree to the use of the process in a particular case.</text></clause></subparagraph> <subparagraph id="HBCA5078C276749EE81C11F6735BA68B6"><enum>(B)</enum><header>Consideration of incentives</header><text>The Agency shall seek to develop incentives for claimants to participate in the alternative dispute resolution process.</text></subparagraph></paragraph> <paragraph id="HE2D1E5F418304BE78CC47DDC8A291C"><enum>(8)</enum><header>Expedited determination of claims</header> <subparagraph id="HEC56E49C831A4A8DAE3BB76EA200F3E3"><enum>(A)</enum><header>Establishment required</header><text>The Agency shall establish a procedure for expedited relief outside of the routine claims process established under paragraph (5) for claimants who—</text> <clause id="HDB56F2A7263840988E15A9E91215CD4C"><enum>(i)</enum><text>allege the existence of legally valid and enforceable or perfected security interests in assets of any regulated entity for which the Agency has been appointed receiver; and</text></clause> <clause id="H4AEB389386214604AB3FD3B94FBBEEF4"><enum>(ii)</enum><text>allege that irreparable injury will occur if the routine claims procedure is followed.</text></clause></subparagraph> <subparagraph id="H069B384360AA4D0F84F7691BDD3FF200"><enum>(B)</enum><header>Determination period</header><text>Before the end of the 90-day period beginning on the date any claim is filed in accordance with the procedures established under subparagraph (A), the Director shall—</text> <clause id="H96BD582937394DB1B11011E2344E84A5"><enum>(i)</enum><text>determine—</text> <subclause id="HC93BA86E9F594D85A358A184D3215C1"><enum>(I)</enum><text>whether to allow or disallow such claim; or</text></subclause> <subclause id="H161EE6318954408082D8E0E3516EEB5"><enum>(II)</enum><text>whether such claim should be determined pursuant to the procedures established under paragraph (5); and</text></subclause></clause> <clause id="HA98C5EE7BF2D402F94595C5350C7D575"><enum>(ii)</enum><text>notify the claimant of the determination, and if the claim is disallowed, provide a statement of each reason for the disallowance and the procedure for obtaining agency review or judicial determination.</text></clause></subparagraph> <subparagraph id="HCD44FBFBFDBA4BCCA0EC9EE530535007"><enum>(C)</enum><header>Period for filing or renewing suit</header><text>Any claimant who files a request for expedited relief shall be permitted to file a suit, or to continue a suit filed before the appointment of the receiver, seeking a determination of the rights of the claimant with respect to such security interest after the earlier of—</text> <clause id="H65D8FB5F49E4438881F772B8B951844C"><enum>(i)</enum><text>the end of the 90-day period beginning on the date of the filing of a request for expedited relief; or</text></clause> <clause id="HAA71D0B83B5D45A6876860F5FC68B8E7"><enum>(ii)</enum><text>the date the Agency denies the claim.</text></clause></subparagraph> <subparagraph id="HA1F8F8C6E76241E1837D91009EF881B2"><enum>(D)</enum><header>Statute of limitations</header><text>If an action described under subparagraph (C) is not filed, or the motion to renew a previously filed suit is not made, before the end of the 30-day period beginning on the date on which such action or motion may be filed under subparagraph (B), the claim shall be deemed to be disallowed as of the end of such period (other than any portion of such claim which was allowed by the receiver), such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim.</text></subparagraph> <subparagraph id="HF675EAD4EF5F4A27A38EB1BDA5406F8B"><enum>(E)</enum><header>Legal effect of filing</header> <clause id="H39D7A283288E4E47B514F76BE9008896"><enum>(i)</enum><header>Statute of limitation tolled</header><text>For purposes of any applicable statute of limitations, the filing of a claim with the receiver shall constitute a commencement of an action.</text></clause> <clause id="H6A626700BBEB42C38332F9172410EADE"><enum>(ii)</enum><header>No prejudice to other actions</header><text>Subject to paragraph (10), the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action that was filed before the appointment of the receiver, subject to the determination of claims by the receiver.</text></clause></subparagraph></paragraph> <paragraph id="H47348B27E10E4E348106ABC87340A85B"><enum>(9)</enum><header>Payment of claims</header> <subparagraph id="H04B3AC5AACDF42D0A41976CEA9BA334B"><enum>(A)</enum><header>In general</header><text>The receiver may, in the discretion of the receiver, and to the extent funds are available from the assets of the regulated entity, pay creditor claims, in such manner and amounts as are authorized under this section, which are—</text> <clause id="H92753E73F85A4B0DA603235D72F521F0"><enum>(i)</enum><text>allowed by the receiver;</text></clause> <clause id="HE8086AE2A5DB41E3BF2576E285C29037"><enum>(ii)</enum><text>approved by the Agency pursuant to a final determination pursuant to paragraph (7) or (8); or</text></clause> <clause id="H50007C8CED564E46AB16D858641FAC6F"><enum>(iii)</enum><text>determined by the final judgment of any court of competent jurisdiction.</text></clause></subparagraph> <subparagraph id="HAD95D3AD232E48239995B04A7A0F1DD"><enum>(B)</enum><header>Agreements against the interest of the agency</header><text>No agreement that tends to diminish or defeat the interest of the Agency in any asset acquired by the Agency as receiver under this section shall be valid against the Agency unless such agreement is in writing, and executed by an authorized official of the regulated entity, except that such requirements for qualified financial contracts shall be applied in a manner consistent with reasonable business trading practices in the financial contracts market.</text></subparagraph> <subparagraph id="H7C4BCDE68AE5493DAF92AE8F9634DE58"><enum>(C)</enum><header>Payment of dividends on claims</header><text>The receiver may, in the sole discretion of the receiver, pay from the assets of the regulated entity dividends on proved claims at any time, and no liability shall attach to the Agency, by reason of any such payment, for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment.</text></subparagraph> <subparagraph id="H47926E46ED1141FE9C9DF2C77300A95C"><enum>(D)</enum><header>Rulemaking authority of the director</header><text>The Director may prescribe such rules, including definitions of terms, as the Director deems appropriate to establish a single uniform interest rate for, or to make payments of post-insolvency interest to creditors holding proven claims against the receivership estates of regulated entities following satisfaction by the receiver of the principal amount of all creditor claims.</text></subparagraph></paragraph> <paragraph id="H2D7CB38B999C454092846980B822D8D"><enum>(10)</enum><header>Suspension of legal actions</header> <subparagraph id="H81D57AB286EA40EFB19F006847E737EB"><enum>(A)</enum><header>In general</header><text>After the appointment of a conservator or receiver for a regulated entity, the conservator or receiver may, in any judicial action or proceeding to which such regulated entity is or becomes a party, request a stay for a period not to exceed—</text> <clause id="H3EBF00107775488B8F95C61CB4FEC270"><enum>(i)</enum><text>45 days, in the case of any conservator; and</text></clause> <clause id="H0708937765AD4DF8AB6B00B79292B5C7"><enum>(ii)</enum><text>90 days, in the case of any receiver.</text></clause></subparagraph> <subparagraph id="HED9D7F6FB0834B4BAA64A0DF52313EE3"><enum>(B)</enum><header>Grant of stay by all courts required</header><text>Upon receipt of a request by any conservator or receiver under subparagraph (A) for a stay of any judicial action or proceeding in any court with jurisdiction of such action or proceeding, the court shall grant such stay as to all parties.</text></subparagraph></paragraph> <paragraph id="HE28438A461CE4902AD37339781A2CE2"><enum>(11)</enum><header>Additional rights and duties</header> <subparagraph id="H15FC3F117ADD4EDF90EFFA076277DB65"><enum>(A)</enum><header>Prior final adjudication</header><text>The Agency shall abide by any final unappealable judgment of any court of competent jurisdiction which was rendered before the appointment of the Agency as conservator or receiver.</text></subparagraph> <subparagraph id="H70559145B69941B1A2BC81D241C51E51"><enum>(B)</enum><header>Rights and remedies of conservator or receiver</header><text>In the event of any appealable judgment, the Agency as conservator or receiver shall—</text> <clause id="H16E5397AB6EE4A188E6519CBE4C66FC7"><enum>(i)</enum><text>have all the rights and remedies available to the regulated entity (before the appointment of such conservator or receiver) and the Agency, including removal to Federal court and all appellate rights; and</text></clause> <clause id="H7572B5F29B1C437BB8AE4F998228A7EE"><enum>(ii)</enum><text>not be required to post any bond in order to pursue such remedies.</text></clause></subparagraph> <subparagraph id="H34562D8CB4C04C948000B192BF83CDB5"><enum>(C)</enum><header>No attachment or execution</header><text>No attachment or execution may issue by any court upon assets in the possession of the receiver.</text></subparagraph> <subparagraph id="HAB9C42BA0A124610A135D17EE007D89"><enum>(D)</enum><header>Limitation on judicial review</header><text>Except as otherwise provided in this subsection, no court shall have jurisdiction over—</text> <clause id="H0EC4ADFF4A9946B6839C9676B3813907"><enum>(i)</enum><text>any claim or action for payment from, or any action seeking a determination of rights with respect to, the assets of any regulated entity for which the Agency has been appointed receiver; or</text></clause> <clause id="H1B7DD8F4F6D44D2E956618D3BA84171"><enum>(ii)</enum><text>any claim relating to any act or omission of such regulated entity or the Agency as receiver.</text></clause></subparagraph> <subparagraph id="H9A9C62522F0047B8A43DB4EF4EA14D27"><enum>(E)</enum><header>Disposition of assets</header><text display-inline="yes-display-inline">In exercising any right, power, privilege, or authority as conservator or receiver in connection with any sale or disposition of assets of a regulated entity for which the Agency has been appointed conservator or receiver, the Agency shall conduct its operations in a manner which maintains stability in the housing finance markets and, to the extent consistent with that goal—</text> <clause id="H873658BF6C6D4F8C954452369189DF78"><enum>(i)</enum><text>maximizes the net present value return from the sale or disposition of such assets;</text></clause> <clause id="H92D2F6DBEC47447F991F00E1D6679148"><enum>(ii)</enum><text>minimizes the amount of any loss realized in the resolution of cases; and</text></clause> <clause id="H9DF777D28D5E421100886F9943A58DC"><enum>(iii)</enum><text>ensures adequate competition and fair and consistent treatment of offerors.</text></clause></subparagraph></paragraph> <paragraph id="HE8F740E8CB084F89BC4411A8BE96FFC9"><enum>(12)</enum><header>Statute of limitations for actions brought by conservator or receiver</header> <subparagraph id="H7CDB933F641042238C02F9103D262F7D"><enum>(A)</enum><header>In general</header><text>Notwithstanding any provision of any contract, the applicable statute of limitations with regard to any action brought by the Agency as conservator or receiver shall be—</text> <clause id="H58BF3EC905D14D278783CCE28100C25B"><enum>(i)</enum><text>in the case of any contract claim, the longer of—</text> <subclause id="H3D4C4E911A0B4478BEA63BD79D021D4D"><enum>(I)</enum><text>the 6-year period beginning on the date the claim accrues; or</text></subclause> <subclause id="H84988177F9B2446A9E8F19C11109ED21"><enum>(II)</enum><text>the period applicable under State law; and</text></subclause></clause> <clause id="H751409B6DF63439CAC9CA715A9C61580"><enum>(ii)</enum><text>in the case of any tort claim, the longer of—</text> <subclause id="H0329A429EAE24896939C720971B1BF71"><enum>(I)</enum><text>the 3-year period beginning on the date the claim accrues; or</text></subclause> <subclause id="H56B73191012F4E88BF4E433281C823EF"><enum>(II)</enum><text>the period applicable under State law.</text></subclause></clause></subparagraph> <subparagraph id="HC37ADEF0D7854765BD495F9F96B4878E"><enum>(B)</enum><header>Determination of the date on which a claim accrues</header><text>For purposes of subparagraph (A), the date on which the statute of limitations begins to run on any claim described in such subparagraph shall be the later of—</text> <clause id="H3A10B4FE02864E63A9622701322FFA51"><enum>(i)</enum><text>the date of the appointment of the Agency as conservator or receiver; or</text></clause> <clause id="H815909B5E0EA4C9EB2BB0518052DC3B6"><enum>(ii)</enum><text>the date on which the cause of action accrues.</text></clause></subparagraph></paragraph> <paragraph id="H91DAC5C2AAAA4B378F00661813A0C1BA"><enum>(13)</enum><header>Revival of expired state causes of action</header> <subparagraph id="HF976EA783F804CC0A18B10B06B847EA6"><enum>(A)</enum><header>In general</header><text>In the case of any tort claim described under subparagraph (B) for which the statute of limitations applicable under State law with respect to such claim has expired not more than 5 years before the appointment of the Agency as conservator or receiver, the Agency may bring an action as conservator or receiver on such claim without regard to the expiration of the statute of limitation applicable under State law.</text></subparagraph> <subparagraph id="H57AD271D3F434FEEB8D07C6264C58223"><enum>(B)</enum><header>Claims described</header><text>A tort claim referred to under subparagraph (A) is a claim arising from fraud, intentional misconduct resulting in unjust enrichment, or intentional misconduct resulting in substantial loss to the regulated entity.</text></subparagraph></paragraph> <paragraph id="H5FE34A57A15A4C4FB0D86F8C07F2D48"><enum>(14)</enum><header>Accounting and recordkeeping requirements</header> <subparagraph id="H3E9189CBC989423CACA5FCC32CFABACF"><enum>(A)</enum><header>In general</header><text>The Agency as conservator or receiver shall, consistent with the accounting and reporting practices and procedures established by the Agency, maintain a full accounting of each conservatorship and receivership or other disposition of a regulated entity in default.</text></subparagraph> <subparagraph id="H9981B5A2185148E3B280320010BA175F"><enum>(B)</enum><header>Annual accounting or report</header><text>With respect to each conservatorship or receivership, the Agency shall make an annual accounting or report available to the Board, the Comptroller General of the United States, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives.</text></subparagraph> <subparagraph id="HFDE63B9100D04ECAB900D774721B91D8"><enum>(C)</enum><header>Availability of reports</header><text>Any report prepared under subparagraph (B) shall be made available by the Agency upon request to any shareholder of a regulated entity or any member of the public.</text></subparagraph> <subparagraph id="HC6ED18CE93524EBDBBD02FFD2C69FBF"><enum>(D)</enum><header>Recordkeeping requirement</header><text>After the end of the 6-year period beginning on the date that the conservatorship or receivership is terminated by the Director, the Agency may destroy any records of such regulated entity which the Agency, in the discretion of the Agency, determines to be unnecessary unless directed not to do so by a court of competent jurisdiction or governmental agency, or prohibited by law.</text></subparagraph></paragraph> <paragraph id="H8EFB41259CE141D2B0AE33F2C1E5FB6"><enum>(15)</enum><header>Fraudulent transfers</header> <subparagraph id="HB48BFA3F206841698CAAC467CB1F2398"><enum>(A)</enum><header>In general</header><text>The Agency, as conservator or receiver, may avoid a transfer of any interest of a regulated entity-affiliated party, or any person who the conservator or receiver determines is a debtor of the regulated entity, in property, or any obligation incurred by such party or person, that was made within 5 years of the date on which the Agency was appointed conservator or receiver, if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder, delay, or defraud the regulated entity, the Agency, the conservator, or receiver.</text></subparagraph> <subparagraph id="HF15643E19F6C47D1A0FDD5A9F1D5A55B"><enum>(B)</enum><header>Right of recovery</header><text>To the extent a transfer is avoided under subparagraph (A), the conservator or receiver may recover, for the benefit of the regulated entity, the property transferred, or, if a court so orders, the value of such property (at the time of such transfer) from—</text> <clause id="HACFD5DC76B1E4ECDA188A3C7CAB6DB38"><enum>(i)</enum><text>the initial transferee of such transfer or the regulated entity-affiliated party or person for whose benefit such transfer was made; or</text></clause> <clause id="H15FFDAEEE87048BAAE107CCB1BABC0A1"><enum>(ii)</enum><text>any immediate or mediate transferee of any such initial transferee.</text></clause></subparagraph> <subparagraph id="H705600C716DE44AEA9BB772B1BF800"><enum>(C)</enum><header>Rights of transferee or obligee</header><text>The conservator or receiver may not recover under subparagraph (B) from—</text> <clause id="H98A1CE9AEA8943F88DD2B40032338285"><enum>(i)</enum><text>any transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith; or</text></clause> <clause id="H24462EB62D3C496E894E9800B440A85F"><enum>(ii)</enum><text>any immediate or mediate good faith transferee of such transferee.</text></clause></subparagraph> <subparagraph id="HFAAFE272AC96411387651C0138FC708E"><enum>(D)</enum><header>Rights under this paragraph</header><text>The rights under this paragraph of the conservator or receiver described under subparagraph (A) shall be superior to any rights of a trustee or any other party (other than any party which is a Federal agency) under title 11, United States Code.</text></subparagraph></paragraph> <paragraph id="H5864DDED08DC40ADBD6413C15E9FF1C"><enum>(16)</enum><header>Attachment of assets and other injunctive relief</header><text>Subject to paragraph (17), any court of competent jurisdiction may, at the request of the conservator or receiver, issue an order in accordance with Rule 65 of the Federal Rules of Civil Procedure, including an order placing the assets of any person designated by the Agency or such conservator under the control of the court, and appointing a trustee to hold such assets.</text></paragraph> <paragraph id="H26167BE5CA2E4EA6856227594FF600E2"><enum>(17)</enum><header>Standards of proof</header><text>Rule 65 of the Federal Rules of Civil Procedure shall apply with respect to any proceeding under paragraph (16) without regard to the requirement of such rule that the applicant show that the injury, loss, or damage is irreparable and immediate.</text></paragraph> <paragraph id="HB81763243859495500D738B033945D15"><enum>(18)</enum><header>Treatment of claims arising from breach of contracts executed by the receiver or conservator</header> <subparagraph id="HA3407790C1BD4BF18484E5C1A917A4E5"><enum>(A)</enum><header>In general</header><text>Notwithstanding any other provision of this subsection, any final and unappealable judgment for monetary damages entered against a receiver or conservator for the breach of an agreement executed or approved in writing by such receiver or conservator after the date of its appointment, shall be paid as an administrative expense of the receiver or conservator.</text></subparagraph> <subparagraph id="H85E83CC0D67B4A2DAD34D400584C1787"><enum>(B)</enum><header>No limitation of power</header><text>Nothing in this paragraph shall be construed to limit the power of a receiver or conservator to exercise any rights under contract or law, including to terminate, breach, cancel, or otherwise discontinue such agreement.</text></subparagraph></paragraph> <paragraph id="H77ECBAAC967A4A80905319FFC096F6B2"><enum>(19)</enum><header>General exceptions</header> <subparagraph id="H7887370B13164A1700D879333EED6E1B"><enum>(A)</enum><header>Limitations</header><text>The rights of a conservator or receiver appointed under this section shall be subject to the limitations on the powers of a receiver under sections 402 through 407 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402 through 4407).</text></subparagraph> <subparagraph id="HCC473772D4A2466ABEAB1CA03B5EE3F"><enum>(B)</enum><header>Mortgages held in trust</header> <clause id="HF63C653C26D94835865FECD650856868"><enum>(i)</enum><header>In general</header><text>Any mortgage, pool of mortgages, or interest in a pool of mortgages, held in trust, custodial, or agency capacity by a regulated entity for the benefit of persons other than the regulated entity shall not be available to satisfy the claims of creditors generally.</text></clause> <clause id="HD5BE375003B849C7004C0321B0721711"><enum>(ii)</enum><header>Holding of mortgages</header><text>Any mortgage, pool of mortgages, or interest in a pool of mortgages, described under clause (i) shall be held by the conservator or receiver appointed under this section for the beneficial owners of such mortgage, pool of mortgages, or interest in a pool of mortgages in accordance with the terms of the agreement creating such trust, custodial, or other agency arrangement.</text></clause> <clause id="H55B446A52C014A1AA805C1D8C5D00861"><enum>(iii)</enum><header>Liability of receiver</header><text>The liability of a receiver appointed under this section for damages shall, in the case of any contingent or unliquidated claim relating to the mortgages held in trust, be estimated in accordance set forth in the regulations of the Director.</text></clause></subparagraph></paragraph></subsection> <subsection id="H6EF9053B62F5448091C2DAEDEBAA7B"><enum>(c)</enum><header>Priority of Expenses and Unsecured Claims</header> <paragraph id="H7AA9126E6B89405EA6621DD385D66CE3"><enum>(1)</enum><header>In general</header><text>Unsecured claims against a regulated entity, or a receiver, that are proven to the satisfaction of the receiver shall have priority in the following order:</text> <subparagraph id="HE72627623AE54969BF4BDB496563FC18"><enum>(A)</enum><text>Administrative expenses of the receiver.</text></subparagraph> <subparagraph id="HAE4E53E9A9B644988993AB4FEF637D8C"><enum>(B)</enum><text>Any other general or senior liability of the regulated entity and claims of other Federal home loan banks arising from their payment obligations (including joint and several payment obligations).</text></subparagraph> <subparagraph id="HD6B538DFA29441E9B995EED45EB33023"><enum>(C)</enum><text>Any obligation subordinated to general creditors.</text></subparagraph> <subparagraph id="H3C778AAFB241443EB7C1927F79E6FEFC"><enum>(D)</enum><text>Any obligation to shareholders or members arising as a result of their status as shareholder or members.</text></subparagraph></paragraph> <paragraph id="HDC4FDFA2ABED4FE2A38CE93148F296F9"><enum>(2)</enum><header>Creditors similarly situated</header><text>All creditors that are similarly situated under paragraph (1) shall be treated in a similar manner, except that the Agency may make such other payments to creditors necessary to maximize the present value return from the sale or disposition or such regulated entity’s assets or to minimize the amount of any loss realized in the resolution of cases so long as all creditors similarly situated receive not less than the amount provided under subsection (e)(2).</text></paragraph> <paragraph id="H7084F2618D10430B9CE270BCC3AC1200"><enum>(3)</enum><header>Definition</header><text>The term <quote>administrative expenses of the receiver</quote> shall include the actual, necessary costs and expenses incurred by the receiver in preserving the assets of the regulated entity or liquidating or otherwise resolving the affairs of the regulated entity. Such expenses shall include obligations that are incurred by the receiver after appointment as receiver that the Director determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity.</text></paragraph></subsection> <subsection id="HFEC95204FC6B4F0E812B00321D886005"><enum>(d)</enum><header>Provisions relating to contracts entered into before appointment of conservator or receiver</header> <paragraph id="HEA271CC2DB6E4C20AC07FAE5472DD96C"><enum>(1)</enum><header>Authority to repudiate contracts</header><text>In addition to any other rights a conservator or receiver may have, the conservator or receiver for any regulated entity may disaffirm or repudiate any contract or lease—</text> <subparagraph id="HD4E0C98EBE8D462CB58D2070DF002D00"><enum>(A)</enum><text>to which such regulated entity is a party;</text></subparagraph> <subparagraph id="H63D12E65DE43483200FB0009B306DCC"><enum>(B)</enum><text>the performance of which the conservator or receiver, in its sole discretion, determines to be burdensome; and</text></subparagraph> <subparagraph id="HAAD760D0CF3940B0A6DB260EF5CE500"><enum>(C)</enum><text>the disaffirmance or repudiation of which the conservator or receiver determines, in its sole discretion, will promote the orderly administration of the affairs of the regulated entity.</text></subparagraph></paragraph> <paragraph id="H050F897F7D52484283D83DB12BD3AB61"><enum>(2)</enum><header>Timing of repudiation</header><text>The conservator or receiver shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment.</text></paragraph> <paragraph id="H8675DFC6883D41988D969862A77FE49"><enum>(3)</enum><header>Claims for damages for repudiation</header> <subparagraph id="HBC6F4418EA0B4BD98F6B8C9690AA60A4"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided under subparagraph (C) and paragraphs (4), (5), and (6), the liability of the conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph (1) shall be—</text> <clause id="H34A25ADFBD384C168730EF65E84C48E6"><enum>(i)</enum><text>limited to actual direct compensatory damages; and</text></clause> <clause id="H426F28A0D52941848D642C3FBACA9BB"><enum>(ii)</enum><text>determined as of—</text> <subclause id="HDAB2DE07C1D741229868268B022021C"><enum>(I)</enum><text>the date of the appointment of the conservator or receiver; or</text></subclause> <subclause id="HC0D22F5908E8499E836105CF6FA3A3E0"><enum>(II)</enum><text>in the case of any contract or agreement referred to in paragraph (8), the date of the disaffirmance or repudiation of such contract or agreement.</text></subclause></clause></subparagraph> <subparagraph id="HD3D5C1F6C158401BB9DD181EE1E413F"><enum>(B)</enum><header>No liability for other damages</header><text>For purposes of subparagraph (A), the term <quote>actual direct compensatory damages</quote> shall not include—</text> <clause id="H952D82D061584F5FBACC6996E351AEB8"><enum>(i)</enum><text>punitive or exemplary damages;</text></clause> <clause id="H29680C9C15AE4913BD500215ED582574"><enum>(ii)</enum><text>damages for lost profits or opportunity; or</text></clause> <clause id="HF51A1A37FC814012A7CAD2DE2CF7FC00"><enum>(iii)</enum><text>damages for pain and suffering.</text></clause></subparagraph> <subparagraph id="HD21C6F826B77401B832EAD1EC9D4DE36"><enum>(C)</enum><header>Measure of damages for repudiation of financial contracts</header><text>In the case of any qualified financial contract or agreement to which paragraph (8) applies, compensatory damages shall be—</text> <clause id="HD0E0F0635EAD4C848431886DF7A3EB25"><enum>(i)</enum><text>deemed to include normal and reasonable costs of cover or other reasonable measures of damages utilized in the industries for such contract and agreement claims; and</text></clause> <clause id="H3C4B693A4A1F47A598DBE26092F2CEA"><enum>(ii)</enum><text>paid in accordance with this subsection and subsection (e), except as otherwise specifically provided in this section.