110 HR 6521 IH: Federal Housing Finance Regulatory Reform Act
U.S. House of Representatives
2008-07-16
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.
1.Short title and table of
contents
(a)This Act may be cited
as the Federal Housing Finance
Regulatory Reform Act of 2008
.
(b)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
Subtitle A—Improvement of safety and soundness
supervision
Sec. 101. Establishment of the Federal Housing Finance
Agency.
Sec. 102. Duties and authorities of the Director.
Sec. 103. Federal Housing Finance Oversight Board.
Sec. 104. Authority to require reports by regulated
entities.
Sec. 105. Examiners and accountants; authority to contract for
reviews of regulated entities; ombudsman.
Sec. 106. Assessments.
Sec. 107. Regulations and orders.
Sec. 108. Prudential management and operations
standards.
Sec. 109. Review of and authority over enterprise assets and
liabilities.
Sec. 110. Risk-based capital requirements.
Sec. 111. Minimum capital levels.
Sec. 112. Registration under the securities laws.
Sec. 113. Prohibition and withholding of executive
compensation.
Sec. 114. Limit on golden parachutes.
Sec. 115. Reporting of fraudulent loans.
Subtitle B—Improvement of mission supervision
Sec. 121. Transfer of program approval and housing goal
oversight.
Sec. 122. Assumption by the Director of certain other HUD
responsibilities.
Sec. 123. Review of enterprise products.
Sec. 124. Conforming loan limits.
Sec. 125. Annual housing report.
Sec. 126. Public use database.
Sec. 127. Reporting of mortgage data.
Sec. 128. Revision of housing goals.
Sec. 129. Duty to serve underserved markets.
Sec. 130. Monitoring and enforcing compliance with housing
goals.
Sec. 131. Transfer and rights of certain HUD
employees.
Subtitle C—Prompt corrective action
Sec. 141. Critical capital levels.
Sec. 142. Capital classifications.
Sec. 143. Supervisory actions applicable to undercapitalized
regulated entities.
Sec. 144. Supervisory actions applicable to significantly
undercapitalized regulated entities.
Sec. 145. Authority over critically undercapitalized regulated
entities.
Subtitle D—Enforcement actions
Sec. 151. Cease and desist proceedings.
Sec. 152. Temporary cease and desist proceedings.
Sec. 153. Removal and prohibition authority.
Sec. 154. Enforcement and jurisdiction.
Sec. 155. Civil money penalties.
Sec. 156. Criminal penalty.
Sec. 157. Notice after separation from service.
Sec. 158. Subpoena authority.
Subtitle E—General provisions
Sec. 161. Conforming and technical amendments.
Sec. 162. Presidentially-appointed directors of
enterprises.
Sec. 163. Effective date.
Title II—Federal home loan banks
Sec. 201. Recognition of distinctions between the enterprises
and the Federal Home Loan Banks.
Sec. 202. Directors.
Sec. 203. Definitions.
Sec. 204. Agency oversight of Federal Home Loan
Banks.
Sec. 205. Housing goals.
Sec. 206. Community development financial
institutions.
Sec. 207. Sharing of information among Federal Home Loan
Banks.
Sec. 208. Exclusion from certain requirements.
Sec. 209. Voluntary mergers.
Sec. 210. Authority to reduce districts.
Sec. 211. Community financial institution members.
Sec. 212. Public use data base; reports to
Congress.
Sec. 213. Semiannual reports.
Sec. 214. Liquidation or reorganization of a Federal Home Loan
Bank.
Sec. 215. Study and report to Congress on securitization of
acquired member assets.
Sec. 216. Technical and conforming amendments.
Sec. 217. Study on Federal Home Loan Bank advances.
Sec. 218. Federal Home Loan Bank refinancing authority for
certain residential mortgage loans.
Title III—Transfer of functions, personnel, and property of OFHEO
and the Federal Housing Finance Board
Subtitle A—OFHEO
Sec. 301. Abolishment of OFHEO.
Sec. 302. Continuation and coordination of certain
actions.
Sec. 303. Transfer and rights of employees of
OFHEO.
Sec. 304. Transfer of property and facilities.
Subtitle B—Federal Housing Finance Board
Sec. 311. Abolishment of the Federal Housing Finance
Board.
Sec. 312. Continuation and coordination of certain
actions.
Sec. 313. Transfer and rights of employees of the Federal
Housing Finance Board.
Sec. 314. Transfer of property and facilities.
2.
(a)Federal safety
and soundness act definitionsSection 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502) is
amended—
(1)in each of
paragraphs (8), (9), (10), and (19), by striking Secretary
each
place that term appears and inserting Director
;
(2)by redesignating
paragraphs (16) through (19) as paragraphs (21) through (24),
respectively;
(3)by
striking paragraphs (13) through (15) and inserting the following:
(19)The term Office of Finance means the Office
of Finance of the Federal Home Loan Bank System (or any successor
thereto).
(20)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)any Federal Home
Loan
Bank.
;
(4)by
redesignating paragraphs (11) and (12) as paragraphs (17) and (18),
respectively;
(5)by
redesignating paragraph (7) as paragraph (12);
(6)by redesignating
paragraphs (8) through (10) as paragraphs (14) through (16),
respectively;
(7)in paragraph
(5)—
(A)by striking
(5)
and inserting (9)
; and
(B)by striking
Office of Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development
and inserting Federal Housing
Finance Agency
;
(8)by redesignating
paragraph (6) as paragraph (10);
(9)by redesignating
paragraphs (2) through (4) as paragraphs (5) through (7), respectively;
(10)by inserting
after paragraph (7), as redesignated, the following:
(8)Default; in
danger of default
(A)The
term default means, with respect to a regulated entity, any
adjudication or other official determination by any court of competent
jurisdiction, or the Agency, pursuant to which a conservator, receiver,
limited-life regulated entity, or legal custodian is appointed for a regulated
entity.
(B)The term in danger of default means a
regulated entity with respect to which, in the opinion of the Agency—
(i)the regulated
entity is not likely to be able to pay the obligations of the regulated entity
in the normal course of business; or
(ii)the regulated
entity—
(I)has incurred or is
likely to incur losses that will deplete all or substantially all of its
capital; and
(II)there is no
reasonable prospect that the capital of the regulated entity will be
replenished.
;
(11)by inserting
after paragraph (1) the following:
(2)The
term Agency
means the Federal Housing Finance Agency established
under section 1311.
(3)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)The
term Board means the Federal Housing Finance Oversight Board
established under section
1313A.
;
(12)by inserting
after paragraph (10), as redesignated by this section, the following:
(11)The term 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,
provided that a member of a Federal Home Loan Bank shall not be deemed to have
participated in the affairs of that Bank solely by virtue of being a
shareholder of, and obtaining advances from, that Bank;
(C)any independent
contractor for a regulated entity (including any attorney, appraiser, or
accountant), if—
(i)the independent
contractor knowingly or recklessly participates in—
(I)any violation of
any law or regulation;
(II)any breach of
fiduciary duty; or
(III)any unsafe or
unsound practice; and
(ii)such violation,
breach, or practice caused, or is likely to cause, more than a minimal
financial loss to, or a significant adverse effect on, the regulated
entity;
(D)any not-for-profit
corporation that receives its principal funding, on an ongoing basis, from any
regulated entity; and
(E)the Office of
Finance.
;
(13)by inserting
after paragraph (12), as redesignated by this section, the following:
(13)Limited-life
regulated entityThe term limited-life regulated
entity means an entity established by the Agency under section 1367(i)
with respect to a Federal Home Loan Bank in default or in danger of default or
with respect to an enterprise in default or in danger of
default.
;
and
(14)by adding at the
end the following:
(25)The
term violation includes any action (alone or in combination with
another or others) for or toward causing, bringing about, participating in,
counseling, or aiding or abetting a
violation.
.
(b)As used in this Act, unless otherwise specified—
(1)the term
Agency means the Federal Housing Finance Agency;
(2)the term
Director means the Director of the Agency; and
(3)the terms
enterprise, regulated entity, and authorizing
statutes have the same meanings as in section 1303 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by
this Act.
<enum>I</enum><header>Reform of
regulation of enterprises</header>
<subtitle id="H81BFD0D0C4984BFBB6AE2FBE3EB48C00"><enum>A</enum><header>Improvement of
safety and soundness supervision</header>
<section id="H338D1ADD2F7D4777A2638BE769624024"><enum>101.</enum><header>Establishment
of the Federal Housing Finance Agency</header><text display-inline="no-display-inline">The Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<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 display-inline="no-display-inline" id="HE28C43FDEDB14F11B79667E672BCA5C6" style="OLC">
<section id="HD67994D066464A79B4A566171B113299"><enum>1311.</enum><header>Establishment
of the Federal Housing Finance Agency</header>
<subsection id="H9F99DEFE63134CD6BE60E3B513C04CCB"><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="HB5B0953742D24D509EE9C9AF17BF3750"><enum>(b)</enum><header>General
supervisory and regulatory authority</header>
<paragraph id="HE02CBBEC38364AF0B7C09ED9FAF7F3C"><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="H875638EA740442C299AED5C0874162A3"><enum>(2)</enum><header>Authority over
fannie mae, freddie mac, the federal home loan banks, and the office of
finance</header><text>The Director shall have general regulatory authority over
each regulated entity and the Office of Finance, and shall exercise such
general regulatory authority, including such duties and authorities set forth
under section 1313, to ensure that the purposes of this Act, the authorizing
statutes, and any other applicable law are carried out.</text>
</paragraph></subsection><subsection id="H77FAA11A81524318B80051A4D854F7D6"><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 under subsection (b).</text>
</subsection></section><section id="H8B23BFE6BC1A424496E691BE02694DA2"><enum>1312.</enum><header>Director</header>
<subsection id="H6188B6FEB87B418D9536853598810589"><enum>(a)</enum><header>Establishment of
position</header><text>There is established the position of the Director of the
Agency, who shall be the head of the Agency.</text>
</subsection><subsection id="HB5979BBA1A5F48C3AA837234A9388200"><enum>(b)</enum><header>Appointment;
term</header>
<paragraph id="HFBFE1CA5F130430F9DC5A3A2A79F5F98"><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="H164C0FD7695749ED9117CA54CA2CFCAE"><enum>(2)</enum><header>Term</header><text>The
Director shall be appointed for a term of 5 years, unless removed before the
end of such term for cause by the President.</text>
</paragraph><paragraph id="H3C19063785DA4D17B87672F81F9D4D6C"><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="H77ECCEAE769942D5A4201BA53C9F851"><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="H582B92770BEF4C779296A0B9507E678"><enum>(5)</enum><header>Transitional
provision</header><text>Notwithstanding paragraphs (1) and (2), during the
period beginning on the effective date of the <short-title>Federal Housing Finance Regulatory Reform Act of
2008</short-title>, and ending on the date on which the Director is appointed
and confirmed, the person serving as the Director of the Office of Federal
Housing Enterprise Oversight of the Department of Housing and Urban Development
on that effective date shall act for all purposes as, and with the full powers
of, the Director.</text>
</paragraph></subsection><subsection id="H6D4A2FD6D1CC4AF48DB64F2F5B7D04B"><enum>(c)</enum><header>Deputy director
of the division of enterprise regulation</header>
<paragraph id="H63B96EF43127436DAC397E949168D900"><enum>(1)</enum><header>In
general</header><text>The Agency shall have a Deputy Director of the Division
of Enterprise Regulation, who shall be designated by the Director 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 mortgage securities markets and housing finance.</text>
</paragraph><paragraph id="H84E0657DA71340B9A73145F013873808"><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="H90D2A2E807774E8689A800065333E296"><enum>(d)</enum><header>Deputy Director
of the Division of Federal Home Loan Bank Regulation</header>
<paragraph id="H134DDAC622C8486BA09DE0127C51D233"><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 designated by the Director
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 the Federal Home Loan Bank System and housing
finance.</text>
</paragraph><paragraph id="HFC465CDE91C54915AD392E1F2118E355"><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="H0A400B9228554626A0C48F717B941D1B"><enum>(e)</enum><header>Deputy director
for housing mission and goals</header>
<paragraph id="H0A9F0359F0244B7EAF872287A22C1987"><enum>(1)</enum><header>In
general</header><text>The Agency shall have a Deputy Director for Housing
Mission and Goals, who shall be designated 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="HE74DAC29AD4D4DB09F6100C370BFBD1"><enum>(2)</enum><header>Functions</header><text>The
Deputy Director for Housing Mission and Goals 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 finance
and community and economic development mission of the Federal Home Loan Banks,
as the Director shall prescribe.</text>
</paragraph><paragraph id="HCCAD4BD2D6DC4965935716250428CFCD"><enum>(3)</enum><header>Considerations</header><text>In
exercising such functions, powers, and duties, the Deputy Director for Housing
Mission and Goals shall consider the differences between the enterprises and
the Federal Home Loan Banks, including those described in section
1313(f).</text>
</paragraph></subsection><subsection id="HDDAFA80B4C974CB1A85B663266411FCC"><enum>(f)</enum><header>Acting
director</header><text>In the event of the death, resignation, sickness, or
absence of the Director, the President shall designate either the Deputy
Director of the Division of Enterprise Regulation, the Deputy Director of the
Division of Federal Home Loan Bank Regulation, or the Deputy Director for
Housing Mission and Goals, to serve as acting Director until the return of the
Director, or the appointment of a successor pursuant to subsection (b).</text>
</subsection><subsection id="HC234614A82834763B65BDC50CA07E27E"><enum>(g)</enum><header>Limitations</header><text>The
Director and each of the Deputy Directors may not—</text>
<paragraph id="H807F4F19A47A4ECA838EA864285DEE08"><enum>(1)</enum><text>have any direct or
indirect financial interest in any regulated entity or entity-affiliated
party;</text>
</paragraph><paragraph id="HDD8024C3848546E1BC045565811414DA"><enum>(2)</enum><text>hold any office,
position, or employment in any regulated entity or entity-affiliated party;
or</text>
</paragraph><paragraph id="H9D576FCB70514C498E92D472ACAE2C2E"><enum>(3)</enum><text>have served as an
executive officer or director of any regulated entity or entity-affiliated
party at any time during the 3-year period preceding the date of appointment or
designation of such individual as Director or Deputy Director, as
applicable.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5518488EE27A4795AD181EC31B000081"><enum>102.</enum><header>Duties and
authorities of the Director</header>
<subsection id="H80ACCB61EED746D6864500A1EA97B608"><enum>(a)</enum><header>In
general</header><text>Section 1313 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4513">12 U.S.C. 4513</external-xref>) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HC9FD142403EC4C9D941FB048001D00D9" style="OLC">
<section id="H309F9C0BD07B47359094ACB304C2980"><enum>1313.</enum><header>Duties and
authorities of director</header>
<subsection id="H65AECC66C7D24A518FE24B0832C7B3C9"><enum>(a)</enum><header>Duties</header>
<paragraph id="HD9E1EFB781EB4114B519BFF1B89F800"><enum>(1)</enum><header>Principal
duties</header><text>The principal duties of the Director shall be—</text>
<subparagraph id="H4F302C73BB0741AAA03EE2616E434585"><enum>(A)</enum><text>to oversee the
prudential operations of each regulated entity; and</text>
</subparagraph><subparagraph id="H2A1C49A856004373A2139E080562F2E1"><enum>(B)</enum><text>to ensure
that—</text>
<clause id="H5C628FAD0BC04A32B6EA11BB48D0C9C9"><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="H6E07BB2C23934648A460A4EB2991654"><enum>(ii)</enum><text>the operations and
activities of each regulated entity foster liquid, efficient, competitive, and
resilient national housing finance markets (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="H0080561FD2D4454790F3A4900C737C9"><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;</text>
</clause><clause id="H2D5BC9B5DBD14CDA98114264DD656800"><enum>(iv)</enum><text>each regulated
entity carries out its statutory mission only through activities that are
authorized under and consistent with this title and the authorizing statutes;
and</text>
</clause><clause id="H75BA0094ADDC4EA68D54B197F14B788F"><enum>(v)</enum><text>the activities of
each regulated entity and the manner in which such regulated entity is operated
are consistent with the public interest.</text>
</clause></subparagraph></paragraph><paragraph id="H049A7BE137284F37A8D4B292516E00F4"><enum>(2)</enum><header>Scope of
authority</header><text>The authority of the Director shall include the
authority—</text>
<subparagraph id="H0803F8CF74824DFAAA7B7E086CDD7130"><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 a regulated entity;
and</text>
</subparagraph><subparagraph id="H6191245FCD9E480CAAF3F1CA300008D"><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="HC2E01673325C49D8A4A0482EF9269D5F"><enum>(b)</enum><header>Delegation of
authority</header><text>The Director may delegate to officers and employees of
the Agency any of the functions, powers, or duties of the Director, as the
Director considers appropriate.</text>
</subsection><subsection id="H2EC07F107CD146B00005725E59F4BA60"><enum>(c)</enum><header>Litigation
authority</header>
<paragraph id="HF0C6B976471040A2B9E6D88F3F1297E0"><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="H14E022FB54A541488CD578682F539030"><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 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><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF45F650083AE4B9590658B96CF00E7EF"><enum>(b)</enum><header>Independence in
congressional testimony and recommendations</header><text>Section 111 of Public
Law 93–495 (<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="HFD60EB682988400E99E2AAD458F07B77"><enum>103.</enum><header>Federal Housing
Finance Oversight Board</header>
<subsection id="H50940A32FF4B4ABDA4AC1E79E6DC29C3"><enum>(a)</enum><header>In
general</header><text>The Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (<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 1313 the following:</text>
<quoted-block display-inline="no-display-inline" id="HA03AD61116004D0BAA38F70049BD2168" style="OLC">
<section id="HD1CDD8546D19478DB83FDB8C8FB5F0"><enum>1313A.</enum><header>Federal Housing
Finance Oversight Board</header>
<subsection id="HAF93363DFCE94D2BA22EBDDB3C062CB6"><enum>(a)</enum><header>In
general</header><text>There is established the Federal Housing Finance
Oversight Board, which shall advise the Director with respect to overall
strategies and policies in carrying out the duties of the Director under this
title.</text>
</subsection><subsection id="HC6E62DE575914F87933D279BC6458066"><enum>(b)</enum><header>Limitations</header><text>The
Board may not exercise any executive authority, and the Director may not
delegate to the Board any of the functions, powers, or duties of the
Director.</text>
</subsection><subsection id="H4A6A5C03CD8A4BE7BF9EEB548940CD45"><enum>(c)</enum><header>Composition</header><text>The
Board shall be comprised of 4 members, of whom—</text>
<paragraph id="HAA50A805134E4259A85F8B8EAA7D4FF0"><enum>(1)</enum><text>1 member shall be
the Secretary of the Treasury;</text>
</paragraph><paragraph id="H517CCFCFC8094229B8AF8F88BEF48600"><enum>(2)</enum><text>1 member shall be
the Secretary of Housing and Urban Development;</text>
</paragraph><paragraph id="HCB57B9E3D3DA468CBCA7B391C6EE6546"><enum>(3)</enum><text>1 member shall be
the Chairman of the Securities and Exchange Commission; and</text>
</paragraph><paragraph id="HEEC3303B72704C329E53A9ECF79FF04F"><enum>(4)</enum><text>1 member shall be
the Director, who shall serve as the Chairperson of the Board.</text>
</paragraph></subsection><subsection id="H040B949718EE432D98C8D840495DCFD"><enum>(d)</enum><header>Meetings</header>
<paragraph id="H2D5786847062477FB1ADCF6FF262946E"><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="H0AE948C202B0488FAA5D2438C5000011"><enum>(2)</enum><header>Special
meetings</header><text>Either the Secretary of the Treasury, the Secretary of
Housing and Urban Development, or the Chairman of the Securities and Exchange
Commission may, upon giving written notice to the Director, require a special
meeting of the Board.</text>
</paragraph></subsection><subsection id="H2A585A1EF8A34CB899E1D647651E16F1"><enum>(e)</enum><header>Testimony</header><text>On
an annual basis, the Board shall testify before Congress regarding—</text>
<paragraph id="H009F542CE6FE4B8A95B71ECD69E927B3"><enum>(1)</enum><text>the safety and
soundness of the regulated entities;</text>
</paragraph><paragraph id="HA02A790ABFF346E39FCAE14C6F1F261F"><enum>(2)</enum><text>any material
deficiencies in the conduct of the operations of the regulated entities;</text>
</paragraph><paragraph id="H03C728C238D44ACE9E12FCDC008CF7A5"><enum>(3)</enum><text>the overall
operational status of the regulated entities;</text>
</paragraph><paragraph id="HD15515BD67E649EA97025113AEE7785D"><enum>(4)</enum><text>an evaluation of
the performance of the regulated entities in carrying out their respective
missions;</text>
</paragraph><paragraph id="H20357780AD48481582C46395A8B1E03E"><enum>(5)</enum><text>operations,
resources, and performance of the Agency; and</text>
</paragraph><paragraph id="H450F8EAF01F64D21B5B1F96798B5D7BD"><enum>(6)</enum><text>such other matters
relating to the Agency and its fulfillment of its mission, as the Board
determines
appropriate.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2FC973ED388948F8862560447C0053A4"><enum>(b)</enum><header>Annual report of
the director</header><text>Section 1319B(a) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521(a)</external-xref>) is
amended—</text>
<paragraph id="HDAF9CD9C93CF4E1AADB300FB26B0A670"><enum>(1)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</paragraph><paragraph id="H58E1127885A74DFBB700EF2B219C3890"><enum>(2)</enum><text>by striking
<quote>enterprises</quote> each place that term appears and inserting
<quote>regulated entities</quote>;</text>
</paragraph><paragraph id="H5CD20DCD71734A8F86BC1563B0C4F1E6"><enum>(3)</enum><text>in paragraph (3),
by striking <quote>; and</quote> and inserting a semicolon;</text>
</paragraph><paragraph id="H979114E8F2FC42FC8843D2EEC0689223"><enum>(4)</enum><text>in paragraph (4),
by striking <quote>1994.</quote> and inserting <quote>1994; and</quote>;
and</text>
</paragraph><paragraph id="H182303C9E2FA489AB79D6E4CC275DD6"><enum>(5)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB0E7226ECE3149E48060184DF3109BFF" style="OLC">
<paragraph id="H78699F6B5ECF4A70A182B6C00154FD4"><enum>(5)</enum><text>the assessment of
the Board or any of its members with respect to—</text>
<subparagraph id="H21184A9791874444B7D430083003EF35"><enum>(A)</enum><text>the safety and
soundness of the regulated entities;</text>
</subparagraph><subparagraph id="H0CE83AA8F4AD4927B7FFA310870734F8"><enum>(B)</enum><text>any material
deficiencies in the conduct of the operations of the regulated entities;</text>
</subparagraph><subparagraph id="H78C99E27B0864A1AA5FCDCF997DC1D53"><enum>(C)</enum><text>the overall
operational status of the regulated entities; and</text>
</subparagraph><subparagraph id="HDAC096705ABB478DBCF411A941300066"><enum>(D)</enum><text>an evaluation of
the performance of the regulated entities in carrying out their respective
missions;</text>
</subparagraph></paragraph><paragraph id="H56C1B5113EAE4F71B21CBB8FE1536E00"><enum>(6)</enum><text>operations,
resources, and performance of the Agency; and</text>
</paragraph><paragraph id="H2AD59E746A94413D925B246CEB96F990"><enum>(7)</enum><text>such other matters
relating to the Agency and the fulfillment of its
mission.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HD3023BE6A5A848E2B46F7F4C7C330065"><enum>104.</enum><header>Authority to
require reports by regulated entities</header>
<subsection id="HD062305415794947888EDC6D22DC1213"><enum>(a)</enum><header>In
general</header><text>Section 1314 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>) is amended—</text>
<paragraph id="H1DF13F4EB2BF45DE96A2F9C6051BB38"><enum>(1)</enum><text>in
the section heading, by striking <quote><header-in-text level="section">enterprises</header-in-text></quote> and inserting
<quote><header-in-text level="section">regulated
entities</header-in-text></quote>;</text>
</paragraph><paragraph id="HF4C44496D7A748CD8CEE86074D98608"><enum>(2)</enum><text>by
striking <quote>an enterprise</quote> each place that term appears and
inserting <quote>a regulated entity</quote>;</text>
</paragraph><paragraph id="H73713A9BA1CB49A1A0AE8784F1919E45"><enum>(3)</enum><text>by striking
<quote>the enterprise</quote> and inserting <quote>the regulated
entity</quote>;</text>
</paragraph><paragraph id="H7F59C5E6A1EE44E78C12454063DD08AC"><enum>(4)</enum><text>in subsection
(a)—</text>
<subparagraph id="H76561448BAAE496CB206857452BC6067"><enum>(A)</enum><text>by striking the
subsection heading and all that follows through <quote>and operations</quote>
in paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE6F735678D9043C9B6B7C008A6D7286" style="OLC">
<subsection id="HFAE7D0A1D1AD4551A3232921534EE0A7"><enum>(a)</enum><header>Regular and
special reports</header>
<paragraph id="H1017AAA6AAF3460DA111DF304082AB3E"><enum>(1)</enum><header>Regular
reports</header><text>The Director may require, by general or specific orders,
a regulated entity to submit regular reports, including financial statements
determined on a fair value basis, on the condition (including financial
condition), management, activities, or operations of the regulated entity, as
the Director considers appropriate</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H545D3D36E29A462C89F836163343F00"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="HA0EA1FCE4B4E4C87B1D5635E2B948427"><enum>(i)</enum><text>by
inserting <quote>, by general or specific orders,</quote> after <quote>may also
require</quote>; and</text>
</clause><clause id="H76737A0A21D44E238F590197617C3E7E"><enum>(ii)</enum><text>by
striking <quote>whenever</quote> and inserting <quote>on any of the topics
specified in paragraph (1) or any other relevant topics, if</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="H8544DFD1E0A349218908FF0021662589"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H085389841EBB462FA28BE797633F008D" style="OLC">
<subsection commented="no" id="H4968E69D49FD488C914CE06241A0D753"><enum>(c)</enum><header>Penalties for
failure To make reports</header>
<paragraph commented="no" id="H0633F65C7CAA4278BF502CAC8E15B56C"><enum>(1)</enum><header>Violations</header><text>It
shall be a violation of this section for any regulated entity—</text>
<subparagraph commented="no" id="H6AAD831FA8A746B7AC80AA9D5B001DA7"><enum>(A)</enum><text>to fail to make,
transmit, or publish any report or obtain any information required by the
Director under this section, section 309(k) of the Federal National Mortgage
Association Charter Act, section 307(c) of the Federal Home Loan Mortgage
Corporation Act, or section 20 of the Federal Home Loan Bank Act, within the
period of time specified in such provision of law or otherwise by the Director;
or</text>
</subparagraph><subparagraph commented="no" id="HAB633DF029D843DFB632CFCBE0B78C8F"><enum>(B)</enum><text>to submit or
publish any false or misleading report or information under this
section.</text>
</subparagraph></paragraph><paragraph commented="no" id="H0D9021524BDA456E87F8D19924823CEA"><enum>(2)</enum><header>Penalties</header>
<subparagraph commented="no" id="HBD1131A639684F65AB54AB3802AD29A9"><enum>(A)</enum><header>First
tier</header>
<clause commented="no" id="H9055767709274FD980F613263552C670"><enum>(i)</enum><header>In
general</header><text>A violation described in paragraph (1) shall be subject
to a penalty of not more than $2,000 for each day during which such violation
continues, in any case in which—</text>
<subclause commented="no" id="H9E2F3994A93849F0802D129B4782679E"><enum>(I)</enum><text>the subject
regulated entity maintains procedures reasonably adapted to avoid any
inadvertent error and the violation was unintentional and a result of such an
error; or</text>
</subclause><subclause commented="no" id="HE332A282EFFE4003966985CA5F99993E"><enum>(II)</enum><text>the violation was
an inadvertent transmittal or publication of any report which was minimally
late.</text>
</subclause></clause><clause commented="no" id="H1D65ACE44C834A458C7976F6A9A9BB74"><enum>(ii)</enum><header>Burden of
proof</header><text>For purposes of this subparagraph, the regulated entity
shall have the burden of proving that the error was inadvertent or that a
report was inadvertently transmitted or published late.</text>
</clause></subparagraph><subparagraph commented="no" id="HF15769D43C4A4411A96655198B80DDA5"><enum>(B)</enum><header>Second
tier</header><text>A violation described in paragraph (1) shall be subject to a
penalty of not more than $20,000 for each day during which such violation
continues or such false or misleading information is not corrected, in any case
that is not addressed in subparagraph (A) or (C).</text>
</subparagraph><subparagraph commented="no" id="H13B59B836B07430CA01EA1EC1412566F"><enum>(C)</enum><header>Third
tier</header><text>A violation described in paragraph (1) shall be subject to a
penalty of not more than $1,000,000 per day for each day during which such
violation continues or such false or misleading information is not corrected,
in any case in which the subject regulated entity committed such violation
knowingly or with reckless disregard for the accuracy of any such information
or report.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA197D96244604492BAC4622DE1D3801B"><enum>(3)</enum><header>Assessments</header><text>Any
penalty imposed under this subsection shall be in lieu of a penalty under
section 1376, but shall be assessed and collected by the Director in the manner
provided in section 1376 for penalties imposed under that section, and any such
assessment (including the determination of the amount of the penalty) shall be
otherwise subject to the provisions of section 1376.</text>
</paragraph><paragraph commented="no" id="HEC7402C85E824631BB2C6F75859B8162"><enum>(4)</enum><header>Hearing</header><text>A
regulated entity against which a penalty is assessed under this section shall
be afforded an agency hearing if the regulated entity submits a request for a
hearing not later than 20 days after the date of the issuance of the notice of
assessment. Section 1374 shall apply to any such
proceedings.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HE4C5E7DF6675475D0073EA39141E0088"><enum>(b)</enum><header>Conforming
amendment</header><text>The Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended by striking sections
1327 and 1328.</text>
</subsection></section><section id="H73309BD0E2FD4838BDC8EF273C134B12"><enum>105.</enum><header>Examiners and
accountants; authority to contract for reviews of regulated entities;
ombudsman</header>
<subsection id="H76902442155E46F089975B8CB09F08D3"><enum>(a)</enum><header>In
general</header><text>Section 1317 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended—</text>
<paragraph id="H36345B241E2E42B48D0086E4990070CA"><enum>(1)</enum><text>in subsection (a),
by striking <quote>enterprise</quote> each place that term appears and
inserting <quote>regulated entity</quote>;</text>
</paragraph><paragraph id="H892825563C1A4F84AD39C301CA267BB"><enum>(2)</enum><text>in
subsection (b)—</text>
<subparagraph id="HD6531ED25F8A41D59B673013BEA56369"><enum>(A)</enum><text>by inserting
<quote>of a regulated entity</quote> after <quote>under this section</quote>;
and</text>
</subparagraph><subparagraph id="HAAA1C494D9E94840B14FB4007C363372"><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>;</text>
</subparagraph></paragraph><paragraph id="H0D09F3E769B34C8C99CD512900DD751F"><enum>(3)</enum><text>in subsection (c),
in the second sentence, by inserting before the period <quote>to conduct
examinations under this section</quote>;</text>
</paragraph><paragraph id="H6E3F554463A54B6E8D34690000B2D0A4"><enum>(4)</enum><text>by redesignating
subsections (d) through (f) as subsections (e) through (g), respectively;
and</text>
</paragraph><paragraph id="H484189AB1ED4488F9198CC45A1321DA1"><enum>(5)</enum><text>by inserting after
subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="H42561463CEE640D0BC8CFF3561ACC13D" style="OLC">
<subsection id="H25DDBEEAFBB84D3194D30981DF3ED78"><enum>(d)</enum><header>Inspector
general</header><text>There shall be within the Agency an Inspector General,
who shall be appointed in accordance with section 3(a) of the Inspector General
Act of
1978.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HABE659B846774351A84581D118BA4981"><enum>(b)</enum><header>Direct hire
authority To hire accountants, economists, and examiners</header><text>Section
1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (<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:</text>
<quoted-block display-inline="no-display-inline" id="H01B1240E12754178A300162C97532557" style="OLC">
<subsection id="H3B2580EA47434D6792E39D1642569130"><enum>(h)</enum><header>Appointment of
accountants, economists, and examiners</header>
<paragraph id="H16599604693F4EF58CFAEFCAA528B6A1"><enum>(1)</enum><header>Applicability</header><text>This
section shall apply with respect to any position of examiner, accountant,
economist, and specialist in financial markets and in technology at the Agency,
with respect to supervision and regulation of the regulated entities, that is
in the competitive service.</text>
</paragraph><paragraph id="H988250FEC3A641FC8D6E467FE45883B1"><enum>(2)</enum><header>Appointment
authority</header><text>The Director may appoint candidates to any position
described in paragraph (1)—</text>
<subparagraph id="H3D57E76E6CF74B76A28C7D4000AFAB71"><enum>(A)</enum><text>in accordance with
the statutes, rules, and regulations governing appointments in the excepted
service; and</text>
</subparagraph><subparagraph id="H774974F1630D410399E96B6437E57B18"><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="H530FE7FE801E4A41B5E8209FB2230000"><enum>(c)</enum><header>Amendments to
inspector general act</header><text>Section 11 of the Inspector General Act of
1978 (5 U.S.C. App.) is amended—</text>
<paragraph id="H2DA6906B38504AC6A52CECA6228F0381"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>; the Director of the Federal Housing Finance
Agency</quote> after <quote>Social Security Administration</quote>; and</text>
</paragraph><paragraph id="H43356B9C492441B195B300D87DE419E4"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>, the Federal Housing Finance Agency</quote> after
<quote>Social Security Administration</quote>.</text>
</paragraph></subsection><subsection id="H7FFECE95B990498C873C995DE8A6A6C7"><enum>(d)</enum><header>Authority To
contract for reviews of regulated entities</header><text>Section 1319 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4519) is amended—</text>
<paragraph id="H90228702745A4F00A68E02EEBBFE21B"><enum>(1)</enum><text>in
the section heading, by striking <quote><header-in-text level="section">enterprises by rating organization</header-in-text></quote> and
inserting <quote><header-in-text level="section" style="OLC">regulated
entities</header-in-text></quote>; and</text>
</paragraph><paragraph id="HA15E12B9B3E14EE887A3C8CAFA9597C3"><enum>(2)</enum><text>by striking
<quote>enterprises</quote> and inserting <quote>regulated
entities</quote>.</text>
</paragraph></subsection><subsection id="H030FA23B498A4C0ABECE51B6E8DB3067"><enum>(e)</enum><header>Office of the
Ombudsman</header><text display-inline="yes-display-inline">Section 1317 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4517) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H76FC82CC75CD40A5A6C9598DB1B32224" style="OLC">
<subsection id="H62FC54AF4A124EBE945BB8FB425C1191"><enum>(i)</enum><header>Ombudsman</header><text display-inline="yes-display-inline">The Director shall establish, by
regulation, an Office of the Ombudsman within the Agency, which shall be
responsible for considering complaints and appeals, from any regulated entity
and any person that has a business relationship with a regulated entity,
regarding any matter relating to the regulation and supervision of such
regulated entity by the Agency. The regulation issued by the Director under
this subsection shall specify the authority and duties of the Office of the
Ombudsman.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HB32FD374FAEF46B0B9F1A3F1FD9F7E65"><enum>106.</enum><header>Assessments</header><text display-inline="no-display-inline">Section 1316 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4516">12 U.S.C. 4516</external-xref>) is
amended—</text>
<paragraph id="H60C9EA9EB3244BDA9158F6A4CF1826E3"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="H0519DB63B71E41CD9B034573CD007BB3" style="OLC">
<subsection id="H4000489E1F694E2CA773B07B78B9F83E"><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 (including administrative costs) and
expenses of the Agency, including—</text>
<paragraph id="HE17D2DCBCF2D405082D6915F02FFEED3"><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="H4C5BF8887BD64CAB93BDAE0E4AD5B60"><enum>(2)</enum><text>the expenses of
obtaining any reviews and credit assessments under section 1319;</text>
</paragraph><paragraph id="H09801B4876CA4FEDBBC3733F91763273"><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);
and</text>
</paragraph><paragraph id="HF4614A1961D746C9BC75643493D9FCE"><enum>(4)</enum><text>the windup of the
affairs of the Office of Federal Housing Enterprise Oversight and the Federal
Housing Finance Board under title III of the <short-title>Federal Housing Finance Regulatory Reform Act of
2008</short-title>.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6CDC499D5B7C45D1A4A191F71198550"><enum>(2)</enum><text>in
subsection (b)—</text>
<subparagraph id="H9FBE717BB2B5452684AB6E80D322E4D"><enum>(A)</enum><text>by realigning the
margins of paragraph (2) two ems from the left, so as to align the left margin
of such paragraph with the left margins of paragraph (1);</text>
</subparagraph><subparagraph id="H03665A26F5D94239A441EB494FA300DF"><enum>(B)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</text>
</subparagraph><subparagraph id="HC18A4F2C64834DDDAA699D7C581C9939"><enum>(C)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H3019FD7407DE4BD18BFB00AD00479B89" style="OLC">
<paragraph id="HF8D3271A6CCC4100BF68489CADBB1E34"><enum>(2)</enum><header>Separate
treatment of Federal Home Loan Bank and enterprise
assessments</header><text>Assessments collected from the enterprises shall not
exceed the amounts sufficient to provide for the costs and expenses described
in subsection (a) relating to the enterprises. Assessments collected from the
Federal Home Loan Banks shall not exceed the amounts sufficient to provide for
the costs and expenses described in subsection (a) relating to the Federal Home
Loan
Banks.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9B25F096489D4A869D046B51C0800B"><enum>(3)</enum><text>by
striking subsection (c) and inserting the following:</text>
<quoted-block id="HE433E36B5D2B445586569BEA1FC357F4" style="OLC">
<subsection id="H92EB18122E204A95A6F71962F215EB2B"><enum>(c)</enum><header>Increased Costs
of Regulation</header>
<paragraph id="H6B59AD63BBD240F89E10DF761811B612"><enum>(1)</enum><header>Increase for
inadequate capitalization</header><text>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="H8D206D2B53684676BD00C13E0684E5A0"><enum>(2)</enum><header>Adjustment for
enforcement activities</header><text>The Director may adjust the amounts of any
semiannual payments 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 this Act for a regulated entity are borne only by such regulated
entity.</text>
</paragraph><paragraph id="H17CC2AA53D9149D991DDCCF8823550CE"><enum>(3)</enum><header>Additional
assessment for deficiencies</header><text>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 capitalized or as the result of
supervisory or enforcement activities under this Act 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="HB08CCE6CE647488894D9181EF31AC1E"><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="H46A2064890BD4F469800234F3CF7B127"><enum>(5)</enum><text>by striking
subsections (e) through (g) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H7A0855E4883B4B52AF9121C544C09939" style="OLC">
<subsection id="H307F392608CB49A28C2E96E0089C9EC7"><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="HFBD80E3C542146410092DA8E75906EAB"><enum>(f)</enum><header>Treatment of
Assessments</header>
<paragraph id="HC17466FDF0B346B8BC4C8E21B862B421"><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
of the United States (<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="H5775B8D16BEA44B1A150D16EB7E9FC67"><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="H50AD88C00BD349CE899237E63E06A5F"><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="HE8F6220E7EA04EE1A26EC4F6AAFBFDE1"><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="H6DF97E6FCDC04F14B793F7CACDAC3C"><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 of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, 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> (12
U.S.C. 1438(b)), shall, upon such effective date, be treated for purposes of
this subsection as amounts received from assessments under this section.</text>
</paragraph><paragraph id="H6FEE51033C634375AAA38B797911DA9B"><enum>(6)</enum><header>Treasury
investments</header>
<subparagraph id="HB410E734DA64408FBC48EF27F2C60000"><enum>(A)</enum><header>Authority</header><text display-inline="yes-display-inline">The Director may request the Secretary of
the Treasury to invest such portions of amounts received by the Director from
assessments paid under this section that, in the Director’s discretion, are not
required to meet the current working needs of the Agency.</text>
</subparagraph><subparagraph id="HA31A2FC74FEE4821B58BFABC5D44AAA7"><enum>(B)</enum><header>Government
obligations</header><text>Pursuant to a request under subparagraph (A), the
Secretary of the Treasury shall invest such amounts in Government obligations
guaranteed as to principal and interest by the United States with maturities
suitable to the needs of the Agency and bearing interest at a rate determined
by the Secretary of the Treasury taking into consideration current market
yields on outstanding marketable obligations of the United States of comparable
maturity.</text>
</subparagraph></paragraph></subsection><subsection id="H018DAD16BDF94AB7A74FFFC95B8DC506"><enum>(g)</enum><header>Budget and
Financial Management</header>
<paragraph id="H74A1093FF97444EE99C71EB4AF926B21"><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="HE1A78BB0ED234919B92FE391F4E1A140"><enum>(2)</enum><header>Financial
statements</header><text>The Agency shall prepare annually a statement
of—</text>
<subparagraph id="HBD6F63453C674C19B6AD4B847CB16B15"><enum>(A)</enum><text>assets and
liabilities and surplus or deficit;</text>
</subparagraph><subparagraph id="H99FCD719846D4230A100EE93009B42B0"><enum>(B)</enum><text>income and
expenses; and</text>
</subparagraph><subparagraph id="HFBFE59D663544C919F5D03F0FCE93F19"><enum>(C)</enum><text>sources and
application of funds.</text>
</subparagraph></paragraph><paragraph id="H3178A4A528C24541A72B1DEC9E004600"><enum>(3)</enum><header>Financial
management systems</header><text>The Agency shall implement and maintain
financial management systems that—</text>
<subparagraph id="H53458BB40CCD413094B793B300CD2382"><enum>(A)</enum><text>comply
substantially with Federal financial management systems requirements and
applicable Federal accounting standards; and</text>
</subparagraph><subparagraph id="HB9B621A781504DC4AD05427849B9D9B9"><enum>(B)</enum><text>use a general
ledger system that accounts for activity at the transaction level.</text>
</subparagraph></paragraph><paragraph id="H12DA74993DAC4202AFC5D7AA5F8DAFC3"><enum>(4)</enum><header>Assertion of
internal controls</header><text>The Director shall provide to the Comptroller
General of the United States an assertion as to the effectiveness of the
internal controls that apply to financial reporting by the Agency, using the
standards established in <external-xref legal-doc="usc" parsable-cite="usc/31/3512">section 3512(c)</external-xref> of title 31, United States
Code.</text>
</paragraph><paragraph id="H1902D6B9F6104CAB8D00404F5BE1F7AD"><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 report, plan, forecast, 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="H78CFB5D3BA3F4595B4F7CD81337EC2FA"><enum>(h)</enum><header>Audit of
Agency</header>
<paragraph id="H20A8580DE3064294841D911EDF74444D"><enum>(1)</enum><header>In
general</header><text>The Comptroller General shall annually audit the
financial transactions of the Agency in accordance with the United States
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 depositories,
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="H7A57F3F2C9504EF48C1FA981BF026EE"><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 commented="no" display-inline="no-display-inline" id="H2F55B562669E4AA6B5DDB257805BECB1"><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 section 3709 of the Revised
Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>), 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="HB27DCBC48A644C4EB6C1418443156500"><enum>107.</enum><header>Regulations and
orders</header><text display-inline="no-display-inline">Section 1319G of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4526) is amended—</text>
<paragraph id="H24360CE6588A405ABDB501B57C86C164"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HFC26AAA1EE5D4AE9816C2FEBFC34A126" style="OLC">
<subsection id="H00870FD839E94677B6BB70BE3CB4438F"><enum>(a)</enum><header>Authority</header><text>The
Director shall issue any regulations, guidelines, or orders necessary to carry
out the duties of the Director under this title or the authorizing statutes,
and to ensure that the purposes of this title and the authorizing statutes are
accomplished.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5DFE9228ADCC47EA8FE657204F6EEE12"><enum>(2)</enum><text>by striking
subsection (c).</text>
</paragraph></section><section id="H1DFE1EEC20634C2A9CDA812D45B50049"><enum>108.</enum><header>Prudential
management and operations standards</header><text display-inline="no-display-inline">The Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<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 this Act, the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H9FC15FFD48454195B8979714DCE0AC69" style="OLC">
<section id="H8E213092E6C34BE6B7EE13E41D212612"><enum>1313B.</enum><header>Prudential
management and operations standards</header>
<subsection id="H3CF94ABB47A74474BE805F184C96F008"><enum>(a)</enum><header>Standards</header><text display-inline="yes-display-inline">The Director shall establish standards, by
regulation or guideline, for each regulated entity relating to—</text>
<paragraph id="H300F20C02BB149D8AAEB66DF76133400"><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="HA0B35B6DF42E4D03AAE0045231968CD"><enum>(2)</enum><text>independence and
adequacy of internal audit systems;</text>
</paragraph><paragraph id="H89B57D26FFC147FFB809CCF422A97F24"><enum>(3)</enum><text>management of
interest rate risk exposure;</text>
</paragraph><paragraph id="HFF4B6D8450AB4732873D507D84A705D5"><enum>(4)</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="H28EF8088297D4E6C9EC86358BD12DD64"><enum>(5)</enum><text>adequacy and
maintenance of liquidity and reserves;</text>
</paragraph><paragraph id="H659611C609F647DDA480ABE808CCBEF"><enum>(6)</enum><text>management of asset
and investment portfolio growth;</text>
</paragraph><paragraph id="HA4DFAB173AD149DEBCACC11366BD84A3"><enum>(7)</enum><text>investments and
acquisitions of assets by a regulated entity, to ensure that they are
consistent with the purposes of this title and the authorizing statutes;</text>
</paragraph><paragraph id="H20392087151343329CFEFEDCAFBA4C2"><enum>(8)</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;</text>
</paragraph><paragraph id="H08B2747C94A4485DA856B5ACC4AF276F"><enum>(9)</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="H3AB0A7619AD64DFF8D4DA7E7C7905F00"><enum>(10)</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; and</text>
</paragraph><paragraph id="H31123D48127749B994B0D68515AED73"><enum>(11)</enum><text>such other
operational and management standards as the Director determines to be
appropriate.</text>
</paragraph></subsection><subsection id="H8786C811C63C493D8DA81D7C2F5927E"><enum>(b)</enum><header>Failure To meet
standards</header>
<paragraph id="HE91642CF39604671A109EC118769F6D0"><enum>(1)</enum><header>Plan
requirement</header>
<subparagraph id="H3966B9EEA3BD43C4B3F622FFE8B4BC1"><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="H79543F1E7EEA4BE787D9406E77A800DC"><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="HA2D32EEA153240DB8C46998E5C989385"><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="H4998F9D1FE514511ACB6CE5F3F41A1C1"><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="HFF35ACD9586C4D46A271AC27963D467B"><enum>(C)</enum><header>Deadlines for
submission and review</header><text>The Director shall by regulation establish
deadlines that—</text>
<clause id="H13E7CE1CBF6D4ADA804B978DAA002C99"><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="H945AF501D4C84317A6E7CDF4A5546C2F"><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="H1FF8D2939CE34705A2CD2F5C9DBBE2F"><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="HA57D18579CA94E9E90004E83FA5905CE"><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="HB2E775AC44E04314BCEB61F712E76F10"><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="H0C2B4C885E404D87BF616CC8327C15E3"><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="H0276C71952E54E5BAEC57B49AB5CF419"><enum>(ii)</enum><text>Require the
regulated entity—</text>
<subclause id="H4B82BDBDE79A48EE8050ED2522D0C9E9"><enum>(I)</enum><text>in the case of an
enterprise, to increase its ratio of core capital to assets.</text>
</subclause><subclause id="H631CF5344D6743B1B4AAB757CF2FF00"><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 Federal Home Loan Bank Act (12 U.S.C.