</text></clause></subparagraph></paragraph> <paragraph id="HC394BA79FC1D4BE9992BB02BDA2B5166"><enum>(4)</enum><header>Leases under which the regulated entity is the lessee</header> <subparagraph id="HD43EFD6B47A14987A29E37E13012C43"><enum>(A)</enum><header>In general</header><text>If the conservator or receiver disaffirms or repudiates a lease under which the regulated entity was the lessee, the conservator or receiver shall not be liable for any damages (other than damages determined under subparagraph (B)) for the disaffirmance or repudiation of such lease.</text></subparagraph> <subparagraph id="H483CC74940034EBEA7C5F61E49FB5958"><enum>(B)</enum><header>Payments of rent</header><text>Notwithstanding subparagraph (A), the lessor under a lease to which that subparagraph applies shall—</text> <clause id="HFB6FA99842AD4A1BB7537D32CF02CBDB"><enum>(i)</enum><text>be entitled to the contractual rent accruing before the later of the date—</text> <subclause id="H2B1673DA19904AD1B73E27F3DF0E6BE"><enum>(I)</enum><text>the notice of disaffirmance or repudiation is mailed; or</text></subclause> <subclause id="H37DC18A70B8D41D7A43FCDEA3F8697E"><enum>(II)</enum><text>the disaffirmance or repudiation becomes effective, unless the lessor is in default or breach of the terms of the lease;</text></subclause></clause> <clause id="HFEEE8B1791F24FA492FDFEF3587547E1"><enum>(ii)</enum><text>have no claim for damages under any acceleration clause or other penalty provision in the lease; and</text></clause> <clause id="H2A1321997F804B80BADD68AB38E064AF"><enum>(iii)</enum><text>have a claim for any unpaid rent, subject to all appropriate offsets and defenses, due as of the date of the appointment, which shall be paid in accordance with this subsection and subsection (e).</text></clause></subparagraph></paragraph> <paragraph id="HD7ED98270C9C49D4A5D5C4A690CBB992"><enum>(5)</enum><header>Leases under which the regulated entity is the lessor</header> <subparagraph id="HC8450C88A5C0420C8842DA13C63F6E8"><enum>(A)</enum><header>In general</header><text>If the conservator or receiver repudiates an unexpired written lease of real property of the regulated entity under which the regulated entity is the lessor and the lessee is not, as of the date of such repudiation, in default, the lessee under such lease may either—</text> <clause id="H09CF3DF9C41F46B98E3DE792C4EF8691"><enum>(i)</enum><text>treat the lease as terminated by such repudiation; or</text></clause> <clause id="H9E966E9769FA4F9EAE20032616ABF7E4"><enum>(ii)</enum><text>remain in possession of the leasehold interest for the balance of the term of the lease, unless the lessee defaults under the terms of the lease after the date of such repudiation.</text></clause></subparagraph> <subparagraph id="H755AD15052BB4AC082AECC7A800378C"><enum>(B)</enum><header>Provisions applicable to lessee remaining in possession</header><text>If any lessee under a lease described under subparagraph (A) remains in possession of a leasehold interest under clause (ii) of such subparagraph—</text> <clause id="H8513E9453FE84E3FA300EBFFAB7E0D9"><enum>(i)</enum><text>the lessee—</text> <subclause id="H62615DB0F13043E8A8C94817DAB080A0"><enum>(I)</enum><text>shall continue to pay the contractual rent pursuant to the terms of the lease after the date of the repudiation of such lease; and</text></subclause> <subclause id="H2D3905541D3948C00020C7AD1CD2C8D7"><enum>(II)</enum><text>may offset against any rent payment which accrues after the date of the repudiation of the lease, and any damages which accrue after such date due to the nonperformance of any obligation of the regulated entity under the lease after such date; and</text></subclause></clause> <clause id="H87E3753AA8794B3199FF2675FB722450"><enum>(ii)</enum><text>the conservator or receiver shall not be liable to the lessee for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause (i)(II).</text></clause></subparagraph></paragraph> <paragraph id="HDC253D7D8F9C498BB0CF4ECE70AF4360"><enum>(6)</enum><header>Contracts for the sale of real property</header> <subparagraph id="H72EA23FD4D63441B828EF20095BB9E88"><enum>(A)</enum><header>In general</header><text>If the conservator or receiver repudiates any contract for the sale of real property and the purchaser of such real property under such contract is in possession, and is not, as of the date of such repudiation, in default, such purchaser may either—</text> <clause id="H943F2572AF6144C091D5A0018E3C5900"><enum>(i)</enum><text>treat the contract as terminated by such repudiation; or</text></clause> <clause id="H665BCF252D964A0287D1B51B8BBB00CC"><enum>(ii)</enum><text>remain in possession of such real property.</text></clause></subparagraph> <subparagraph id="HAA7225ADF86E4EC3B58E7756C7C1B355"><enum>(B)</enum><header>Provisions applicable to purchaser remaining in possession</header><text>If any purchaser of real property under any contract described under subparagraph (A) remains in possession of such property under clause (ii) of such subparagraph—</text> <clause id="HDD2054C30021444C9486004DA68B99E3"><enum>(i)</enum><text>the purchaser—</text> <subclause id="H7357A7FBF5E040EDA7B1F799166856B6"><enum>(I)</enum><text>shall continue to make all payments due under the contract after the date of the repudiation of the contract; and</text></subclause> <subclause id="H5B33C822BF2A4EDD00063F02B3D300E"><enum>(II)</enum><text>may offset against any such payments any damages which accrue after such date due to the nonperformance (after such date) of any obligation of the regulated entity under the contract; and</text></subclause></clause> <clause id="H3C6ABC4AD4D0425087E59768243F0031"><enum>(ii)</enum><text>the conservator or receiver shall—</text> <subclause id="H0CE71D5F4BE34884878711A26B00F34D"><enum>(I)</enum><text>not be liable to the purchaser for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause (i)(II);</text></subclause> <subclause id="HC2510B73756442A09FFAB9CB21B63F19"><enum>(II)</enum><text>deliver title to the purchaser in accordance with the provisions of the contract; and</text></subclause> <subclause id="H109473084D504000BF7D2711164B3D4D"><enum>(III)</enum><text>have no obligation under the contract other than the performance required under subclause (II).</text></subclause></clause></subparagraph> <subparagraph id="H997A51AA92AC47C8A85446CB21AB86D5"><enum>(C)</enum><header>Assignment and sale allowed</header> <clause id="HEB8F58297BDA415EAA5CD510971363FD"><enum>(i)</enum><header>In general</header><text>No provision of this paragraph shall be construed as limiting the right of the conservator or receiver to assign the contract described under subparagraph (A), and sell the property subject to the contract and the provisions of this paragraph.</text></clause> <clause id="HFB8B207B5BC64A8E89BF932D426942A5"><enum>(ii)</enum><header>No liability after assignment and sale</header><text>If an assignment and sale described under clause (i) is consummated, the conservator or receiver shall have no further liability under the contract described under subparagraph (A), or with respect to the real property which was the subject of such contract.</text></clause></subparagraph></paragraph> <paragraph id="H8DE06C33A5DD4EC69ED276F359CE081D"><enum>(7)</enum><header>Provisions applicable to service contracts</header> <subparagraph id="HFE5C056E4A8947079F8B7B45411055EB"><enum>(A)</enum><header>Services performed before appointment</header><text>In the case of any contract for services between any person and any regulated entity for which the Agency has been appointed conservator or receiver, any claim of such person for services performed before the appointment of the conservator or the receiver shall be—</text> <clause id="H2F2002869332463F8D57DBE3B5E3C572"><enum>(i)</enum><text>a claim to be paid in accordance with subsections (b) and (e); and</text></clause> <clause id="H6834F89B00AC40C5A1EAD900CA53393C"><enum>(ii)</enum><text>deemed to have arisen as of the date the conservator or receiver was appointed.</text></clause></subparagraph> <subparagraph id="H8BA87574D156411BA4DCFB89E2EC51BE"><enum>(B)</enum><header>Services performed after appointment and prior to repudiation</header><text>If, in the case of any contract for services described under subparagraph (A), the conservator or receiver accepts performance by the other person before the conservator or receiver makes any determination to exercise the right of repudiation of such contract under this section—</text> <clause id="HFEB5A8824144476298F167DF61DD5060"><enum>(i)</enum><text>the other party shall be paid under the terms of the contract for the services performed; and</text></clause> <clause id="HA5EE3C34133447978800897DEDAE164B"><enum>(ii)</enum><text>the amount of such payment shall be treated as an administrative expense of the conservatorship or receivership.</text></clause></subparagraph> <subparagraph id="HA53841F383CB42B4AF1614E0D5B35FED"><enum>(C)</enum><header>Acceptance of performance no bar to subsequent repudiation</header><text>The acceptance by any conservator or receiver of services referred to under subparagraph (B) in connection with a contract described in such subparagraph shall not affect the right of the conservator or receiver to repudiate such contract under this section at any time after such performance.</text></subparagraph></paragraph> <paragraph id="HA4229652BA1A4B019CDF8B521BDEBC8F"><enum>(8)</enum><header>Certain qualified financial contracts</header> <subparagraph id="H5A15F84D282C438CA05017946DAEBF34"><enum>(A)</enum><header>Rights of parties to contracts</header><text>Subject to paragraphs (9) and (10) and notwithstanding any other provision of this Act, any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—</text> <clause id="H40A9CA056BD143109BDC4078543B1009"><enum>(i)</enum><text>any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a regulated entity that arises upon the appointment of the Agency as receiver for such regulated entity at any time after such appointment;</text></clause> <clause id="H86AB501073E54ABDA304A719DC4D5014"><enum>(ii)</enum><text>any right under any security agreement or arrangement or other credit enhancement relating to one or more qualified financial contracts described in clause (i); or</text></clause> <clause id="HF363240EC34B4747945E75B3EBD965B"><enum>(iii)</enum><text>any right to offset or net out any termination value, payment amount, or other transfer obligation arising under or in connection with 1 or more contracts and agreements described in clause (i), including any master agreement for such contracts or agreements.</text></clause></subparagraph> <subparagraph id="HA0C6F41BF2DC4E3688C01E009B31BD4"><enum>(B)</enum><header>Applicability of other provisions</header><text>Paragraph (10) of subsection (b) shall apply in the case of any judicial action or proceeding brought against any receiver referred to under subparagraph (A), or the regulated entity for which such receiver was appointed, by any party to a contract or agreement described under subparagraph (A)(i) with such regulated entity.</text></subparagraph> <subparagraph id="HB51C2E5F49D04CCCA01759A1FA8017A5"><enum>(C)</enum><header>Certain transfers not avoidable</header> <clause id="H7E9EF00474C4431800FB04BFE3979D43"><enum>(i)</enum><header>In general</header><text>Notwithstanding paragraph (11) or any other Federal or State laws relating to the avoidance of preferential or fraudulent transfers, the Agency, whether acting as such or as conservator or receiver of a regulated entity, may not avoid any transfer of money or other property in connection with any qualified financial contract with a regulated entity.</text></clause> <clause id="H7C725B23139A45E4BCA914392917049C"><enum>(ii)</enum><header>Exception for certain transfers</header><text>Clause (i) shall not apply to any transfer of money or other property in connection with any qualified financial contract with a regulated entity if the Agency determines that the transferee had actual intent to hinder, delay, or defraud such regulated entity, the creditors of such regulated entity, or any conservator or receiver appointed for such regulated entity.</text></clause></subparagraph> <subparagraph id="H274095752D47451D8C444F1FDB060073"><enum>(D)</enum><header>Certain contracts and agreements defined</header><text>In this subsection:</text> <clause id="H906C0E26F8FD46749B39FB64B5485C70"><enum>(i)</enum><header>Qualified financial contract</header><text display-inline="yes-display-inline">The term <quote>qualified financial contract</quote> means any securities contract, commodity contract, forward contract, repurchase agreement, swap agreement, and any similar agreement that the Agency determines by regulation, resolution, or order to be a qualified financial contract for purposes of this paragraph.</text></clause> <clause id="H39959B591D324E3FA2314DEFABFEEE77"><enum>(ii)</enum><header>Securities contract</header><text display-inline="yes-display-inline">The term <quote>securities contract</quote>—</text> <subclause id="HCBD20D2B1C404185B4A500E1A0CCBED"><enum>(I)</enum><text>means a contract for the purchase, sale, or loan of a security, a certificate of deposit, a mortgage loan, or any interest in a mortgage loan, a group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or any option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option, and including any repurchase or reverse repurchase transaction on any such security, certificate of deposit, mortgage loan, interest, group or index, or option;</text></subclause> <subclause id="HB3D67F9B354F43AF83DC21875ED99DF3"><enum>(II)</enum><text>does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan unless the Agency determines by regulation, resolution, or order to include any such agreement within the meaning of such term;</text></subclause> <subclause id="HDE735966AB4D425498B960BA29A4C8A1"><enum>(III)</enum><text>means any option entered into on a national securities exchange relating to foreign currencies;</text></subclause> <subclause id="HAB88EF37062E48538E299D8E8391B734"><enum>(IV)</enum><text>means the guarantee by or to any securities clearing agency of any settlement of cash, securities, certificates of deposit, mortgage loans or interests therein, group or index of securities, certificates of deposit, or mortgage loans or interests therein (including any interest therein or based on the value thereof) or option on any of the foregoing, including any option to purchase or sell any such security, certificate of deposit, mortgage loan, interest, group or index, or option;</text></subclause> <subclause id="H7407CC1250044BC6809B340846009C21"><enum>(V)</enum><text>means any margin loan;</text></subclause> <subclause id="H8B3027FFB1BB4575AB897DA7AF67013B"><enum>(VI)</enum><text>means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;</text></subclause> <subclause id="HF04F0B0AF2704FAC8328005930005FD6"><enum>(VII)</enum><text>means any combination of the agreements or transactions referred to in this clause;</text></subclause> <subclause id="HC6CF365B73C94759AAE938AFE011D14"><enum>(VIII)</enum><text>means any option to enter into any agreement or transaction referred to in this clause;</text></subclause> <subclause id="H0D47BE5C14AC46A9A7E6A17201B2ECA6"><enum>(IX)</enum><text>means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause, except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), (IV), (V), (VI), (VII), or (VIII); and</text></subclause> <subclause id="HF4BEDBB3105E490C80A1F9F491F65958"><enum>(X)</enum><text>means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.</text></subclause></clause> <clause id="H6A15E3B3271A4EF4AD42C2EA566FFCAD"><enum>(iii)</enum><header>Commodity contract</header><text>The term <quote>commodity contract</quote> means—</text> <subclause id="HC4154F34380B4791B599BC467DE7ADEC"><enum>(I)</enum><text>with respect to a futures commission merchant, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade;</text></subclause> <subclause id="HACC3B578A2654E298F7FAEE99ABCEF"><enum>(II)</enum><text>with respect to a foreign futures commission merchant, a foreign future;</text></subclause> <subclause id="HD9263224AC9E4B1BB900A0DEB590D064"><enum>(III)</enum><text>with respect to a leverage transaction merchant, a leverage transaction;</text></subclause> <subclause id="HC57A2FF48A4045C7003B4BF6CA946C77"><enum>(IV)</enum><text>with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity option traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;</text></subclause> <subclause id="H058733AC988E417FA6261B282B40E400"><enum>(V)</enum><text>with respect to a commodity options dealer, a commodity option;</text></subclause> <subclause id="H71519F1A361F492893CD288CCB42C876"><enum>(VI)</enum><text>any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;</text></subclause> <subclause id="H039E0E12860A4CE98769CF8F8D274BC2"><enum>(VII)</enum><text>any combination of the agreements or transactions referred to in this clause;</text></subclause> <subclause id="HB103C5E9772748BD9201E812792060A3"><enum>(VIII)</enum><text>any option to enter into any agreement or transaction referred to in this clause;</text></subclause> <subclause id="HB4179FFB915E4D6797B81CE0FB75CD12"><enum>(IX)</enum><text>a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or</text></subclause> <subclause id="HFE2E878D091A4CDD84F6DDBC6FF9BF"><enum>(X)</enum><text>any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause.</text></subclause></clause> <clause id="H97F49EF9D1D746D9A7D7C0C93924D6F"><enum>(iv)</enum><header>Forward contract</header><text>The term <quote>forward contract</quote> means—</text> <subclause id="H044BE8CE69B44828B6A2BB0600FCC966"><enum>(I)</enum><text>a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than 2 days after the date the contract is entered into, including, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement;</text></subclause> <subclause id="H394A04C231364C47B5BBA90959765D42"><enum>(II)</enum><text>any combination of agreements or transactions referred to in subclauses (I) and (III);</text></subclause> <subclause id="H5FC702BF8F5D4064A7A84D61434FEA6E"><enum>(III)</enum><text>any option to enter into any agreement or transaction referred to in subclause (I) or (II);</text></subclause> <subclause id="H7F3E32B43EAD46DBA7CDC43DBCBBCCA2"><enum>(IV)</enum><text>a master agreement that provides for an agreement or transaction referred to in subclauses (I), (II), or (III), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause, except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), or (III); or</text></subclause> <subclause id="H9DEDAFB5D7C843D680288FAAD0A5779B"><enum>(V)</enum><text>any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (II), (III), or (IV), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.</text></subclause></clause> <clause id="H2A4619CB8B3B4AF8BB5DB553237DA634"><enum>(v)</enum><header>Repurchase agreement</header><text>The term <quote>repurchase agreement</quote> (which definition also applies to a reverse repurchase agreement)—</text> <subclause id="HE42CEB910F994F15A1D70091A4318F47"><enum>(I)</enum><text>means an agreement, including related terms, which provides for the transfer of one or more certificates of deposit, mortgage-related securities (as such term is defined in the Securities Exchange Act of 1934), mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers’ acceptances, qualified foreign government securities or securities that are direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans, or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans, or interests as described above, at a date certain not later than 1 year after such transfers or on demand, against the transfer of funds, or any other similar agreement;</text></subclause> <subclause id="HA59AC9C2DF924BF0BE1E98AE358ED7F6"><enum>(II)</enum><text>does not include any repurchase obligation under a participation in a commercial mortgage loan unless the Agency determines by regulation, resolution, or order to include any such participation within the meaning of such term;</text></subclause> <subclause id="H1759D9ECAD42488CA3DC5731198E54AD"><enum>(III)</enum><text>means any combination of agreements or transactions referred to in subclauses (I) and (IV);</text></subclause> <subclause id="H76DF6794DDFB4E8590AD66C7FDBD9FC0"><enum>(IV)</enum><text>means any option to enter into any agreement or transaction referred to in subclause (I) or (III);</text></subclause> <subclause id="H0ACC701AE58E4A4CB722EC3B999826E1"><enum>(V)</enum><text>means a master agreement that provides for an agreement or transaction referred to in subclause (I), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause, except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (III), or (IV); and</text></subclause> <subclause id="H337D7D328B4048A2A496BF95CA7CC7B6"><enum>(VI)</enum><text>means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause (I), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.</text></subclause><continuation-text continuation-text-level="clause">For purposes of this clause, the term `qualified foreign government security' means a security that is a direct obligation of, or that is fully guaranteed by, the central government of a member of the Organization for Economic Cooperation and Development (as determined by regulation or order adopted by the appropriate Federal banking authority).</continuation-text></clause> <clause id="H31154308E5DC4FE698BA66BFC940F95E"><enum>(vi)</enum><header>Swap agreement</header><text>The term <quote>swap agreement</quote> means—</text> <subclause id="H04C5D0BBF1DD43919F5661C69708CB00"><enum>(I)</enum><text>any agreement, including the terms and conditions incorporated by reference in any such agreement, which is an interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement; a currency swap, option, future, or forward agreement; an equity index or equity swap, option, future, or forward agreement; a debt index or debt swap, option, future, or forward agreement; a total return, credit spread or credit swap, option, future, or forward agreement; a commodity index or commodity swap, option, future, or forward agreement; or a weather swap, weather derivative, or weather option;</text></subclause> <subclause id="H7BE1BCF39F504549BAC64FF07700D388"><enum>(II)</enum><text>any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap markets (including terms and conditions incorporated by reference in such agreement) and that is a forward, swap, future, or option on one or more rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, quantitative measures associated with an occurrence, extent of an occurrence, or contingency associated with a financial, commercial, or economic consequence, or economic or financial indices or measures of economic or financial risk or value;</text></subclause> <subclause id="H52A75F040E4A45D38BBBD8F5CC435033"><enum>(III)</enum><text>any combination of agreements or transactions referred to in this clause;</text></subclause> <subclause id="H735B2ED4EE50485C9B439D949BFE31D5"><enum>(IV)</enum><text>any option to enter into any agreement or transaction referred to in this clause;</text></subclause> <subclause id="H71C28264994245109C51B51D23B2A687"><enum>(V)</enum><text>a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), or (IV), together with all supplements to any such master agreement, without regard to whether the master agreement contains an agreement or transaction that is not a swap agreement under this clause, except that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause (I), (II), (III), or (IV); and</text></subclause> <subclause id="H101BDB16B9944DBD81587532AC6C20F5"><enum>(VI)</enum><text>any security agreement or arrangement or other credit enhancement related to any agreements or transactions referred to in subclause (I), (II), (III), (IV), or (V), including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause.</text></subclause><continuation-text continuation-text-level="clause">Such term is applicable for purposes of this subsection only and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any swap agreement under any other statute, regulation, or rule, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Investor Protection Act of 1970, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank Products Act of 2000.</continuation-text></clause> <clause id="H46EE06650FB44746BDC4D38312129B58"><enum>(vii)</enum><header>Treatment of master agreement as one agreement</header><text>Any master agreement for any contract or agreement described in any preceding clause of this subparagraph (or any master agreement for such master agreement or agreements), together with all supplements to such master agreement, shall be treated as a single agreement and a single qualified financial contract. If a master agreement contains provisions relating to agreements or transactions that are not themselves qualified financial contracts, the master agreement shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts.</text></clause> <clause id="H83E388DF32DC44B0B92851BE5B2068A4"><enum>(viii)</enum><header>Transfer</header><text display-inline="yes-display-inline">The term <quote>transfer</quote> means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest and foreclosure of the regulated entity's equity of redemption.</text></clause></subparagraph> <subparagraph id="H9E95504C70E44CAD94DD7DE1FFD47C1"><enum>(E)</enum><header>Certain protections in event of appointment of conservator</header><text>Notwithstanding any other provision of this Act (other than paragraph (13) of this subsection), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—</text> <clause id="H9C4A8BC82D1846A1A395029889C8CAA7"><enum>(i)</enum><text>any right such person has to cause the termination, liquidation, or acceleration of any qualified financial contract with a regulated entity in a conservatorship based upon a default under such financial contract which is enforceable under applicable noninsolvency law;</text></clause> <clause id="H3ED0A817B20E45FEBE7B99F1FE6CFE15"><enum>(ii)</enum><text>any right under any security agreement or arrangement or other credit enhancement relating to one or more such qualified financial contracts; or</text></clause> <clause id="H10BD225423EC4AD88C9C41A983FFB049"><enum>(iii)</enum><text>any right to offset or net out any termination values, payment amounts, or other transfer obligations arising under or in connection with such qualified financial contracts.</text></clause></subparagraph> <subparagraph id="H356D3ABBC44A467F004BBB0090FA836D"><enum>(F)</enum><header>Clarification</header><text>No provision of law shall be construed as limiting the right or power of the Agency, or authorizing any court or agency to limit or delay, in any manner, the right or power of the Agency to transfer any qualified financial contract in accordance with paragraphs (9) and (10) of this subsection or to disaffirm or repudiate any such contract in accordance with subsection (d)(1) of this section.</text></subparagraph> <subparagraph id="H69D9186C8BDC480DA504C12F00C0C508"><enum>(G)</enum><header>Walkaway clauses not effective</header> <clause id="H18435510F2594240BBF997C3733084F7"><enum>(i)</enum><header>In general</header><text>Notwithstanding the provisions of subparagraphs (A) and (E), and sections 403 and 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, no walkaway clause shall be enforceable in a qualified financial contract of a regulated entity in default.