1426(a)(5)) to assets.</text>
</subclause></clause><clause id="HEF87E9D77742489BAAF29FB51CFE6C"><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="H2AF33C52E927454E99F2DCD479E94423"><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="H844A4C129DA64900AF44FE420677F512"><enum>(A)</enum><text>the Director
determines that the regulated entity fails to meet any standard prescribed
under subsection (a);</text>
</subparagraph><subparagraph id="HC80525E7FA3F4B02B1A47FB6623410EE"><enum>(B)</enum><text>the regulated
entity has not corrected the deficiency; and</text>
</subparagraph><subparagraph id="H39D66409B9674A5EA44D33D9F8D07470"><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="HE67E371DCED6430AB85C087B6BD078E4"><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>
</section><section id="H582F28EAB5D7409A98C4E7101727248"><enum>109.</enum><header>Review of and
authority over enterprise assets and liabilities</header>
<subsection id="H7AC36E26C9F44CC8B29396B7BEB6C012"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subtitle B of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness 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="HBFB1F61D7D214F139BEC004FE1604BF"><enum>(1)</enum><text>by
striking the subtitle designation and heading and inserting the
following:</text>
<quoted-block id="H1B5C6A7C4FEC42FF9385BCA45BD80960" style="OLC">
<subtitle id="H24148A3B8F1146918EE232A89B97300"><enum>B</enum><header>Required Capital
Levels for Regulated Entities, Special Enforcement Powers, and Reviews of
Assets and
Liabilities</header>
</subtitle><after-quoted-block>;</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="H0ACC1F0B7A9F41FB85C3C461E076AE23"><enum>(2)</enum><text>by adding at the
end the following new section:</text>
<quoted-block id="H4E6978AFAA5E4571BEE74A7B223C09D" style="OLC">
<section id="HCDF879262D9740E0845B4E2EEBB845D2"><enum>1369E.</enum><header>Reviews of
enterprise assets and liabilities</header>
<subsection id="H515EB8B3BCD7468087B4D332AEAB6754"><enum>(a)</enum><header>In
General</header><text>The Director shall, by regulation, establish criteria
governing the portfolio holdings of the enterprises, to ensure that the
holdings are backed by sufficient capital and consistent with the mission and
the safe and sound operations of the enterprises. In establishing such
criteria, the Director shall consider the ability of the enterprises to provide
a liquid secondary market through securitization activities, the portfolio
holdings in relation to the overall mortgage market, and adherence to the
standards specified in section 1313B.</text>
</subsection><subsection id="HEA447907B74D42E4AE36419D76B711CD"><enum>(b)</enum><header>Temporary
adjustments</header><text>The Director may, by order, make temporary
adjustments to the established standards for an enterprise or both enterprises,
such as during times of economic distress or market disruption.</text>
</subsection><subsection id="HC855084000254CC8A3B85CCBCA8717B"><enum>(c)</enum><header>Authority To
Require Disposition or Acquisition</header><text>The Director shall monitor the
portfolio of each enterprise. Pursuant to subsection (a) 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, if the
Director determines that such action is consistent with the purposes of this
Act or any of the authorizing
statutes.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H72982F74DABA49829FBEFFED436FD28E"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than the expiration of the
180-day period beginning on the effective date of this Act, the Director shall
issue regulations pursuant to section 1369E(a) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as added by subsection
(a) of this section) establishing the portfolio holdings standards under such
section.</text>
</subsection></section><section id="H43E842EFF6274D29882CA11344B97D94"><enum>110.</enum><header>Risk-based
capital requirements</header>
<subsection id="H9017E8FA612A4CF89BC3CB41EC1864F2"><enum>(a)</enum><header>In
general</header><text>Section 1361 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<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 display-inline="no-display-inline" id="H950FEF4273B2435AB8578C48B70080D9" style="OLC">
<section id="H2599F2D7460A4DA292EEC7C059004EE3"><enum>1361.</enum><header>Risk-based
capital levels for regulated entities</header>
<subsection id="H10CFB00E993449E4A013708F3536B38E"><enum>(a)</enum><header>In
general</header>
<paragraph id="H41167ECF61E1441891E3400335F7286"><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="H5D140A8423D14BEA91003F8DA0FF9C96"><enum>(2)</enum><header>Federal home
loan banks</header><text>The Director shall establish risk-based capital
standards under section 6 of the Federal Home Loan Bank Act for the Federal
Home Loan Banks.</text>
</paragraph></subsection><subsection id="H260CC6EEF4594DEC8C90F10113CB40A9"><enum>(b)</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="H908DF74D1689481FA6F3DD642E6D00FA"><enum>(b)</enum><header>Federal Home
Loan Banks risk-based capital</header><text>Section 6(a)(3) of the Federal Home
Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(3)</external-xref>) is amended—</text>
<paragraph id="HBD8C6F894AE442ED9533C8FFE420DD72"><enum>(1)</enum><text>by striking
subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H526BCC8F7EAD48AFBA852B3C216B446F" style="OLC">
<subparagraph id="H03ABD86149F340C1B8DF4952416E0090"><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="H6E900DE205744A8392873E0037F90600"><enum>(2)</enum><text>in subparagraph
(B), by striking <quote>(A)(ii)</quote> and inserting
<quote>(A)</quote>.</text>
</paragraph></subsection></section><section id="HA79CECF7AECC434B96D9C159217777B9"><enum>111.</enum><header>Minimum capital
levels</header><text display-inline="no-display-inline">Section 1362 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4612) is amended—</text>
<paragraph id="H11D5A379F18140409EABE69EAF9CDC4F"><enum>(1)</enum><text>in subsection (a),
by striking <quote><header-in-text level="subsection">In
General</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Enterprises</header-in-text></quote>; and</text>
</paragraph><paragraph id="H119DC9C8DBF34D1EA6323D36B322C6B"><enum>(2)</enum><text>by
striking subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H99C6276BD27744C9941569DEDE46EF25" style="OLC">
<subsection id="HDB072FD613EA4BFD8B9CF1D25DF3CD06"><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 Federal Home Loan Bank Act (12 U.S.C.
1426(a)(2)).</text>
</subsection><subsection id="H55EE89E326A54B56A31C1C68BA4306B8"><enum>(c)</enum><header>Establishment of
revised minimum capital levels</header><text>Notwithstanding subsections (a)
and (b) and notwithstanding the capital classifications of the regulated
entities, the Director may, by regulations issued under section 1319G,
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="H75C846688A0946259E00A6CCFA76132"><enum>(d)</enum><header>Authority To
require temporary increase</header>
<paragraph id="H6F4032A9856446328733E059E6A7E4FC"><enum>(1)</enum><header>In
general</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 on a temporary
basis, when the Director determines that such an increase is necessary and
consistent with the prudential regulation and the safe and sound operations of
a regulated entity.</text>
</paragraph><paragraph id="H9AA99112007E44F3B9B6320032F98E03"><enum>(2)</enum><header>Rescission</header><text>The
Director shall rescind any temporary minimum capital level established under
paragraph (1) when the Director determines that the circumstances or facts no
longer justify the temporary minimum capital level.</text>
</paragraph><paragraph id="HC68009DD0AB540360000BB316B07F5BC"><enum>(3)</enum><header>Regulations
required</header><text>The Director shall issue regulations
establishing—</text>
<subparagraph id="HF7A48090EEC54CAC9259389E45349CDA"><enum>(A)</enum><text>standards for the
imposition of a temporary increase in minimum capital under paragraph
(1);</text>
</subparagraph><subparagraph id="H01F6F61239FD44F2928D3FDFA5B7EC2"><enum>(B)</enum><text>the standards and
procedures that the Director will use to make the determination referred to in
paragraph (2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF0FB21A4733049FFBADA089117119C93"><enum>(C)</enum><text display-inline="yes-display-inline">a reasonable time frame for periodic review
of any temporary increase in minimum capital for the purpose of making the
determination referred to in paragraph (2).</text>
</subparagraph></paragraph></subsection><subsection id="H283282FC4D374441983E90472CFA1E46"><enum>(e)</enum><header>Authority To
Establish additional capital and reserve requirements for particular
purposes</header><text>The Director may, at any time by order or regulation,
establish such capital or reserve requirements with respect to any product 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="HB9A2E3BE322143FEB6ABEBE04B562E41"><enum>(f)</enum><header>Periodic
review</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H27C6215824DF4EE686B78D00B2F9B673"><enum>112.</enum><header>Registration
under the securities laws</header><text display-inline="no-display-inline">The
Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEFA3DA1540924281AC3FD936D0030D9" style="OLC">
<section id="HA66E6EE290614D039CE2D14801D901E3"><enum>38.</enum><header>Federal National
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan
Banks</header>
<subsection id="H7B8BD991EA244AC98D12003700F3AB5C"><enum>(a)</enum><header>Federal national
mortgage association and federal home loan mortgage
corporation</header><text>No class of equity securities of the Federal National
Mortgage Association or the Federal Home Loan Mortgage Corporation shall be
treated as an exempted security for purposes of section 12, 13, 14, or
16.</text>
</subsection><subsection id="HE7801BCFE1EC44D4A0F204BD871CE53"><enum>(b)</enum><header>Federal home loan
banks</header>
<paragraph id="H2B15AEF2A52E40DEB661D49C7C3617A8"><enum>(1)</enum><header>Registration</header><text>Each
Federal Home Loan Bank shall register a class of its common stock under section
12(g), not later than 120 days after the date of enactment of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, and shall thereafter maintain such registration and be
treated for purposes of this title as an <quote>issuer</quote>, the securities
of which are required to be registered under section 12, regardless of the
number of members holding such stock at any given time.</text>
</paragraph><paragraph id="H5675773FED7340FEA7775713C385DB2B"><enum>(2)</enum><header>Standards
relating to audit committees</header><text>Each Federal Home Loan Bank shall
comply with the rules issued by the Commission under section 10A(m).</text>
</paragraph></subsection><subsection id="H42A9118024BF45EE9E758BE1D387C1A9"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H5C6D4D610B6E43F4A119DB76A95D6FF0"><enum>(1)</enum><header>Federal home
loan bank; member</header><text>The terms <term>Federal Home Loan Bank</term>
and <term>member</term>, have the same meanings as in section 2 of the Federal
Home Loan Bank Act.</text>
</paragraph><paragraph id="HE28FED3F1F5A406FB43C796EDBE87B40"><enum>(2)</enum><header>Federal national
mortgage association</header><text>The term <term>Federal National Mortgage
Association</term> means the corporation created by the Federal National
Mortgage Association Charter Act.</text>
</paragraph><paragraph id="H44C7AAF8FCA248D994B5042DE70703E9"><enum>(3)</enum><header>Federal home
loan mortgage corporation</header><text>The term <term>Federal Home Loan
Mortgage Corporation</term> means the corporation created by the Federal Home
Loan Mortgage Corporation
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9C46D9C1819A480B850356A062223597"><enum>113.</enum><header>Prohibition and
withholding of executive compensation</header>
<subsection id="H3530AA12B651458597767B4CC515738F"><enum>(a)</enum><header>In
general</header><text>Section 1318 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>) is amended—</text>
<paragraph id="H685FF95F0791472082BBD905A49C2B64"><enum>(1)</enum><text>in the section
heading, by striking <quote><header-in-text level="section">of
excessive</header-in-text></quote> and inserting <quote><header-in-text level="section">and withholding of executive</header-in-text></quote>;</text>
</paragraph><paragraph id="HA698B57B9CEF499FAD24004210ABCAFB"><enum>(2)</enum><text>by redesignating
subsection (b) as subsection (d); and</text>
</paragraph><paragraph id="H1D91A83EA2C34BBB87BF6E1B18229C2"><enum>(3)</enum><text>by
inserting after subsection (a) the following:</text>
<quoted-block display-inline="no-display-inline" id="HC6D6B0529F0D4FB786CB2623FF50472" style="OLC">
<subsection id="H66DBDF6924B04B7A8823A1CB3F98D36"><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="HF460722AD8E947849FFFAAF612666B9D"><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="HB4565616C31A4A35AC9D9044DFB6F13F"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HCA18865364834B629D4D915438A96236"><enum>(1)</enum><header>Fannie
mae</header><text>Section 309(d) of the Federal National Mortgage Association
Charter Act (<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 display-inline="no-display-inline" id="HAFCAEC4E26D94D1A96458EB19110E200" style="OLC">
<paragraph id="H2025037063B942A18BC30095D94D40E2" indent="up1"><enum>(4)</enum><text>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 Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C.
4518).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6F9978B9184949FCB09F485DEA50C089"><enum>(2)</enum><header>Freddie
mac</header><text>Section 303(h) of the Federal Home Loan Mortgage Corporation
Act (<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 display-inline="no-display-inline" id="H684CE946D99E40F49C12B404A927B219" style="OLC">
<paragraph id="H5F764A57C86449F28FC38D2994DD7BC6" indent="up1"><enum>(4)</enum><text>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 Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C.
4518).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3E8BFE9659684DEEB00014F123304653"><enum>(3)</enum><header>Federal home
loan banks</header><text>Section 7 of the Federal Home Loan Bank Act (12 U.S.C.
1427) is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H816B1DAEC5F34B8494035000C735009B" style="OLC">
<subsection id="HB7C5952D27A24649B181DEE45FFF557D"><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 Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C.