</text></clause> <clause id="H7994E57C0B3E42A7AC38DB22527CAC00"><enum>(ii)</enum><header>Walkaway clause defined</header><text>For purposes of this subparagraph, the term <quote>walkaway clause</quote> means a provision in a qualified financial contract that, after calculation of a value of a party’s position or an amount due to or from 1 of the parties in accordance with its terms upon termination, liquidation, or acceleration of the qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of such party’s status as a nondefaulting party.</text></clause></subparagraph></paragraph> <paragraph id="HB34332AE1A294F16B424C4A002F9B681"><enum>(9)</enum><header>Transfer of qualified financial contracts</header><text>In making any transfer of assets or liabilities of a regulated entity in default which includes any qualified financial contract, the conservator or receiver for such regulated entity shall either—</text> <subparagraph id="HAA6E4677DC914566BBDE1036D672A296"><enum>(A)</enum><text>transfer to 1 person—</text> <clause id="H02CA6F0D9DDF4D519D2C348D6920EAE4"><enum>(i)</enum><text>all qualified financial contracts between any person (or any affiliate of such person) and the regulated entity in default;</text></clause> <clause id="HF2A0404F3AB449E7990335A46D70030"><enum>(ii)</enum><text>all claims of such person (or any affiliate of such person) against such regulated entity under any such contract (other than any claim which, under the terms of any such contract, is subordinated to the claims of general unsecured creditors of such regulated entity);</text></clause> <clause id="H3BB492544BB14029B9D3F1928FEA7229"><enum>(iii)</enum><text>all claims of such regulated entity against such person (or any affiliate of such person) under any such contract; and</text></clause> <clause id="H6E2772F30DF84CE5BC076936C3F96035"><enum>(iv)</enum><text display-inline="yes-display-inline">all property securing or any other credit enhancement for any contract described in clause (i) or any claim described in clause (ii) or (iii) under any such contract; or</text></clause></subparagraph> <subparagraph id="HCECE50E7B01F4F1EB1D3591D743C1FAC"><enum>(B)</enum><text>transfer none of the financial contracts, claims, or property referred to under subparagraph (A) (with respect to such person and any affiliate of such person).</text></subparagraph></paragraph> <paragraph id="HF1847D99B44E4D5F85170730CEA11F2D"><enum>(10)</enum><header>Notification of transfer</header> <subparagraph id="H8A182F1F6CBA49D294B8358676988230"><enum>(A)</enum><header>In general</header><text>If—</text> <clause id="H517881DE984A4A9C99D0BB1784978407"><enum>(i)</enum><text>the conservator or receiver for a regulated entity in default makes any transfer of the assets and liabilities of such regulated entity, and</text></clause> <clause id="H7A28AF573DFA407FB049D6E22678CF9"><enum>(ii)</enum><text>the transfer includes any qualified financial contract,</text></clause><continuation-text continuation-text-level="subparagraph">the conservator or receiver shall notify any person who is a party to any such contract of such transfer by 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver in the case of a receivership, or the business day following such transfer in the case of a conservatorship.</continuation-text></subparagraph> <subparagraph id="H05CBDB162CA94B9F8FBFD073A53873C"><enum>(B)</enum><header>Certain rights not enforceable</header> <clause id="HA8944F4B59E44DF1A54FA77BEC000019"><enum>(i)</enum><header>Receivership</header><text>A person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(A) of this subsection or section 403 or 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, solely by reason of or incidental to the appointment of a receiver for the regulated entity (or the insolvency or financial condition of the regulated entity for which the receiver has been appointed)—</text> <subclause id="H7F89EA269B624CFC0030A1F38D20043"><enum>(I)</enum><text>until 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver; or</text></subclause> <subclause id="H3A89DC70CC9A460B00F22902FD5508CF"><enum>(II)</enum><text>after the person has received notice that the contract has been transferred pursuant to paragraph (9)(A).</text></subclause></clause> <clause id="H1328E1C50B014C8C9845BCCE287099EA"><enum>(ii)</enum><header>Conservatorship</header><text>A person who is a party to a qualified financial contract with a regulated entity may not exercise any right that such person has to terminate, liquidate, or net such contract under paragraph (8)(E) of this subsection or section 403 or 404 of the Federal Deposit Insurance Corporation Improvement Act of 1991, solely by reason of or incidental to the appointment of a conservator for the regulated entity (or the insolvency or financial condition of the regulated entity for which the conservator has been appointed).</text></clause> <clause id="HDCCA9B1BF2864694B111419CBA6FC354"><enum>(iii)</enum><header>Notice</header><text>For purposes of this paragraph, the Agency as receiver or conservator of a regulated entity shall be deemed to have notified a person who is a party to a qualified financial contract with such regulated entity if the Agency has taken steps reasonably calculated to provide notice to such person by the time specified in subparagraph (A).</text></clause></subparagraph> <subparagraph id="HC45D01FF4B784B2A869B6102008B2469"><enum>(C)</enum><header>Business day defined</header><text>For purposes of this paragraph, the term <quote>business day</quote> means any day other than any Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed.</text></subparagraph></paragraph> <paragraph id="H8860842B146743E5913435007FB28CD3"><enum>(11)</enum><header>Disaffirmance or repudiation of qualified financial contracts</header><text>In exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which a regulated entity is a party, the conservator or receiver for such institution shall either—</text> <subparagraph id="HAB6FCDB110CE4E12B55E3EF4BCB7CD4"><enum>(A)</enum><text>disaffirm or repudiate all qualified financial contracts between—</text> <clause id="HEA501AB913364C2D85C9F62174B7555D"><enum>(i)</enum><text>any person or any affiliate of such person; and</text></clause> <clause id="HBA01F58F24CB44F38170058D003B5013"><enum>(ii)</enum><text>the regulated entity in default; or</text></clause></subparagraph> <subparagraph id="H0D0A2A6EF4DB4300B2FBE3EC807B47DD"><enum>(B)</enum><text>disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph (A) (with respect to such person or any affiliate of such person).</text></subparagraph></paragraph> <paragraph id="H1097E1D257B34CA3AB99E812A05BBC78"><enum>(12)</enum><header>Certain security interests not avoidable</header><text>No provision of this subsection shall be construed as permitting the avoidance of any legally enforceable or perfected security interest in any of the assets of any regulated entity, except where such an interest is taken in contemplation of the insolvency of the regulated entity, or with the intent to hinder, delay, or defraud the regulated entity or the creditors of such regulated entity.</text></paragraph> <paragraph id="HF32C7483526A4B1A8B60051D47E8C418"><enum>(13)</enum><header>Authority to enforce contracts</header> <subparagraph id="H1733DDA5FEBD4C1A9FA606B524F200C8"><enum>(A)</enum><header>In general</header><text>Notwithstanding any provision of a contract providing for termination, default, acceleration, or exercise of rights upon, or solely by reason of, insolvency or the appointment of a conservator or receiver, the conservator or receiver may enforce any contract or regulated entity bond entered into by the regulated entity.</text></subparagraph> <subparagraph id="H19F3822E0D954C04BE54D2C404438FD7"><enum>(B)</enum><header>Certain rights not affected</header><text>No provision of this paragraph may be construed as impairing or affecting any right of the conservator or receiver to enforce or recover under a director’s or officer’s liability insurance contract or surety bond under other applicable law.</text></subparagraph> <subparagraph id="HA409BC07CE9446F0A795F9B304F8979D"><enum>(C)</enum><header>Consent requirement</header> <clause id="H14DAF3D974AF46CC91170593F86FA566"><enum>(i)</enum><header>In general</header><text>Except as otherwise provided under this section, no person may exercise any right or power to terminate, accelerate, or declare a default under any contract to which a regulated entity is a party, or to obtain possession of or exercise control over any property of the regulated entity, or affect any contractual rights of the regulated entity, without the consent of the conservator or receiver, as appropriate, for a period of—</text> <subclause id="H600F60C5D4EC4AC4BE62496436264800"><enum>(I)</enum><text>45 days after the date of appointment of a conservator; or</text></subclause> <subclause id="H26A1B0E7A7044CC1BA57CD00005208E7"><enum>(II)</enum><text>90 days after the date of appointment of a receiver.</text></subclause></clause> <clause id="HC638E3EC4F644116A12F1C580587F673"><enum>(ii)</enum><header>Exceptions</header><text>This paragraph shall—</text> <subclause id="HF8655EF12D414ACF9D3D24A07D6FD8DD"><enum>(I)</enum><text>not apply to a director’s or officer’s liability insurance contract;</text></subclause> <subclause id="H34EBE7789CC349AEB56E84ABF0B61FD2"><enum>(II)</enum><text>not apply to the rights of parties to any qualified financial contracts under subsection (d)(8); and</text></subclause> <subclause id="H042EDB078FA04BDFB5F7000000535CD1"><enum>(III)</enum><text>not be construed as permitting the conservator or receiver to fail to comply with otherwise enforceable provisions of such contracts.</text></subclause></clause></subparagraph></paragraph> <paragraph id="HF36012752CDC48E189EB58B4FD747007"><enum>(14)</enum><header>Savings clause</header><text>The meanings of terms used in this subsection are applicable for purposes of this subsection only, and shall not be construed or applied so as to challenge or affect the characterization, definition, or treatment of any similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), and the Commodity Exchange Act</text></paragraph> <paragraph id="H1A1B47BAD38C4E929BFD82B1676C562D"><enum>(15)</enum><header>Exception for federal reserve and federal home loan banks</header><text>No provision of this subsection shall apply with respect to—</text> <subparagraph id="H5A6AC99FDF614F9E8074008F6C965BAD"><enum>(A)</enum><text>any extension of credit from any Federal home loan bank or Federal Reserve Bank to any regulated entity; or</text></subparagraph> <subparagraph id="HBEF50CE36DA64FA68CA21B0027929C20"><enum>(B)</enum><text>any security interest in the assets of the regulated entity securing any such extension of credit.</text></subparagraph></paragraph></subsection> <subsection id="HFAA8F3994D81462E8DCED4820312DD61"><enum>(e)</enum><header>Valuation of Claims in Default</header> <paragraph id="H5DD99665AA4443E0B8C17D70C9C946FC"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of Federal law or the law of any State, and regardless of the method which the Agency determines to utilize with respect to a regulated entity in default or in danger of default, including transactions authorized under subsection (i), this subsection shall govern the rights of the creditors of such regulated entity.</text></paragraph> <paragraph id="H59A38EFD086649E99CA1FAA89C2E2448"><enum>(2)</enum><header>Maximum liability</header><text>The maximum liability of the Agency, acting as receiver or in any other capacity, to any person having a claim against the receiver or the regulated entity for which such receiver is appointed shall equal the lesser of—</text> <subparagraph id="H90E4083834E749DEA2D2582772FAEFE1"><enum>(A)</enum><text>the amount such claimant would have received if the Agency had liquidated the assets and liabilities of such regulated entity without exercising the authority of the Agency under subsection (i) of this section; or</text></subparagraph> <subparagraph id="H85BDBBB9889648329EDD29FA44771C"><enum>(B)</enum><text>the amount of proceeds realized from the performance of contracts or sale of the assets of the regulated entity.</text></subparagraph></paragraph></subsection> <subsection id="HF606C43F46A74D31AB30625B216F4E08"><enum>(f)</enum><header>Limitation on Court Action</header><text>Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.</text></subsection> <subsection id="H1163AD52FE5E44959E384678DDA1E8A6"><enum>(g)</enum><header>Liability of Directors and Officers</header> <paragraph id="HBDADD106FA87453FA0C409921C00A0B5"><enum>(1)</enum><header>In general</header><text>A director or officer of a regulated entity may be held personally liable for monetary damages in any civil action by, on behalf of, or at the request or direction of the Agency, which action is prosecuted wholly or partially for the benefit of the Agency—</text> <subparagraph id="H13E3009CA80049AD90C585224CC12E2B"><enum>(A)</enum><text>acting as conservator or receiver of such regulated entity, or</text></subparagraph> <subparagraph id="HE8AF4F34DC0B4743B670DEF6C817F0A0"><enum>(B)</enum><text>acting based upon a suit, claim, or cause of action purchased from, assigned by, or otherwise conveyed by such receiver or conservator,</text></subparagraph><continuation-text continuation-text-level="paragraph">for gross negligence, including any similar conduct or conduct that demonstrates a greater disregard of a duty of care (than gross negligence) including intentional tortious conduct, as such terms are defined and determined under applicable State law.</continuation-text></paragraph> <paragraph id="HBAEF7341024F4C29A7D04FF43817A3C0"><enum>(2)</enum><header>No limitation</header><text>Nothing in this paragraph shall impair or affect any right of the Agency under other applicable law.</text></paragraph></subsection> <subsection id="H81FE0445F7C54C80BFA7460283D98CBF"><enum>(h)</enum><header>Damages</header><text>In any proceeding related to any claim against a director, officer, employee, agent, attorney, accountant, appraiser, or any other party employed by or providing services to a regulated entity, recoverable damages determined to result from the improvident or otherwise improper use or investment of any assets of the regulated entity shall include principal losses and appropriate interest.</text></subsection> <subsection id="H76A591A9E8B140FB938C689984E79600"><enum>(i)</enum><header>Limited-life regulated entities</header> <paragraph id="H0574C47400CF462786D881DF94BD12D4"><enum>(1)</enum><header>Organization</header> <subparagraph id="H689428251C334EE19CACC414AE254E3D"><enum>(A)</enum><header>Purpose</header><text>If a regulated entity is in default, or if the Agency anticipates that a regulated entity will default, the Agency may organize a limited-life regulated entity with those powers and attributes of the regulated entity in default or in danger of default that the Director determines necessary, subject to the provisions of this subsection. The Director shall grant a temporary charter to the limited-life regulated entity, and the limited-life regulated entity shall operate subject to that charter.</text></subparagraph> <subparagraph id="HBB3812D800BC4D6B815FC091FAEBECA6"><enum>(B)</enum><header>Authorities</header><text>Upon the creation of a limited-life regulated entity under subparagraph (A), the limited-life regulated entity may—</text> <clause id="H15AFE32E7575429EAE2200495F1E29F2"><enum>(i)</enum><text>assume such liabilities of the regulated entity that is in default or in danger of default as the Agency may, in its discretion, determine to be appropriate, provided that the liabilities assumed shall not exceed the amount of assets of the limited-life regulated entity;</text></clause> <clause id="H3CC7F05584924D6DB32D49DEF4009412"><enum>(ii)</enum><text>purchase such assets of the regulated entity that is in default, or in danger of default, as the Agency may, in its discretion, determine to be appropriate; and</text></clause> <clause id="H332FD2090126497690F29B83ECAE00AA"><enum>(iii)</enum><text>perform any other temporary function which the Agency may, in its discretion, prescribe in accordance with this section.</text></clause></subparagraph></paragraph> <paragraph id="HE2242CEC64F146A5A83BA231C18E1C6"><enum>(2)</enum><header>Charter</header> <subparagraph id="HAC3F1918703045E5B0300017E14794B1"><enum>(A)</enum><header>Conditions</header><text>The Agency may grant a temporary charter if the Agency determines that the continued operation of the regulated entity in default or in danger of default is in the best interest of the national economy and the housing markets.</text></subparagraph> <subparagraph id="H2C3D9AE9F2024E9EAA74EF1FBFC5E0D3"><enum>(B)</enum><header>Treatment as being in default for certain purposes</header><text>A limited-life regulated entity shall be treated as a regulated entity in default at such times and for such purposes as the Agency may, in its discretion, determine.</text></subparagraph> <subparagraph id="H979958ED0EFF43048946C29987F0372E"><enum>(C)</enum><header>Management</header><text>A limited-life regulated entity, upon the granting of its charter, shall be under the management of a board of directors consisting of not fewer than 5 nor more than 10 members appointed by the Agency.</text></subparagraph> <subparagraph id="HA91180A9CB864D5DB5A900D9D8715993"><enum>(D)</enum><header>Bylaws</header><text>The board of directors of a limited-life regulated entity shall adopt such bylaws as may be approved by the Agency.</text></subparagraph></paragraph> <paragraph id="HC0CC22F107B14F28851F00D55B1BD149"><enum>(3)</enum><header>Capital stock</header><text>No capital stock need be paid into a limited-life regulated entity by the Agency.</text></paragraph> <paragraph id="H259A7126A01B4F4A82AB65E6C1D12BC9"><enum>(4)</enum><header>Investments</header><text>Funds of a limited-life regulated entity shall be kept on hand in cash, invested in obligations of the United States or obligations guaranteed as to principal and interest by the United States, or deposited with the Agency, or any Federal Reserve bank.</text></paragraph> <paragraph id="H9A09FC18417A4EFC82ECC000F69E1763"><enum>(5)</enum><header>Exempt status</header><text>Notwithstanding any other provision of Federal or State law, the limited-life regulated entity, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.</text></paragraph> <paragraph id="H91AAE157B8AF4990B7510560ECCC8182"><enum>(6)</enum><header>Winding up</header> <subparagraph id="H0BF944EFBA41475194852C07AFF507C5"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), unless Congress authorizes the sale of the capital stock of the limited-life regulated entity, not later than 2 years after the date of its organization, the Agency shall wind up the affairs of the limited-life regulated entity.</text></subparagraph> <subparagraph id="H4544D54FE918451EBCDD3C00861B7D76"><enum>(B)</enum><header>Extension</header><text>The Director may, in the discretion of the Director, extend the status of the limited-life regulated entity for 3 additional 1-year periods.</text></subparagraph></paragraph> <paragraph id="H71604D9053B14436906CCAD223D943DC"><enum>(7)</enum><header>Transfer of assets and liabilities</header> <subparagraph id="H845F436D4DB94F8F81662C6FEF9C4F12"><enum>(A)</enum><header>In general</header> <clause id="HBF35A86211394BA78FA1C2DEA666D6CE"><enum>(i)</enum><header>Transfer of assets and liabilities</header><text>The Agency, as receiver, may transfer any assets and liabilities of a regulated entity in default, or in danger of default, to the limited-life regulated entity in accordance with paragraph (1).</text></clause> <clause id="HAEF2819F37FD41B99F53EC9FC0BB4FED"><enum>(ii)</enum><header>Subsequent transfers</header><text>At any time after a charter is transferred to a limited-life regulated entity, the Agency, as receiver, may transfer any assets and liabilities of such regulated entity in default, or in danger in default, as the Agency may, in its discretion, determine to be appropriate in accordance with paragraph (1).</text></clause> <clause id="HCA0A85EB98E54F99B7BE3277D3CBAD"><enum>(iii)</enum><header>Effective without approval</header><text>The transfer of any assets or liabilities of a regulated entity in default, or in danger of default, transferred to a limited-life regulated entity shall be effective without any further approval under Federal or State law, assignment, or consent with respect thereto.</text></clause></subparagraph></paragraph> <paragraph id="H34D2865245064E4980D26CFC969C0071"><enum>(8)</enum><header>Proceeds</header><text>To the extent that available proceeds from the limited-life regulated entity exceed amounts required to pay obligations, such proceeds may be paid to the regulated entity in default, or in danger of default.</text></paragraph> <paragraph id="H3D4E826A76EC461C00FFE5E392A986B5"><enum>(9)</enum><header>Powers</header> <subparagraph id="H5E0D4F9C5ED74892AA9CA998163F014"><enum>(A)</enum><header>In general</header><text>Each limited-life regulated entity created under this subsection shall have all corporate powers of, and be subject to the same provisions of law as, the regulated entity in default or in danger of default to which it relates, except that—</text> <clause id="H94DE40C7BE8E4556BF1CF100E52E16BD"><enum>(i)</enum><text>the Agency may—</text> <subclause id="H0A24F544066848BD9EF52C00BA55C52B"><enum>(I)</enum><text>remove the directors of a limited-life regulated entity; and</text></subclause> <subclause id="H9A9E45B7D4424114AD1BBF93255E5CB5"><enum>(II)</enum><text>fix the compensation of members of the board of directors and senior management, as determined by the Agency in its discretion, of a limited-life regulated entity;</text></subclause></clause> <clause id="H082D113FB0D84D008F3C40D0550041CA"><enum>(ii)</enum><text>the Agency may indemnify the representatives for purposes of paragraph (1)(B), and the directors, officers, employees, and agents of a limited-life regulated entity on such terms as the Agency determines to be appropriate; and</text></clause> <clause id="H4D0987F37E5C4DCDAEA193AB5FE57333"><enum>(iii)</enum><text>the board of directors of a limited-life regulated entity—</text> <subclause id="HC887471C558742298511E78584D84718"><enum>(I)</enum><text>shall elect a chairperson who may also serve in the position of chief executive officer, except that such person shall not serve either as chairperson or as chief executive officer without the prior approval of the Agency; and</text></subclause> <subclause id="HB26E93976B96475EBAC02F781778EDD5"><enum>(II)</enum><text>may appoint a chief executive officer who is not also the chairperson, except that such person shall not serve as chief executive officer without the prior approval of the Agency.</text></subclause></clause></subparagraph> <subparagraph id="HAC8C1CA4DBBD45948FBE7CC03FCAB58B"><enum>(B)</enum><header>Stay of judicial action</header><text>Any judicial action to which a limited-life regulated entity becomes a party by virtue of its acquisition of any assets or assumption of any liabilities of a regulated entity in default shall be stayed from further proceedings for a period of up to 45 days at the request of the limited-life regulated entity. Such period may be modified upon the consent of all parties.</text></subparagraph></paragraph> <paragraph id="HE056C9F3254E4D028499C457F61DC6C" display-inline="no-display-inline"><enum>(10)</enum><header>Obtaining of credit and incurring of debt</header> <subparagraph id="HF97206CE7C434918A7C60993377F433F"><enum>(A)</enum><header>In general</header><text>The limited-life regulated entity may obtain unsecured credit and incur unsecured debt in the ordinary course of business.</text></subparagraph> <subparagraph id="HC4780B24752A44FFB1AF45E0F1360760"><enum>(B)</enum><header>Inability to obtain credit</header><text>If the limited-life regulated entity is unable to obtain unsecured credit the Director may authorize the obtaining of credit or the incurring of debt—</text> <clause id="HC35495672E594050AB7EE25275E1D1E"><enum>(i)</enum><text>with priority over any or all administrative expenses;</text></clause> <clause id="H24C0626686284A53B74D70D7FA1D4FAC"><enum>(ii)</enum><text>secured by a lien on property that is not otherwise subject to a lien; or</text></clause> <clause id="H552CAB664BB74595B679B441CF8418B"><enum>(iii)</enum><text>secured by a junior lien on property that is subject to a lien.</text></clause></subparagraph> <subparagraph id="H404C8A2A9F364856A445051D11447319"><enum>(C)</enum><header>Limitations</header> <clause id="HF557900A28BC4B08B742B7DED4E0A953"><enum>(i)</enum><header>In general</header><text>The Director, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt secured by a senior or equal lien on property that is subject to a lien (other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by the regulated entity) only if—</text> <subclause id="HC58EF4DC11EF4E5D8FCF93D1B01EC57"><enum>(I)</enum><text>the limited-life regulated entity is unable to obtain such credit otherwise; and</text></subclause> <subclause id="HF5291D7A14294CE28F537FAE674B79DB"><enum>(II)</enum><text>there is adequate protection of the interest of the holder of the lien on the property which such senior or equal lien is proposed to be granted.</text></subclause></clause> <clause id="HCEAA2F6777D54B03AD1F4F6914B5E602"><enum>(ii)</enum><header>Burden of proof</header><text>In any hearing under this subsection, the Director has the burden of proof on the issue of adequate protection.</text></clause></subparagraph> <subparagraph id="H0F73C186161F4FE69EA000968FC56F6D" display-inline="no-display-inline"><enum>(D)</enum><header>Affect on debts and liens</header><text>The reversal or modification on appeal of an authorization under this paragraph to obtain credit or incur debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so incurred, or any priority or lien so granted, to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and the incurring of such debt, or the granting of such priority or lien, were stayed pending appeal.</text></subparagraph></paragraph> <paragraph id="H68DFC8230AAB46D2B100BAA9076E2FB"><enum>(11)</enum><header>Issuance of preferred debt</header><text>A limited-life regulated entity may, subject to the approval of the Director and subject to such terms and conditions as the Director may prescribe, issue notes, bonds, or other debt obligations of a class to which all other debt obligations of the limited-life regulated entity shall be subordinate in right and payment. </text></paragraph> <paragraph id="H51E2693F5E3F4F21B2270087FDA51800"><enum>(12)</enum><header>No federal status</header> <subparagraph id="H5FF1802E143143AD836B0602FCADBAAD"><enum>(A)</enum><header>Agency status</header><text>A limited-life regulated entity is not an agency, establishment, or instrumentality of the United States.</text></subparagraph> <subparagraph id="H129C917630AA489FB6711F0074FE2D48"><enum>(B)</enum><header>Employee status</header><text>Representatives for purposes of paragraph (1)(B), interim directors, directors, officers, employees, or agents of a limited-life regulated entity are not, solely by virtue of service in any such capacity, officers or employees of the United States. Any employee of the Agency or of any Federal instrumentality who serves at the request of the Agency as a representative for purposes of paragraph (1)(B), interim director, director, officer, employee, or agent of a limited-life regulated entity shall not—</text> <clause id="H30F9828F86CF4D38A59FBB2332D65C00"><enum>(i)</enum><text>solely by virtue of service in any such capacity lose any existing status as an officer or employee of the United States for purposes of title 5, United States Code, or any other provision of law; or</text></clause> <clause id="H0938D82987394DDAAF86AF8E7000EFC8"><enum>(ii)</enum><text>receive any salary or benefits for service in any such capacity with respect to a limited-life regulated entity in addition to such salary or benefits as are obtained through employment with the Agency or such Federal instrumentality.</text></clause></subparagraph></paragraph> <paragraph id="H71E4630567984AF9AEDA8BA0FDAFD4E5"><enum>(13)</enum><header>Additional powers</header><text>In addition to any other powers granted under this subsection, a limited-life regulated entity may—</text> <subparagraph id="HAECFAAF1C26247718693F1DBE5208D4F"><enum>(A)</enum><text>extend a maturity date or change in an interest rate or other term of outstanding securities;</text></subparagraph> <subparagraph id="H65C00CF113A142A69C72C6C0CD68DA44"><enum>(B)</enum><text>issue securities of the limited-life regulated entity, for cash, for property, for existing securities, or in exchange for claims or interests, or for any other appropriate purposes; and</text></subparagraph> <subparagraph id="H4D09D73E6F2E4160A8B08913F7DC3FEF"><enum>(C)</enum><text>take any other action not inconsistent with this section.</text></subparagraph></paragraph></subsection> <subsection id="H66C9CC6D1BD74ED087B7C71962E9B5D" display-inline="no-display-inline"><enum>(j)</enum><header>Other exemptions</header><text>When acting as a receiver, the following provisions shall apply with respect to the Agency:</text> <paragraph id="H78EF0A7366554CD69E1969B559776784"><enum>(1)</enum><header>Exemption from taxation</header><text>The Agency, including its franchise, its capital, reserves, and surplus, and its income, shall be exempt from all taxation imposed by any State, country, municipality, or local taxing authority, except that any real property of the Agency shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed, except that, notwithstanding the failure of any person to challenge an assessment under State law of the value of such property, and the tax thereon, shall be determined as of the period for which such tax is imposed.</text></paragraph> <paragraph id="H1D08BF7EC8354EDF92DB7087F35C869"><enum>(2)</enum><header>Exemption from attachment and liens</header><text>No property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency, nor shall any involuntary lien attach to the property of the Agency.</text></paragraph> <paragraph id="H0365EFB950464A9F8CC2D1EB4CA36762"><enum>(3)</enum><header>Exemption from penalties and fines</header><text>The Agency shall not be liable for any amounts in the nature of penalties or fines, including those arising from the failure of any person to pay any real property, personal property, probate, or recording tax or any recording or filing fees when due.</text></paragraph></subsection> <subsection id="H9664C21727A140DF91620017FC000175"><enum>(k)</enum><header>Prohibition of charter revocation</header><text>In no case may a receiver appointed pursuant to this section revoke, annul, or terminate the charter of a regulated entity.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDC1FCAD77B224971A3B13257449554F6"><enum>(b)</enum><header>Conforming amendments</header><text>Subtitle B of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking sections 1369 (<external-xref legal-doc="usc" parsable-cite="usc/12/4619">12 U.S.C. 4619</external-xref>), 1369A (<external-xref legal-doc="usc" parsable-cite="usc/12/4620">12 U.S.C. 4620</external-xref>), and 1369B (<external-xref legal-doc="usc" parsable-cite="usc/12/4621">12 U.S.C. 4621</external-xref>).</text></subsection></section> <section id="HCE8573181F3C4EB6A7F1B743E4A4400"><enum>145.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, as amended by the preceding provisions of this Act, is further amended—</text> <paragraph id="H243D5AA867AE480DBB9902C8CAAE25FD"><enum>(1)</enum><text>in sections 1365 (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) through 1369D (<external-xref legal-doc="usc" parsable-cite="usc/12/4623">12 U.S.C. 4623</external-xref>), but not including section 1367 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) as added by section 144 of this Act—</text> <subparagraph id="H33AF1C292CF849999582FF26E9B6FBE7"><enum>(A)</enum><text>by striking <quote>An enterprise</quote> each place such term appears and inserting <quote>A regulated entity</quote>;</text></subparagraph> <subparagraph id="H5B2960C55E0B41AAACB1FA925C356679"><enum>(B)</enum><text>by striking <quote>an enterprise</quote> each place such term appears and inserting <quote>a regulated entity</quote>; and</text></subparagraph> <subparagraph id="H7C7F127E738942E5BECBC52163163F8E"><enum>(C)</enum><text>by striking <quote>the enterprise</quote> each place such term appears and inserting <quote>the regulated entity</quote>;</text></subparagraph></paragraph> <paragraph id="HA3371703D70D404EA252ECD48655343"><enum>(2)</enum><text>in section 1366 (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>)—</text> <subparagraph id="H687EBB63273042AC91AB8DFB7DFBC8FF"><enum>(A)</enum><text>in subsection (b)(7), by striking <quote>section 1369 (excluding subsection (a)(1) and (2))</quote> and inserting <quote>section 1367</quote>; and </text></subparagraph> <subparagraph id="H1A22B1A443D44C9FB995610053F09516"><enum>(B)</enum><text>in subsection (d), by striking <quote>the enterprises</quote> and inserting <quote>the regulated entities</quote>;</text></subparagraph></paragraph> <paragraph id="HACC7BC27CAF347E68220E8A4A3912E00"><enum>(3)</enum><text>in section 1368(d) (<external-xref legal-doc="usc" parsable-cite="usc/12/4618">12 U.S.C. 4618(d)</external-xref>), by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> and inserting <quote>Committee on Financial Services</quote>;</text></paragraph> <paragraph id="HCB627497A2264D0BB205D092F59007C"><enum>(4)</enum><text>in section 1369C(c) (<external-xref legal-doc="usc" parsable-cite="usc/12/4622">12 U.S.C. 4622(c)</external-xref>), by striking <quote>any enterprise</quote> and inserting <quote>any regulated entity</quote>; and</text></paragraph> <paragraph id="H8F0E3B6A2EDE4ECBA85EC9840827323B"><enum>(5)</enum><text>in subsections (a) and (d) of section 1369D, by striking <quote>section 1366 or 1367 or action under section 1369)</quote> each place such phrase appears and inserting <quote>section 1367)</quote>. </text></paragraph></section></subtitle> <subtitle id="HD342A2FBBFAF43DCA44CE3CA91ADFEA1"><enum>D</enum><header>Enforcement actions</header> <section id="HE53F808D0C054DF8B699DACAE386E812"><enum>161.</enum><header>Cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1371 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631</external-xref>) is amended—</text> <paragraph id="HED0A72F6D6D24D2985DDCCCD2E7A0AD"><enum>(1)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="H669EDDA60673425B87987C7792BCD827"> <subsection id="H988F0BB4779642CDA0874DAD3201F323"><enum>(a)</enum><header>Issuance for unsafe or unsound practices and violations of rules or laws</header><text>If, in the opinion of the Director, a regulated entity or any regulated entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any regulated entity-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of the regulated entity or is violating or has violated, or the Director has reasonable cause to believe that the regulated entity or any regulated entity-affiliated party is about to violate, a law, rule, or regulation, or any condition imposed in writing by the Director in connection with the granting of any application or other request by the regulated entity or any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or such party a notice of charges in respect thereof. The Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title, with subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(m)</external-xref>, (n)), with subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(e)</external-xref>, (f)), or with paragraph (5) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)</external-xref>).</text></subsection> <subsection id="HE64D1280F64E4CCF96EFED5CE27DB1A5"><enum>(b)</enum><header>Issuance for unsatisfactory rating</header><text>If a regulated entity receives, in its most recent report of examination, a less-than-satisfactory rating for asset quality, management, earnings, or liquidity, the Director may (if the deficiency is not corrected) deem the regulated entity to be engaging in an unsafe or unsound practice for purposes of this subsection.</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HF14D91F38BB249A7A2E89FBCC538CD10"><enum>(2)</enum><text>in subsection (c)(2), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>; and</text></paragraph> <paragraph id="HDB05CE4C7B5C47DCA8EB3665BBBB500"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="H92D2E4F9DD81451CB41D267900005C06"><enum>(A)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text></subparagraph> <subparagraph id="H2BFD48EFDFAC445D9751E35F254EA2C"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="H5C4BE4573C1B4FCCB8A4C9DD6D9CA1A7"><enum>(i)</enum><text>by striking <quote>an executive officer or director</quote> and inserting <quote>a regulated entity affiliated party</quote>; and</text></clause> <clause id="H4CF5D40E48AB4CAD846800165276D2A6"><enum>(ii)</enum><text>by inserting <quote>(including reimbursement of compensation under section 1318)</quote> after <quote>reimbursement</quote>;</text></clause></subparagraph> <subparagraph id="H0B7C7CB4B64442F0AFBA055C35509E87"><enum>(C)</enum><text>in paragraph (6), by striking <quote>and</quote> at the end;</text></subparagraph> <subparagraph id="H59C401A5B3C94AE0B1EFB309A53CF200"><enum>(D)</enum><text>by redesignating paragraph (7) as paragraph (8); and</text></subparagraph> <subparagraph id="H6CF3231F6AFB40CDB6F914A8DFB33C74"><enum>(E)</enum><text>by inserting after paragraph (6) the following new paragraph:</text> <quoted-block id="H05F6AB46F08D428EA552B242DC2F3DC"> <paragraph id="HB72FBA978E5B47438217BE001E9D9938"><enum>(7)</enum><text>to effect an attachment on a regulated entity or regulated entity-affiliated party subject to an order under this section or section 1372; and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section> <section id="H969811A7077E497786F27730AC003B4C"><enum>162.</enum><header>Temporary cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1372 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632</external-xref>) is amended—</text> <paragraph id="H0888C1253D9F4007ACDF021E8520055"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HD0B15166DF304EAE8F52AA5C4E4C6BD0"> <subsection id="H7C36D2A15EF4475AB92B8E66D2C83422"><enum>(a)</enum><header>Grounds for issuance</header><text>Whenever the Director determines that the violation or threatened violation or the unsafe or unsound practice or practices specified in the notice of charges served upon the regulated entity or any regulated entity-affiliated party pursuant to section 1371(a), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of the regulated entity, or is likely to weaken the condition of the regulated entity prior to the completion of the proceedings conducted pursuant to sections 1371 and 1373, the Director may issue a temporary order requiring the regulated entity or such party to cease and desist from any such violation or practice and to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings. Such order may include any requirement authorized under section 1371(d).</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H42850CF927744CD59047F101CCBB00F9"><enum>(2)</enum><text>in subsection (b), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text></paragraph> <paragraph id="H313D7AADFAF34AB4804389FED1E87E81"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="HBF9EB1293FDB48299DBAC02C659DB114"><enum>(A)</enum><text>by striking <quote>An enterprise, executive officer, or director</quote> and inserting <quote>A regulated entity or regulated entity-affiliated party</quote>; and</text></subparagraph> <subparagraph id="HBA80015A630748F5BB6EFB301B5F15D9"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>the enterprise, executive officer, or director</quote> and inserting <quote>the regulated entity or regulated entity-affiliated party</quote>; and</text></subparagraph></paragraph> <paragraph id="H9436014D361644699347822CDD97CED2"><enum>(4)</enum><text>by striking subsection (e) and in inserting the following new subsection:</text> <quoted-block id="H22B76E37106948DDA0E13E724E7D7587"> <subsection id="HA38A3DA1236B4868BD105F323B6C654B"><enum>(e)</enum><header>Enforcement</header><text>In the case of violation or threatened violation of, or failure to obey, a temporary cease-and-desist order issued pursuant to this section, the Director may apply to the United States District Court for the District of Columbia or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, for an injunction to enforce such order, and, if the court determines that there has been such violation or threatened violation or failure to obey, it shall be the duty of the court to issue such injunction.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H9412D04F22A7498E8DC08B00E1669071"><enum>163.</enum><header>Prejudgment attachment</header><text display-inline="no-display-inline">The Housing and Community Development Act of 1992 is amended by inserting after section 1375 (<external-xref legal-doc="usc" parsable-cite="usc/12/4635">12 U.S.C. 4635</external-xref>) the following new section:</text> <quoted-block style="OLC" id="H5FD3F119C8474777B3BBDAEC9CA45FA" display-inline="no-display-inline"> <section id="H017C8522408C443F8534AFF005DB428"><enum>1375A.</enum><header>Prejudgment attachment</header> <subsection id="HD4D2CCA77BCE4C609F7502F0B2A2DAE9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In any action brought pursuant to this title, or in actions brought in aid of, or to enforce an order in, any administrative or other civil action for money damages, restitution, or civil money penalties brought pursuant to this title, the court may, upon application of the Director or Attorney General, as applicable, issue a restraining order that—</text> <paragraph id="H8E0A674F95BF4DB5814FDA64E744F9DA"><enum>(1)</enum><text>prohibits any person subject to the proceeding from withdrawing, transferring, removing, dissipating, or disposing of any funds, assets or other property; and</text></paragraph> <paragraph id="H3B96D3CA4DD748CFBCA20041815FA5A7"><enum>(2)</enum><text>appoints a person on a temporary basis to administer the restraining order.</text></paragraph></subsection> <subsection id="H69BDAF9F40F64F409728C0008E5B75EC"><enum>(b)</enum><header>Standard</header> <paragraph id="H1E1B75E5A5704EBAA701D0643060C27"><enum>(1)</enum><header>Showing</header><text display-inline="yes-display-inline">Rule 65 of the Federal Rules of Civil Procedure shall apply with respect to any proceeding under subsection (a) without regard to the requirement of such rule that the applicant show that the injury, loss, or damage is irreparable and immediate.</text></paragraph> <paragraph id="H5359F7B85108462E82D2DD798C5800A9"><enum>(2)</enum><header>State proceeding</header><text display-inline="yes-display-inline">If, in the case of any proceeding in a State court, the court determines that rules of civil procedure available under the laws of such State provide substantially similar protections to a party’s right to due process as Rule 65 (as modified with respect to such proceeding by paragraph (1)), the relief sought under subsection (a) may be requested under the laws of such State.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HEBCC830EAD9344499F532F7EC17712E"><enum>164.</enum><header>Enforcement and jurisdiction</header><text display-inline="no-display-inline">Section 1375 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4635">12 U.S.C. 4635</external-xref>) is amended—</text> <paragraph id="H207CF11735214748BBBFE986280353E2"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HC21F2D36185A4603BAD026F205F4FB7E"> <subsection id="HA6D9ABF2637A44FAA643847D00D9D89B"><enum>(a)</enum><header>Enforcement</header><text>The Director may, in the discretion of the Director, apply to the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, for the enforcement of any effective and outstanding notice or order issued under this subtitle or subtitle B, or request that the Attorney General of the United States bring such an action. Such court shall have jurisdiction and power to order and require compliance with such notice or order.</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HB9EE94DE6FB3418EA9817366E0C44873"><enum>(2)</enum><text>in subsection (b), by striking <quote>or 1376</quote> and inserting <quote>1376, or 1377</quote>.</text></paragraph></section> <section id="H472B04C9C39B46B1BDF44FA900680038"><enum>165.</enum><header>Civil money penalties</header><text display-inline="no-display-inline">Section 1376 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4636">12 U.S.C. 4636</external-xref>) is amended—</text> <paragraph id="H5D3BA25D2C504830A1F252054F606862"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HC8D1D7A5ACD3407C928C93BE7D355583"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>or any executive officer or</quote> and inserting <quote>any executive officer of a regulated entity, any regulated entity-affiliated party, or any</quote>; and</text></subparagraph> <subparagraph id="H337671D1CBA54E08AEF0C426CBCF08AF"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="HE6A090476F5E4DEFA3E65400B6201B3B"><enum>(i)</enum><text>by striking <quote>the Federal National Mortgage Association Charter Act, the Federal Home Loan Mortgage Corporation Act</quote> and inserting <quote>any provision of any of the authorizing statutes</quote>;</text></clause> <clause id="HC7CEDA90F06E49EBA468346823ECF7D1"><enum>(ii)</enum><text>by striking <quote>or Act</quote> and inserting <quote>or statute</quote>; </text></clause> <clause id="H6506E004096641CFA88B10097348E9F0"><enum>(iii)</enum><text>by striking <quote>or subsection</quote> and inserting <quote>, subsection</quote>; and</text></clause> <clause id="HEEB1B911F3324D7A960002D700116CD5"><enum>(iv)</enum><text>by inserting <quote>, or paragraph (5) or (12) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name></quote> before the semicolon at the end;</text></clause></subparagraph></paragraph> <paragraph id="H0B508E1AF1A64DF8A344FB19C8493338"><enum>(2)</enum><text>by striking subsection (b) and inserting the following new subsection:</text> <quoted-block id="HD2C3955A115B4AE691F6C6FFDDC606F7"> <subsection id="HE8BF4B967EE4453894FE011C803DC84D"><enum>(b)</enum><header>Amount of penalty</header> <paragraph id="H358FF787BFDE48A4A73545F46F33B1DA"><enum>(1)</enum><header>First tier</header><text>Any regulated entity which, or any regulated entity-affiliated party who—</text> <subparagraph id="HD674399D04CA4ABBB95C00E5318B23FB"><enum>(A)</enum><text>violates any provision of this title, any provision of any of the authorizing statutes, or any order, condition, rule, or regulation under any such title or statute, except that the Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title, with subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(m)</external-xref>, (n)), with subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(e)</external-xref>, (f)), or with paragraph (5) or (12) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text></subparagraph> <subparagraph id="HC466C93024984EB8A28E67C577C1D36E"><enum>(B)</enum><text>violates any final or temporary order or notice issued pursuant to this title;</text></subparagraph> <subparagraph id="HC49D745E51DE436D9BA2A1E407114423"><enum>(C)</enum><text>violates any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity;</text></subparagraph> <subparagraph id="HFCE95DDE9381454D97EAB5EA17FEB827"><enum>(D)</enum><text>violates any written agreement between the regulated entity and the Director; or</text></subparagraph> <subparagraph id="H0F7EF9392B0B40BC9F762B438F29D66D"><enum>(E)</enum><text>engages in any conduct the Director determines to be an unsafe or unsound practice, shall forfeit and pay a civil penalty of not more than $10,000 for each day during which such violation continues.</text></subparagraph></paragraph> <paragraph id="H24435962245D433590A71F7E5055B53"><enum>(2)</enum><header>Second tier</header><text>Notwithstanding paragraph (1)—</text> <subparagraph id="H82F781CA672448B9B4D416A8A06D05D3"><enum>(A)</enum><text>if a regulated entity, or a regulated entity-affiliated party—</text> <clause id="H89E19507507342CFB326F9F6722D432"><enum>(i)</enum><text>commits any violation described in any subparagraph of paragraph (1);</text></clause> <clause id="H1B7EB962F2474E4F89B91F1C619ECE07"><enum>(ii)</enum><text>recklessly engages in an unsafe or unsound practice in conducting the affairs of such regulated entity; or</text></clause> <clause id="HEC5114FFAEF8486CA7D8F237474C1245"><enum>(iii)</enum><text>breaches any fiduciary duty; and</text></clause></subparagraph> <subparagraph id="HCB27F1961EC647AEA0A20036DD3DCE2B"><enum>(B)</enum><text>the violation, practice, or breach—</text> <clause id="H6058A8D4A84C4791B81C12B21493C6F2"><enum>(i)</enum><text>is part of a pattern of misconduct;</text></clause> <clause id="H94CCB006776B4848933F169045CDC649"><enum>(ii)</enum><text>causes or is likely to cause more than a minimal loss to such regulated entity; or</text></clause> <clause id="H838BDDC0B33B4849944B3E6EFA92CDB1"><enum>(iii)</enum><text>results in pecuniary gain or other benefit to such party, the regulated entity or regulated entity-affiliated party shall forfeit and pay a civil penalty of not more than $50,000 for each day during which such violation, practice, or breach continues.</text></clause></subparagraph></paragraph> <paragraph id="H632559AA8B5B47A199AB6EA0BE11199C"><enum>(3)</enum><header>Third tier</header><text>Notwithstanding paragraphs (1) and (2), any regulated entity which, or any regulated entity-affiliated party who—</text> <subparagraph id="HDE376ADDCC754FD98BA45574136896F2"><enum>(A)</enum><text>knowingly—</text> <clause id="HD6BB59705E964E4C82166E3C00AB887"><enum>(i)</enum><text>commits any violation or engages in any conduct described in any subparagraph of paragraph (1);</text></clause> <clause id="H1D64924ABF5A4B1EB4B3275D8EA7D92"><enum>(ii)</enum><text>engages in any unsafe or unsound practice in conducting the affairs of such regulated entity; or</text></clause> <clause id="HF96F4F2BE5664B4389227140689FD342"><enum>(iii)</enum><text>breaches any fiduciary duty; and</text></clause></subparagraph> <subparagraph id="HBCC410FD32014CD499C3251870F52D75"><enum>(B)</enum><text>knowingly or recklessly causes a substantial loss to such regulated entity or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under paragraph (4) for each day during which such violation, practice, or breach continues.</text></subparagraph></paragraph> <paragraph id="H1627B9C6617D4EC2A8F2CCCE00A92090"><enum>(4)</enum><header>Maximum amounts of penalties for any violation described in paragraph <enum-in-header>(3)</enum-in-header></header><text>The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is—</text> <subparagraph id="H196EBE1DF20844AD95600533BF9D65B"><enum>(A)</enum><text>in the case of any person other than a regulated entity, an amount not to exceed $2,000,000; and</text></subparagraph> <subparagraph id="HCACAEFA06E0B4345A2B5AD71532C3B72"><enum>(B)</enum><text>in the case of any regulated entity, $2,000,000.</text></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HD508942318A94DC3829907433155108B"><enum>(3)</enum><text>in subsection (c)(1)(B), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text></paragraph> <paragraph id="H462397A4D408457FA3AB65A27366DE75"><enum>(4)</enum><text>in subsection (d), by striking the first sentence and inserting the following: <quote>If a regulated entity or regulated entity-affiliated party fails to comply with an order of the Director imposing a civil money penalty under this section, after the order is no longer subject to review as provided under subsection (c)(1) and section 1374, the Director may, in the discretion of the Director, bring an action in the United States District Court for the District of Columbia, or the United States district court within the jurisdiction of which the headquarters of the regulated entity is located, to obtain a monetary judgment against the regulated entity or regulated entity affiliated party and such other relief as may be available, or request that the Attorney General of the United States bring such an action.</quote>; and</text></paragraph> <paragraph id="HD62A059CE3BB4F73919377C25FFDACD6"><enum>(5)</enum><text>in subsection (g), by striking <quote>subsection (b)(3)</quote> and inserting <quote>this section, unless authorized by the Director by rule, regulation, or order</quote>.</text></paragraph></section> <section id="HCA4B9754C5D447CCB62288FEB8FA0C"><enum>166.</enum><header>Removal and prohibition authority</header> <subsection id="H17764B272A854ABF994CF2ECE2DDA29D"><enum>(a)</enum><header>In General</header><text>Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended—</text> <paragraph id="HAB5A2C31E9B246E9B0EA15C8494E0029"><enum>(1)</enum><text>by redesignating sections 1377, 1378, 1379, 1379A, and 1379B (<external-xref legal-doc="usc" parsable-cite="usc/12/4637-41">12 U.S.C. 4637–41</external-xref>) as sections 1379, 1379A, 1379B, 1379C, and 1379D, respectively; and</text></paragraph> <paragraph id="HEECF0DB1615843F4BE99DDE727AE9305"><enum>(2)</enum><text>by inserting after section 1376 (<external-xref legal-doc="usc" parsable-cite="usc/12/4636">12 U.S.C. 4636</external-xref>) the following new section:</text> <quoted-block id="H186ACD628DFE42CE9939959B38A14376"> <section id="H15812A10419C41F685AE6D00A836DD95"><enum>1377.