4518).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H83A61CD7B634453C964B7980FD4D458D"><enum>114.</enum><header>Limit on golden
parachutes</header><text display-inline="no-display-inline">Section 1318 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4518) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H007DF4A3B2A7424BBABD1EDD20FF38F1" style="OLC">
<subsection id="HCF324E2DCCF240DAB0E0790045ACEA83"><enum>(e)</enum><header>Authority To
regulate or prohibit certain forms of benefits to affiliated parties</header>
<paragraph id="H1B6B4D7C22D64091A0BAB9F66582DCD"><enum>(1)</enum><header>Golden parachutes
and indemnification payments</header><text>The Director may prohibit or limit,
by regulation or order, any golden parachute payment or indemnification
payment.</text>
</paragraph><paragraph id="HB771CBB86CA844B18E349EF3F7660528"><enum>(2)</enum><header>Factors to be
taken into account</header><text>The Director shall prescribe, by regulation,
the factors to be considered by the Director in taking any action pursuant to
paragraph (1), which may include such factors as—</text>
<subparagraph id="H1E8833A3D6B34C8F8B154CA0264DEA15"><enum>(A)</enum><text>whether there is a
reasonable basis to believe that the affiliated party has committed any
fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse
with regard to the regulated entity that has had a material effect on the
financial condition of the regulated entity;</text>
</subparagraph><subparagraph id="H292286C1CD1A454EB2D357F9C334D2DF"><enum>(B)</enum><text>whether there is a
reasonable basis to believe that the affiliated party is substantially
responsible for the insolvency of the regulated entity, the appointment of a
conservator or receiver for the regulated entity, or the troubled condition of
the regulated entity (as defined in regulations prescribed by the
Director);</text>
</subparagraph><subparagraph id="H8EEED34060AB4F91BE18A3E05015AAF5"><enum>(C)</enum><text>whether there is a
reasonable basis to believe that the affiliated party has materially violated
any applicable provision of Federal or State law or regulation that has had a
material effect on the financial condition of the regulated entity;</text>
</subparagraph><subparagraph id="H32E8BD4A7D9547DE98B2B551C0D9CEB2"><enum>(D)</enum><text>whether the
affiliated party was in a position of managerial or fiduciary responsibility;
and</text>
</subparagraph><subparagraph id="HF2FBC9E427CC4B5A9D2CECBB06C4EF26"><enum>(E)</enum><text>the length of time
that the party was affiliated with the regulated entity, and the degree to
which—</text>
<clause id="H5C72AFCA9C9545EEA3B43703FC5EC050"><enum>(i)</enum><text>the payment
reasonably reflects compensation earned over the period of employment;
and</text>
</clause><clause id="H3099C5B52B664571B32ED37B50C47654"><enum>(ii)</enum><text>the compensation
involved represents a reasonable payment for services rendered.</text>
</clause></subparagraph></paragraph><paragraph id="H02690C4F11A34707BC4222F2D88EF5A6"><enum>(3)</enum><header>Certain payments
prohibited</header><text>No regulated entity may prepay the salary or any
liability or legal expense of any affiliated party if such payment is
made—</text>
<subparagraph id="HCC9204BFD0A946D48116EF9E777D0025"><enum>(A)</enum><text>in contemplation
of the insolvency of such regulated entity, or after the commission of an act
of insolvency; and</text>
</subparagraph><subparagraph id="HE94B251AD65545E2984B4725C943C992"><enum>(B)</enum><text>with a view to, or
having the result of—</text>
<clause id="H7203A1AB3E9C4134ABCC5CAFECD1BBE1"><enum>(i)</enum><text>preventing the
proper application of the assets of the regulated entity to creditors;
or</text>
</clause><clause id="HAB838E649CEE449C9C4971189000C8F0"><enum>(ii)</enum><text>preferring one
creditor over another.</text>
</clause></subparagraph></paragraph><paragraph id="HAC6DC55F0BB74559BAA89F00152309B"><enum>(4)</enum><header>Golden parachute
payment defined</header>
<subparagraph id="HB9EA4AD2C0B8408889ACF9D2119E200"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term <term>golden
parachute payment</term> means any payment (or any agreement to make any
payment) in the nature of compensation by any regulated entity for the benefit
of any affiliated party pursuant to an obligation of such regulated entity
that—</text>
<clause id="H5502114FE4504EB5B85F9599F200E747"><enum>(i)</enum><text>is
contingent on the termination of such party's affiliation with the regulated
entity; and</text>
</clause><clause id="H7834E4FB2C464D07B1FE1EB6D76B40D3"><enum>(ii)</enum><text>is received on or
after the date on which—</text>
<subclause id="HE1D5ED80B2F340C4A15965F55C750848"><enum>(I)</enum><text>the regulated
entity became insolvent;</text>
</subclause><subclause id="HCF735C75B7564E3FA8E29C0300B90737"><enum>(II)</enum><text>any conservator
or receiver is appointed for such regulated entity; or</text>
</subclause><subclause id="H14E8D72E5B8C445EB3180072EA90DA50"><enum>(III)</enum><text>the Director
determines that the regulated entity is in a troubled condition (as defined in
the regulations of the Director).</text>
</subclause></clause></subparagraph><subparagraph id="HA571E32D70B744E09098A4BC74C89FC7"><enum>(B)</enum><header>Certain payments
in contemplation of an event</header><text>Any payment which would be a golden
parachute payment but for the fact that such payment was made before the date
referred to in subparagraph (A)(ii) shall be treated as a golden parachute
payment if the payment was made in contemplation of the occurrence of an event
described in any subclause of such subparagraph.</text>
</subparagraph><subparagraph id="HEF5068C72FE14CF1BC1893D631F3B2FD"><enum>(C)</enum><header>Certain payments
not included</header><text>For purposes of this subsection, the term
<term>golden parachute payment</term> shall not include—</text>
<clause id="HFD096C3D985A4A680010018475BB5BC3"><enum>(i)</enum><text>any payment made
pursuant to a retirement plan which is qualified (or is intended to be
qualified) under <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</external-xref> of the Internal Revenue Code of 1986, or other
nondiscriminatory benefit plan;</text>
</clause><clause id="H2EA4AFFD266A449F8CFC76E8DED2A2AC"><enum>(ii)</enum><text>any payment made
pursuant to a bona fide deferred compensation plan or arrangement which the
Director determines, by regulation or order, to be permissible; or</text>
</clause><clause id="H7C71DBD58FC241F7B85D001208F814E8"><enum>(iii)</enum><text>any payment made
by reason of the death or disability of an affiliated party.</text>
</clause></subparagraph></paragraph><paragraph id="HBF5969FEFEA347988E00502F47546BF4"><enum>(5)</enum><header>Other
definitions</header><text>For purposes of this subsection, the following
definitions shall apply:</text>
<subparagraph id="HB39AA9F619054E54B3E3C7397C300F0"><enum>(A)</enum><header>Indemnification
payment</header><text>Subject to paragraph (6), the term <term>indemnification
payment</term> means any payment (or any agreement to make any payment) by any
regulated entity for the benefit of any person who is or was an affiliated
party, to pay or reimburse such person for any liability or legal expense with
regard to any administrative proceeding or civil action instituted by the
Agency which results in a final order under which such person—</text>
<clause id="HF0C247D2E2AB4211B964F5DF9079B3E"><enum>(i)</enum><text>is
assessed a civil money penalty;</text>
</clause><clause id="HA35568C5ABEC4B8B85B0749561C0B4E1"><enum>(ii)</enum><text>is removed or
prohibited from participating in conduct of the affairs of the regulated
entity; or</text>
</clause><clause id="H1557EF719433483CBE1EA2DAE98D86F0"><enum>(iii)</enum><text>is required to
take any affirmative action to correct certain conditions resulting from
violations or practices, by order of the Director.</text>
</clause></subparagraph><subparagraph id="HFDB41E2FA7E84A429EC63AC255A3F8"><enum>(B)</enum><header>Liability or legal
expense</header><text>The term <term>liability or legal expense</term>
means—</text>
<clause id="H302FA6E139F34BCE83A7823009BE15DB"><enum>(i)</enum><text>any legal or other
professional expense incurred in connection with any claim, proceeding, or
action;</text>
</clause><clause id="HD8EE3552B5384908BC04A0FFD165F59C"><enum>(ii)</enum><text>the amount of,
and any cost incurred in connection with, any settlement of any claim,
proceeding, or action; and</text>
</clause><clause id="HC3EC393CA25B40B7B6FA10A875D4EED3"><enum>(iii)</enum><text>the amount of,
and any cost incurred in connection with, any judgment or penalty imposed with
respect to any claim, proceeding, or action.</text>
</clause></subparagraph><subparagraph id="HC8A9372D121645339E7CDFB23CDB26A4"><enum>(C)</enum><header>Payment</header><text>The
term <term>payment</term> includes—</text>
<clause id="H6A771949CE024E4A936D41D6B3F2C300"><enum>(i)</enum><text>any direct or
indirect transfer of any funds or any asset; and</text>
</clause><clause id="H7071EC20AB7F4928A9A6E003A000F879"><enum>(ii)</enum><text>any segregation
of any funds or assets for the purpose of making, or pursuant to an agreement
to make, any payment after the date on which such funds or assets are
segregated, without regard to whether the obligation to make such payment is
contingent on—</text>
<subclause id="HAB33ED29801F4F4BB2152DC242578311"><enum>(I)</enum><text>the determination,
after such date, of the liability for the payment of such amount; or</text>
</subclause><subclause id="H8ADA017443BA46C9BD445FDE34641E5"><enum>(II)</enum><text>the liquidation,
after such date, of the amount of such payment.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HC005234DD3CC431F8E9448F739C8ED2F"><enum>(6)</enum><header>Certain
commercial insurance coverage not treated as covered benefit
payment</header><text>No provision of this subsection shall be construed as
prohibiting any regulated entity from purchasing any commercial insurance
policy or fidelity bond, except that, subject to any requirement described in
paragraph (5)(A)(iii), such insurance policy or bond shall not cover any legal
or liability expense of the regulated entity which is described in paragraph
(5)(A).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H642D0C94D7F5486C803BBC85D2D8777"><enum>115.</enum><header>Reporting of
fraudulent loans</header><text display-inline="no-display-inline">Part 1 of
subtitle C of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>), as amended by this Act, is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8D160F261D0D410AA87D974DA1002F04" style="OLC">
<section id="HFF5CEE4557C94DD4BEAB1BF82555C565"><enum>1379E.</enum><header>Reporting of
fraudulent loans</header>
<subsection id="H612FA25B1CE8412782B5E20041EFEFE3"><enum>(a)</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 the purchase or sale of any loan or financial
instrument. The Director shall require each regulated entity to establish and
maintain procedures designed to discover any such transactions.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H819C8239B8494BBF00E61E30BCFF55F1"><enum>(b)</enum><header>Protection from
liability for reports</header><text>Any regulated entity that, in good faith,
makes a report pursuant to subsection (a), and any entity-affiliated party,
that, in good faith, makes or requires another to make any such report, shall
not be liable to any person under any provision of law or regulation, 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
persons identified in the
report.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="H3B3D4A38E2DE4CA9BBEB075E98DEC16F"><enum>B</enum><header>Improvement of
mission supervision</header>
<section id="H15276D8927A140E687E2CDE935EC028"><enum>121.</enum><header>Transfer of
program approval and housing goal oversight</header><text display-inline="no-display-inline">Part 2 of subtitle A of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>)
is amended—</text>
<paragraph id="H5E5A5025D6B143B2B460009E5DEED35B"><enum>(1)</enum><text>by striking the
heading for the part and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H09B4C497D8844FA9A42399585ED0A5C7" style="OLC">
<part id="HFB124F85D87A4DB29E3686152887B199"><enum>2</enum><header>Additional
authorities of the
director</header>
</part><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7E6F89159CA04292BF1884A98008FA"><enum></enum><text>and</text>
</paragraph><paragraph id="H0BB5E5E2E9A641C08F9D313E3F7DE4C3"><enum>(2)</enum><text>by striking
sections 1321 and 1322.</text>
</paragraph></section><section id="H9400E7E3FB3C492A8D565C8B964C2363"><enum>122.</enum><header>Assumption by
the Director of certain other HUD responsibilities</header>
<subsection id="H1005E8C1932745359F722BFCBBA15549"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Part 2 of subtitle A
of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
(<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text>
<paragraph id="H061BE03AE2B7406A8E95085B818EF5A9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> each
place that term appears and inserting <quote>Director</quote> in each of
sections 1323, 1326, 1327, 1328, and 1336; and</text>
</paragraph><paragraph id="H58A3A0872D924EE2B7D59901332B7B9C"><enum>(2)</enum><text>by striking
sections 1337, 1338, and 1349 (<external-xref legal-doc="usc" parsable-cite="usc/12/4567">12 U.S.C. 4567</external-xref>, 4562 note, and 4589).</text>
</paragraph></subsection><subsection id="H3B1F4E42641947A590EDA7B2B6922ECF"><enum>(b)</enum><header>Retention of
fair housing responsibilities</header><text>Section 1325 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4545">12 U.S.C. 4545</external-xref>) is
amended in the matter preceding paragraph (1), by inserting <quote>of Housing
and Urban Development</quote> after <quote>The Secretary</quote>.</text>
</subsection></section><section id="H6516AA340CD3476E9E50C504C6E33694"><enum>123.</enum><header>Review of
enterprise products</header><text display-inline="no-display-inline">Part 2 of
subtitle A of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended by inserting before section
1323 the following:</text>
<quoted-block display-inline="no-display-inline" id="H7CA08506026B429CA4371103A8FAEB73" style="OLC">
<section id="H98BF02BE75BF48FD878EFAFD1F005174"><enum>1321.</enum><header>Prior approval
authority for products</header>
<subsection id="H70C787C9B13A4B788194DA8DAEC680BE"><enum>(a)</enum><header>In
general</header><text>The Director shall require each enterprise to obtain the
approval of the Director for any product of the enterprise before initially
offering the product.</text>
</subsection><subsection id="H7778E27FC68147EFBB01F4DBE233DB98"><enum>(b)</enum><header>Standard for
approval</header><text>In considering any request for approval of a product
pursuant to subsection (a), the Director shall make a determination
that—</text>
<paragraph id="HF3A9A676FAA54498B4C39CC67E8F7F81"><enum>(1)</enum><text>in the case of a
product of the Federal National Mortgage Association, the product is authorized
under paragraph (2), (3), (4), or (5) of section 302(b) or section 304 of the
Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)</external-xref>,
1719);</text>
</paragraph><paragraph id="H047481AEE4C14A988930396FEB5EFA11"><enum>(2)</enum><text>in the case of a
product of the Federal Home Loan Mortgage Corporation, the product is
authorized under paragraph (1), (4), or (5) of section 305(a) of the Federal
Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)</external-xref>);</text>
</paragraph><paragraph id="H20BE0E39BFCC447800FBC572A781E5CE"><enum>(3)</enum><text>the product is in
the public interest; and</text>
</paragraph><paragraph id="HE2EA53E0AD1F4FE08C05EB1F0069896F"><enum>(4)</enum><text>the product is
consistent with the safety and soundness of the enterprise or the mortgage
finance system.</text>
</paragraph></subsection><subsection id="H0C6AE8667A51490B9B00F7196D000347"><enum>(c)</enum><header>Procedure for
approval</header>
<paragraph id="H9B5DA514FA504F38950413171073269B"><enum>(1)</enum><header>Submission of
request</header><text>An enterprise shall submit to the Director a written
request for approval of a product that describes the product in such form as
prescribed by order or regulation of the Director.</text>
</paragraph><paragraph id="H6ECDD399AA0E4B6BB53B8423053CC9D"><enum>(2)</enum><header>Request for
public comment</header><text>Immediately upon receipt of a request for approval
of a product, as required under paragraph (1), the Director shall publish
notice of such request and of the period for public comment pursuant to
paragraph (3) regarding the product, and a description of the product proposed
by the request. The Director shall give interested parties the opportunity to
respond in writing to the proposed product.</text>
</paragraph><paragraph id="HCC7F71C9A78F4F898172D2CD3EC0683D"><enum>(3)</enum><header>Public comment
period</header><text>During the 30-day period beginning on the date of
publication pursuant to paragraph (2) of a request for approval of a product,
the Director shall receive public comments regarding the proposed
product.</text>
</paragraph><paragraph id="H27BB4A3F1A87461AA6DB2BB8665D90D2"><enum>(4)</enum><header>Offering of
product</header>
<subparagraph id="HEE377168C97E497E97E281BBBFD2F2F"><enum>(A)</enum><header>In
general</header><text>Not later than 30 days after the close of the public
comment period described in paragraph (3), the Director shall approve or deny
the product, specifying the grounds for such decision in writing.</text>
</subparagraph><subparagraph id="H9D199C33A18F462BB61E4DCAC4F1A8A5"><enum>(B)</enum><header>Failure to
act</header><text>If the Director fails to act within the 30-day period
described in subparagraph (A), then the enterprise may offer the
product.</text>
</subparagraph><subparagraph id="H4C4E98BA10B14F519165D7A19800BA1D"><enum>(C)</enum><header>Temporary
approval</header><text>The Director may, subject to the rules of the Director,
provide for temporary approval of the offering of a product without a public
comment period, if the Director finds that the existence of exigent
circumstances makes such delay contrary to the public interest.</text>
</subparagraph></paragraph></subsection><subsection id="HDA173C2F60CF451C982284D328CC71E7"><enum>(d)</enum><header>Conditional
approval</header><text>If the Director approves the offering of any product by
an enterprise, the Director may establish terms, conditions, or limitations
with respect to such product with which the enterprise must comply in order to
offer such product.</text>
</subsection><subsection id="H888A325F90434857B5AEA8D37F441C4E"><enum>(e)</enum><header>Exclusions</header>
<paragraph id="H4D63B616F2564079929B0076B5A65E43"><enum>(1)</enum><header>In
general</header><text>The requirements of subsections (a) through (d) do not
apply with respect to—</text>
<subparagraph id="HCE5CD16AB53548C493921CD0002EE554"><enum>(A)</enum><text>the automated loan
underwriting system of an enterprise in existence as of the date of enactment
of the <short-title>Federal Housing Finance Regulatory
Reform Act of 2008</short-title>, including any upgrade to the technology,
operating system, or software to operate the underwriting system;</text>
</subparagraph><subparagraph id="HE6F0AADAE8EA4DE38FB018A03200F0CC"><enum>(B)</enum><text>any modification
to the mortgage terms and conditions or mortgage underwriting criteria relating
to the mortgages that are purchased or guaranteed by an enterprise, provided
that such modifications do not alter the underlying transaction so as to
include services or financing, other than residential mortgage financing;
or</text>
</subparagraph><subparagraph id="H1039A823898449A2A65539178BF8A95D"><enum>(C)</enum><text>any other activity
that is substantially similar, as determined by rule of the Director to—</text>
<clause id="HAAE472E6347A46D8BD6D0091DE2E304C"><enum>(i)</enum><text>the activities
described in subparagraphs (A) and (B); and</text>
</clause><clause id="H0990A6D6E9E845DEB78B4B3225AFC202"><enum>(ii)</enum><text>other activities
that have been approved by the Director in accordance with this section.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H2E1D85C484FA43AF95DC714DD7AD8C28"><enum>(2)</enum><header>Expedited
review</header>
<subparagraph commented="no" id="H1AABCC4F0A334B4A972EB857B639859D"><enum>(A)</enum><header>Enterprise
notice</header><text>For any new activity that an enterprise considers not to
be a product, the enterprise shall provide written notice to the Director of
such activity, and may not commence such activity until the date of receipt of
a notice under subparagraph (B) or the expiration of the period described in
subparagraph (C). The Director shall establish, by regulation, the form and
content of such written notice.</text>
</subparagraph><subparagraph commented="no" id="HE337960E1831423683AE4900B3DDC0D7"><enum>(B)</enum><header>Director
determination</header><text>Not later than 15 days after the date of receipt of
a notice under subparagraph (A), the Director shall determine whether such
activity is a product subject to approval under this section. The Director
shall, immediately upon so determining, notify the enterprise.</text>
</subparagraph><subparagraph commented="no" id="H89AA97225ECC4825AC87805282F7F71C"><enum>(C)</enum><header>Failure to
act</header><text>If the Director fails to determine whether such activity is a
product within the 15-day period described in subparagraph (B), the enterprise
may commence the new activity in accordance with subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="HB9705B859A824209AC6C18CA0025703E"><enum>(f)</enum><header>No
limitation</header><text>Nothing in this section may be construed to
restrict—</text>
<paragraph id="HEE1987D6F69549ECAF4B50411CC96F78"><enum>(1)</enum><text>the safety and
soundness authority of the Director over all new and existing products or
activities; or</text>
</paragraph><paragraph id="HA582066011844C29BBCC0067E6BDB3AD"><enum>(2)</enum><text>the authority of
the Director to review all new and existing products or activities to determine
that such products or activities are consistent with the statutory mission of
an enterprise.</text>
</paragraph></subsection></section><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="HDA34C4E249D241719FF525FD1B1DF89"><enum>124.</enum><header>Conforming loan
limits</header>
<subsection id="H3E780449A68144CCA52104FC991459BC"><enum>(a)</enum><header>Fannie
mae</header>
<paragraph id="H2ABEAFCB70324D96A970E0CDA11B5258"><enum>(1)</enum><header>General
limit</header><text>Section 302(b)(2) of the Federal National Mortgage
Association Charter Act (<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 $417,000 for a mortgage secured by a single-family
residence, $533,850 for a mortgage secured by a 2-family residence, $645,300
for a mortgage secured by a 3-family residence, and $801,950 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 of
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, subject to the limitations in this paragraph. Each
adjustment shall be made by adding to each such amount (as it may have been
previously adjusted) a percentage thereof equal to the percentage increase,
during the most recent 12-month or 4th-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 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4541)). If the change in such house price index during the most recent
12-month or 4th-quarter period ending before the time of determining such
annual adjustment is a decrease, then no adjustment shall be made for the next
year, and the next adjustment shall take into account prior declines in the
house price index, so that any adjustment shall reflect the net change in the
house price index since the last adjustment. Declines in the house price index
shall be accumulated and then reduce increases until subsequent increases
exceed prior declines.</quote>.</text>
</paragraph><paragraph id="H845F0770EA654D47BD5451E500C8E6F4"><enum>(2)</enum><header>High-cost area
limit</header><text>Section 302(b)(2) of the Federal National Mortgage
Association Charter Act (<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.</quote>.</text>
</paragraph><paragraph id="HA16C2F8C62B647ECADA636B8984590B3"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by paragraphs (1) and (2) of this
subsection shall take effect upon the expiration of the date described in
section 201(a) of the Economic Stimulus Act of 2008 (Public Law
110–185).</text>
</paragraph></subsection><subsection id="HB5592C0CD1F44D988FEB5CEF1F94F96"><enum>(b)</enum><header>Freddie
mac</header>
<paragraph id="HF425E157EE0740FC00EF4879D5D00434"><enum>(1)</enum><header>General
limit</header><text>Section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (<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 $417,000 for a mortgage secured by a single-family residence,
$533,850 for a mortgage secured by a 2-family residence, $645,300 for a
mortgage secured by a 3-family residence, and $801,950 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 of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, subject to the limitations in this paragraph. Each
adjustment shall be made by adding to each such amount (as it may have been
previously adjusted) a percentage thereof equal to the percentage increase,
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 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4541)). If the change in such house price index during the most recent
12-month or 4th-quarter period ending before the time of determining such
annual adjustment is a decrease, then no adjustment shall be made for the next
year, and the next adjustment shall take into account prior declines in the
house price index, so that any adjustment shall reflect the net change in the
house price index since the last adjustment. Declines in the house price index
shall be accumulated and then reduce increases until subsequent increases
exceed prior declines.</quote>.</text>
</paragraph><paragraph id="H49D17EA74AD34268ACB564438B646628"><enum>(2)</enum><header>High-cost area
limit</header><text>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.</quote>.</text>
</paragraph><paragraph id="H3E74CC63ADD94F349FF0FDE9566F34C1"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by paragraphs (1) and (2) of this
subsection shall take effect upon the expiration of the date described in
section 201(a) of the Economic Stimulus Act of 2008 (Public Law
110–185).</text>
</paragraph></subsection><subsection id="HB0BBBFAAB4A742F4A895DD9E6CBF01B6"><enum>(c)</enum><header>Sense of
Congress</header><text>It is the sense of the Congress that the securitization
of mortgages by the Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation plays an important role in providing liquidity to the
United States housing markets. Therefore, the Congress encourages the Federal
National Mortgage Association and the Federal Home Loan Mortgage Corporation to
securitize mortgages acquired under the increased conforming loan limits
established under this Act.</text>
</subsection><subsection id="H686F0BF4F20044DBAAA0D2107B83BD94"><enum>(d)</enum><header>Housing price
index</header><text>Part 2 of subtitle A of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended
by inserting after section 1321 (as added by section 123 of this Act) the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H68990AB7E59C4D56BE3882D2223B6000" style="OLC">
<section id="HFAEDAA613B764EFFA131D8F6C5B2EBE7"><enum>1322.</enum><header>Housing price
index</header><text display-inline="no-display-inline">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 of the Federal Housing Finance Regulatory Reform Act of 2008,
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>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H97F7A589BC9144868F599C1EBDE1D96F"><enum>125.</enum><header>Annual housing
report</header>
<subsection id="H8AAA52BF02414C37A7C4D591B9534782"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1324 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544</external-xref>)</act-name> is hereby
repealed.</text>
</subsection><subsection id="HB8660F744D2844FAB4224BC2024B6C80"><enum>(b)</enum><header>Annual housing
report</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is </act-name>amended by inserting after section 1323
the following:</text>
<quoted-block act-name="Housing and Community Development Act of 1992" id="H7B95C0ADAC2D41F392EFE86C79859767" style="OLC">
<section id="H77FA3B9C88184F4D987F12E411610365"><enum>1324.</enum><header>Annual housing
report</header>
<subsection id="HF3A07FF3E283427DB5FDBC054287CEAB"><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> and section 307(f) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>, the Director shall submit a report, not later than October 30
of each year, to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives,
on the activities of each enterprise.</text>
</subsection><subsection id="HD179727401CB420BB5CE787ED755967"><enum>(b)</enum><header>Contents</header><text>The
report required under subsection (a) shall—</text>
<paragraph id="H3A88627252A44867AEDD4102A79E289C"><enum>(1)</enum><text>discuss—</text>
<subparagraph id="H1A1D5FC6EC4E4A319CDDBDF6BB207750"><enum>(A)</enum><text>the extent to and
manner in which—</text>
<clause id="HE4ACAD9C111C4D099458F17484D141DE"><enum>(i)</enum><text>each enterprise is
achieving the annual housing goals established under subpart B;</text>
</clause><clause id="H27437F76E92E47B9BABC134BBF95AC72"><enum>(ii)</enum><text>each enterprise
is complying with its duty to serve underserved markets, as established under
section 1335;</text>
</clause><clause id="HDE570CFA92424650B9CF7880AE0289C"><enum>(iii)</enum><text>each enterprise
received credit towards achieving each of its goals resulting from a
transaction or activity pursuant to section 1331(b)(2); and</text>
</clause><clause id="HFE2E427DF52F4421B3A1A5483738B627"><enum>(iv)</enum><text>each enterprise
is achieving the purposes of the enterprise established by law; and</text>
</clause></subparagraph><subparagraph id="H60FB3BFBBD7C4BBE8673CC2081FE8590"><enum>(B)</enum><text>the actions that
each enterprise could undertake to promote and expand the purposes of the
enterprise;</text>
</subparagraph></paragraph><paragraph id="HE33FE1F33456488EA27135FEF84201D"><enum>(2)</enum><text>aggregate and
analyze relevant data on income to assess the compliance of each enterprise
with the housing goals established under subpart B;</text>
</paragraph><paragraph id="H630F53687A5C424B8BEEBD776DFF97EE"><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="H507BC8BB39D44B32AE76F4D009F816B"><enum>(4)</enum><text>identify the extent
to which each enterprise is involved in mortgage purchases and secondary market
activities involving subprime and nontraditional loans;</text>
</paragraph><paragraph id="H56606B3A71354FD3BF4C453F37F37610"><enum>(5)</enum><text>compare the
characteristics of subprime and nontraditional loans both purchased and
securitized by each enterprise to other loans purchased and securitized by each
enterprise; and</text>
</paragraph><paragraph id="HD0C9A9B6E69341D38F511B804100B9D3"><enum>(6)</enum><text>compare the
characteristics of high-cost loans purchased and securitized, where such
securities are not held on portfolio to loans purchased and securitized, where
such securities are either retained on portfolio or repurchased by the
enterprise, including such characteristics as—</text>
<subparagraph id="H87BA71DC589346FA84BB837B246DA802"><enum>(A)</enum><text>the purchase price
of the property that secures the mortgage;</text>
</subparagraph><subparagraph id="H66723249BFEB4A1AAE33919F6DBF0345"><enum>(B)</enum><text>the loan-to-value
ratio of the mortgage, which shall reflect any secondary liens on the relevant
property;</text>
</subparagraph><subparagraph id="H2FF62AC1B9B24471B6E5A7CB244FE5FD"><enum>(C)</enum><text>the terms of the
mortgage;</text>
</subparagraph><subparagraph id="HB44074D64A8D44DCB2319639687D7FD3"><enum>(D)</enum><text>the
creditworthiness of the borrower; and</text>
</subparagraph><subparagraph id="H769B3A36D2BE41A0B15900FCA3264830"><enum>(E)</enum><text>any other relevant
data, as determined by the Director.</text>
</subparagraph></paragraph></subsection><subsection id="H43556A239EB642B99B97990092B9DD63"><enum>(c)</enum><header>Data Collection
and Reporting</header>
<paragraph id="HF0520E0C8F73475687982552EC995C09"><enum>(1)</enum><header>In
general</header><text>To assist the Director in analyzing the matters described
in subsection (b), the Director shall conduct, on a monthly basis, a survey of
mortgage markets in accordance with this subsection.</text>
</paragraph><paragraph id="HCAE6726C5DC74ADC98298E724BCB77EA"><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="H2B93C15086274FBC9D1468931B1647A3"><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="H3EF3F97D64AF483A9084939E30E931F7"><enum>(i)</enum><text>the price of the
house that secures the mortgage;</text>
</clause><clause id="HA2CBBA2F20C245AE93939BDFFA5B35DD"><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="H9EC1BC4D77FE4605A2A8A3B8740FD44"><enum>(iii)</enum><text>the terms of the
mortgage;</text>
</clause><clause id="HE2920A35A98C457487A980EFD4E608AC"><enum>(iv)</enum><text>the
creditworthiness of the borrower or borrowers; and</text>
</clause><clause id="HBB1B6F490BCD48FA83673DE82B29FA50"><enum>(v)</enum><text>whether the
mortgage, in the case of a conforming mortgage, was purchased by an
enterprise;</text>
</clause></subparagraph><subparagraph id="HC1768552E75442658EE07FF34F35644"><enum>(B)</enum><text>the characteristics
of individual subprime and nontraditional mortgages that are eligible for
purchase by the enterprises and the characteristics of borrowers under such
mortgages, including the creditworthiness of such borrowers and determination
whether such borrowers would qualify for prime lending; and</text>
</subparagraph><subparagraph id="H025D7B399AE64546880015E5749CA95E"><enum>(C)</enum><text>such other matters
as the Director determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="H4A2C672F21B6476FA98C961BCA7CC2C"><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—</text>
<subparagraph id="HE5B8DBDED52942A49F798FA862D29C42"><enum>(A)</enum><text>is not released in
an identifiable form; and</text>
</subparagraph><subparagraph id="HFF3C00D33EC84AF3A8A1F66BB4CDAE4F"><enum>(B)</enum><text>is not otherwise
obtainable from other publicly available data sets.</text>
</subparagraph></paragraph><paragraph id="HF5E09C7757F442E4A25E7FC521FE8992"><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></section><section id="H470E42F09D1C4F618173CBFB0872BF57"><enum>126.</enum><header>Public use
database</header><text display-inline="no-display-inline">Section 1323 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4543">42 U.S.C. 4543</external-xref>) is amended—</text>
<paragraph id="H11F8B493D7B44F1B00F81639D03FDE11"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H128B047584094A91897C6FDD187756B7"><enum>(A)</enum><text>by striking
<quote>(a) <header-in-text level="subsection" style="OLC">In
general</header-in-text>.—The Secretary</quote> and inserting the
following:</text>
<quoted-block id="H97A2FAA22B724E26A454A5F8D968532F" style="OLC">
<subsection id="HA8844256DC9A4045A5E27745642EB8EA"><enum>(a)</enum><header>Availability</header>
<paragraph id="HCFC449C6AE2B47259B18ACE920278751"><enum>(1)</enum><header>In
general</header><text>The Director</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H278A8C2F758949F9848C00DB92989D00"><enum>(B)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H47E0370738154977B76CBF3CD74556D7" style="OLC">
<paragraph id="HE182E94074DF4ADBAC05C6C54DB3EB93"><enum>(2)</enum><header>Census tract
level reporting</header><text>Such data shall include the data elements
required to be reported under the Home Mortgage Disclosure Act of 1975, at the
census tract
level.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1C1CFD41AC6940CA92396DD7A776CCE7"><enum>(2)</enum><text>in subsection
(b)(2), by inserting before the period at the end the following: <quote>or with
subsection (a)(2)</quote>; and</text>
</paragraph><paragraph id="H6B016C58E6904EF4899D00FB607BF339"><enum>(3)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="H060416DC30B743FEADEA8CD600B3FE6E" style="OLC">
<subsection id="H158DF39A1209449E9729AE00ED3FE1AD"><enum>(d)</enum><header>Timing</header><text>Data
submitted under this section by an enterprise in connection with a provision
referred to in subsection (a) shall be made publicly available in accordance
with this section not later than September 30 of the year following the year to
which the data relates.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></section><section id="HF7035E711FB44C56A9584642DCEE001B"><enum>127.</enum><header>Reporting of
mortgage data</header><text display-inline="no-display-inline">Section 1326 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4546) is amended—</text>
<paragraph id="H1B0685D674774F378E13B2DEB3E2A2B2"><enum>(1)</enum><text>in subsection (a),
by striking <quote>The Director</quote> and inserting <quote>Subject to
subsection (d), the Director</quote>; and</text>
</paragraph><paragraph id="HFFE1185FBEF44D82A96427AB1B9B442"><enum>(2)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H98BAB804E32E4C3E0019AE3C68A2A8CF" style="OLC">
<subsection id="H0E4EC6D2A398418BB08B7676F51C20E4"><enum>(d)</enum><header>Mortgage
information</header><text>Subject to privacy considerations, as described in
section 304(j) of the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2803">12 U.S.C. 2803(j)</external-xref>),
the Director shall, by regulation or order, provide that certain information
relating to single family mortgage data of the enterprises shall be disclosed
to the public, in order to make available to the public—</text>
<paragraph id="HFCD603B3DEA6417E8E1D27D7C19E9900"><enum>(1)</enum><text>the same data from
the enterprises that is required of insured depository institutions under the
Home Mortgage Disclosure Act of 1975; and</text>
</paragraph><paragraph id="H38EE4CEFEC9D4EFDB32C14729DEDC1A2"><enum>(2)</enum><text>information
collected by the Director under section
1324(b)(6).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HCCCE6E5152E64D47902B734BA0BBD637"><enum>128.</enum><header>Revision of
housing goals</header>
<subsection id="H233E847AC5EA4CAA9844454643D1C44B"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Sections 1331 through 1334 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4561 through 4564)</act-name> are hereby
repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC498391015FB4B069D15004CF123E56F"><enum>(b)</enum><header>Housing
Goal</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> is amended by inserting before section
1335 the following:</text>
<quoted-block display-inline="no-display-inline" id="HA72BABD91A6B4C369E09551E29194889" style="OLC">
<section id="H131B44F22690482281C7CE00566B7DF"><enum>1331.</enum><header>Establishment
of housing goals</header>
<subsection id="HDA20F0CEB72741EE944B8541EB56CE4"><enum>(a)</enum><header>In
General</header><text>The Director shall, by regulation, establish effective
for the first calendar year that begins after the date of enactment of the
Federal Housing Finance Regulatory Reform Act of 2008, and each year
thereafter, annual housing goals, as described under this subpart, with respect
to the mortgage purchases by the enterprises.</text>
</subsection><subsection id="H9EF0AB7FC9C54B569587391C8639FA13"><enum>(b)</enum><header>Special counting
requirements</header>
<paragraph id="HCA3BCAC655A04EBE9070DD3D921B7EC5"><enum>(1)</enum><header>In
general</header><text>The Director shall determine whether an enterprise shall
receive full, partial, or no credit for a transaction toward achievement of any
of the housing goals established pursuant to this section or sections 1332
through 1334.</text>
</paragraph><paragraph id="H5CE6B61AA6E7445198FA65031F918F71"><enum>(2)</enum><header>Considerations</header><text>In
making any determination under paragraph (1), the Director shall consider
whether a transaction or activity of an enterprise is substantially equivalent
to a mortgage purchase and either (A) creates a new market, or (B) adds
liquidity to an existing market, provided however that the terms and conditions
of such mortgage purchase is neither determined to be unacceptable, nor
contrary to good lending practices, and otherwise promotes sustainable
homeownership and further, that such mortgage purchase actually fulfills the
purposes of the enterprise and is in accordance with the chartering Act of such
enterprise.</text>
</paragraph></subsection><subsection id="H3CA921CCE1334DEC96D4C0DEFDDECC00"><enum>(c)</enum><header>Eliminating
interest rate disparities</header>
<paragraph id="H46457BDE53974BB88EF49F8E30CA9CDA"><enum>(1)</enum><header>In
general</header><text>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="H9CED21D651E84DF5BA00B79678D539DE"><enum>(2)</enum><header>Report to
congress on disparities</header><text>Upon a finding by the Director that a
pattern of disparities in interest rates exists pursuant to the information
provided by an enterprise under paragraph (1), the Director shall—</text>
<subparagraph id="H4574E2AD9D1841A98FDCCCE8E13E8FD"><enum>(A)</enum><text>forward to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a report
detailing the disparities; and</text>
</subparagraph><subparagraph id="H396EB350447F475DA67324E749322851"><enum>(B)</enum><text>forward the report
prepared under subparagraph (A) to any other appropriate regulatory or
enforcement agency.</text>
</subparagraph></paragraph><paragraph id="H6452DC022D28472C884E5949844562E"><enum>(3)</enum><header>Identity of
individuals not disclosed</header><text>In carrying out this subsection, the
Director shall ensure that no personally identifiable financial information
that would enable an individual borrower to be reasonably identified shall be
made public.</text>
</paragraph></subsection><subsection id="H5DCDE597853D4EC1BFE1D439BEF6C96"><enum>(d)</enum><header>Timing</header><text>The
Director shall establish an annual deadline for the establishment of housing
goals described in subsection (a), 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
goals.</text>
</subsection></section><section id="H586032A6CA1F46C3A071E05628F1C5A5"><enum>1331A.</enum><header>Discretionary
adjustment of housing goals</header>
<subsection id="HEC853AA847F840EC8918444E0047B3E5"><enum>(a)</enum><header>Authority</header>
<paragraph id="H378E8E6851AE4AB884C81B04535E4DDB"><enum>(1)</enum><header>Review</header><text>The
Director shall review the appropriateness of each goal established pursuant to
this subpart at least once during each year to assure that given current market
conditions that each such goal is feasible.</text>
</paragraph><paragraph id="H558F0DE8B42A402083E4E9223D00E974"><enum>(2)</enum><header>Petition to
reduce</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>
</paragraph></subsection><subsection id="HCA8530450D0D4650B19DDF091C688F52"><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="H6C455BA5FA50461D8643927292B79947"><enum>(1)</enum><text>market and
economic conditions or the financial condition of the enterprise require such
action; or</text>
</paragraph><paragraph id="HB42E2220B41E49D0A065143B85333F00"><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, section 301(3) of 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(3)</external-xref>), or
section 301(b)(3) of the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name> (<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="HC876BB408C3344DF9BEF5152FD6628AF"><enum>(c)</enum><header>Determination</header>
<paragraph id="H0333ADEDA944417691EBA7EFC1013E70"><enum>(1)</enum><header>30-day
period</header><text>If an enterprise submits a petition for reduction to the
Director under subsection (a)(2), the Director shall make a determination
regarding any proposed reduction within 30 days of receipt of the
petition.</text>
</paragraph><paragraph id="HE2B6615CB5B143419703551D0135EB71"><enum>(2)</enum><header>Extension</header><text>The
Director may extend the period described in paragraph (1) for a single
additional 15-day period, but only if the Director requests additional
information from the enterprise.</text>
</paragraph></subsection></section><section id="HF25EE61042E34235BE00D936A1C507B2"><enum>1332.</enum><header>Single-family
housing goals</header>
<subsection id="H419182A60C044BCEBD9865F05DDD22D4"><enum>(a)</enum><header>Establishment of
Goals</header>
<paragraph id="H14BC750A3D5A41E2AA00F8DDB48140F"><enum>(1)</enum><header>In
General</header><text>The Director shall establish annual goals for the
purchase by each enterprise of conventional, conforming, single-family,
owner-occupied, purchase money mortgages financing housing for each of the
following:</text>
<subparagraph id="H3FB81CCF041D495D8B0836C55B4C26F"><enum>(A)</enum><text>Low-income
families.</text>
</subparagraph><subparagraph id="HD8F977D2063B47A480BC15822EDFD07"><enum>(B)</enum><text>Families that
reside in low-income areas.</text>
</subparagraph><subparagraph id="HC4F31D0CE2464C55AD40C763B46E748D"><enum>(C)</enum><text>Very low-income
families.</text>
</subparagraph></paragraph><paragraph id="HF85054C696A6426C9EBBD2E14FBE28B5"><enum>(2)</enum><header>Goals as
percentage of total purchase money mortgage purchases</header><text>The goals
established under paragraph (1) shall be established as a percentage of the
total number of single-family dwelling units financed by single-family purchase
money mortgage purchases of the enterprise.</text>
</paragraph></subsection><subsection id="H6B83A173DD204AD88FC899E1DE179BA1"><enum>(b)</enum><header>Determination of
Compliance</header>
<paragraph id="H2CBC6228FA4342718135A302BEDB66BF"><enum>(1)</enum><header>In
general</header><text>The Director shall determine, for each year that the
housing goals under this section are in effect pursuant to section 1331(a),
whether each enterprise has complied with the single-family housing goals
established under this section for such year.</text>
</paragraph><paragraph id="H1CACE7374A8240F2890400A569193190"><enum>(2)</enum><header>Compliance
requirements</header><text>An enterprise shall be considered to be in
compliance with a goal described under subsection (a) for a year, only if, 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 the enterprise in such year that serve such
families, meets or exceeds the target established under subsection (c) for the
year for such type of family.</text>
</paragraph></subsection><subsection id="HBE75E448A2164FC798096F9F5400B097"><enum>(c)</enum><header>Annual
Targets</header>
<paragraph id="HEE043831A3B246B997BFE6BE85E4A1CA"><enum>(1)</enum><header>In
general</header><text>The Director shall establish annual targets for each goal
described in subsection (a).</text>
</paragraph><paragraph id="H5354D3D3FC334B6F9F5B92271439B0CC"><enum>(2)</enum><header>Considerations</header><text>In
establishing annual targets under paragraph (1), the Director shall
consider—</text>
<subparagraph id="H57B810E0CC874A60A6D27311995FB200"><enum>(A)</enum><text>national housing
needs;</text>
</subparagraph><subparagraph id="HFF1F5D13018A4BE4B493ED03EC07EACE"><enum>(B)</enum><text>economic, housing,
and demographic conditions;</text>
</subparagraph><subparagraph id="HE161495BD3A5405C92D2ED1CEDA8D24B"><enum>(C)</enum><text>the performance