</enum><header>Removal and prohibition authority</header> <subsection id="HDFED478983B44BBCBAF481A9BFC32FA6"><enum>(a)</enum><header>Authority to issue order</header><text>Whenever the Director determines that—</text> <paragraph id="HD4988111196640BE9B9800308E04114B"><enum>(1)</enum><text>any regulated entity-affiliated party has, directly or indirectly—</text> <subparagraph id="H7A5A01ECDD2C4CE4817F40BCDF793D2"><enum>(A)</enum><text>violated—</text> <clause id="H60ABACC0DDCB4E2C8089D1B28776353C"><enum>(i)</enum><text>any law or regulation;</text></clause> <clause id="H5A2D5C538FEA4B5B936608C3EDB75537"><enum>(ii)</enum><text>any cease-and-desist order which has become final;</text></clause> <clause id="H52E5054E172349B2B3AD6BF1C29CA4F3"><enum>(iii)</enum><text>any condition imposed in writing by the Director in connection with the grant of any application or other request by such regulated entity; or</text></clause> <clause id="H4590323EA290406BB3B68672F042513B"><enum>(iv)</enum><text>any written agreement between such regulated entity and the Director;</text></clause></subparagraph> <subparagraph id="H8410EC66B4784AA1A6A6664629235B46"><enum>(B)</enum><text>engaged or participated in any unsafe or unsound practice in connection with any regulated entity; or</text></subparagraph> <subparagraph id="H5350291B54964AFBA49150E0F4D6FF6D"><enum>(C)</enum><text>committed or engaged in any act, omission, or practice which constitutes a breach of such party’s fiduciary duty;</text></subparagraph></paragraph> <paragraph id="HC6E288A726A241E38FB916D2ECF01C62"><enum>(2)</enum><text>by reason of the violation, practice, or breach described in any subparagraph of paragraph (1)—</text> <subparagraph id="HD3517C9B0FD846949FCD29DCBA785E2F"><enum>(A)</enum><text>such regulated entity has suffered or will probably suffer financial loss or other damage; or</text></subparagraph> <subparagraph id="H9C90E2FFD6094C0FBB42193397D6E42B"><enum>(B)</enum><text>such party has received financial gain or other benefit by reason of such violation, practice, or breach; and</text></subparagraph></paragraph> <paragraph id="HB49901BCA5A343E39F5DCB2E45EBD04F"><enum>(3)</enum><text>such violation, practice, or breach—</text> <subparagraph id="HDEE5D626385F43A793761BDB26F42503"><enum>(A)</enum><text>involves personal dishonesty on the part of such party; or</text></subparagraph> <subparagraph id="HABE484F4605A4EF1BC1262E1603BBB70"><enum>(B)</enum><text>demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity, the Director may serve upon such party a written notice of the Director’s intention to remove such party from office or to prohibit any further participation by such party, in any manner, in the conduct of the affairs of any regulated entity.</text></subparagraph></paragraph></subsection> <subsection id="HA6C8C5E1B1DB40568BA2514879260073"><enum>(b)</enum><header>Suspension order</header> <paragraph id="H73FA523701E946448D9E47A5F0F3B300"><enum>(1)</enum><header>Suspension or prohibition authority</header><text>If the Director serves written notice under subsection (a) to any regulated entity-affiliated party of the Director’s intention to issue an order under such subsection, the Director may—</text> <subparagraph id="H05D86EE9CCCF467BB722121F499F4522"><enum>(A)</enum><text>suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the regulated entity, if the Director—</text> <clause id="H23A5DD32B75C4B0F92D9156E924223A9"><enum>(i)</enum><text>determines that such action is necessary for the protection of the regulated entity; and</text></clause> <clause id="HF970805357EB4A74A9F5B462B6AF0355"><enum>(ii)</enum><text>serves such party with written notice of the suspension order; and</text></clause></subparagraph> <subparagraph id="H1827B4E8A1344F9F8EA66821EA91BCA"><enum>(B)</enum><text>prohibit the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with any resignation, removal, retirement, or other termination of employment or office of the party.</text></subparagraph></paragraph> <paragraph id="H7EC237591F3C4FAA85AF6E61BCF65619"><enum>(2)</enum><header>Effective period</header><text>Any suspension order issued under this subsection—</text> <subparagraph id="HDB1205B150204EF78959C9E9A1E27347"><enum>(A)</enum><text>shall become effective upon service; and</text></subparagraph> <subparagraph id="H4F973217E2D54B3AB681356DCBE1BEE7"><enum>(B)</enum><text>unless a court issues a stay of such order under subsection (g) of this section, shall remain in effect and enforceable until—</text> <clause id="H049E7E6142C14B8781EBB2F227CE45F1"><enum>(i)</enum><text>the date the Director dismisses the charges contained in the notice served under subsection (a) with respect to such party; or</text></clause> <clause id="HE02E71C070464B84ACDCF7531CFF3941"><enum>(ii)</enum><text>the effective date of an order issued by the Director to such party under subsection (a).</text></clause></subparagraph></paragraph> <paragraph id="H7EEAEF9926E14F5EB1D995F2D5A0E11F"><enum>(3)</enum><header>Copy of order</header><text>If the Director issues a suspension order under this subsection to any regulated entity-affiliated party, the Director shall serve a copy of such order on any regulated entity with which such party is affiliated at the time such order is issued.</text></paragraph></subsection> <subsection id="H9BA0E1092FF743AAA94FC993BC7BBDD3"><enum>(c)</enum><header>Notice, hearing, and order</header><text>A notice of intention to remove a regulated entity-affiliated party from office or to prohibit such party from participating in the conduct of the affairs of a regulated entity shall contain a statement of the facts constituting grounds for such action, and shall fix a time and place at which a hearing will be held on such action. Such hearing shall be fixed for a date not earlier than 30 days nor later than 60 days after the date of service of such notice, unless an earlier or a later date is set by the Director at the request of (1) such party, and for good cause shown, or (2) the Attorney General of the United States. Unless such party shall appear at the hearing in person or by a duly authorized representative, such party shall be deemed to have consented to the issuance of an order of such removal or prohibition. In the event of such consent, or if upon the record made at any such hearing the Director shall find that any of the grounds specified in such notice have been established, the Director may issue such orders of suspension or removal from office, or prohibition from participation in the conduct of the affairs of the regulated entity, as it may deem appropriate, together with an order prohibiting compensation described in subsection (b)(1)(B). Any such order shall become effective at the expiration of 30 days after service upon such regulated entity and such party (except in the case of an order issued upon consent, which shall become effective at the time specified therein). Such order shall remain effective and enforceable except to such extent as it is stayed, modified, terminated, or set aside by action of the Director or a reviewing court.</text></subsection> <subsection id="H12600A6DDEFA487BA7A452C3DC41B446"><enum>(d)</enum><header>Prohibition of certain specific activities</header><text>Any person subject to an order issued under this section shall not—</text> <paragraph id="H5A83DC22BBBE4DEB816515009E1C37CD"><enum>(1)</enum><text>participate in any manner in the conduct of the affairs of any regulated entity;</text></paragraph> <paragraph id="HE58AC83ABA2A429184EFE2C0CAF057EF"><enum>(2)</enum><text>solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in any regulated entity;</text></paragraph> <paragraph id="HFC3086BA4AA742F3B297EE12FB9549A6"><enum>(3)</enum><text>violate any voting agreement previously approved by the Director; or</text></paragraph> <paragraph id="H98710D08AA43435C99B49549DE43599"><enum>(4)</enum><text>vote for a director, or serve or act as a regulated entity-affiliated party.</text></paragraph></subsection> <subsection id="H48F9F16194E44D709350A27EA8E4AB01"><enum>(e)</enum><header>Industry-Wide prohibition</header> <paragraph id="H82E375BBB0AD41DEBA2900E145241DAA"><enum>(1)</enum><header>In General</header><text>Except as provided in paragraph (2), any person who, pursuant to an order issued under this section, has been removed or suspended from office in a regulated entity or prohibited from participating in the conduct of the affairs of a regulated entity may not, while such order is in effect, continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of, any regulated entity.</text></paragraph> <paragraph id="HF8AF7B4FDFED4328AA2F1FA0D7138892"><enum>(2)</enum><header>Exception if Director provides written consent</header><text>If, on or after the date an order is issued under this section which removes or suspends from office any regulated entity-affiliated party or prohibits such party from participating in the conduct of the affairs of a regulated entity, such party receives the written consent of the Director, the order shall, to the extent of such consent, cease to apply to such party with respect to the regulated entity described in the written consent. If the Director grants such a written consent, it shall publicly disclose such consent.</text></paragraph> <paragraph id="H3AE1FD4FEBD44E5BA54365B37E5B100"><enum>(3)</enum><header>Violation of paragraph <enum-in-header>(1)</enum-in-header> treated as violation of order</header><text>Any violation of paragraph (1) by any person who is subject to an order described in such subsection shall be treated as a violation of the order.</text></paragraph></subsection> <subsection id="H5C0BC24E71C6467690F4CEBD8E502BC"><enum>(f)</enum><header>Applicability</header><text>This section shall only apply to a person who is an individual, unless the Director specifically finds that it should apply to a corporation, firm, or other business enterprise.</text></subsection> <subsection id="H721440A5393C412EA715A7228880626D"><enum>(g)</enum><header>Stay of suspension and prohibition of regulated Entity-Affiliated party</header><text>Within 10 days after any regulated entity-affiliated party has been suspended from office and/or prohibited from participation in the conduct of the affairs of a regulated entity under this section, such party may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district in which the headquarters of the regulated entity is located, for a stay of such suspension and/or prohibition and any prohibition under subsection (b)(1)(B) pending the completion of the administrative proceedings pursuant to the notice served upon such party under this section, and such court shall have jurisdiction to stay such suspension and/or prohibition.</text></subsection> <subsection id="H07536481BE1D4581B6BC866F96A8E6D1"><enum>(h)</enum><header>Suspension or removal of regulated entity-affiliated party charged with felony</header> <paragraph id="H20E3E12A18184978BEEB9730C3B0DC4"><enum>(1)</enum><header>Suspension or prohibition</header> <subparagraph id="HD393B6D7FDF34F74B88E7FE4D641261D"><enum>(A)</enum><header>In General</header><text>Whenever any regulated entity-affiliated party is charged in any information, indictment, or complaint, with the commission of or participation in a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, by written notice served upon such party—</text> <clause id="H778A081C98174BC58E1FDD673F77B048"><enum>(i)</enum><text>suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of any regulated entity; and</text></clause> <clause id="H1DA3B3C24BF541BA9ECAA8E93C8153F"><enum>(ii)</enum><text>prohibit the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with the period of any such suspension or with any resignation, removal, retirement, or other termination of employment or office of the party.</text></clause></subparagraph> <subparagraph id="H0A0A1188210D49248019FE59AC3FC2D9"><enum>(B)</enum><header>Provisions applicable to notice</header> <clause id="HC424AF0714504E6293D16B21FF001BF2"><enum>(i)</enum><header>Copy</header><text>A copy of any notice under paragraph (1)(A) shall also be served upon the regulated entity.</text></clause> <clause id="H68CEBF0D805240FBBA10E44190904345"><enum>(ii)</enum><header>Effective period</header><text>A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the Director.</text></clause></subparagraph></paragraph> <paragraph id="HB59D102DBE93432E9C11C000ECB9DD1"><enum>(2)</enum><header>Removal or prohibition</header> <subparagraph id="HAC2AC2C8979A4D139C772EA81E99F66B"><enum>(A)</enum><header>In General</header><text>If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against a regulated entity-affiliated party in connection with a crime described in paragraph (1)(A), at such time as such judgment is not subject to further appellate review, the Director may, if continued service or participation by such party may pose a threat to the regulated entity or impair public confidence in the regulated entity, issue and serve upon such party an order that—</text> <clause id="H736F763EAE5A49B583A5B072477C4D8B"><enum>(i)</enum><text>removes such party from office or prohibits such party from further participation in any manner in the conduct of the affairs of the regulated entity without the prior written consent of the Director; and</text></clause> <clause id="H7470B5D40B4C45CF00188FCDC21B8819"><enum>(ii)</enum><text>prohibits the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with the termination of employment or office of the party.</text></clause></subparagraph> <subparagraph id="H16A76C6AEC8C4887A204BCE2C7663723"><enum>(B)</enum><header>Provisions applicable to order</header> <clause id="H77FA2BDB6A934559B04D6402F549F3F5"><enum>(i)</enum><header>Copy</header><text>A copy of any order under paragraph (2)(A) shall also be served upon the regulated entity, whereupon the regulated entity-affiliated party who is subject to the order (if a director or an officer) shall cease to be a director or officer of such regulated entity.</text></clause> <clause id="H87CADB5E30B44F26B8E0E402B72662E6"><enum>(ii)</enum><header>Effect of acquittal</header><text>A finding of not guilty or other disposition of the charge shall not preclude the Director from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in regulated entity affairs, and to prohibit compensation or other payment of money or other thing of current or potential value in connection with any resignation, removal, retirement, or other termination of employment or office of the party, pursuant to subsections (a), (d), or (e) of this section.</text></clause> <clause id="HD26266BB42734258B400F44C5946D197"><enum>(iii)</enum><header>Effective period</header><text>Any notice of suspension or order of removal issued under this subsection shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (4) unless terminated by the Director.</text></clause></subparagraph></paragraph> <paragraph id="HD0F868822DE54217BC4808C443B59F58"><enum>(3)</enum><header>Authority of remaining Board members</header><text>If at any time, because of the suspension of one or more directors pursuant to this section, there shall be on the board of directors of a regulated entity less than a quorum of directors not so suspended, all powers and functions vested in or exercisable by such board shall vest in and be exercisable by the director or directors on the board not so suspended, until such time as there shall be a quorum of the board of directors. In the event all of the directors of a regulated entity are suspended pursuant to this section, the Director shall appoint persons to serve temporarily as directors in their place and stead pending the termination of such suspensions, or until such time as those who have been suspended cease to be directors of the regulated entity and their respective successors take office.</text></paragraph> <paragraph id="H8AEF7C9508B543C7A0A72961C24CDEEB"><enum>(4)</enum><header>Hearing regarding continued participation</header><text>Within 30 days from service of any notice of suspension or order of removal issued pursuant to paragraph (1) or (2) of this subsection, the regulated entity-affiliated party concerned may request in writing an opportunity to appear before the Director to show that the continued service to or participation in the conduct of the affairs of the regulated entity by such party does not, or is not likely to, pose a threat to the interests of the regulated entity or threaten to impair public confidence in the regulated entity. Upon receipt of any such request, the Director shall fix a time (not more than 30 days after receipt of such request, unless extended at the request of such party) and place at which such party may appear, personally or through counsel, before one or more members of the Director or designated employees of the Director to submit written materials (or, at the discretion of the Director, oral testimony) and oral argument. Within 60 days of such hearing, the Director shall notify such party whether the suspension or prohibition from participation in any manner in the conduct of the affairs of the regulated entity will be continued, terminated, or otherwise modified, or whether the order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the regulated entity, and prohibiting compensation in connection with termination will be rescinded or otherwise modified. Such notification shall contain a statement of the basis for the Director’s decision, if adverse to such party. The Director is authorized to prescribe such rules as may be necessary to effectuate the purposes of this subsection.</text></paragraph></subsection> <subsection id="H9090A5F9C6514DA99616003BDD218248"><enum>(i)</enum><header>Hearings and judicial review</header> <paragraph id="HABCDD7882EEC455700820672C6268960"><enum>(1)</enum><header>Venue and procedure</header><text>Any hearing provided for in this section shall be held in the District of Columbia or in the Federal judicial district in which the headquarters of the regulated entity is located, unless the party afforded the hearing consents to another place, and shall be conducted in accordance with the provisions of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code. After such hearing, and within 90 days after the Director has notified the parties that the case has been submitted to it for final decision, it shall render its decision (which shall include findings of fact upon which its decision is predicated) and shall issue and serve upon each party to the proceeding an order or orders consistent with the provisions of this section. Judicial review of any such order shall be exclusively as provided in this subsection. Unless a petition for review is timely filed in a court of appeals of the United States, as provided in paragraph (2), and thereafter until the record in the proceeding has been filed as so provided, the Director may at any time, upon such notice and in such manner as it shall deem proper, modify, terminate, or set aside any such order. Upon such filing of the record, the Director may modify, terminate, or set aside any such order with permission of the court.</text></paragraph> <paragraph id="H5640DA05C79A41F2AEC277AB135C5486"><enum>(2)</enum><header>Review of order</header><text>Any party to any proceeding under paragraph (1) may obtain a review of any order served pursuant to paragraph (1) (other than an order issued with the consent of the regulated entity or the regulated entity-affiliated party concerned, or an order issued under subsection (h) of this section) by the filing in the United States Court of Appeals for the District of Columbia Circuit or court of appeals of the United States for the circuit in which the headquarters of the regulated entity is located, within 30 days after the date of service of such order, a written petition praying that the order of the Director be modified, terminated, or set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Director, and thereupon the Director shall file in the court the record in the proceeding, as provided in <external-xref legal-doc="usc" parsable-cite="usc/28/2112">section 2112</external-xref> of title 28, United States Code. Upon the filing of such petition, such court shall have jurisdiction, which upon the filing of the record shall (except as provided in the last sentence of paragraph (1)) be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of the Director. Review of such proceedings shall be had as provided in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in <external-xref legal-doc="usc" parsable-cite="usc/28/1254">section 1254</external-xref> of title 28, United States Code.</text></paragraph> <paragraph id="H3A96BF5864394DBA874D27384F172BA3"><enum>(3)</enum><header>Proceedings not treated as stay</header><text>The commencement of proceedings for judicial review under paragraph (2) shall not, unless specifically ordered by the court, operate as a stay of any order issued by the Director.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H06F32D545660475895BAEFF533E7EE39"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H371E4C9023334501A6775ECDD3C59600"><enum>(1)</enum><header>1992 Act</header><text>Section 1317(f) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517(f)</external-xref>) is amended by striking <quote>section 1379B</quote> and inserting <quote>section 1379D</quote>.</text></paragraph> <paragraph id="H060B13855E8C47DB910034FA836CAB88"><enum>(2)</enum><header>Fannie mae charter Act</header><text>The second sentence of subsection (b) of section 308 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended by striking <quote>The</quote> and inserting <quote>Except to the extent that action under section 1377 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> temporarily results in a lesser number, the</quote>.</text></paragraph> <paragraph id="H31B1BFE7C8BA4CE8BF61F9D9B7C443CF"><enum>(3)</enum><header>Freddie mac Act</header><text>The second sentence of subparagraph (A) of section 303(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)(A)</external-xref>) is amended by striking <quote>The</quote> and inserting <quote>Except to the extent that action under section 1377 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> temporarily results in a lesser number, the</quote>.</text></paragraph></subsection></section> <section id="HBC3FDE443DE74A54B8F5DE22C4EAA728"><enum>167.</enum><header>Criminal penalty</header><text display-inline="no-display-inline">Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>) is amended by inserting after section 1377 (as added by the preceding provisions of this Act) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HB57B47BC9F704CE1BB28F4D926F786FD"> <section id="H6154DA260A5349DAA8D0FD7E25AF15C5"><enum>1378.</enum><header>Criminal penalty</header><text display-inline="no-display-inline">Whoever, being subject to an order in effect under section 1377, without the prior written approval of the Director, knowingly participates, directly or indirectly, in any manner (including by engaging in an activity specifically prohibited in such an order) in the conduct of the affairs of any regulated entity shall, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, be fined not more than $1,000,000, imprisoned for not more than 5 years, or both.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H4BA6C09885FC4020B06FF556EB83F63B"><enum>168.</enum><header>Subpoena authority</header><text display-inline="no-display-inline">Section 1379D(c) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4641">12 U.S.C. 4641(c)</external-xref>), as so redesignated by section 165(a)(1) of this Act, is further amended—</text> <paragraph id="H232C8257087A40CE807F3435D49D7939"><enum>(1)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; </text></paragraph> <paragraph id="H500C43CDF5734D4C92C13B477E23933B"><enum>(2)</enum><text>by inserting <quote>or request that the Attorney General of the United States bring such an action,</quote> after <quote>District of Columbia,</quote>; and</text></paragraph> <paragraph id="HCD011BB1390E40DAB5FF6949E0136C"><enum>(3)</enum><text>by striking <quote>or may, under the direction and control of the Attorney General, bring such an action</quote>.</text></paragraph></section> <section id="H09C1A368FA864AE68C75D962D78F4799"><enum>169.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended—</text> <paragraph id="H20ACC58F4FCD49749C1789BCDA2BC004"><enum>(1)</enum><text>in section 1372(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632(c)</external-xref>), by striking <quote>that enterprise</quote> and inserting <quote>that regulated entity</quote>;</text></paragraph> <paragraph id="HA4094850D4D246688426549651000631"><enum>(2)</enum><text>in section 1379 (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637</external-xref>), as so redesignated by section 165(a)(1) of this Act—</text> <subparagraph id="H82F72414AC0440E2B43C620981AC0041"><enum>(A)</enum><text>by inserting <quote>, or of a regulated entity-affiliated party,</quote> before <quote>shall not affect</quote>; and</text></subparagraph> <subparagraph id="H7D2D5FAE0EF640C99E4F7E113659F45C"><enum>(B)</enum><text>by striking <quote>such director or executive officer</quote> each place such term appears and inserting <quote>such director, executive officer, or regulated entity-affiliated party</quote>;</text></subparagraph></paragraph> <paragraph id="H3E17DD61E81E495300DB9400D4C8934F"><enum>(3)</enum><text>in section 1379A (<external-xref legal-doc="usc" parsable-cite="usc/12/4638">12 U.S.C. 4638</external-xref>), as so redesignated by section 165(a)(1) of this Act, by inserting <quote>or against a regulated entity-affiliated party,</quote> before <quote>or impair</quote>;</text></paragraph> <paragraph id="HE352B9F2FF2F4276AFB665F228613F1"><enum>(4)</enum><text>by striking <quote>An enterprise</quote> each place such term appears in such subtitle and inserting <quote>A regulated entity</quote>;</text></paragraph> <paragraph id="H9E2D97B245ED43258435B671250220B0"><enum>(5)</enum><text>by striking <quote>an enterprise</quote> each place such term appears in such subtitle and inserting <quote>a regulated entity</quote>;</text></paragraph> <paragraph id="H182D58447C0D4C68A5BD7C03ED62EB7B"><enum>(6)</enum><text>by striking <quote>the enterprise</quote> each place such term appears in such subtitle and inserting <quote>the regulated entity</quote>; and</text></paragraph> <paragraph id="H430C254404444E0F9F2E7CEBDB5200A7"><enum>(7)</enum><text>by striking <quote>any enterprise</quote> each place such term appears in such subtitle and inserting <quote>any regulated entity</quote>.</text></paragraph></section></subtitle> <subtitle id="H86D6218831884511A31E7FCBC13B15C3"><enum>E</enum><header>General provisions</header> <section id="H5D07040EC9194179B5A9D778FE14A563"><enum>181.</enum><header>Presidentially appointed directors of enterprises</header> <subsection id="H2540A9E599A640C0B0006F539F804600"><enum>(a)</enum><header>Fannie mae</header> <paragraph id="HDE0132C6D30E45F4AA280138084357F4"><enum>(1)</enum><header>In General</header><text>Subsection (b) of section 308 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended—</text> <subparagraph id="H235AFE05CF6B4209AFBA7B538D4D5D39"><enum>(A)</enum><text>in the first sentence, by striking <quote>eighteen persons, five of whom shall be appointed annually by the President of the United States, and the remainder of whom</quote> and inserting <quote>not less than 7 and not more than 15 persons, who</quote>;</text></subparagraph> <subparagraph id="H58E7CB54A3B14B9700BF87A6D9FF8E2"><enum>(B)</enum><text>in the second sentence, by striking <quote>appointed by the President</quote>;</text></subparagraph> <subparagraph id="H412A4D91366640BFBE3F8D93AC3738A0"><enum>(C)</enum><text>in the third sentence—</text> <clause id="HE4F847D805544EAEBA187BD3D5BB10B"><enum>(i)</enum><text>by striking <quote>appointed or</quote>; and</text></clause> <clause id="H03157A74CDFB49A0B5F63571AB42EF9E"><enum>(ii)</enum><text>by striking <quote>, except that any such appointed member may be removed from office by the President for good cause</quote>;</text></clause></subparagraph> <subparagraph id="HD4FE5A2B3C6A471692B99D40B5FFBCA4"><enum>(D)</enum><text>in the fourth sentence, by striking <quote>elective</quote>; and</text></subparagraph> <subparagraph id="HEC5AD0B4ED3747B7BF65672DC994E12E"><enum>(E)</enum><text>by striking the fifth sentence.</text></subparagraph></paragraph> <paragraph id="HCACF012F0D854359AFBD8644D1362F00"><enum>(2)</enum><header>Transitional provision</header><text>The amendments made by paragraph (1) shall not apply to any appointed position of the board of directors of the Federal National Mortgage Association until the expiration of the annual term for such position during which the effective date under section 185 occurs.</text></paragraph></subsection> <subsection id="H837A1E84D826402083777E8DBA4D4062"><enum>(b)</enum><header>Freddie mac</header> <paragraph id="H79E0203C295E4B9385183DB312ED3B99"><enum>(1)</enum><header>In General</header><text>Paragraph (2) of section 303(a) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)</external-xref>) is amended—</text> <subparagraph id="H42CA3DF518594FA5A6ED9CDCD11F1967"><enum>(A)</enum><text>in subparagraph (A)—</text> <clause id="H9E0BCE43AE3B47C3902CECFF94DA57C5"><enum>(i)</enum><text>in the first sentence, by striking <quote>18 persons, 5 of whom shall be appointed annually by the President of the United States and the remainder of whom</quote> and inserting <quote>not less than 7 and not more than 15 persons, who</quote>; and</text></clause> <clause id="H26F1FBEE936441CF95DD4B004139E2EB"><enum>(ii)</enum><text>in the second sentence, by striking <quote>appointed by the President of the United States</quote>;</text></clause></subparagraph> <subparagraph id="H6487FED56E6C49439F93E1F8E84FAE5"><enum>(B)</enum><text>in subparagraph (B)—</text> <clause id="HB0B16AB227F34761A148A0B6D022FBC"><enum>(i)</enum><text>by striking <quote>such or</quote>; and</text></clause> <clause id="H0D2BBC911316405BAB9870B2E744089"><enum>(ii)</enum><text>by striking <quote>, except that any appointed member may be removed from office by the President for good cause</quote>; and</text></clause></subparagraph> <subparagraph id="H27605FD824D54073A4CC57387952F6F3"><enum>(C)</enum><text>in subparagraph (C)—</text> <clause id="HFE6BFFDAA92E4A4CB8B872CCF7A1C7DF"><enum>(i)</enum><text>by striking the first sentence; and</text></clause> <clause id="H9BCD242484154F729C82EA118419B0D8"><enum>(ii)</enum><text>by striking <quote>elective</quote>.</text></clause></subparagraph></paragraph> <paragraph id="HC54099DFD4474E68AEBA56C5461900EC"><enum>(2)</enum><header>Transitional provision</header><text>The amendments made by paragraph (1) shall not apply to any appointed position of the Board of Directors of the Federal Home Loan Mortgage Corporation until the expiration of the annual term for such position during which the effective date under section 185 occurs.</text></paragraph></subsection></section> <section id="HF1D299BEB75F4F2E00B91800B1EDA441"><enum>182.</enum><header>Report on portfolio operations, safety and soundness, and mission of enterprises</header><text display-inline="no-display-inline">Not later than the expiration of the 12-month period beginning on the effective date under section 185, the Director of the Federal Housing Finance Agency shall submit a report to the Congress which shall include—</text> <paragraph id="HE84B4016D595420294D70A926B2B02"><enum>(1)</enum><text>a description of the portfolio holdings of the enterprises (as such term is defined in section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>) in mortgages (including whole loans and mortgage-backed securities), non-mortgages, and other assets;</text></paragraph> <paragraph id="HE120EA1EFCC54EEA97D1B13765F5B3B"><enum>(2)</enum><text>a description of the risk implications for the enterprises of such holdings and the consequent risk management undertaken by the enterprises (including the use of derivatives for hedging purposes), compared with off-balance sheet liabilities of the enterprises (including mortgage-backed securities guaranteed by the enterprises);</text></paragraph> <paragraph id="HA038DB24DE954FFC8184D117B231C2BB"><enum>(3)</enum><text>an analysis of portfolio holdings for safety and soundness purposes;</text></paragraph> <paragraph id="HD886837A758A4A859E6F7C00CB962BF9"><enum>(4)</enum><text>an assessment of whether portfolio holdings fulfill the mission purposes of the enterprises under the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> and the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>; and</text></paragraph> <paragraph id="HC9DC02EF5E3C42D98CC7C2D8168C8800"><enum>(5)</enum><text>an analysis of the potential systemic risk implications for the enterprises, the housing and capital markets, and the financial system of portfolio holdings, and whether such holdings should be limited or reduced over time.</text></paragraph></section> <section id="HBDD0F1ABCB5F4CDAADC384FCA13C8DB"><enum>183.</enum><header>Conforming and technical amendments</header> <subsection id="H42E5F1DE31724CB4900558356FCF3092"><enum>(a)</enum><header>1992 Act</header><text>Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking section 1383 (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note).</text></subsection> <subsection id="HCB2DB89960A041580017C1F9C96E2DEB"><enum>(b)</enum><header>Title <enum-in-header>18</enum-in-header>, United States Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/18/1905">Section 1905</external-xref> of title 18, United States Code, is amended by striking <quote>Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>Federal Housing Finance Agency</quote> .</text></subsection> <subsection id="H20031CA86121494A9110617DE4FD04D4"><enum>(c)</enum><header>Flood Disaster Protection Act of 1973</header><text>Section 102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(f)(3)(A)</external-xref>) is amended by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H0D1F5117F3464E86A059B8A1596602E7"><enum>(d)</enum><header>Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name></header><text>Section 5 of the Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/3534">42 U.S.C. 3534</external-xref>) is amended by striking subsection (d).</text></subsection> <subsection id="HC0CC2B9EDDCA41C6B3D015598901D39C"><enum>(e)</enum><header>Title <enum-in-header>5</enum-in-header>, United States Code</header> <paragraph id="H9518D513FE4E4D72BBA0DB839B34E8A9"><enum>(1)</enum><header>Director’s pay rate</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5313">Section 5313</external-xref> of title 5, United States Code, is amended by striking the item relating to the Director of the Office of Federal Housing Enterprise Oversight, Department of Housing and Urban Development and inserting the following new item:</text> <quoted-block id="H213BDD676E9D4678AF03B0004889ADD"> <subsection id="HA3D94E16D47B4E81B2E3A4FC04D79E9B"><enum></enum><text display-inline="no-display-inline">Director of the Federal Housing Finance Agency.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HBE9B6615484442599FAB0097F668D56F"><enum>(2)</enum><header>Deputy Directors’ pay rate</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5314">Section 5314</external-xref> of title 5, United States Code, is amended by adding at the end the following new item:</text> <quoted-block id="H50F4E6FA191A46E4879E2CCE7127BEFA"> <subsection id="H2507EFA3A5A74C43B907C104A21851D1"><enum></enum><text display-inline="no-display-inline">Deputy Directors, Federal Housing Finance Agency (3).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H520307DB2E4C4072B8723959528C93AC"><enum>(3)</enum><header>Pay rate for members of Housing Finance Oversight Board</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended by adding at the end the following new item:</text> <quoted-block id="HF9322D73A9BB47E4BF9EB580A0D510BC"> <subsection id="H7FE72ADF66164AF7B7A6D46B3328AF3F"><enum></enum><text display-inline="no-display-inline">Members, Housing Finance Oversight Board.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H8EDA49FD0BB2456DA527499600AE979"><enum>(4)</enum><header>Exclusion from senior executive service</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/3132">Section 3132(a)(1)(D)</external-xref> of title 5, United States Code, is amended by striking <quote>the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> and inserting <quote>the Federal Housing Finance Agency</quote>.</text></paragraph></subsection> <subsection id="HCC2010647D22429DA89F086F82067BC0"><enum>(f)</enum><header>Inspector General Act of 1978</header><text>Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H2394A98235B14B4C9314DFD4715895BC"><enum>(g)</enum><header>Federal Deposit Insurance Act</header><text>Section 11(t)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.1821(t)(2)(A)) is amended by adding at the end the following new clause:</text> <quoted-block style="OLC" id="HB0FF0294E5D143EBB6C933ABAEDB8BB" display-inline="no-display-inline"> <clause id="H759D9A24A36B424A99A1001E871B1D98"><enum>(vii)</enum><text>The Federal Housing Finance Agency.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9E2EA7FE6E874B23B13E808700607BCD"><enum>(h)</enum><header>1997 Emergency Supplemental Appropriations Act</header><text>Section 10001 of the 1997 Emergency Supplemental Appropriations Act for Recovery From Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those In Bosnia (<external-xref legal-doc="usc" parsable-cite="usc/42/3548">42 U.S.C. 3548</external-xref>) is amended—</text> <paragraph id="H831C4E889DA64377A8568C8F00AB1F23"><enum>(1)</enum><text>by striking <quote>the Government National Mortgage Association, and the Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>and the Government National Mortgage Association</quote>; and</text></paragraph> <paragraph id="H9749B285683445F5A327CF8E9C3E1F34"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>, the Government National Mortgage Association, or the Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>or the Government National Mortgage Association</quote>.</text></paragraph></subsection> <subsection id="H055368ED4C194C2E92C408B8087DEB25"><enum>(i)</enum><header>National Homeownership Trust Act </header><text>Section 302(b)(4) of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12851">42 U.S.C. 12851(b)(4)</external-xref>) is amended by striking <quote>the chairperson of the Federal Housing Finance Board</quote> and inserting <quote>the Director of the Federal Housing Finance Agency</quote>.</text></subsection></section> <section id="H2BA5862A01934D51A8ABEF84CF685E61" display-inline="no-display-inline" section-type="subsequent-section"><enum>184.</enum><header>Study of alternative secondary market systems</header> <subsection id="H2159A629DCB94D8FB6826C6FB3962409"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of the Federal Housing Finance Agency, in consultation with the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, and the Secretary of Housing and Urban Development, shall conduct a comprehensive study of the effects on financial and housing finance markets of alternatives to the current secondary market system for housing finance, taking into consideration changes in the structure of financial and housing finance markets and institutions since the creation of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text></subsection> <subsection id="H6D33F759FCF34C779E3C466900AADEA2"><enum>(b)</enum><header>Contents</header><text display-inline="yes-display-inline">The study under this section shall—</text> <paragraph id="HA0B15073C1204AB08BDA17935C8822F6"><enum>(1)</enum><text>include, among the alternatives to the current secondary market system analyzed—</text> <subparagraph id="HD436E0960A6A41428902FA208B2A7B9"><enum>(A)</enum><text>repeal of the chartering Acts for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;</text></subparagraph> <subparagraph id="H5258FEC5CD584A1800287B3DA81CCC19"><enum>(B)</enum><text>establishing bank-like mechanisms for granting new charters for limited purposed mortgage securitization entities;</text></subparagraph> <subparagraph id="HAD1C3C77C20143430001D4BAF7CDB92"><enum>(C)</enum><text display-inline="yes-display-inline">permitting the Director of the Federal Housing Finance Agency to grant new charters for limited purpose mortgage securitization entities, which shall include analyzing the terms on which such charters should be granted, including whether such charters should be sold, or whether such charters and the charters for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation should be taxed or otherwise assessed a monetary price; and</text></subparagraph> <subparagraph id="HE60F58E934C6416B8DB2A436256B6433"><enum>(D)</enum><text>such other alternatives as the Director considers appropriate;</text></subparagraph></paragraph> <paragraph id="HEB0B8947A24D45D38676D7A27D445D41"><enum>(2)</enum><text>examine all of the issues involved in making the transition to a completely private secondary mortgage market system;</text></paragraph> <paragraph id="HF496A22DD4C04951A6865C46B0896B01"><enum>(3)</enum><text>examine the technological advancements the private sector has made in providing liquidity in the secondary mortgage market and how such advancements have affected liquidity in the secondary mortgage market; and</text></paragraph> <paragraph id="H7CB0FED6BD5042D5B79FC058B102D0EC"><enum>(4)</enum><text>examine how taxpayers would be impacted by each alternative system, including the complete privatization of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text></paragraph></subsection> <subsection id="HF3312B0FACD44AEF8BEBA3009F842401"><enum>(c)</enum><header>Report</header><text>The Director of the Federal Housing Finance Agency shall submit a report to the Congress on the study not later than the expiration of the 12-month period beginning on the effective date under section 185.</text></subsection></section> <section id="HC837654EE544449EB3122728CA2D327E"><enum>185.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as specifically provided otherwise in this title, the amendments made by this title shall take effect on, and shall apply beginning on, the expiration of the 1-year period beginning on the date of the enactment of this Act.</text></section></subtitle> <enum>II</enum><header>Federal Home Loan Banks</header> <section id="H9FD295D260B04BBA8FF2E4257CE30087"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 2 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422</external-xref>) is amended—</text> <paragraph id="H768AA37CAF784991987B889171074425"><enum>(1)</enum><text>by striking paragraphs (1), (10), and (11);</text></paragraph> <paragraph id="H6402ADDBA4C74349A7F1B200E78F0030"><enum>(2)</enum><text>by redesignating paragraphs (2) through (9) as paragraphs (1) through (8), respectively;</text></paragraph> <paragraph id="H96B075FCB4D445F39B5EE7116822212C"><enum>(3)</enum><text>by redesignating paragraphs (12) and (13) as paragraphs (9) and (10), respectively; and</text></paragraph> <paragraph id="H51FA535650B94BA8BE6F6F21A8D0CE12"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block id="HAC880E81A8A543079B7FDF0078A94145"> <paragraph id="H6D372306B73944F6BC95A0417CC83B64"><enum>(11)</enum><header>Director</header><text>The term <term>Director</term> means the Director of the Federal Housing Finance Agency.</text></paragraph> <paragraph id="H8A7BDFC5498C42BDA9002FEFB9391262"><enum>(12)</enum><header>Agency</header><text>The term <term>Agency</term> means the Federal Housing Finance Agency.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H96B376E748E74C638F04D59BA37CBFF5"><enum>202.</enum><header>Directors</header> <subsection id="H2E65D86F7D8B4D93BFBDD22B00E57322"><enum>(a)</enum><header>Election</header><text>Section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended—</text> <paragraph id="H041CF42DE8794E9AA335964EB3C184B3"><enum>(1)</enum><text>by striking subsection (a) and inserting the following:</text> <quoted-block id="H9E7BEE7699F84313A54B93000025E4E3"> <subsection id="HEA3C8F225549426A8C09B0092990D1E4"><enum>(a)</enum><header>Number; election; qualifications; conflicts of interest</header> <paragraph id="H8386B6CD248A4076B551845169F800C1"><enum>(1)</enum><header>In General</header><text display-inline="yes-display-inline">The management of each Federal Home Loan Bank shall be vested in a board of 13 directors, or such other number as the Director determines appropriate, each of whom shall be elected by the members and shall be a citizen of the United States.</text></paragraph> <paragraph id="H6BC5F80462C345F8A62E7EEAAD383884"><enum>(2)</enum><header>Member directors</header><text>A majority of the directors of each Bank shall be officers or directors of a member of such Bank that is located in the district in which such Bank is located.</text></paragraph> <paragraph id="H9030E197584242C700A93431DB5F141C"><enum>(3)</enum><header>Independent directors</header><text>At least one-third of the directors of each Bank shall be independent directors as follows:</text> <subparagraph id="H4DB176B10F30484FBA98946D11EAB764"><enum>(A)</enum><header>In general</header><text>Each independent director shall be a bona fide resident of the district in which such Bank is located.</text></subparagraph> <subparagraph id="H35C92052E9474330A197859C4300F2F6"><enum>(B)</enum><header>Public interest directors</header><text>At least 2 of the independent directors under this paragraph of each Bank shall be representatives chosen from organizations with more than a 2-year history of representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections.</text></subparagraph> <subparagraph id="H078F374A6EEE49979079D8E6C36B2BED"><enum>(C)</enum><header>Other directors</header><text>Each independent director that is not a public interest director under subparagraph (B) shall have demonstrated knowledge of, or experience in, financial management, auditing and accounting, risk management practices, derivatives, project development, or organizational management, or such other knowledge or expertise as the Director may provide by regulation.</text></subparagraph> <subparagraph id="H08193219A79A4CF2A556E7C12130FEA3"><enum>(D)</enum><header>Conflicts of interest</header><text>An independent director under this paragraph of a Bank may not, during such director’s term of office, serve as an officer of any Federal Home Loan Bank or as a director or officer of any member of a Bank.</text></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H61F2DDA3E943454EB4A80009C0D3B75"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="HBD7B6E810A4D443592FFF4F6F0942D8C"><enum>(A)</enum><text>in the first sentence, by striking <quote>directorship</quote> and inserting <quote>member directorship pursuant to subsection (a)(2)</quote>; and</text></subparagraph> <subparagraph id="H6C5BACDB77B24461864FC468FEC6FD95"><enum>(B)</enum><text>by inserting after the period at the end of the first sentence the following new sentence: <quote>Each independent directorship pursuant to subsection (a)(3) shall be filled by election by a plurality of the votes of the members of the Bank at large, in which election each member shall be entitled to nominate candidates and to cast the same number of votes as in an election to fill a directorship allocated to the member’s State.</quote>;</text></subparagraph></paragraph> <paragraph id="HD580E553CA31431FB1E7009EAB8C72BD"><enum>(3)</enum><text>in subsection (c), by striking the second, third, and fifth sentences;</text></paragraph> <paragraph id="HD0ED6876534B4220B3D75161E30368C"><enum>(4)</enum><text>in subsection (d)—</text> <subparagraph id="H4D902768547442459EC217DD228948DB"><enum>(A)</enum><text>in the first sentence, by striking <quote>, whether elected or appointed,</quote>;</text></subparagraph> <subparagraph id="HC7A208FB772E4C30B182D6092ED98F93"><enum>(B)</enum><text>in the second sentence, by striking <quote>or appointed</quote>; and</text></subparagraph> <subparagraph id="HF55578C7DAFC4338BBDB2E44991C327B"><enum>(C)</enum><text>in the third sentence, by striking <quote>an elective</quote> each place such term appears and inserting <quote>a</quote>; and</text></subparagraph></paragraph> <paragraph id="H89D3F0F511504A3CA384C81790C4AFF1"><enum>(5)</enum><text>by striking <quote>elective</quote> each place such term appears (except in subsection (e)).</text></paragraph></subsection> <subsection id="H64B28BF3A7E54E2F93D8F3706C0864EA"><enum>(b)</enum><header>Terms</header> <paragraph id="HBBEF519B5A4B42ADAF38B21E8923DACC"><enum>(1)</enum><header>In General</header><text>Section 7(d) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(i)</external-xref>) is amended—</text> <subparagraph id="H18AB2C56716A4082A4FA2032F0B7D3E4"><enum>(A)</enum><text>in the first sentence, by striking <quote>3 years</quote> and inserting <quote>4 years</quote>; and</text></subparagraph> <subparagraph id="H13ADEF78A2F14AE8B8B9B2B11771D9C"><enum>(B)</enum><text>in the second sentence—</text> <clause id="HD559F152D20B4A4595D89CD700BAD6DD"><enum>(i)</enum><text>by striking <quote>Federal Home Loan Bank System Modernization Act of 1999</quote> and inserting <quote>Federal Housing Finance Reform Act of 2005</quote>; and</text></clause> <clause id="HA1BC7FC1588E42A1806E2D20FF8445C7"><enum>(ii)</enum><text>by striking <quote>1/3</quote> and inserting <quote>1/4</quote>.</text></clause></subparagraph></paragraph> <paragraph id="H801B4BCABECD4132BA40AF709FF40031"><enum>(2)</enum><header>Savings provision</header><text>The amendments made by paragraph (1) shall not apply to the term of office of any director of a Federal home loan bank who is serving as of the effective date of this Act under section 211, including any director elected to fill a vacancy in any such office.</text></paragraph></subsection> <subsection id="H14C7B067582849518F31A600FB1E81F7"><enum>(c)</enum><header>Vacancies</header><text>Subsection (f) of section 7 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(f)</external-xref>) is amended to read as follows:</text> <quoted-block style="OLC" id="H8D4438F356454E16AF23E643BA59AE33" display-inline="no-display-inline"> <subsection id="H24E19CF59775411DBC16681CB0CEDE1E"><enum>(f) </enum><header>Vacancies</header><text display-inline="yes-display-inline">A Bank director elected to fill a vacancy shall be elected for the unexpired term of his or her predecessor in office. In the event of a vacancy in any Bank directorship, such vacancy shall be filled by an affirmative vote of a majority of the remaining Bank directors, regardless of whether such remaining Bank directors constitute a quorum of the Bank’s board of directors. A Bank director so elected shall satisfy the requirements for eligibility which were applicable to his predecessor. If any Bank director shall cease to have any qualification set forth in this section, the office held by such person shall immediately become vacant. </text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HABBAB6A47A6548348C899CCFD02C43B7"><enum>(d)</enum><header>Compensation</header><text>Subsection (i) of section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(i)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Federal Home Loan Bank Act" id="H5985E0F908114365900099185457EC70"> <subsection id="HA2BAEAF60C794FBC9068C3F98C15EE28"><enum>(i)</enum><header>Directors’ compensation</header> <paragraph id="H838EFE0793D84CB685C800A022DB73DA"><enum>(1)</enum><header>In General</header><text>Each Federal home loan bank may pay the directors on the board of directors for the bank reasonable and appropriate compensation for the time required of such directors, and reasonable and appropriate expenses incurred by such directors, in connection with service on the board of directors, in accordance with resolutions adopted by the board of directors and subject to the approval of the Director.</text></paragraph> <paragraph id="H26DCF954077E4BB3816EEA7F4E72EEDC"><enum>(2)</enum><header>Annual report by the Board</header><text>The Director shall include, in the annual report submitted to the Congress pursuant to section 1319B of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name>, information regarding the compensation and expenses paid by the Federal home loan banks to the directors on the boards of directors of the banks.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H8642D2D5C5024D29AAC8B67D80384071"><enum>(e)</enum><header>Transition rule</header><text>Any member of the board of directors of a Federal Home Loan Bank serving as of the effective date under section 211 may continue to serve as a member of such board of directors for the remainder of the term of such office as provided in section 7 of the Federal Home Loan Bank Act, as in effect before such effective date.</text></subsection></section> <section id="H65137BEBB8954177B469E8F22EBBFAEB"><enum>203.</enum><header>Federal Housing Finance Agency oversight of Federal Home Loan Banks</header><text display-inline="no-display-inline">The <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1421">12 U.S.C. 1421 et seq.