and effort of the enterprises toward achieving the housing goals under this
section in previous years;</text>
</subparagraph><subparagraph id="H16646B82259745C0B7C7BEA8220B7F5"><enum>(D)</enum><text>the ability of the
enterprise to lead the industry in making mortgage credit available;</text>
</subparagraph><subparagraph id="H5B736E9E273C424D9B2E10FFEB5ED0D7"><enum>(E)</enum><text>recent information
submitted in compliance with the Home Mortgage Disclosure Act of 1975 and such
other reliable mortgage data as may be available;</text>
</subparagraph><subparagraph id="HFDE786631B55428CBFA1405826E22C7"><enum>(F)</enum><text>the size of the
purchase money conventional mortgage market serving each of the types of
families described in subsection (a), relative to the size of the overall
purchase money mortgage market; and</text>
</subparagraph><subparagraph id="HBCFAC2D55A2B493286C94B72D2365907"><enum>(G)</enum><text>the need to
maintain the sound financial condition of the enterprises.</text>
</subparagraph></paragraph><paragraph id="H7EDAA6A28A734B399C77069E8E72D610"><enum>(3)</enum><header>High-cost loans
and inappropriate lending practices</header><text>In establishing annual
targets under paragraph (1), the Director shall not consider segments of the
market determined to be unacceptable or contrary to good lending practices
pursuant to section 1331(b)(2).</text>
</paragraph></subsection><subsection id="HC8140C30C48C4A92824FD3099816A9CC"><enum>(d)</enum><header>Notice of
Determination and Enterprise Comment</header>
<paragraph id="HE1D3BF0812634F30B06EAED83FE13703"><enum>(1)</enum><header>Notice</header><text>Within
30 days of making a determination under subsection (b) regarding compliance of
an enterprise for a year with the housing goals 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="H6695247071A5485C89D8C4995CF69800"><enum>(2)</enum><header>Comment
period</header><text>The Director shall provide each enterprise and the public
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="H636EE4E160DE45A6B51258ECBC1E2E77"><enum>(e)</enum><header>Use of Borrower
Income</header><text>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 the income of the mortgagor at the time of origination of the
mortgage.</text>
</subsection><subsection id="H41700FD7ED3D4BB497002736B7D4C635"><enum>(f)</enum><header>Consideration of
properties with rental units</header><text>Mortgages financing 1-to-4 unit
owner-occupied properties shall count toward the achievement of the
single-family housing goal under this section, if such properties otherwise
meet the requirements under this section notwithstanding the use of 1 or more
units for rental purposes.</text>
</subsection></section><section id="H89FC3035F0684C2C901580ACFFCD1B58"><enum>1333.</enum><header>Single-family
housing refinance goals</header>
<subsection id="H5B9C5DA7BB1D4D1083CE836FD537A57B"><enum>(a)</enum><header>Prepayment of
Existing Loans</header>
<paragraph id="HA9BD06DAAA24458E88D208D46D00A035"><enum>(1)</enum><header>In
general</header><text>The Director shall establish annual goals for the
purchase by each enterprise of mortgages on conventional, conforming,
single-family, owner-occupied housing given to pay off or prepay an existing
loan served by the same property for each of the following:</text>
<subparagraph id="H4931A314BE034633AFC67C1D61BFEB5B"><enum>(A)</enum><text>Low-income
families.</text>
</subparagraph><subparagraph id="HC077CE02A5B34396861D8747E00E6F"><enum>(B)</enum><text>Families that reside
in low-income areas.</text>
</subparagraph><subparagraph id="H328C69A09B0240AD8EA2C6E39B51FAD4"><enum>(C)</enum><text>Very low-income
families.</text>
</subparagraph></paragraph><paragraph id="HA0AAED174A4948918E1FE004472E2717"><enum>(2)</enum><header>Goals as
percentage of total refinancing mortgage purchases</header><text>The goals
described under paragraph (1) shall be established as a percentage of the total
number of single-family dwelling units refinanced by mortgage purchases of each
enterprise.</text>
</paragraph></subsection><subsection id="H855AF8835B8C4B88BE005293732DB400"><enum>(b)</enum><header>Determination of
Compliance</header>
<paragraph id="HAC1682D367644E98914B039135EA2E75"><enum>(1)</enum><header>In
general</header><text>The Director shall determine, for each year that the
housing goals under this section are in effect pursuant to section 1331(a),
whether each enterprise has complied with the single-family housing refinance
goals established under this section for such year.</text>
</paragraph><paragraph id="H3D732294591A4139A3A27CFE43962B39"><enum>(2)</enum><header>Compliance</header><text>An
enterprise shall be considered to be in compliance with the goals of this
section for a year, only if, for each of the types of families described in
subsection (a), the percentage of the number of conventional, conforming,
single-family, owner-occupied refinancing mortgages purchased by each
enterprise in such year that serve such families, meets or exceeds the target
for the year for such type of family that is established under subsection
(c).</text>
</paragraph></subsection><subsection id="HFCAC14BC87C44855BE00FFBDF5B53E61"><enum>(c)</enum><header>Annual
Targets</header>
<paragraph id="H8C829A1772D5474491DD3EF759D05CD"><enum>(1)</enum><header>In
general</header><text>The Director shall establish annual targets for each goal
described in subsection (a).</text>
</paragraph><paragraph id="H778130FF489E4372ADE2E79078A84C9"><enum>(2)</enum><header>Considerations</header><text>In
establishing annual targets under paragraph (1), the Director shall
consider—</text>
<subparagraph id="H327A392587A44E61A368D4156682C2C3"><enum>(A)</enum><text>national housing
needs;</text>
</subparagraph><subparagraph id="H1AFC6E51330E4BE0A86517C527AE29D"><enum>(B)</enum><text>economic, housing,
and demographic conditions;</text>
</subparagraph><subparagraph id="H659736A65AEA41440009FA176BA98441"><enum>(C)</enum><text>the performance
and effort of the enterprises toward achieving the housing goals under this
section in previous years;</text>
</subparagraph><subparagraph id="H4DDCA8BBA6014218B2C4C4FB2363000"><enum>(D)</enum><text>the ability of the
enterprise to lead the industry in making mortgage credit available;</text>
</subparagraph><subparagraph id="HB99B2505ED6E4FCC806346EFAB002046"><enum>(E)</enum><text>recent information
submitted in compliance with the Home Mortgage Disclosure Act of 1975 and such
other reliable mortgage data as may be available;</text>
</subparagraph><subparagraph id="H6DB00979E8F9440BB566CF0EA60E9F6"><enum>(F)</enum><text>the size of the
purchase money conventional mortgage market serving each of the types of
families described in subsection (a), relative to the size of the overall
purchase money mortgage market; and</text>
</subparagraph><subparagraph id="H8B92579202284654BFE0FAC2B93A7F9"><enum>(G)</enum><text>the need to
maintain the sound financial condition of the enterprises.</text>
</subparagraph></paragraph></subsection><subsection id="H4BDA339417E648A096FA4D10C17288C2"><enum>(d)</enum><header>Notice of
Determination and Enterprise Comment</header>
<paragraph id="H6286EFA6F3A94FF788D079A863E0E185"><enum>(1)</enum><header>Notice</header><text>Within
30 days of making a determination under subsection (b) regarding compliance of
an enterprise for a year with the housing goals 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="H9634E6C325D24ACBAAEDFC59E1A36C83"><enum>(2)</enum><header>Comment
period</header><text>The Director shall provide each enterprise and the public
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="H7449B92ED66345B4B844ED779C3D6590"><enum>(e)</enum><header>Use of Borrower
Income</header><text>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 the income of the mortgagor at the time of origination of the
mortgage.</text>
</subsection></section><section id="H8675CC80BFA647498973A47EA351F165"><enum>1334.</enum><header>Multifamily
special affordable housing goal</header>
<subsection id="H54A472AE3FAE48DA9437CE2B795F109C"><enum>(a)</enum><header>Establishment</header>
<paragraph id="H7CB1DE6A61174DAD86C6B846AE7C1586"><enum>(1)</enum><header>In
general</header><text>The Director shall establish, by regulation, by unit,
dollar volume, or percentage of multifamily activity, as determined by the
Director, an annual goal for the purchase by each enterprise of—</text>
<subparagraph id="HE4929463086B45B49CDAF1768FE0CB80"><enum>(A)</enum><text>mortgages that
finance dwelling units affordable to very low-income families; and</text>
</subparagraph><subparagraph id="HDC42BAE7D1EC4AC5A3665BC675616E63"><enum>(B)</enum><text>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="HE6D8310DD709445AAAB66F345E93CF4B"><enum>(2)</enum><header>Additional
requirements for smaller projects</header><text>The Director shall establish,
within the housing goal established 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 5 to 50 units (as
adjusted by the Director), or with mortgages of up to $5,000,000 (as adjusted
by the Director).</text>
</paragraph><paragraph id="HD242A7A0CE204BC49652015279E02700"><enum>(3)</enum><header>Factors</header><text>The
Director shall establish the goal and additional requirements under this
section taking into consideration—</text>
<subparagraph id="H8D422AAB697641B89745236F321C236C"><enum>(A)</enum><text>national
multifamily mortgage credit needs;</text>
</subparagraph><subparagraph id="H896FA2324B624C479DCAF1139BC3CD1F"><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="H9C001A22E8C24E9E8727006D93ADFE49"><enum>(C)</enum><text>the size of the
multifamily mortgage market, including the size of the small multifamily
mortgage market;</text>
</subparagraph><subparagraph id="HFA801CAC49A449B7B337DB08F981BDA2"><enum>(D)</enum><text>the most recent
information available for the Residential Survey published by the Census
Bureau, and such other reliable data as may be available regarding multifamily
mortgages;</text>
</subparagraph><subparagraph id="H1A012A7DAF754FC682626CFF726C8122"><enum>(E)</enum><text>the ability of the
enterprise to lead the industry in expanding mortgage credit availability at
favorable terms, especially for underserved markets, such as for—</text>
<clause id="H226838AD94A34421813DF3514510B84"><enum>(i)</enum><text>small multifamily
projects;</text>
</clause><clause id="HC7E03627E0704298BEDB6C5FC8C30057"><enum>(ii)</enum><text>multifamily
properties in need of preservation and rehabilitation; and</text>
</clause><clause id="HF912E6FEDF584E6CAAD4D32EE2623518"><enum>(iii)</enum><text>multifamily
properties located in rural areas; and</text>
</clause></subparagraph><subparagraph id="HFF48D9D75D6A421181FD5466FC8E5B3C"><enum>(F)</enum><text>the need to
maintain the sound financial condition of the enterprise.</text>
</subparagraph></paragraph></subsection><subsection id="H540B5AFFC7F0442798E6F1676B5553FC"><enum>(b)</enum><header>Units Financed
by Housing Finance Agency Bonds</header><text>The Director may give 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 projects that otherwise qualify under such goal and that are financed
by tax-exempt or taxable bonds issued by a State or local housing finance
agency, but only if such bonds—</text>
<paragraph id="H7FA8165594A946F4BE6D9FD2A6223665"><enum>(1)</enum><text>are secured by a
guarantee of the enterprise; or</text>
</paragraph><paragraph id="H639F6FD1B9EA4356B28D7342F5F933E9"><enum>(2)</enum><text>are not investment
grade and are purchased by the enterprise.</text>
</paragraph></subsection><subsection id="HD2ECED3F481248FF952D5CAF00223133"><enum>(c)</enum><header>Use of Tenant
Rent level</header>
<paragraph id="H876F6673A0C947D2974CBB7A8D57100"><enum>(1)</enum><header>In
general</header><text>The Director shall monitor the performance of each
enterprise in meeting the goal established under this section and shall
evaluate such performance (for purposes of section 1336) based on whether the
rent levels are affordable to low-income and very low-income families.</text>
</paragraph><paragraph id="H9C7D2E6FED544A69BFBE8EFF29283DCE"><enum>(2)</enum><header>Rent
level</header><text>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.</text>
</paragraph></subsection><subsection id="H8FBFC61039E64FC1B5F51677619F69D1"><enum>(d)</enum><header>Determination of
Compliance</header>
<paragraph id="HFB8851629CAF458C90F34F04BA9100D"><enum>(1)</enum><header>In
general</header><text>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>
</paragraph><paragraph id="HD8789B1DF339401C80BB9686E81B90F2"><enum>(2)</enum><header>Compliance</header><text>An
enterprise shall be considered to be in compliance with the goal described
under subsection (a) for a year only if the multifamily mortgage purchases of
the enterprise meet or exceed the goal for the year established under
subsection (a).</text>
</paragraph></subsection><subsection id="H59ED741FAD0C4C12A47CF9CCB2EB43C"><enum>(e)</enum><header>Consideration of
units in single-family rental housing</header><text>In establishing the goal
under this section, the Director may take into consideration the number of
housing units financed by any mortgage purchased by an enterprise on
single-family rental housing that is not owner-occupied.</text>
</subsection><subsection id="HA2167DC7CE5C445D819FE22E5078BE5C"><enum>(f)</enum><header>Removing
credit</header><text>The Director shall subtract from the units or mortgages
counted toward the goal established under this section in a current year any
units or mortgages credited toward such goal in a prior year if an enterprise
requires a lender to repurchase, or reimburse for losses, or indemnify the
enterprise against potential losses on such units or mortgages.</text>
</subsection><subsection id="H3AFE27A91A464A208D942D39B02EC"><enum>(g)</enum><header>Notice of
Determination and Enterprise Comment</header>
<paragraph id="HCA40EEB56E454AC08C4E16B5EA597C4F"><enum>(1)</enum><header>Notice</header><text>Within
30 days of making a determination under subsection (d) regarding 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 goal for the year under subsection (a).</text>
</paragraph><paragraph id="H2D1217FA0D9F4FA3B6F84DF0B59859C8"><enum>(2)</enum><header>Comment
period</header><text>The Director shall provide each enterprise and the public
an opportunity to comment on the determination during the 30-day period
beginning upon receipt by the enterprise of the
notice.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2DE0C57F31514490919300C2911D3425"><enum>(c)</enum><header>Conforming
Amendments</header><text>The <act-name parsable-cite="HCDA92">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> is
amended—</text>
<paragraph id="H95C6914115F54C5481E6F545E361DD29"><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="HC4D1BCDB0F864842853547A907710330"><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="H1D92E51A0EDE4A9B973386BBE271A537"><enum>(d)</enum><header>Definitions</header><text>Section
1303 of the <act-name parsable-cite="HCDA92">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>) is
amended—</text>
<paragraph id="H8AAD7C23EE38451DA5001BB5EDC55717"><enum>(1)</enum><text>by striking
paragraph (24), as so designated by section 2 of this Act, and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H87CD921B821A4545BB8184AA82ABA800" style="OLC">
<paragraph id="H9DEA7E3B18834C66BF7C6DD576E2C372"><enum>(24)</enum><header>Very
low-income</header><text>The term <quote>very low-income</quote> means—</text>
<subparagraph id="HB1B6C22254E647838044515700E1974E"><enum>(A)</enum><text>in the case of
owner-occupied units, families having incomes not greater than 50 percent of
the area median income; and</text>
</subparagraph><subparagraph id="H404CA7E5DA18427D96B5A4D3FAF916F5"><enum>(B)</enum><text>in the case of
rental units, families having incomes not greater than 50 percent of the area
median income, with adjustments for smaller and larger families, as determined
by the Director.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0F8C0055BF3E47CB8F7D35EB32360151"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H38444805A0B1477989E18F33D2D314B3" style="OLC">
<paragraph id="H1CF4B7EA87614036BD08A48165634343"><enum>(26)</enum><header>Conforming
mortgage</header><text>The term <term>conforming mortgage</term> means, with
respect to an enterprise, a conventional mortgage having an original principal
obligation that does not exceed the applicable dollar limitation, in effect at
the time of such origination, under—</text>
<subparagraph id="H0412AE0E21F24C1383EBDBAC67C6245B"><enum>(A)</enum><text>section 302(b)(2)
of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association
Charter Act</act-name>; or</text>
</subparagraph><subparagraph id="H3A35AEC91CEF4ADF85BCFC89048B0BA"><enum>(B)</enum><text>section 305(a)(2)
of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>.</text>
</subparagraph></paragraph><paragraph id="H5A18D285BF694FC3AC695B6B06D912E8"><enum>(27)</enum><header>Extremely
low-income</header><text>The term <term>extremely low-income</term>
means—</text>
<subparagraph id="H940621973DC14263A2BC38317E51EEB8"><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="HF3385147428D47DEA8ADA1769C00E5A5"><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
Director.</text>
</subparagraph></paragraph><paragraph id="H34A9C31A09384B4EB0A325E4A7B4BFF0"><enum>(28)</enum><header>Low-income
area</header><text>The term <term>low-income area</term> 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><paragraph id="H9CD740C7E1984E1AB26F4FE601842C46"><enum>(29)</enum><header>Minority census
tract</header><text>The term <quote>minority census tract</quote> means a
census tract that has a minority population of at least 30 percent and a median
family income of less than 100 percent of the area family median income.</text>
</paragraph><paragraph id="HB32BAEB8E5C74CA5B91F2F239D2252F7"><enum>(30)</enum><header>Shortage of
standard rental units both affordable and available to extremely low-income
renter households</header>
<subparagraph id="H38070C116A61445491DF00A37C8C2B36"><enum>(A)</enum><header>In
general</header><text>The term <term>shortage of standard rental units both
affordable and available to extremely low-income renter households</term> means
the gap between—</text>
<clause id="HC3F66F4915194849B8FDCB35B4F979C9"><enum>(i)</enum><text>the number of
units with complete plumbing and kitchen facilities with a rent that is 30
percent or less of 30 percent of the adjusted area median income as determined
by the Director that are occupied by extremely low-income renter households or
are vacant for rent; and</text>
</clause><clause id="HD611EA5E6A9D42ACA93F2543391D8B68"><enum>(ii)</enum><text>the number of
extremely low-income renter households.</text>
</clause></subparagraph><subparagraph id="H58BD632A182A41FC9400222FDC6DCC7E"><enum>(B)</enum><header>Rule of
construction</header><text>If the number of units described in subparagraph
(A)(i) exceeds the number of extremely low-income households as described in
subparagraph (A)(ii), there is no shortage.</text>
</subparagraph></paragraph><paragraph id="HDC6CEB4DFE2046FE81BEFB1C4583D0E3"><enum>(31)</enum><header>Shortage of
standard rental units both affordable and available to very low-income renter
households</header>
<subparagraph id="H7944D4EDE3BD4F1A9D96AB17098D5D3C"><enum>(A)</enum><header>In
general</header><text>The term <term>shortage of standard rental units both
affordable and available to very low-income renter households</term> means the
gap between—</text>
<clause id="H5DEE552B0F8745D6AD91EA1E21CE332"><enum>(i)</enum><text>the
number of units with complete plumbing and kitchen facilities with a rent that
is 30 percent or less of 50 percent of the adjusted area median income as
determined by the Director that are occupied by either extremely low- or very
low-income renter households or are vacant for rent; and</text>
</clause><clause id="H2DEAF477EA52412E9320B23BDD14B026"><enum>(ii)</enum><text>the number of
extremely low- and very low-income renter households.</text>
</clause></subparagraph><subparagraph id="H1078B6468124484BAEA8A07C98B1B21C"><enum>(B)</enum><header>Rule of
construction</header><text>If the number of units described in subparagraph
(A)(i) exceeds the number of extremely low- and very low-income households as
described in subparagraph (A)(ii), there is no
shortage.</text>
</subparagraph></paragraph><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H4D65AF13A7744587925F3D5EBEC0C9CE"><enum>129.</enum><header>Duty to serve
underserved markets</header>
<subsection id="HC43D8D7AD0A9469DA9D0B63FC07DFC32"><enum>(a)</enum><header>Establishment
and evaluation of performance</header><text>Section 1335 of the Federal Housing
Enterprises Financial Safety and Soundness 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="HF0ABF5C44B4A4C899F6D88F6F07406CA"><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="H5DC9301B3FB5489BA8CE8E626123798B"><enum>(2)</enum><text>by striking
subsection (b);</text>
</paragraph><paragraph id="H058390ADB7C8465DBE07BE86DB8834DE"><enum>(3)</enum><text>in subsection
(a)—</text>
<subparagraph id="HBBFB52EEC72B441B87ECDEC34EC27DAD"><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="H2F189F5F3D1F40DABD0088D982560A4"><enum>(B)</enum><text>in paragraph (3),
by inserting <quote>and</quote> after the semicolon at the end;</text>
</subparagraph><subparagraph id="H4E98B88F12404B1CA6C61B3E004882C4"><enum>(C)</enum><text>in paragraph (4),
by striking <quote>; and</quote> and inserting a period;</text>
</subparagraph><subparagraph id="HDDC48663FF7947B29494157D5C3EB602"><enum>(D)</enum><text>by striking
paragraph (5); and</text>
</subparagraph><subparagraph id="H36B08590AD554C0981865B2196ED2367"><enum>(E)</enum><text>by redesignating
such subsection as subsection (b);</text>
</subparagraph></paragraph><paragraph id="HF4C481A0F3E842428FABB5F38CB97CFD"><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 display-inline="no-display-inline" id="H60B2A931B76C4E3A00B4EDEF5B8A3A5" style="OLC">
<subsection id="HA0D95238A25C47468300758717707D73"><enum>(a)</enum><header>Duty To serve
underserved markets</header>
<paragraph id="HDB21F49424554195B7F00CC40EE69CB"><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 (12 U.S.C. 1451
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 by purchasing or securitizing mortgage investments.</text>
</paragraph><paragraph id="H278F8758AC694A40A773B6D6F48885E8"><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="H492A5F0D5B214BD8897F5CB8279F5900"><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="H53D9B26C22114244950000C7E622D0C2"><enum>(B)</enum><header>Affordable
housing preservation</header><text>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<linebreak></linebreak> low-, low-,
and moderate-income families, including housing projects subsidized
under—</text>
<clause id="HDD57EA7BFB504EE18D4F2DD5C5FF9F4C"><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="H286C79D28A2C498FABE579ACB1D0EC49"><enum>(ii)</enum><text>the program under
section 236 of the National Housing Act;</text>
</clause><clause id="H6A44C3F1DEFE4DCC84F6EE92087F1B95"><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="HD6AE2C46662B45868DA5B82808F257DA"><enum>(iv)</enum><text>the supportive
housing for the elderly program under section 202 of the Housing Act of
1959;</text>
</clause><clause id="HBD0682C08DFE4AD6812F0818689D2CFE"><enum>(v)</enum><text>the supportive
housing program for persons with disabilities under section 811 of the
Cranston-Gonzalez National Affordable Housing Act;</text>
</clause><clause id="H0CDCB9DB265C411287BF82C18DAA31F6"><enum>(vi)</enum><text>the programs
under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361
et seq.), but only permanent supportive housing projects subsidized under such
programs; and</text>
</clause><clause id="H26D6D9AED3BD48F3AF0848DDC1EB042C"><enum>(vii)</enum><text>the rural rental
housing program under section 515 of the Housing Act of 1949.</text>
</clause></subparagraph><subparagraph id="HB06BFEA7C24C41CA9B79B000C0AB4CD6"><enum>(C)</enum><header>Rural and other
underserved markets</header><text>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<linebreak></linebreak> 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 Director 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="H4F1A1A94CF0D4828B5515997D121A87C"><enum>(5)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H63122BF231014BE18669D1C7417234E5" style="OLC">
<subsection id="H6EEE58DCF0614BC3BE98E458009D0122"><enum>(c)</enum><header>Evaluation and
reporting of compliance</header>
<paragraph id="H66C45B9BFCAD45A3ACD37E82313EF4EB"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the effective date of the
Federal Housing Finance Regulatory Reform Act of 2008, 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="HAAD75F46BB6645A2A79B150435D72F"><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="HC1F2699F19BC4504ABD0D0CA05903000"><enum>(A)</enum><text>the development of
loan products and more flexible underwriting guidelines;</text>
</subparagraph><subparagraph id="H9E52D8D54BCD44548F00B85DB969E146"><enum>(B)</enum><text>the extent of
outreach to qualified loan sellers in each of such underserved markets;
and</text>
</subparagraph><subparagraph id="H8B7E48556D2542949E77790084DBAF9C"><enum>(C)</enum><text>the volume of
loans purchased in each of such underserved markets.</text>
</subparagraph></paragraph><paragraph id="H5ED273D9AAF8476885D3C11C3716C2B3"><enum>(3)</enum><header>Manufactured
housing market</header><text>In determining whether an enterprise has complied
with the duty under subparagraph (A) of subsection (a)(2), the Director may
consider loans secured by both real and personal
property.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB4B3041C784C4D06BB379857EC04D853"><enum>(b)</enum><header>Enforcement</header><text>Subsection
(a) of section 1336 of the Housing and Community Development Act of 1992 (12
U.S.C. 4566(a)) is amended—</text>
<paragraph id="HEE3E46B0E7A14F8590DEF460A0F5B476"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>and with the duty under section 1335(a) of each enterprise
with respect to underserved markets,</quote> before <quote>as provided in this
section</quote>; and</text>
</paragraph><paragraph id="HF06FCE407D5A477EA0FD78691B832020"><enum>(2)</enum><text>by adding at the
end of such subsection, as amended by the preceding provisions of this
subtitle, the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H641B1D110C884952BAB65D33EEB53E2D" style="OLC">
<paragraph id="HA7098FA0642741BC92005BB619D0616"><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 this subpart 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 Federal
National Mortgage Association Charter Act or the Federal Home Loan Mortgage
Corporation
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H4EE60BAFD4094DA90002D36194758FF6"><enum>130.</enum><header>Monitoring and
enforcing compliance with housing goals</header>
<subsection id="H90249078818248EDB19D50A7C859FD00"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1336 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566</external-xref>) is amended by striking
subsections (b) and (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5DBFE75659E943BE00443FC9E71B9DC5" style="OLC">
<subsection id="HCA4733CCB21E45B9A71342F9E245DB6D"><enum>(b)</enum><header>Notice and
preliminary determination of failure To meet goals</header>
<paragraph id="H6136D3DB680148CCA207E470F005DDF2"><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 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><paragraph id="H6C0B804FAEB54D96A36981EBC7C90051"><enum>(2)</enum><header>Response
period</header>
<subparagraph id="H34E77C2E17444F418DBA2FF5004FABAE"><enum>(A)</enum><header>In
general</header><text>During the 30-day period beginning on the date on which
an enterprise is provided notice under paragraph (1), the enterprise may submit
to the Director any written information that the enterprise considers
appropriate for consideration by the Director in finally determining whether
such failure has occurred or whether the achievement of such goal was or is
feasible.</text>
</subparagraph><subparagraph id="H2D99D3B08234407D886847A524AB3C00"><enum>(B)</enum><header>Extended
period</header><text>The Director may extend the period under subparagraph (A)
for good cause for not more than 30 additional days.</text>
</subparagraph><subparagraph id="HDDE4B3B9EA6C42639FEB11AAB29F82DC"><enum>(C)</enum><header>Shortened
period</header><text>The Director may shorten the period under subparagraph (A)
for good cause.</text>
</subparagraph><subparagraph id="HD3B04E9FEE8D409FA361706501CA00B9"><enum>(D)</enum><header>Failure to
respond</header><text>The failure of an enterprise to provide information
during the 30-day period under this paragraph (as extended or shortened) shall
waive any right of the enterprise to comment on the proposed determination or
action of the Director.</text>
</subparagraph></paragraph><paragraph id="HC98B5571928543BB902D66EFA8A2AA50"><enum>(3)</enum><header>Consideration of
information and final determination</header>
<subparagraph id="H2C7F433A055848F5AA4BED9C79AB5B8F"><enum>(A)</enum><header>In
general</header><text>After the expiration of the response period under
paragraph (2), or upon receipt of information provided during such period by
the enterprise, whichever occurs earlier, the Director shall issue a final
determination on—</text>
<clause id="HEF56ED12F7184502BA007FAB98004404"><enum>(i)</enum><text>whether the
enterprise has failed, or there is a substantial probability that the
enterprise will fail, to meet the housing goal; and</text>
</clause><clause id="H548D8B433FCD44C893002816FD36BBA1"><enum>(ii)</enum><text>whether (taking
into consideration market and economic conditions and the financial condition
of the enterprise) the achievement of the housing goal was or is
feasible.</text>
</clause></subparagraph><subparagraph id="H503175544D2E49C1902FF7F22B06E8FE"><enum>(B)</enum><header>Considerations</header><text>In
making a final determination under subparagraph (A), the Director shall take
into consideration any relevant information submitted by the enterprise during
the response period.</text>
</subparagraph><subparagraph id="HF3A015C5958D4CE194917EDFDC5E761"><enum>(C)</enum><header>Notice</header><text>The
Director shall provide written notice, including a response to any information
submitted during the response period, to the enterprise, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the Committee on
Financial Services of the House of Representatives, of—</text>
<clause id="H4079D1EBD3694575BA7600C7B71D0794"><enum>(i)</enum><text>each final
determination under this paragraph that an enterprise has failed, or that there
is a substantial probability that the enterprise will fail, to meet a housing
goal;</text>
</clause><clause id="H496912B1CE42402EB240CC063C271B8B"><enum>(ii)</enum><text>each final
determination that the achievement of a housing goal was or is feasible;
and</text>
</clause><clause id="H9A7732420AC34706B532552CF4C41300"><enum>(iii)</enum><text>the reasons for
each such final determination.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H45B4E71618B5490AB0F63664C1C32982"><enum>(c)</enum><header>Cease and
desist, civil money penalties, and remedies including housing plans</header>
<paragraph id="H1942EDC605EB48348393D8E315971F6F"><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).</text>
</paragraph><paragraph id="HEC0F651F304A4B60AB672906793E6B88"><enum>(2)</enum><header>Housing
plan</header><text>If the Director requires a housing plan under this
subsection, such a plan shall be—</text>
<subparagraph id="H1B7DB26D637E48F9A137001054E95C15"><enum>(A)</enum><text>a feasible plan
describing the specific actions the enterprise will take—</text>
<clause id="H7DDA4BBE65A8471D00494713DDECA29"><enum>(i)</enum><text>to
achieve the goal for the next calendar year; and</text>
</clause><clause id="H26C4BE8CDF91431FAED81EDCCA532D88"><enum>(ii)</enum><text>if the Director
determines that there is a substantial probability that the enterprise will
fail to meet a goal in the current year, to make such improvements and changes
in its operations as are reasonable in the remainder of such year; and</text>
</clause></subparagraph><subparagraph id="H1F5897D8B67841F492172E78ECB5638B"><enum>(B)</enum><text>sufficiently
specific to enable the Director to monitor compliance periodically.</text>
</subparagraph></paragraph><paragraph id="H0E6BF07A778E43F4BB2DC000C68EC59B"><enum>(3)</enum><header>Deadline for
submission</header><text>The Director shall establish a deadline for an
enterprise to comply with any remedial action or submit a housing plan to the
Director, which may not be more than 45 days after the enterprise is provided
notice. The Director may extend the deadline to the extent that the Director
determines necessary. Any extension of the deadline shall be in writing and for
a time certain.</text>
</paragraph><paragraph id="H9A40621DBE7B4FEBBA933D6FAF8D6F76"><enum>(4)</enum><header>Approval</header><text>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 it necessary. The Director shall approve any
plan that the Director determines is likely to succeed, and conforms with the
Federal National Mortgage Association Charter Act or the Federal Home Loan
Mortgage Corporation Act (as applicable), this title, and any other applicable
provision of law.</text>
</paragraph><paragraph id="H9966AF4646314EEBBA87BDEF8EF07FCF"><enum>(5)</enum><header>Notice of
approval and disapproval</header><text>The Director shall provide written
notice to any enterprise submitting a housing plan of the approval or
disapproval of the plan (which shall include the reasons for any disapproval of
the plan) and of any extension of the period for approval or
disapproval.</text>
</paragraph><paragraph id="H507DA46FBF234DCA8D57DFD7E58501C8"><enum>(6)</enum><header>Resubmission</header><text>If
the initial housing plan submitted by an enterprise under this section is
disapproved, the enterprise shall submit an amended plan acceptable to the
Director not later than 15 days after such disapproval, or such longer period
that the Director determines is in the public interest.</text>
</paragraph><paragraph id="H72EB8C888E1C403EB420BD6BA7D94872"><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—</text>
<subparagraph id="H6F759884208C4A64A4BF8F2130F9EAD0"><enum>(A)</enum><text>seek other actions
when an enterprise fails to meet a goal; and</text>
</subparagraph><subparagraph id="H1BD9A4D0A69E4E4585B9953F7983724E"><enum>(B)</enum><text>exercise
appropriate enforcement authority available to the Director under this
Act.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H72BD2A767CAC45D6A291C9E59CAA4D22"><enum>(b)</enum><header>Conforming
Amendment</header><text>The heading for subpart C of part 2 of subtitle A of
the <act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> is amended to read as
follows:</text>
<quoted-block act-name="Housing and Community Development Act of 1992" id="H54490963AA394F3AB9F9DD2F6C00E943" style="OLC">
<subpart id="HC21B2FA042DD46F58DC0B1BA1D3871D"><enum>C</enum><header>Enforcement</header>
</subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAC5C137840414D7F00783B8CCCF10083"><enum>(c)</enum><header>Cease and desist
proceedings </header>
<paragraph id="H5127F9A9DC2948DBAC36FEED48316570"><enum>(1)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1341 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4581">12 U.S.C. 4581</external-xref>)</act-name> is hereby
repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0D1EE085E5FB4E6F9B2EB798A83CAE71"><enum>(2)</enum><header>Cease and desist
proceedings</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is </act-name>amended by inserting before section
1342 the following:</text>
<quoted-block display-inline="no-display-inline" id="H092CAC65D3A84F9DB3AE0071138731A0" style="OLC">
<section id="H1BE3F6DBA7284C8B97C3F9A24177D17"><enum>1341.</enum><header>Cease and
desist proceedings</header>
<subsection id="H8F297C3C9A6B4F82AB50FC2762AB12AB"><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 that—</text>
<paragraph id="H0334AE3A27154DCDBC08D2CD2240008D"><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="H965A1C6DE8D94929901DFA7C41E146A7"><enum>(2)</enum><text>the enterprise has
failed to submit a report under section 1327, following a notice of such
failure, an opportunity for comment by the enterprise, and a final
determination by the Director;</text>
</paragraph><paragraph id="H05AC0FF882C048328D71CE04081B9764"><enum>(3)</enum><text>the enterprise has
failed to submit the information required under subsection (m) or (n) of
section 309 of the Federal National Mortgage Association Charter Act, or
subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage
Corporation Act;</text>
</paragraph><paragraph id="H2B557FF32B764D9DB879E7463C7F00EF"><enum>(4)</enum><text>the enterprise has
violated any provision of part 2 of this title or any order, rule, or
regulation under part 2;</text>
</paragraph><paragraph id="H64912E4EF9A64E12A36039F0CCDAB737"><enum>(5)</enum><text>the enterprise has
failed to submit a housing plan or perform its responsibilities under a
remedial order that substantially complies with section 1336(c) within the
applicable period; or</text>
</paragraph><paragraph id="H91E5FAE5336843FC956DC3F27DA8496F"><enum>(6)</enum><text>the enterprise has
failed to comply with a housing plan under section 1336(c).</text>
</paragraph></subsection><subsection id="H231CA1794B5F40BFA446B2EAC97F205"><enum>(b)</enum><header>Procedure</header>
<paragraph id="H95BBD6A875A94D6A92B5079992990071"><enum>(1)</enum><header>Notice of
charges</header><text>Each notice of charges issued under this section shall
contain a statement of the facts constituting the alleged conduct and shall fix
a time and place at which a hearing will be held to determine on the record
whether an order to cease and desist from such conduct should issue.</text>
</paragraph><paragraph id="HC9A9A0961E014A1481921F2EB2CC644"><enum>(2)</enum><header>Issuance of
order</header><text>If the Director finds on the record made at a hearing
described in paragraph (1) that any conduct specified in the notice of charges
has been established (or the enterprise consents pursuant to section
1342(a)(4)), the Director may issue and serve upon the enterprise an order
requiring the enterprise to—</text>
<subparagraph id="HC47FF2DA64AE4A1DA8067B26BBB12485"><enum>(A)</enum><text>comply with the
goals;</text>
</subparagraph><subparagraph id="H250B4179E8BB4EDA8FAEE337779EFBC5"><enum>(B)</enum><text>submit a report
under section 1327;</text>
</subparagraph><subparagraph id="HBA076C71430F4EDBAEA82283DB8147FC"><enum>(C)</enum><text>comply with any
provision of part 2 of this title or any order, rule, or regulation under part
2;</text>
</subparagraph><subparagraph id="HFF27BDA11D424BB5B4D3D2D74F433E29"><enum>(D)</enum><text>submit a housing
plan in compliance with section 1336(c);</text>
</subparagraph><subparagraph id="H57375CDF4D034CCAB575493B1D2B1148"><enum>(E)</enum><text>comply with the
housing plan in compliance with section 1336(c); or</text>
</subparagraph><subparagraph id="HF45B900263324032A6BB762561C27625"><enum>(F)</enum><text>provide the
information required under subsection (m) or (n) of section 309 of the Federal
National Mortgage Association Charter Act, or subsection (e) or (f) of section
307 of the Federal Home Loan Mortgage Corporation Act.</text>
</subparagraph></paragraph></subsection><subsection id="HA57AA8492570444C8232AE8B30003C4E"><enum>(c)</enum><header>Effective
date</header><text>An order under this section shall become effective upon the
expiration of the 30-day period beginning on the date of service of the order
upon the enterprise (except in the case of an order issued upon consent, which
shall become effective at the time specified therein), and shall remain
effective and enforceable as provided in the order, except to the extent that
the order is stayed, modified, terminated, or set aside by action of the
Director or otherwise, as provided in this
subpart.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB086BF39B5F244DF93F6FDA0BC9B9D62"><enum>(d)</enum><header>Civil money
penalties</header>
<paragraph id="H3C14912E532147FF8DC5A31257F7709"><enum>(1)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1345 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585</external-xref>)</act-name> is hereby
repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB959C6C57B4D4E2BB21ED3A0F2883774"><enum>(2)</enum><header>Civil money
penalties</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is </act-name>amended by inserting after section 1344
the following:</text>
<quoted-block display-inline="no-display-inline" id="HB06E554862674929B850DA7BFEF6400" style="OLC">
<section id="H63966644F2A64EEAB319A992817CB592"><enum>1345.</enum><header>Civil money
penalties</header>
<subsection id="H5458A216EC7D499B93FCEA632DAF255E"><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="H99BFAAC1A7CA4745ADDA00B1DBE1C224"><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="HE138422266904A6AB3CF86EFBF52590"><enum>(2)</enum><text>submit a report
under section 1327, following a notice of such failure, an opportunity for
comment by the enterprise, and a final determination by the Director;</text>
</paragraph><paragraph id="HB2301B2222FA48098654FD00BF78FF2"><enum>(3)</enum><text>submit the
information required under subsection (m) or (n) of section 309 of the Federal
National Mortgage Association Charter Act or subsection (e) or (f) of section
307 of the Federal Home Loan Mortgage Corporation Act;</text>
</paragraph><paragraph id="HC2BB29F4440B44B0A6BFF1D7176B92A1"><enum>(4)</enum><text>comply with any
provision of part 2 of this title or any order, rule, or regulation under part
2;</text>
</paragraph><paragraph id="HD608677B780C46A3BDF4F939FAE8AF19"><enum>(5)</enum><text>submit a housing
plan or perform its responsibilities under a remedial order issued pursuant to
section 1336(c) within the required period; or</text>
</paragraph><paragraph id="H72E4421AF62347A4B8DFA584770471DA"><enum>(6)</enum><text>comply with a
housing plan for the enterprise under section 1336(c).</text>
</paragraph></subsection><subsection id="H6A619CB770294B2BA1B12261D74F9422"><enum>(b)</enum><header>Amount of
penalty</header><text>The amount of a penalty under this section, as determined
by the Director, may not exceed—</text>
<paragraph id="HD54E93B935AC4E6FA63E5BE45DA4EB5"><enum>(1)</enum><text>for any failure
described in paragraph (1), (5), or (6) of subsection (a), $100,000 for each
day that the failure occurs; and</text>
</paragraph><paragraph id="H6226EBEF883D41B1AF4DBF4484413890"><enum>(2)</enum><text>for any failure
described in paragraph (2), (3), or (4) of subsection (a), $50,000 for each day
that the failure occurs.</text>
</paragraph></subsection><subsection id="H8716C1A7BB174971B9C58BE20600A4BE"><enum>(c)</enum><header>Procedures</header>
<paragraph id="H7DBF8370A90A48588B132B8100C89576"><enum>(1)</enum><header>Establishment</header><text>The
Director shall establish standards and procedures governing the imposition of
civil money penalties under this section. Such standards and procedures—</text>
<subparagraph id="H42742F7438234C14A1AEFE00A04D2F55"><enum>(A)</enum><text>shall provide for
the Director to notify the enterprise in writing of the determination of the
Director to impose the penalty, which shall be made on the record;</text>
</subparagraph><subparagraph id="HB5DCF10BB52D422EB686B34BBEF6B928"><enum>(B)</enum><text>shall provide for
the imposition of a penalty only after the enterprise has been given an
opportunity for a hearing on the record pursuant to section 1342; and</text>
</subparagraph><subparagraph id="HBF0FC8B2E7C74C13B33104B171CB6F7E"><enum>(C)</enum><text>may provide for
review by the Director of any determination or order, or interlocutory ruling,
arising from a hearing.</text>
</subparagraph></paragraph><paragraph id="HF301E66A3E0540F1B2E9962BE6ECB300"><enum>(2)</enum><header>Factors in
determining amount of penalty</header><text>In determining the amount of a
penalty under this section, the Director shall give consideration to factors
including—</text>
<subparagraph id="H00C6367C1F1A45D9ADFD797E922CE356"><enum>(A)</enum><text>the gravity of the
offense;</text>
</subparagraph><subparagraph id="H5BB0F4F3D9BA44E896052BBAB2F490D7"><enum>(B)</enum><text>any history of
prior offenses;</text>
</subparagraph><subparagraph id="HBA78E0B6C69D451BA199305BD9A8752B"><enum>(C)</enum><text>ability to pay the
penalty;</text>
</subparagraph><subparagraph id="H2AE4C85DAB2C41DD834D07F9D79CF3EA"><enum>(D)</enum><text>injury to the
public;</text>
</subparagraph><subparagraph id="H2D059CA1D6E34538A3EFB3C076A6AFCF"><enum>(E)</enum><text>benefits
received;</text>
</subparagraph><subparagraph id="HDCCD689ED4F3466B8D4713E0139BF81B"><enum>(F)</enum><text>deterrence of
future violations;</text>
</subparagraph><subparagraph id="HF1C5E0E3F811404F9C29763E7D335100"><enum>(G)</enum><text>the length of time
that the enterprise should reasonably take to achieve the goal; and</text>
</subparagraph><subparagraph id="H06D69E7783E5412CB41F68125E53C200"><enum>(H)</enum><text>such other factors
as the Director may determine, by regulation, to be appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="HE901EC2EEB0C4DEF95CA607C4F9FBEDE"><enum>(d)</enum><header>Action To
collect penalty</header><text>If an enterprise fails to comply with an order by
the Director imposing a civil money penalty under this section, after the order
is no longer subject to review, as provided in sections 1342 and 1343, the
Director may bring an action in the United States District Court for the
District of Columbia to obtain a monetary judgment against the enterprise, and
such other relief as may be available. The monetary judgment may, in the
court's discretion, include the attorneys' fees and other expenses incurred by
the United States in connection with the action. In an action under this
subsection, the validity and appropriateness of the order imposing the penalty
shall not be subject to review.</text>
</subsection><subsection id="H0BAC00A544E243F88C1DB700A5DF85F4"><enum>(e)</enum><header>Settlement by
director</header><text>The Director may compromise, modify, or remit any civil
money penalty which may be, or has been, imposed under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H84A5C9558ABA4A3DAD35CE0009FF94AE"><enum>(e)</enum><header>Director
authority</header>
<paragraph id="HBC2347A58F494806B79B94ED1704F1C6"><enum>(1)</enum><header>Authority to
bring a civil action</header><text>Section 1344(a) of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness 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
<quote>The Secretary may request the Attorney General of the United States to
bring a civil action</quote> and inserting <quote>The Director may bring a
civil action</quote>.</text>
</paragraph><paragraph id="H9AA23D0909784111A5E14BC243630018"><enum>(2)</enum><header>Subpoena
enforcement</header><text>Section 1348(c) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4588">12 U.S.C. 4588(c)</external-xref>) is amended by
inserting <quote>may bring an action or</quote> before <quote>may
request</quote>.</text>
</paragraph><paragraph id="HB962E937D6854FDCA180F4C7D4B9E15B"><enum>(3)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Subpart C of part
2 of subtitle A of the <act-name parsable-cite="HCDA92">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4581 et seq.) is amended by striking <quote>Secretary</quote> each place that
term appears and inserting <quote>Director</quote> in each of—</text>
<subparagraph id="HD8F4BD510BA7447D86E76736E7C9500"><enum>(A)</enum><text>section 1342 (12
U.S.C. 4582);</text>
</subparagraph><subparagraph id="H8E38B971335B4903BF85AB24313362E2"><enum>(B)</enum><text>section 1343 (12
U.S.C. 4583);</text>
</subparagraph><subparagraph id="H47235CAC4C4245EEA2E2FE64684BFE00"><enum>(C)</enum><text>section 1346 (12
U.S.C. 4586);</text>
</subparagraph><subparagraph id="H695DB6BA761A4F72AF47A5802C50BDEA"><enum>(D)</enum><text>section 1347 (12
U.S.C. 4587); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6E4B912587A5432CB1165CAF93D4ACAB"><enum>(E)</enum><text>section 1348 (12
U.S.C. 4588).</text>
</subparagraph></paragraph></subsection></section><section commented="no" id="H0576125196A74327A28F59324E35D500"><enum>131.</enum><header>Transfer and
rights of certain HUD employees</header>
<subsection commented="no" id="H628D6BC80F1549FABEEFF08B903074A9"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Department of Housing and Urban Development whose position
responsibilities primarily involve the establishment and enforcement of the
housing goals under subpart B of part 2 of subtitle A of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561">12 U.S.C. 4561 et seq.</external-xref>)
shall be transferred to the Federal Housing Finance Agency for employment, not
later than the effective date of the Federal Housing Finance Regulatory Reform
Act of 2008, 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 commented="no" id="H685382D34D0140B3974467C7167E8192"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph commented="no" id="H1C39FE07A71A46F7BBEE9FD267E97BD1"><enum>(1)</enum><header>In
general</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.</text>
</paragraph><paragraph commented="no" id="H82E452C703B84E538EEFC0D03EE1F69"><enum>(2)</enum><header>No involuntary
separation or reduction</header><text>An employee transferred under subsection
(a) holding a permanent position on the day immediately preceding the transfer
may not be involuntarily separated or reduced in grade or compensation during
the 12-month period beginning on the date of transfer, except for cause, or, in
the case of a temporary employee, separated in accordance with the terms of the
appointment of the employee.</text>
</paragraph></subsection><subsection commented="no" id="H1FD1A690FD324932AB57534C3CBB100"><enum>(c)</enum><header>Appointment
authority for excepted and senior executive service employees</header>
<paragraph commented="no" id="H34E695546803491DAAE4E8AC349FA940"><enum>(1)</enum><header>In
general</header><text>In the case of an employee occupying a position 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 position shall be transferred, subject to paragraph
(2).</text>
</paragraph><paragraph commented="no" id="H8CB02F4DE80B45CBBF92624C7581D16E"><enum>(2)</enum><header>Decline of
transfer</header><text>The Director may decline a transfer of authority under
paragraph (1) to the extent that such authority relates to—</text>
<subparagraph commented="no" id="H9D64B65F931D40BABB34DEE37EFD2F41"><enum>(A)</enum><text>a position
excepted from the competitive service because of its confidential,
policymaking, policy-determining, or policy-advocating character; or</text>
</subparagraph><subparagraph commented="no" id="H33EC2D0BCAF34F1DA63DB788A3D3F272"><enum>(B)</enum><text>a noncareer
position in the Senior Executive Service (within the meaning of section
3132(a)(7) of title 5, United States Code).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H46181E0B596F4735AB5D44EF12932090"><enum>(d)</enum><header>Reorganization</header><text>If
the Director determines, after the end of the 1-year period beginning on the
effective date of the Federal Housing Finance Regulatory Reform Act of 2008,
that a reorganization of the combined workforce is required, that
reorganization shall be deemed a major reorganization for purposes of affording
affected employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title
5, United States Code.</text>
</subsection><subsection commented="no" id="H835CD382649546A3AFB267887600C9C0"><enum>(e)</enum><header>Employee benefit
programs</header>
<paragraph commented="no" id="HE379A26FEB5A4B50B413D62619DBE6CE"><enum>(1)</enum><header>In
general</header><text>Any employee described under subsection (a) accepting
employment with the 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 Agency or the Department of Housing and
Urban Development, as applicable, including insurance, to which such employee
belongs on such effective date, if—</text>
<subparagraph commented="no" id="H3CA2B2374BBD49FAB9E05453A51DD94C"><enum>(A)</enum><text>the employee does
not elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph commented="no" id="HC4D3A18442B1432A98E6613B265244D4"><enum>(B)</enum><text>the benefit or
program is continued by the Director of the Federal Housing Finance
Agency.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD6EC4B90D6F845C7BE2E06381F6D74E3"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph commented="no" id="H6C612777087841CCB97C85A6073E9235"><enum>(A)</enum><header>In
general</header><text>The difference in the costs between the benefits which
would have been provided by the Department of Housing and Urban Development and
those provided by this section shall be paid by the Director.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H47B23B76881F40D8871C17B2006B8D83"><enum>(B)</enum><header>Health
insurance</header><text>If any employee elects to give up membership in a
health insurance program or the health insurance program is not continued by
the Director, the employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the date of such election
or notice, without regard to any other regularly scheduled open season.</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="H2452133F7C624F599971EAE44C8ACE"><enum>C</enum><header>Prompt corrective
action</header>
<section id="H525075FEF47C4FCEAB9CEBB9AD076F69"><enum>141.</enum><header>Critical
capital levels</header>
<subsection id="H6845C3DDAF7B497F8148C9FD55C1FBC4"><enum>(a)</enum><header>In
general</header><text>Section 1363 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4613">12 U.S.C. 4613</external-xref>) is amended—</text>
<paragraph id="H1F153CBF68FF480196FE0380C25E6400"><enum>(1)</enum><text>by striking
<quote>For</quote> and inserting <quote>(a) <header-in-text level="subsection">Enterprises.—For</header-in-text></quote>; and</text>
</paragraph><paragraph id="H649C18C7AE1C4B7F9BB9ADDC32EE2B58"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H2BA2C23E4F87406F894F3C1064D42DFA" style="OLC">
<subsection id="H376D7992849644E0B106584975F7DE8B"><enum>(b)</enum><header>Federal home
loan banks</header>
<paragraph id="H4A2331C4351B41A28E1136428705C8E7"><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="H6666152C407B45BB86AB2602D2CFB999"><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>
</paragraph></subsection><subsection id="HA8DCD01F5DEC49388923DF3000002BA"><enum>(b)</enum><header>Regulations</header><text>Not
later than the expiration of the 180-day period beginning on the date of
enactment of this Act, the Director of the Federal Housing Finance Agency shall
issue regulations pursuant to section 1363(b) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as added by this
section) establishing the critical capital level under such section.</text>
</subsection></section><section id="H8E427F9FE9444FCB9087E44B7FCECC8"><enum>142.</enum><header>Capital
classifications</header>
<subsection id="H1A1B5CFF3C5F463C8954170400F0D994"><enum>(a)</enum><header>In
general</header><text>Section 1364 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614</external-xref>) is amended—</text>
<paragraph id="H3649A274583E4393AD62E5E3837737C9"><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="HFD46AABD00E64D8684FFECC48924581"><enum>(2)</enum><text>in
subsection (c)—</text>
<subparagraph id="H66ABBDD9BDEB4E298D351FE186E7901C"><enum>(A)</enum><text>by striking
<quote>subsection (b)</quote> and inserting <quote>subsection
(c)</quote>;</text>
</subparagraph><subparagraph id="HEC2F9A3BA42146CEBCA6E400952EB8D7"><enum>(B)</enum><text>by striking
<quote>enterprises</quote> and inserting <quote>regulated entities</quote>;
and</text>
</subparagraph><subparagraph id="HCDADAAD68E304249A623DCB6BBB415C"><enum>(C)</enum><text>by striking the
last sentence;</text>
</subparagraph></paragraph><paragraph id="H3F9F8310DC074D51893CFE8124094EC3"><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="HA4DBA50E8DE5453EB6DEE15FA4535494"><enum>(4)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H706E7F4455CD4B1500954C0860D6CE90" style="OLC">
<subsection id="H3B97DF3D563A4CF7AA61236CE990353B"><enum>(b)</enum><header>Federal home
loan banks</header>
<paragraph id="H3E9320549E514935A900948105924B19"><enum>(1)</enum><header>Establishment
and criteria</header><text>For purposes of this subtitle, the Director shall,
by regulation—</text>
<subparagraph id="H35C93A2C4C34411D00C5ABDE0020B395"><enum>(A)</enum><text>establish the
capital classifications specified under paragraph (2) for the Federal Home Loan
Banks;</text>
</subparagraph><subparagraph id="H0F9612CD43E5488EBAB1C8849ED3509"><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="HDB1D61C6993540F9BBA861FB9FDE3E49"><enum>(C)</enum><text>shall classify the
Federal Home Loan Banks according to such capital classifications.</text>
</subparagraph></paragraph><paragraph id="HB52071D4755A4DC2939409EF877647DE"><enum>(2)</enum><header>Classifications</header><text>The
capital classifications specified under this paragraph are—</text>
<subparagraph id="HF0DD526BF1404D939DA32E9FC553DC18"><enum>(A)</enum><text>adequately
capitalized;</text>
</subparagraph><subparagraph id="H5A3422F2E6144F0CA8C259B9062D3183"><enum>(B)</enum><text>undercapitalized;</text>
</subparagraph><subparagraph id="HA67688FE975749239068E922D3C8094"><enum>(C)</enum><text>significantly
undercapitalized; and</text>
</subparagraph><subparagraph id="HDB8F2E7CDCEF4602BD1DC7618432FFF3"><enum>(D)</enum><text>critically
undercapitalized.</text>
</subparagraph></paragraph></subsection><subsection id="H83EC3E44319C40CBBEEFF6CC46AB746F"><enum>(c)</enum><header>Discretionary
classification</header>
<paragraph id="H0729C23D19E84FE2BACF83F1E370066"><enum>(1)</enum><header>Grounds for
reclassification</header><text>The Director may reclassify a regulated entity
under paragraph (2) if—</text>
<subparagraph id="H967B5A31B17B4E47BF5E001F99DE1EEB"><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 the value of
collateral pledged as security has decreased significantly or that the value of
the property subject to any mortgage held by the regulated entity (or
securitized in the case of an enterprise) has decreased significantly;</text>
</subparagraph><subparagraph id="HE6B21B2D4DE8493695A51BA4B00007E0"><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="H3F494331FD514EE99D71A8C242A30EE"><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="H4A5103CF179A4B780000242D36B45984"><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="HA00041BBC3604A1AB61379D43B29B8D4"><enum>(A)</enum><text>as
undercapitalized, if the regulated entity is otherwise classified as adequately
capitalized;</text>
</subparagraph><subparagraph id="HDBFB1CC57F204B65A420654710A88759"><enum>(B)</enum><text>as significantly
undercapitalized, if the regulated entity is otherwise classified as
undercapitalized; and</text>
</subparagraph><subparagraph id="H4FF882BFBF334CB1B8652853E2554CF6"><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="H32F0AEBEE938470E8FB51545C2606120"><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 display-inline="no-display-inline" id="H507C2DF9333A426EB768D012AC45CA01" style="OLC">
<subsection id="H7BD188EA674546EA923FB3E8BD5342EE"><enum>(e)</enum><header>Restriction on
capital distributions</header>
<paragraph id="H39B6524C459D4E88BB7072E79FFA1C14"><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="H3C775123200E4FFCBB2E04FC4C6E5CDF"><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="HF4E9815552744D81A747AB35E3B5A8EA"><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="H23B24C584025453481D831CE72D4448"><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="H1BD08215430D4B2FB68D14B0ABCD875E"><enum>(b)</enum><header>Regulations</header><text>Not
later than the expiration of the 180-day period beginning on the date of
enactment of this Act, the Director of the Federal Housing Finance Agency shall
issue regulations to carry out section 1364(b) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as added by this
section), relating to capital classifications for the Federal Home Loan
Banks.</text>
</subsection></section><section id="HD8AE9A6B3DBB4F15866595F08955F249"><enum>143.</enum><header>Supervisory
actions applicable to undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1365 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) is
amended—</text>
<paragraph id="H688628067835497EA14F8B5F28DB8FF5"><enum>(1)</enum><text>by striking
<quote>the enterprise</quote> each place that term appears and inserting
<quote>the regulated entity</quote>;</text>
</paragraph><paragraph id="H399CD7948B43447988592227C0AB6351"><enum>(2)</enum><text>by striking
<quote>An enterprise</quote> each place that term appears and inserting
<quote>A regulated entity</quote>;</text>
</paragraph><paragraph id="HC98DCDD5450840BDB28200EAE86B0767"><enum>(3)</enum><text>by striking
<quote>an enterprise</quote> each place that term appears and inserting
<quote>a regulated entity</quote>;</text>
</paragraph><paragraph id="H90EEB473E72C4CEDAF748DD0603F99D6"><enum>(4)</enum><text>in subsection
(a)—</text>
<subparagraph id="HEF5D14B8F49148BEBC1400D6EBEB237"><enum>(A)</enum><text>by redesignating
paragraphs (1) and (2) as paragraphs (2) and (3), respectively;</text>
</subparagraph><subparagraph id="HEF1040415FCE4475B9BE8F3F2B0576"><enum>(B)</enum><text>by inserting before
paragraph (2), as redesignated, the following:</text>
<quoted-block display-inline="no-display-inline" id="HEA05AE4D40A54F38B3778B04D740FEDD" style="OLC">
<paragraph id="H5C9BC697C7B04B0F00B6E3585238032"><enum>(1)</enum><header>Required
monitoring</header><text>The Director shall—</text>
<subparagraph id="H7C3DDA73907245178D6625DCDF72F4A0"><enum>(A)</enum><text>closely monitor
the condition of any undercapitalized regulated entity;</text>
</subparagraph><subparagraph id="H96F4CB23AA2D4C129500938422E2855D"><enum>(B)</enum><text>closely monitor
compliance with the capital restoration plan, restrictions, and requirements
imposed on an undercapitalized regulated entity under this section; and</text>
</subparagraph><subparagraph id="H89E15D98D7E4430DB82EBE9EF2AEFBB3"><enum>(C)</enum><text>periodically
review the plan, restrictions, and requirements applicable to an
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="H9EEF82C7B46A4E1D9DF1C156A0AD57AE"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H78AFB1FEAFA24572A8004585277081B4" style="OLC">
<paragraph id="H4F2026E050774C60B4882CD6904EE4D"><enum>(4)</enum><header>Restriction of
asset growth</header><text>An undercapitalized regulated entity shall not
permit its average total assets during any calendar quarter to exceed its
average total assets during the preceding calendar quarter, unless—</text>
<subparagraph id="H125E62EE6BFD4F47AEA7B6515C032610"><enum>(A)</enum><text>the Director has
accepted the capital restoration plan of the regulated entity;</text>
</subparagraph><subparagraph id="HC6C6957E383A45FF80F1C431E1F67EF9"><enum>(B)</enum><text>any increase in
total assets is consistent with the capital restoration plan; and</text>
</subparagraph><subparagraph id="H5DF1D6377FEC40AAB366E997D22D3B63"><enum>(C)</enum><text>the ratio of
tangible equity to assets of the regulated entity increases during the calendar
quarter at a rate sufficient to enable the regulated entity to become
adequately capitalized within a reasonable time.</text>
</subparagraph></paragraph><paragraph id="HBD469744844247C98D5371818900857D"><enum>(5)</enum><header>Prior approval
of acquisitions and new activities</header><text>An undercapitalized regulated
entity shall not, directly or indirectly, acquire any interest in any entity or
engage in any new activity, unless—</text>
<subparagraph id="H17E21396D4E54D25B628D78F3805CF06"><enum>(A)</enum><text>the Director has
accepted the capital restoration plan of the regulated entity, the regulated
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="HDC7428713F0545D1AE34275EA738F410"><enum>(B)</enum><text>the Director
determines that the proposed action will further the purpose of this
subtitle.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H39A39AAB228540579F87071DC600278C"><enum>(5)</enum><text>in subsection
(b)—</text>
<subparagraph id="H5BAED8743E6A462895E5B465942D9185"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection">Discretionary</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H6C830AA57B1C46660099042359001E89"><enum>(B)</enum><text>in the matter
preceding paragraph (1), by striking <quote>may</quote> and inserting
<quote>shall</quote>; and</text>
</subparagraph><subparagraph id="H5CD0A7D3CC9040EBAE08F3F97F580000"><enum>(C)</enum><text>in paragraph
(2)—</text>
<clause id="H3DD7125F8C124A15B03C42CEFD0083E8"><enum>(i)</enum><text>by
striking <quote>make, in good faith, reasonable efforts necessary to</quote>;
and</text>
</clause><clause id="H2ED08361CEF04FF787C58287EB4C93C9"><enum>(ii)</enum><text>by
striking the period at the end and inserting <quote>in any material
respect.</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="HAEA5C4FE2FFA41B492E0FDE3DD44460"><enum>(6)</enum><text>by
striking subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA99F426B647F4A9D901FCE4C85EE933F" style="OLC">
<subsection id="HA8BEA240B6224F8BA4FD2C713705384B"><enum>(c)</enum><header>Other
discretionary safeguards</header><text>The Director may take, with respect to
an undercapitalized regulated entity, any of the actions authorized to be taken
under section 1366 with respect to a significantly undercapitalized regulated
entity, 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="H4E73797047BA4D07A82259998C280006"><enum>144.</enum><header>Supervisory
actions applicable to significantly undercapitalized regulated
entities</header><text display-inline="no-display-inline">Section 1366 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4616) is amended—</text>
<paragraph id="HBCFABD222F024D518922AE00F63659B"><enum>(1)</enum><text>in
subsection (a)(2), by striking <quote>undercapitalized enterprise</quote> and
inserting <quote>undercapitalized</quote>;</text>
</paragraph><paragraph id="HD9B4BD58B6DB4782ACB3007877B6A5C7"><enum>(2)</enum><text>by striking
<quote>the enterprise</quote> each place that term appears and inserting
<quote>the regulated entity</quote>;</text>
</paragraph><paragraph id="H94C5C16492F94B9FB5603F62578C9C34"><enum>(3)</enum><text>by striking
<quote>An enterprise</quote> each place that term appears and inserting
<quote>A regulated entity</quote>;</text>
</paragraph><paragraph id="HE4CAB44BE7A346A3A9A11400FADB366C"><enum>(4)</enum><text>by striking
<quote>an enterprise</quote> each place that term appears and inserting
<quote>a regulated entity</quote>;</text>
</paragraph><paragraph id="H04B4F10D8E1F4C7DB7E93F6624E8B1E1"><enum>(5)</enum><text>in subsection
(b)—</text>
<subparagraph id="HBDE54A7A92D3489A80E8E99100C29B73"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection">Discretionary
Supervisory</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Specific</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H3F9DD61981A748A9A9F5A9D05EB1C93"><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, 1 or
more</quote>;</text>
</subparagraph><subparagraph id="HCDC934D4679644AF8B25E540CF606727"><enum>(C)</enum><text>by striking
paragraph (6);</text>
</subparagraph><subparagraph id="H2DD8E24DB717440EADA276EE2B6B2D9B"><enum>(D)</enum><text>by redesignating
paragraph (5) as paragraph (6);</text>
</subparagraph><subparagraph id="H9CA16C74AAA2485D8FB554942EA364D0"><enum>(E)</enum><text>by inserting after
paragraph (4) the following:</text>
<quoted-block display-inline="no-display-inline" id="H0EB19B1A2FC545398E9D3659E95F00CE" style="OLC">
<paragraph id="H765774676E00454087FA2ECC94CEF6C2"><enum>(5)</enum><header>Improvement of
management</header><text>Take 1 or more of the following actions:</text>
<subparagraph id="HDC7C4A0975554604916FFC01FFB58320"><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="H0CA45BFF4FBC40629F28118EA001600"><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 date on which the regulated entity
became undercapitalized. Dismissal under this subparagraph shall not be
construed to be a removal pursuant to the enforcement powers of the Director
under section 1377.</text>
</subparagraph><subparagraph id="H274FA1C2E6F941CBBBE529A82D50E1A7"><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="HC317A6C63F7A458DB9522F285992FD43"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H95588226CED64B69945130E6B2825CB" style="OLC">
<paragraph id="H36CEEA2D7B2742709100228FA724DB14"><enum>(7)</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 other actions specified in this
subsection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2EAF2B1FE4A9470784297680196F5B00"><enum>(6)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H7F11D76128864F7CAEEE57A52D95C746" style="OLC">
<subsection id="H0138A3AA39204A6AA45EDD0748C53171"><enum>(c)</enum><header>Restriction on
compensation of executive officers</header><text>A regulated entity that is
classified as significantly undercapitalized in accordance with section 1364
may not, without prior written approval by the Director—</text>
<paragraph id="HDE582B4A4341427EBDA8FECCBA9B00F3"><enum>(1)</enum><text>pay any bonus to
any executive officer; or</text>
</paragraph><paragraph id="HF65D2C7EB92B44E9ADA641B1716771B"><enum>(2)</enum><text>provide
compensation to any executive officer at a rate exceeding the average rate of
compensation of that officer (excluding bonuses, stock options, and profit
sharing) during the 12 calendar months preceding the calendar month in which
the regulated entity became significantly
undercapitalized.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HDAB0F2B641A54757A716A020228C1971"><enum>145.</enum><header>Authority over
critically undercapitalized regulated entities</header>
<subsection id="HF51CA9517D1945DBA8F7FD4E6D0859F2"><enum>(a)</enum><header>In
general</header><text>Section 1367 of the Federal Housing Enterprises Financial
Safety and Soundness 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 display-inline="no-display-inline" id="H555305D007734DC3AB81EDAF3B7B52F" style="OLC">
<section id="H0B92BC99E72148D392DF0020C306A012"><enum>1367.</enum><header>Authority over
critically undercapitalized regulated entities</header>
<subsection id="HAA20CB411123473E82CC071808B70839"><enum>(a)</enum><header>Appointment of
the agency as conservator or receiver</header>
<paragraph id="H454690A23D3A4BCF8DF34A2FCE0163B"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, the Director may appoint the Agency as conservator or receiver for a
regulated entity in the manner provided under paragraph (2) or (4). All
references to the conservator or receiver under this section are references to
the Agency acting as conservator or receiver.</text>
</paragraph><paragraph id="H0A503AE593C14D41B9F3AE0060182E9E"><enum>(2)</enum><header>Discretionary
appointment</header><text>The Agency may, at the discretion of the Director, be
appointed conservator or receiver for the purpose of