</external-xref>), other than in provisions of that Act added or amended otherwise by this Act, is amended—</text> <paragraph id="H14C831E79B49416997A3BAB98936FED"><enum>(1)</enum><text>by striking sections 2A and 2B (<external-xref legal-doc="usc" parsable-cite="usc/12/1422a">12 U.S.C. 1422a</external-xref>, 1422b);</text></paragraph> <paragraph id="HAEECE57AAFBA43C1B98EF8FCF14C13AA"><enum>(2)</enum><text>in section 6 (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(b)(1)</external-xref>)—</text> <subparagraph id="H23EC87C7B98C4196BA13E7E8000015E"><enum>(A)</enum><text>in subsection (b)(1), in the matter preceding subparagraph (A), by striking <quote>Finance Board approval</quote> and inserting <quote>approval by the Director</quote>; and</text></subparagraph> <subparagraph id="HDE23F004D97B47B0AE33DC17003200E2"><enum>(B)</enum><text>in each of subsections (c)(4)(B) and (d)(2), by striking <quote>Finance Board regulations</quote> each place that term appears and inserting <quote>regulations of the Director</quote>;</text></subparagraph></paragraph> <paragraph id="H1FF03395BB05471A9C622045F173C8FA"><enum>(3)</enum><text>in section 8 (<external-xref legal-doc="usc" parsable-cite="usc/12/1428">12 U.S.C. 1428</external-xref>), in the section heading, by striking “<header-in-text level="section" style="traditional">by the board</header-in-text>”;</text></paragraph> <paragraph id="H673AD3D52E9F430E88A7C400E61896D8"><enum>(4)</enum><text>in section 10(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430</external-xref>), by striking <quote>by formal resolution</quote>;</text></paragraph> <paragraph id="H2D7A5230F0384C0EA5F1A7FA7D2700C7"><enum>(5)</enum><text>in section 11 (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431</external-xref>)—</text> <subparagraph id="HBE87C77010B6454F9E6C3D038F2744BA"><enum>(A)</enum><text>in subsection (b)—</text> <clause id="H5CB9D88BE215475FACE18B70AF332FB6"><enum>(i)</enum><text display-inline="yes-display-inline">in the first sentence—</text> <subclause id="H8713A91890DF4B19AC9C8CDA7BA4FAE"><enum>(I)</enum><text>by striking <quote>The Board</quote> and inserting <quote>The Office of Finance, as agent for the Banks,</quote>; and</text></subclause> <subclause id="H632EEB315E1C4D0D9C92E3E4EF0A916"><enum>(II)</enum><text>by striking <quote>the Board</quote> and inserting <quote>such Office</quote>; and</text></subclause></clause> <clause id="HCAAFADA98B2C4A619C00860356BD9CD5"><enum>(ii)</enum><text>in the second and fourth sentences, by striking <quote>the Board</quote> each place such term appears and inserting <quote>the Office of Finance</quote>;</text></clause></subparagraph> <subparagraph id="H15C46019670041349F08F93803C34E2C"><enum>(B)</enum><text>in subsection (c)—</text> <clause id="HC08F0BBC601B49C79821C519C44C9727"><enum>(i)</enum><text>by striking <quote>the Board</quote> the first place such term appears and inserting <quote>the Office of Finance, as agent for the Banks,</quote>; and</text></clause> <clause id="H7E9B0AA7E06E482F92003DA107020361"><enum>(ii)</enum><text>by striking <quote>the Board</quote> the second place such term appears and inserting <quote>such Office</quote>; and</text></clause></subparagraph> <subparagraph id="H9A367409168D4317B0D71F482E64B8FA"><enum>(C)</enum><text>in subsection (f)—</text> <clause id="H325F9F172A42424C96BD8B00E40500EA"><enum>(i)</enum><text>by striking the two commas after <quote>permit</quote> and inserting <quote>or</quote>; and</text></clause> <clause id="H4BE1508F45394C0EAF255E8D1BB9EB83"><enum>(ii)</enum><text>by striking the comma after <quote>require</quote>; </text></clause></subparagraph></paragraph> <paragraph id="HC803B5FE536B40A1B088F961DC44878"><enum>(6)</enum><text display-inline="yes-display-inline">in section 15 (<external-xref legal-doc="usc" parsable-cite="usc/12/1435">12 U.S.C. 1435</external-xref>), by inserting <quote>or the Director</quote> after <quote>the Board</quote>; </text></paragraph> <paragraph id="HD499B9DEFDFB41B3A1BB65D461DDD20"><enum>(7)</enum><text>in section 18 (<external-xref legal-doc="usc" parsable-cite="usc/12/1438">12 U.S.C. 1438</external-xref>), by striking subsection (b);</text></paragraph> <paragraph id="H3F06C887612847B988FED8D317F1683E"><enum>(8)</enum><text>in section 21 (<external-xref legal-doc="usc" parsable-cite="usc/12/1441">12 U.S.C. 1441</external-xref>)—</text> <subparagraph id="HED2901960A9C45649224F00912A43DC8"><enum>(A)</enum><text>in subsection (b)—</text> <clause id="HB4CA278CD9D340D1814C67CB62CBAC8"><enum>(i)</enum><text>in paragraph (5), by striking <quote>Chairperson of the Federal Housing Finance Board</quote> and inserting <quote>Director</quote>; and</text></clause> <clause id="HF1D6D8A14C68433BB6FB8B09D69CCD8E"><enum>(ii)</enum><text>in the heading for paragraph (8), by striking <quote><header-in-text level="paragraph">federal housing finance board</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">director</header-in-text></quote>; and</text></clause></subparagraph> <subparagraph id="H219618DC22884B37852EACB58907547F"><enum>(B)</enum><text>in subsection (i), in the heading for paragraph (2), by striking <quote><header-in-text level="paragraph">Federal housing finance board</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">Director</header-in-text></quote>;</text></subparagraph></paragraph> <paragraph id="HBC7530AFBACF4C42A71EC03EA4DC53C5"><enum>(9)</enum><text>in section 23 (<external-xref legal-doc="usc" parsable-cite="usc/12/1443">12 U.S.C. 1443</external-xref>), by striking <quote>Board of Directors of the Federal Housing Finance Board</quote> and inserting <quote>Director</quote>;</text></paragraph> <paragraph id="HFDD9589D67794A71B09603DBE0442DBF"><enum>(10)</enum><text display-inline="yes-display-inline">by striking <quote>the Board</quote> each place such term appears in such Act (except in section 15 (<external-xref legal-doc="usc" parsable-cite="usc/12/1435">12 U.S.C. 1435</external-xref>), section 21(f)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1441">12 U.S.C. 1441(f)(2)</external-xref>), subsections (a), (k)(2)(B)(i), and (n)(6)(C)(ii) of section 21A (<external-xref legal-doc="usc" parsable-cite="usc/12/1441a">12 U.S.C. 1441a</external-xref>), subsections (e)(7), (f)(2)(C), and (k)(7)(B)(ii) of section 21B (<external-xref legal-doc="usc" parsable-cite="usc/12/1441b">12 U.S.C. 1441b</external-xref>), and the first two places such term appears in section 22 (<external-xref legal-doc="usc" parsable-cite="usc/12/1442">12 U.S.C. 1442</external-xref>)) and inserting <quote>the Director</quote>;</text></paragraph> <paragraph id="HAC9DDE52A69549C1A5CE058922C0004D"><enum>(11)</enum><text>by striking <quote>The Board</quote> each place such term appears in such Act (except in sections 7(e) (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(e)</external-xref>), and 11(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431(b)</external-xref>) and inserting <quote>The Director</quote>;</text></paragraph> <paragraph id="H7C80841D3F8F441BAD498729CC6F9EEC"><enum>(12)</enum><text>by striking <quote>the Board’s</quote> each place such term appears in such Act and inserting <quote>the Director’s</quote>;</text></paragraph> <paragraph id="HC4A69BE0199247F39FED2ED610142DB1"><enum>(13)</enum><text>by striking <quote>The Board’s</quote> each place such term appears in such Act and inserting <quote>The Director’s</quote>;</text></paragraph> <paragraph id="HBF77BEDF04954B7E92FBAD964F33871"><enum>(14)</enum><text>by striking <quote>The Finance Board</quote> each place such term appears in such Act and inserting <quote>The Director</quote>;</text></paragraph> <paragraph id="H3D34821260E14C5385C5BECBF658AED1"><enum>(15)</enum><text>by striking <quote>the Finance Board</quote> each place such term appears in such Act and inserting <quote>the Director</quote>;</text></paragraph> <paragraph id="H513A5EF810444B959993B8B889DA1DD4"><enum>(16)</enum><text>by striking <quote>Federal Housing Finance Board</quote> each place such term appears and inserting <quote>Director</quote>;</text></paragraph> <paragraph id="H3F96CF7D1E434C8B99FF89E81D8BA2BD"><enum>(17)</enum><text>in section 11(i) (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431(i)</external-xref>, by striking <quote>the Chairperson of</quote>; and</text></paragraph> <paragraph id="HC288BD965D8E4E28857F909534DB3237"><enum>(18)</enum><text>in section 21(e)(9) (<external-xref legal-doc="usc" parsable-cite="usc/12/1441">12 U.S.C. 1441(e)(9)</external-xref>), by striking <quote>Chairperson of the</quote>.</text></paragraph></section> <section id="H6D9C781B783C4D57A857341B939D04F4"><enum>204.</enum><header>Joint activities of banks</header><text display-inline="no-display-inline">Section 11 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H06D5050A7A774E8CA3A6C010A532C6FB" display-inline="no-display-inline"> <subsection id="H086EDA126FF347C40053D39D3ECF2BB5"><enum>(l)</enum><header>Joint activities</header><text>Subject to the regulation of the Director, any two or more Federal Home Loan Banks may establish a joint office for the purpose of performing functions for, or providing services to, the Banks on a common or collective basis, or may require that the Office of Finance perform such functions or services, but only if the Banks are otherwise authorized to perform such functions or services individually.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H72F3F598EFA54AA9AC879FF7CF7F68BF"><enum>205.</enum><header>Sharing of information between Federal Home Loan Banks</header> <subsection id="HB3C421C925074F97A69D9CA008792504"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"> The Federal Home Loan Bank Act is amended by inserting after section 20 (<external-xref legal-doc="usc" parsable-cite="usc/12/1440">12 U.S.C. 1440</external-xref>) the following new section:</text> <quoted-block id="H7224E9D8FDC74209B13113AA229744B6" style="OLC"> <section id="HEF1B99BB5E0943D5BC00000705AC2B39"><enum>20A.</enum><header>Sharing of information between federal home loan banks</header> <subsection id="HD634D8D0B0564CCF0049C00715B98B"><enum>(a)</enum><header>Regulatory authority</header><text>The Director shall prescribe such regulations as may be necessary to ensure that each Federal Home Loan Bank has access to information that the Bank needs to determine the nature and extent of its joint and several liability.</text></subsection> <subsection id="HAD5D252EA77A4952ACEE120046CFB53B"><enum>(b)</enum><header>No waiver of privilege</header><text>The Director shall not be deemed to have waived any privilege applicable to any information concerning a Federal Home Loan Bank by transferring, or permitting the transfer of, that information to any other Federal Home Loan Bank for the purpose of enabling the recipient to evaluate the nature and extent of its joint and several liability.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H36E5B861FB4048A8B95EEF6BAA048847"><enum>(b)</enum><header>Regulations</header><text>The regulations required under the amendment made by subsection (a) shall be issued in final form not later than 6 months after the effective date under section 211 of this Act.</text></subsection></section> <section id="H08A12A80CB514EDBBB4445C176906B1E"><enum>206.</enum><header>Reorganization of banks and voluntary merger</header><text display-inline="no-display-inline">Section 26 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1446">12 U.S.C. 1446</external-xref>) is amended—</text> <paragraph id="H8E523B8437A54661AA87A300E5D745E3"><enum>(1)</enum><text>by inserting <quote>(a) <header-in-text level="subsection" style="OLC">Reorganization</header-in-text>.—</quote> before <quote>Whenever</quote>; and</text></paragraph> <paragraph id="H74610FFB67FC4A8EA4A1EEF5E8F5B388"><enum>(2)</enum><text>by striking <quote>liquidated or</quote> each place such phrase appears;</text></paragraph> <paragraph id="HE3D178D4C81C4791B614005B23A35FEA"><enum>(3)</enum><text>by striking <quote>liquidation or</quote>; and</text></paragraph> <paragraph id="HBB408F6FACE7485500023C5B8E45091B"><enum>(4)</enum><text>by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="H63A2710695774AEFB04E5BBF49FAB7D" display-inline="no-display-inline"> <subsection id="H9CEC8B1C0FF54345AC55C23F5471EBE3"><enum>(b)</enum><header>Voluntary mergers</header><text>Any Bank may, with the approval of the Director, and the approval of the boards of directors of the Banks involved, merge with another Bank. The Director shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any such voluntary merger, including the procedures for Bank member approval.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H3AA16CF608CF430F90C7F2C35942FF16"><enum>207.</enum><header>Securities and Exchange Commission disclosure</header> <subsection id="H4D0635A3F9BA478698007C73EA100067"><enum>(a)</enum><header>In General</header><text>The Federal Home Loan Banks shall be exempt from compliance with—</text> <paragraph id="H13321198E5DD492A8E2DD9B23D7ED68D"><enum>(1)</enum><text>sections 13(e), 14(a), 14(c), and 17A of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and related Commission regulations; and</text></paragraph> <paragraph id="HCDC1CFAC457249078047CD8F7500FE8E"><enum>(2)</enum><text>section 15 of that Act and related Securities and Exchange Commission regulations with respect to transactions in capital stock of the Banks.</text></paragraph></subsection> <subsection id="H25139FAD97E6465DB9C24D90D1AF7F09"><enum>(b)</enum><header>Member exemption</header><text>The members of the Federal Home Loan Banks shall be exempt from compliance with sections 13(d), 13(f), 13(g), 14(d), and 16 of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and related Securities and Exchange Commission regulations with respect to their ownership of, or transactions in, capital stock of the Federal Home Loan Banks.</text></subsection> <subsection id="HDF899C6D20E146B9B20009FD00E70023"><enum>(c)</enum><header>Exempted and government securities</header> <paragraph id="HCC42250BF2A042CC84DDB1EF5F7F00B4"><enum>(1)</enum><header>Capital stock</header><text>The capital stock issued by each of the Federal Home Loan Banks under section 6 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> are—</text> <subparagraph id="H42C77258CD9E42800078F13F7130D9B7"><enum>(A)</enum><text>exempted securities within the meaning of section 3(a)(2) of the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>; and</text></subparagraph> <subparagraph id="H5C8B23A228A248F1B1C3C3078FC8F374"><enum>(B)</enum><text><quote>exempted securities</quote> within the meaning of section 3(a)(12)(A) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text></subparagraph></paragraph> <paragraph id="H2F7A8145DF994E14A6E03BE73E28FD55"><enum>(2)</enum><header>Other obligations</header><text>The debentures, bonds, and other obligations issued under section 11 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> are—</text> <subparagraph id="HF13A85E5A2A64B9AA95F1E57192BD9B0"><enum>(A)</enum><text>exempted securities within the meaning of section 3(a)(2) of the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>;</text></subparagraph> <subparagraph id="H6361A0521C974106B56EC5C2577800DA"><enum>(B)</enum><text><quote>government securities</quote> within the meaning of section 3(a)(42) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>;</text></subparagraph> <subparagraph id="H580253B2CE26400EAF159FE9AE153E16"><enum>(C)</enum><text>excluded from the definition of <quote>government securities broker</quote> within section 3(a)(43) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>;</text></subparagraph> <subparagraph id="HA41AC2E9FAAF4E52ADE1EBC5D32D4307"><enum>(D)</enum><text>excluded from the definition of <quote>government securities dealer</quote> within section 3(a)(44) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>; and</text></subparagraph> <subparagraph id="HA62A60B0A0024583B7C2BAE877737EEC"><enum>(E)</enum><text><quote>government securities</quote> within the meaning of section 2(a)(16) of the <act-name parsable-cite="ICA40">Investment Company Act of 1940</act-name>.</text></subparagraph></paragraph></subsection> <subsection id="H569D78C1F69844A383A26A6F7FE4708"><enum>(d)</enum><header>Exemption from reporting requirements</header><text>The Federal Home Loan Banks shall be exempt from periodic reporting requirements pertaining to—</text> <paragraph id="H551D673826114FC88891758CE22D5016"><enum>(1)</enum><text>the disclosure of related party transactions that occur in the ordinary course of business of the Banks with their members; and</text></paragraph> <paragraph id="HCC9FDCD0F0184B819FB6F663F59FAB78"><enum>(2)</enum><text>the disclosure of unregistered sales of equity securities.</text></paragraph></subsection> <subsection id="H3D70D02E874E42B79EACDEDB1B843BCC"><enum>(e)</enum><header>Tender offers</header><text>The Securities and Exchange Commission’s rules relating to tender offers shall not apply in connection with transactions in capital stock of the Federal Home Loan Banks.</text></subsection> <subsection id="H7E005CA41A584CA9AE49F8F399D7002F"><enum>(f)</enum><header>Regulations</header><text>In issuing final regulations to implement provisions of this section, the Securities and Exchange Commission shall consider the distinctive characteristics of the Federal Home Loan Banks when evaluating the accounting treatment with respect to the payment to Resolution Funding Corporation, the role of the combined financial statements of the twelve Banks, the accounting classification of redeemable capital stock, and the accounting treatment related to the joint and several nature of the obligations of the Banks.</text></subsection></section> <section id="H6197CFBB4019470AA8CE5334B714CA00"><enum>208.</enum><header>Community financial institution members</header> <subsection id="H66B87AAB0B174F39A300AC1878F2BABB"><enum>(a)</enum><header>Total asset requirement</header><text>Paragraph (10) of section 2 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422(10)</external-xref>), as so redesignated by section 201(3) of this Act, is amended by striking <quote>$500,000,000</quote> each place such term appears and inserting <quote>$1,000,000,000</quote>.</text></subsection> <subsection id="H4072D20DE4A24FE98905ED3908792FE5"><enum>(b)</enum><header>Use of advances for community development activities</header><text>Section 10(a) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(a)</external-xref>) is amended—</text> <paragraph id="H971FFC79EE444B84B100006E2DD691BC"><enum>(1)</enum><text>in paragraph (2)(B)—</text> <subparagraph id="H4B33319A03C84405A15F55C79EACE44C"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph> <subparagraph id="H7568E3433A6C44BDBAA6B951DF738CA7"><enum>(B)</enum><text>by inserting <quote>, and community development activities</quote> before the period at the end; </text></subparagraph></paragraph> <paragraph id="HD5C80B41723040BBA934ED83321B834C"><enum>(2)</enum><text>in paragraph (3)(E), by inserting <quote>or community development activities</quote> after <quote>agriculture,</quote>; and</text></paragraph> <paragraph id="HEDA1F2CCD7564D87813F2BDD4525C747"><enum>(3)</enum><text>in paragraph (6)—</text> <subparagraph id="H22B86064FA234576A231714CDDA21C9B"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph> <subparagraph id="H87EAB49E431C4114BEC56D56F4AEB23"><enum>(B)</enum><text>by inserting <quote>, and <quote>community development activities</quote></quote> before <quote>shall</quote>.</text></subparagraph></paragraph></subsection></section> <section id="HAC25F2A1F4A94C3EAEBC73ABA62FA771"><enum>209.</enum><header>Technical and conforming amendments</header> <subsection id="H959C906C4BE04306B2AB91DD85532E71"><enum>(a)</enum><header>Right to Financial Privacy Act of 1978</header><text>Section 1113(o) of the Right to Financial Privacy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3413">12 U.S.C. 3413(o)</external-xref>) is amended—</text> <paragraph id="H7CD1D16CA1C0493B8C9080D240A078A8"><enum>(1)</enum><text>by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>; and</text></paragraph> <paragraph id="H6E1CF4CE56BB40439ECDCC362170531B"><enum>(2)</enum><text>by striking <quote>Federal Housing Finance Board’s</quote> and inserting <quote>Federal Housing Finance Agency’s</quote>.</text></paragraph></subsection> <subsection id="H729F02BF55F04595A0108686D3872965"><enum>(b)</enum><header>Riegle Community Development and Regulatory Improvement Act of 1994</header><text display-inline="yes-display-inline">Section 117(e) of the Riegle Community Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4716">12 U.S.C. 4716(e)</external-xref>) is amended by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="HAD3C5E763E784711A3A55D3F1B79EF83"><enum>(c)</enum><header>Title 18, United States Code</header><text>Title 18, United States Code, is amended by striking <quote>Federal Housing Finance Board</quote> each place such term appears in each of sections 212, 657, 1006, 1014, and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H2AED53C015D1470F9F2FDC5C07BC2717"><enum>(d)</enum><header>MAHRA Act of 1997</header><text display-inline="yes-display-inline">Section 517(b)(4) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note) is amended by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H2EE697CB816D46E50030E552BA79458"><enum>(e)</enum><header>Title 44, United States Code</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/44/3502">Section 3502(5)</external-xref> of title 44, United States Code, is amended by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection> <subsection id="H47ECA2F2E4F64B25ABD4E0998D793082"><enum>(f)</enum><header>Access to Local TV Act of 2000</header><text display-inline="yes-display-inline">Section 1004(d)(2)(D)(iii) of the Launching Our Communities’ Access to Local Television Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/47/1103">47 U.S.C. 1103(d)(2)(D)(iii)</external-xref>) is amended by striking <quote>Office of Federal Housing Enterprise Oversight, the Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text></subsection></section> <section id="HD80BED74B8B04905A17D49C23FA6263C" display-inline="no-display-inline" section-type="subsequent-section"><enum>210.</enum><header>Study of affordable housing program use for long-term care facilities</header><text display-inline="no-display-inline">The Comptroller General shall conduct a study of the use of affordable housing programs of the Federal home loan banks under section 10(j) of the Federal Home Loan Bank Act to determine how and the extent to which such programs are used to assist long-term care facilities for low- and moderate-income individuals, and the effectiveness and adequacy of such assistance in meeting the needs of affected communities. The study shall examine the applicability of such use to the affordable housing programs required to be established by the enterprises pursuant to the amendment made by section 128 of this Act. The Comptroller General shall submit a report to the Director of the Federal Housing Finance Agency and the Congress regarding the results of the study not later than the expiration of the 1-year period beginning on the date of the enactment of this Act.</text></section> <section id="H6501BBC18CDA40489B45BA6140B981AA" display-inline="no-display-inline" section-type="subsequent-section"><enum>211.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as specifically provided otherwise in this title, the amendments made by this title shall take effect on, and shall apply beginning on, the expiration of the 1-year period beginning on the date of the enactment of this Act.</text></section> <enum>III</enum><header>Transfer of functions, personnel, and property of Office of Federal Housing Enterprise Oversight, Federal Housing Finance Board, and Department of Housing and Urban Development</header> <subtitle id="H741E8429CAA24717B24DC18D041D0037"><enum>A</enum><header>Office of Federal Housing Enterprise Oversight</header> <section id="H12301A17650D49FCA7C6D8343F005C4B"><enum>301.</enum><header>Abolishment of OFHEO</header> <subsection id="HB099F5B1D4884716837367D8FB7B34E1"><enum>(a)</enum><header>In General</header><text>Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development and the positions of the Director and Deputy Director of such Office are abolished.</text></subsection> <subsection id="H86C79B0CD6F44C9C8264FBF7C89B96A0"><enum>(b)</enum><header>Disposition of affairs</header><text>During the 1-year period beginning on the date of the enactment of this Act, the Director of the Office of Federal Housing Enterprise Oversight shall, solely for the purpose of winding up the affairs of the Office of Federal Housing Enterprise Oversight—</text> <paragraph id="HCD18CB7E657E4C3BBC01561838C9AACA"><enum>(1)</enum><text>manage the employees of such Office and provide for the payment of the compensation and benefits of any such employee which accrue before the effective date of the transfer of such employee pursuant to section 303; and</text></paragraph> <paragraph id="HBE463B773AC94E06A49C902DF6647624"><enum>(2)</enum><text>may take any other action necessary for the purpose of winding up the affairs of the Office.</text></paragraph></subsection> <subsection id="HAE04AE802F1740CEBED68DF600705957"><enum>(c)</enum><header>Status of employees before transfer</header><text>The amendments made by title I and the abolishment of the Office of Federal Housing Enterprise Oversight under subsection (a) of this section may not be construed to affect the status of any employee of such Office as employees of an agency of the United States for purposes of any other provision of law before the effective date of the transfer of any such employee pursuant to section 303.</text></subsection> <subsection id="H31DA4E1309EC41CEA07F2F36BB5B4DB"><enum>(d)</enum><header>Use of property and services</header> <paragraph id="H556C2656D90B4BBA96F4B8FDB9E45C19"><enum>(1)</enum><header>Property</header><text>The Director of the Federal Housing Finance Agency may use the property of the Office of Federal Housing Enterprise Oversight to perform functions which have been transferred to the Director of the Federal Housing Finance Agency for such time as is reasonable to facilitate the orderly transfer of functions transferred pursuant to any other provision of this Act or any amendment made by this Act to any other provision of law.</text></paragraph> <paragraph id="H079A8ED6E27C435EB9AC9774B2C6FD02"><enum>(2)</enum><header>Agency services</header><text>Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Office of Federal Housing Enterprise Oversight before the expiration of the period under subsection (a) in connection with functions that are transferred to the Director of the Federal Housing Finance Agency shall—</text> <subparagraph id="H5DF645E373E84E37A2C6E62741E200F3"><enum>(A)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and</text></subparagraph> <subparagraph id="H29EDBD590CE74EDDAB043C835BCDAFAC"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text></subparagraph></paragraph></subsection> <subsection id="H29E6A86347534404A51733C3EF20ED1C"><enum>(e)</enum><header>Savings provisions</header> <paragraph id="H2460D634490E474984FFB34CA200ADA9"><enum>(1)</enum><header>Existing rights, duties, and obligations not affected</header><text>Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, the Director of the Office of Federal Housing Enterprise Oversight, or any other person, which—</text> <subparagraph id="H56A84ED968B94A4D863949E9D56F005C"><enum>(A)</enum><text>arises under or pursuant to the title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, or any other provision of law applicable with respect to such Office; and</text></subparagraph> <subparagraph id="H91B30BB6F07844F2BED6D867B912092"><enum>(B)</enum><text>existed on the day before the abolishment under subsection (a) of this section.</text></subparagraph></paragraph> <paragraph id="HF12874B7B3DF4A79AEEDF1452201B010"><enum>(2)</enum><header>Continuation of suits</header><text>No action or other proceeding commenced by or against the Director of the Office of Federal Housing Enterprise Oversight in connection with functions that are transferred to the Director of the Federal Housing Finance Agency shall abate by reason of the enactment of this Act, except that the Director of the Federal Housing Finance Agency shall be substituted for the Director of the Office of Federal Housing Enterprise Oversight as a party to any such action or proceeding.</text></paragraph></subsection></section> <section id="HC62BB9D41B504D988186868EB3CA51AA"><enum>302.</enum><header>Continuation and coordination of certain regulations</header><text display-inline="no-display-inline">All regulations, orders, determinations, and resolutions that—</text> <paragraph id="HAA9D8A3DD8C9405BB6D54E008F05F6FC"><enum>(1)</enum><text>were issued, made, prescribed, or allowed to become effective by—</text> <subparagraph id="HAD36D93BEA514FA50089E3DA0034ABD4"><enum>(A)</enum><text>the Office of Federal Housing Enterprise Oversight; or</text></subparagraph> <subparagraph id="H6E8007EAB9514D23A998AD06694821D2"><enum>(B)</enum><text>a court of competent jurisdiction and that relate to functions transferred by this subtitle; and</text></subparagraph></paragraph> <paragraph id="H76D6105EEFE343220043463759CE3192"><enum>(2)</enum><text>are in effect on the date of the abolishment under section 301(a) of this Act, shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Director of the Federal Housing Finance Agency until modified, terminated, set aside, or superseded in accordance with applicable law by such Director, as the case may be, any court of competent jurisdiction, or operation of law.</text></paragraph></section> <section id="H08F0DBB4289A4121855EDA2700896DF"><enum>303.</enum><header>Transfer and rights of employees of OFHEO</header> <subsection id="H9365A35048A549359D8700BC40E0C65"><enum>(a)</enum><header>Transfer</header><text>Each employee of the Office of Federal Housing Enterprise Oversight shall be transferred to the Federal Housing Finance Agency for employment no later than the date of the abolishment under section 301(a) of this Act and such transfer shall be deemed a transfer of function for purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/3503">section 3503</external-xref> of title 5, United States Code.</text></subsection> <subsection id="HE305A570E3C7433DBA07517F9B73A661"><enum>(b)</enum><header>Guaranteed positions</header><text>Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date of transfer, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text></subsection> <subsection id="H8795FCF41AED4D2EBE08CBDBB6C97B2F"><enum>(c)</enum><header>Appointment authority for excepted service employees</header> <paragraph id="H59EB4E031FB042D2B01C003D00052E4F"><enum>(1)</enum><header>In General</header><text>In the case of employees occupying positions in the excepted service, any appointment authority established pursuant to law or regulations of the Office of Personnel Management for filling such positions shall be transferred, subject to paragraph (2).</text></paragraph> <paragraph id="H828B54DE88684C8791C9537DCA19F77E"><enum>(2)</enum><header>Decline of transfer</header><text>The Director of the Federal Housing Finance Agency may decline a transfer of authority under paragraph (1) (and the employees appointed pursuant thereto) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policy-making, policy-determining, or policy-advocating character.</text></paragraph></subsection> <subsection id="H14F163E99399436696F74FBBD7CEB5FF"><enum>(d)</enum><header>Reorganization</header><text>If the Director of the Federal Housing Finance Agency determines, after the end of the 1-year period beginning on the date of the abolishment under section 201(a), that a reorganization of the combined work force is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employees retirement under section <external-xref legal-doc="usc" parsable-cite="usc/5/8336">8336(d)(2)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/5/8414">8414(b)(1)(B)</external-xref> of title 5, United States Code.</text></subsection> <subsection id="H3FC4C5927E3143BE8CBD86EBA0E1D1A6"><enum>(e)</enum><header>Employee benefit programs</header><text>Any employee of the Office of Federal Housing Enterprise Oversight accepting employment with the Director of the Federal Housing Finance Agency as a result of a transfer under subsection (a) may retain for 12 months after the date such transfer occurs membership in any employee benefit program of the Federal Housing Finance Agency or the Office of Federal Housing Enterprise Oversight, as applicable, including insurance, to which such employee belongs on the date of the abolishment under section 201(a) if—</text> <paragraph id="H500C9AE4BCA845D2881C7801AC1D008E"><enum>(1)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text></paragraph> <paragraph id="H8B694CD8E4E94F309F7B52ADA86B320"><enum>(2)</enum><text>the benefit or program is continued by the Director of the Federal Housing Finance Agency;</text></paragraph><continuation-text continuation-text-level="subsection">The difference in the costs between the benefits which would have been provided by such agency and those provided by this section shall be paid by the Director of the Federal Housing Finance Agency. If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by such Director, the employee shall be permitted to select an alternate Federal health insurance program within 30 days of such election or notice, without regard to any other regularly scheduled open season.</continuation-text></subsection></section> <section id="H6E29244E313942E3B6776D8B26008826"><enum>304.</enum><header>Transfer of property and facilities</header><text display-inline="no-display-inline">Upon the abolishment under section 301(a), all property of the Office of Federal Housing Enterprise Oversight shall transfer to the Director of the Federal Housing Finance Agency.</text></section></subtitle> <subtitle id="HE0CB0FE330D24067B752DF48A671C5C1"><enum>B</enum><header>Federal Housing Finance Board</header> <section id="H62C7D28AC3BC48E8B52D592F4B9DEC3F"><enum>321.</enum><header>Abolishment of the Federal Housing Finance Board</header> <subsection id="H6C735E44BC554A75B65700169618B91F"><enum>(a)</enum><header>In General</header><text>Effective at the end of the 1-year period beginning on the date of enactment of this Act, the Federal Housing Finance Board (in this title referred to as the <quote>Board</quote>) is abolished.</text></subsection> <subsection id="H51BCB7D26F4B4B48B041A8B343BB0148"><enum>(b)</enum><header>Disposition of affairs</header><text>During the 1-year period beginning on the date of enactment of this Act, the Board, solely for the purpose of winding up the affairs of the Board—</text> <paragraph id="H6AC491C2407645EA8EF9EDBDAEB4FD6"><enum>(1)</enum><text>shall manage the employees of such Board and provide for the payment of the compensation and benefits of any such employee which accrue before the effective date of the transfer of such employee under section 323; and</text></paragraph> <paragraph id="HD3E37B38EFD142189793010231920635"><enum>(2)</enum><text>may take any other action necessary for the purpose of winding up the affairs of the Board.</text></paragraph></subsection> <subsection id="HF8059D341E0249BE928E88C6104232A6"><enum>(c)</enum><header>Status of employees before transfer</header><text>The amendments made by titles I and II and the abolishment of the Board under subsection (a) may not be construed to affect the status of any employee of such Board as employees of an agency of the United States for purposes of any other provision of law before the effective date of the transfer of any such employee under section 323.</text></subsection> <subsection id="H47D73122B0B947BC85F1A5C7F7A7791F"><enum>(d)</enum><header>Use of property and services</header> <paragraph id="HA5333658C8C84DA0A67C31DD8DA2BE8C"><enum>(1)</enum><header>Property</header><text>The Director of the Federal Housing Finance Agency may use the property of the Board to perform functions which have been transferred to the Director of the Federal Housing Finance Agency for such time as is reasonable to facilitate the orderly transfer of functions transferred under any other provision of this Act or any amendment made by this Act to any other provision of law.</text></paragraph> <paragraph id="H6CEA630967F24DB1BF694055F79C3703"><enum>(2)</enum><header>Agency services</header><text>Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Board before the expiration of the 1-year period under subsection (a) in connection with functions that are transferred to the Director of the Federal Housing Finance Agency shall—</text> <subparagraph id="HD803908F639148F5B8BEAFBC78020989"><enum>(A)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and</text></subparagraph> <subparagraph id="HCCCCEE4EB89F4DC287F3DC6BA6D5FD"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text></subparagraph></paragraph></subsection> <subsection id="HCAF4B1605F9F4F798B3370F380364C75"><enum>(e)</enum><header>Savings provisions</header> <paragraph id="H7D28D075F5204D10AD1B41F5C331771B"><enum>(1)</enum><header>Existing rights, duties, and obligations not affected</header><text>Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, a member of the Board, or any other person, which—</text> <subparagraph id="H7773B9CAB73040ACB707B90022FB5200"><enum>(A)</enum><text>arises under the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> or any other provision of law applicable with respect to such Board; and</text></subparagraph> <subparagraph id="H9A10F95C824E4642939025BF809F56E0"><enum>(B)</enum><text>existed on the day before the effective date of the abolishment under subsection (a).</text></subparagraph></paragraph> <paragraph id="H7DEF1321205F42DFB0F50087A43D911F"><enum>(2)</enum><header>Continuation of suits</header><text>No action or other proceeding commenced by or against the Board in connection with functions that are transferred to the Director of the Federal Housing Finance Agency shall abate by reason of the enactment of this Act, except that the Director of the Federal Housing Finance Agency shall be substituted for the Board or any member thereof as a party to any such action or proceeding.</text></paragraph></subsection></section> <section id="HC270FE7F34CA481E00F9B5745BD83B30"><enum>322.</enum><header>Continuation and coordination of certain regulations</header> <subsection id="HA9CDDFA146994E6D85F07FE4EAE25205"><enum>(a)</enum><header>In General</header><text>All regulations, orders, and determinations described under subsection (b) shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Director of the Federal Housing Finance Agency until modified, terminated, set aside, or superseded in accordance with applicable law by such Director, any court of competent jurisdiction, or operation of law.</text></subsection> <subsection id="H7D39602EC5DB47199C2046AD8D7E0018"><enum>(b)</enum><header>Applicability</header><text>A regulation, order, or determination is described under this subsection if it—</text> <paragraph id="HB23FDED460644B4C8300FED1BAA6F43"><enum>(1)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text> <subparagraph id="H01B3A1BA482F4203963D3CCDBC250513"><enum>(A)</enum><text>the Board; or</text></subparagraph> <subparagraph id="HCD1AD1C499464643808E9800B7A0D934"><enum>(B)</enum><text>a court of competent jurisdiction and relates to functions transferred by this subtitle; and</text></subparagraph></paragraph> <paragraph id="H0B942CC9BD9C4650B51900C5FC1B9B00"><enum>(2)</enum><text>is in effect on the effective date of the abolishment under section 321(a).</text></paragraph></subsection></section> <section id="H80CD99E6B9D14755AF315CC16C9EF710"><enum>323.</enum><header>Transfer and rights of employees of the Federal Housing Finance Board</header> <subsection id="H4A89BB85198F485FBD41A7FC53FDB340"><enum>(a)</enum><header>Transfer</header><text>Each employee of the Board shall be transferred to the Federal Housing Finance Agency for employment not later than the effective date of the abolishment under section 321(a), and such transfer shall be deemed a transfer of function for purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/3503">section 3503</external-xref> of title 5, United States Code.</text></subsection> <subsection id="HAA91208A7B1B4C23B93511C500C34041"><enum>(b)</enum><header>Guaranteed positions</header><text>Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date of transfer, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text></subsection> <subsection id="H4D44929B9A4842D6A01996068800E367"><enum>(c)</enum><header>Appointment authority for excepted and Senior Executive Service employees</header> <paragraph id="H4E0D9839B7B547B0AC5300E31DFAF6CC"><enum>(1)</enum><header>In General</header><text>In the case of employees occupying positions in the excepted service or the Senior Executive Service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such positions shall be transferred, subject to paragraph (2).</text></paragraph> <paragraph id="HCE02EC3B542B4ECCAABB105833B88767"><enum>(2)</enum><header>Decline of transfer</header><text>The Director of the Federal Housing Finance Agency may decline a transfer of authority under paragraph (1) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policymaking, policy-determining, or policy-advocating character, and noncareer positions in the Senior Executive Service (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/5/3132">section 3132(a)(7)</external-xref> of title 5, United States Code).</text></paragraph></subsection> <subsection id="H87B1A62718434BD09542FD490092E49C"><enum>(d)</enum><header>Reorganization</header><text>If the Director of the Federal Housing Finance Agency determines, after the end of the 1-year period beginning on the effective date of the abolishment under section 321(a), that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employees retirement under section <external-xref legal-doc="usc" parsable-cite="usc/5/8336">8336(d)(2)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/5/8414">8414(b)(1)(B)</external-xref> of title 5, United States Code.</text></subsection> <subsection id="HE33F68823E1145FC85BFE00016B048EA"><enum>(e)</enum><header>Employee benefit programs</header> <paragraph id="HA76C45E59509457CA1239DDD5CA605CA"><enum>(1)</enum><header>In General</header><text>Any employee of the Board accepting employment with the Federal Housing Finance Agency as a result of a transfer under subsection (a) may retain for 12 months after the date on which such transfer occurs membership in any employee benefit program of the Federal Housing Finance Agency or the Board, as applicable, including insurance, to which such employee belongs on the effective date of the abolishment under section 321(a) if—</text> <subparagraph id="H271C5EDB119D446BBB15D33637599E95"><enum>(A)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text></subparagraph> <subparagraph id="H94274524033645EDBBA213A9DDC10525"><enum>(B)</enum><text>the benefit or program is continued by the Director of the Federal Housing Finance Agency.</text></subparagraph></paragraph> <paragraph id="HC98D4EE7EECE487C83888263D3994CB"><enum>(2)</enum><header>Cost differential</header><text>The difference in the costs between the benefits which would have been provided by the Board and those provided by this section shall be paid by the Director of the Federal Housing Finance Agency. If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by such Director, the employee shall be permitted to select an alternate Federal health insurance program within 30 days after such election or notice, without regard to any other regularly scheduled open season.</text></paragraph></subsection></section> <section id="H483A1B50B3B84D7EBD810655ED1772E9"><enum>324.</enum><header>Transfer of property and facilities</header><text display-inline="no-display-inline">Upon the effective date of the abolishment under section 321(a), all property of the Board shall transfer to the Director of the Federal Housing Finance Agency.</text></section></subtitle> <subtitle id="HF544AB796C71497CA029887BBF1DFB28"><enum>C</enum><header>Department of Housing and Urban Development</header> <section id="H290A69D14EAA4B5B821FE69FE51805AC"><enum>341.</enum><header>Termination of enterprise-related functions</header> <subsection id="H4034CA7643B04B1EB567FCE4DE86D26"><enum>(a)</enum><header>Termination date</header><text>For purposes of this subtitle, the term <quote>termination date</quote> means the date that occurs one year after the date of the enactment of this Act.</text></subsection> <subsection id="H4BF34529D2F648D1879774A3875384A4"><enum>(b)</enum><header>Determination of transferred functions and employees</header> <paragraph id="H4AF3549D88F346F4AD57DE9DDFE03E07"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Secretary, in consultation with the Director of the Office of Federal Housing Enterprise Oversight, shall determine—</text> <subparagraph id="H809C776648DF430C8D60BAB363CAC611"><enum>(A)</enum><text>the functions, duties, and activities of the Secretary of Housing and Urban Development regarding oversight or regulation of the enterprises under or pursuant to the authorizing statutes, title XIII of the Housing and Community Development Act of 1992, and any other provisions of law, as in effect before the date of the enactment of this Act, but not including any such functions, duties, and activities of the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development and such Office; and</text></subparagraph> <subparagraph id="H8DAAA497A89D40999E79D0116EFACB03"><enum>(B)</enum><text>the employees of the Department of Housing and Urban Development necessary to perform such functions, duties, and activities.</text></subparagraph></paragraph> <paragraph id="H8889FD7B63CF413AAC8F5C2701A0F764"><enum>(2)</enum><header>Enterprise-related functions</header><text>For purposes of this subtitle, the term <quote>enterprise-related functions of the Department</quote> means the functions, duties, and activities of the Department of Housing and Urban Development determined under paragraph (1)(A).</text></paragraph> <paragraph id="HFC74742706FD43B9A68B278DB35B5400" display-inline="no-display-inline"><enum>(3)</enum><header>Enterprise-related employees</header><text>For purposes of this subtitle, the term <quote>enterprise-related employees of the Department</quote> means the employees of the Department of Housing and Urban Development determined under paragraph (1)(B).</text></paragraph></subsection> <subsection id="HABBB132EBCCB4C89A385B9EBC853B197"><enum>(c)</enum><header>Disposition of affairs</header><text>During the 1-year period beginning on the date of enactment of this Act, the Secretary of Housing and Urban Development (in this title referred to as the <quote>Secretary</quote>), solely for the purpose of winding up the affairs of the Secretary regarding the enterprise-related functions of the Department of Housing and Urban Development (in this title referred to as the <quote>Department)</quote> —</text> <paragraph id="HDDFCC60A1D304437ABD68CCE8C0CC04"><enum>(1)</enum><text>shall manage the enterprise-related employees of the Department and provide for the payment of the compensation and benefits of any such employee which accrue before the effective date of the transfer of any such employee under section 343; and</text></paragraph> <paragraph id="H1A419F323FBB4CE3852B8F419FA5429F"><enum>(2)</enum><text>may take any other action necessary for the purpose of winding up the enterprise-related functions of the Department.</text></paragraph></subsection> <subsection id="H2ABF743A11F24AF4864EE565CE3BF474"><enum>(d)</enum><header>Status of employees before transfer</header><text display-inline="yes-display-inline">The amendments made by titles I and II and the termination of the enterprise-related functions of the Department under subsection (b) may not be construed to affect the status of any employee of the Department as employees of an agency of the United States for purposes of any other provision of law before the effective date of the transfer of any such employee under section 343.</text></subsection> <subsection id="H53AF68884C05410087ADEFF8F134D532"><enum>(e)</enum><header>Use of property and services</header> <paragraph id="H013020349A1C4BC58522E49B92F1EA62"><enum>(1)</enum><header>Property</header><text>The Director of the Federal Housing Finance Agency may use the property of the Secretary to perform functions which have been transferred to the Director of the Federal Housing Finance Agency for such time as is reasonable to facilitate the orderly transfer of functions transferred under any other provision of this Act or any amendment made by this Act to any other provision of law.</text></paragraph> <paragraph id="H38C63C7566634A7C94350032C3214CE"><enum>(2)</enum><header>Agency services</header><text>Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Secretary regarding enterprise-related functions of the Department before the termination date under subsection (a) in connection with such functions that are transferred to the Director of the Federal Housing Finance Agency shall—</text> <subparagraph id="H34941D7756034BEC930301B1E72ED179"><enum>(A)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and</text></subparagraph> <subparagraph id="HDCB91BFC6B754EDAA177357E157CE6A4"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text></subparagraph></paragraph></subsection> <subsection id="H887B624459CA48428956002CD5E9A116"><enum>(f)</enum><header>Savings provisions</header> <paragraph id="H5C2FAC10E3F844E4B646D8F262CAF616"><enum>(1)</enum><header>Existing rights, duties, and obligations not affected</header><text>Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, the Secretary, or any other person, which—</text> <subparagraph id="H268A5DAFE96140E09C4BBA49799C11F6"><enum>(A)</enum><text display-inline="yes-display-inline">arises under the authorizing statutes, title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, or any other provision of law applicable with respect to the Secretary, in connection with the enterprise-related functions of the Department; and</text></subparagraph> <subparagraph id="HE2D04E6BE14948F7A3CF389C19AF4400"><enum>(B)</enum><text>existed on the day before the termination date under subsection (a).</text></subparagraph></paragraph> <paragraph id="H607FFCBC0F6D406E864C04CAE4FEDB3B"><enum>(2)</enum><header>Continuation of suits</header><text display-inline="yes-display-inline">No action or other proceeding commenced by or against the Secretary in connection with the enterprise-related functions of the Department shall abate by reason of the enactment of this Act, except that the Director of the Federal Housing Finance Agency shall be substituted for the Secretary or any member thereof as a party to any such action or proceeding.</text></paragraph></subsection></section> <section id="HA2D8E33D0E394C99B116077CA2001F82"><enum>342.</enum><header>Continuation and coordination of certain regulations</header> <subsection id="H55097B61E8A24DCA95E89FB5450ED3"><enum>(a)</enum><header>In General</header><text>All regulations, orders, and determinations described in subsection (b) shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Director of the Federal Housing Finance Agency until modified, terminated, set aside, or superseded in accordance with applicable law by such Director, any court of competent jurisdiction, or operation of law.</text></subsection> <subsection id="H1803EA8BB47749D89B4817DAAE605EBF"><enum>(b)</enum><header>Applicability</header><text>A regulation, order, or determination is described under this subsection if it—</text> <paragraph id="HFD5AD1FA41AC47819B25FAE1BD2E96F7"><enum>(1)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text> <subparagraph id="HBD72BFAE1B364540B319101159037CE6"><enum>(A)</enum><text>the Secretary; or</text></subparagraph> <subparagraph id="H85865A4C408148D5B3C5D7CE82F09BA"><enum>(B)</enum><text display-inline="yes-display-inline">a court of competent jurisdiction and that relate to the enterprise-related functions of the Department; and</text></subparagraph></paragraph> <paragraph id="HFF64154905CB4D3A9BB744005083C500"><enum>(2)</enum><text>is in effect on the termination date under section 341(a).</text></paragraph></subsection></section> <section id="HBFF76014CC6D4559A469F64732C1C247"><enum>343.</enum><header>Transfer and rights of employees</header> <subsection id="H048FB21CC2D44F489987F9C9008F793F"><enum>(a)</enum><header>Transfer</header> <paragraph id="H1A264FB157A04D569877613500443E88"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), each enterprise-related employee of the Department shall be transferred to the Federal Housing Finance Agency for employment not later than the termination date under section 341(a) and such transfer shall be deemed a transfer of function for purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/3503">section 3503</external-xref> of title 5, United States Code.</text></paragraph> <paragraph id="H5DFD0CBB125243F9ABA36F00D3487493"><enum>(2)</enum><header>Authority to decline</header><text>An enterprise-related employee of the Department may, in the discretion of the employee, decline transfer under paragraph (1) to a position in the Federal Housing Finance Agency and shall be guaranteed a position in the Department with the same status, tenure, grade, and pay as that held on the day immediately preceding the date that such declination was made. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date that the transfer would otherwise have occurred, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text></paragraph></subsection> <subsection id="H12EC3E38A77F49DBA166D163DAE895DC"><enum>(b)</enum><header>Guaranteed positions</header><text>Each enterprise-related employee of the Department transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date of transfer, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text></subsection> <subsection id="H5AED7DDE04A44CC78E868159AFC0167B"><enum>(c)</enum><header>Appointment authority for excepted and Senior Executive Service employees</header> <paragraph id="HCE13195C0EB740A5811B99781B200821"><enum>(1)</enum><header>In General</header><text>In the case of employees occupying positions in the excepted service or the Senior Executive Service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such positions shall be transferred, subject to paragraph (2).</text></paragraph> <paragraph id="H5F62A4A0A3FF48FF8BC87923B1C1D085"><enum>(2)</enum><header>Decline of transfer</header><text>The Director of the Federal Housing Finance Agency may decline a transfer of authority under paragraph (1) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policymaking, policy-determining, or policy-advocating character, and noncareer positions in the Senior Executive Service (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/5/3132">section 3132(a)(7)</external-xref> of title 5, United States Code).</text></paragraph></subsection> <subsection id="H2D7D08168AA845B88F0410515EEEBF3D"><enum>(d)</enum><header>Reorganization</header><text>If the Director of the Federal Housing Finance Agency determines, after the end of the 1-year period beginning on the termination date under section 341(a), that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employees retirement under section <external-xref legal-doc="usc" parsable-cite="usc/5/8336">8336(d)(2)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/5/8414">8414(b)(1)(B)</external-xref> of title 5, United States Code.</text></subsection> <subsection id="HB2F512DD54BA412EA0C064A829CB02EA"><enum>(e)</enum><header>Employee benefit programs</header> <paragraph id="H0809EB59C1334924B4B9B6B531835104"><enum>(1)</enum><header>In General</header><text>Any enterprise-related employee of the Department accepting employment with the Federal Housing Finance Agency as a result of a transfer under subsection (a) may retain for 12 months after the date on which such transfer occurs membership in any employee benefit program of the Federal Housing Finance Agency or the Department, as applicable, including insurance, to which such employee belongs on the termination date under section 341(a) if—</text> <subparagraph id="H53CDD3D73FCA4A4A8CDB24F828EE9CF1"><enum>(A)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text></subparagraph> <subparagraph id="HA371A1DB46584F4FBFACB25FE24E7F3D"><enum>(B)</enum><text>the benefit or program is continued by the Director of the Federal Housing Finance Agency.</text></subparagraph></paragraph> <paragraph id="H95F47821D73D4692B81CB013E060C101"><enum>(2)</enum><header>Cost differential</header><text>The difference in the costs between the benefits which would have been provided by the Department and those provided by this section shall be paid by the Director of the Federal Housing Finance Agency. If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by such Director, the employee shall be permitted to select an alternate Federal health insurance program within 30 days after such election or notice, without regard to any other regularly scheduled open season.</text></paragraph></subsection></section> <section id="H5D9A23A81BD448A300552C33AC94F426"><enum>344.</enum><header>Transfer of appropriations, property, and facilities</header><text display-inline="no-display-inline">Upon the termination date under section 341(a), all assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to the Department in connection with enterprise-related functions of the Department shall transfer to the Director of the Federal Housing Finance Agency. Unexpended funds transferred by this section shall be used only for the purposes for which the funds were originally authorized and appropriated.</text></section></subtitle>

September 16, 2005

Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed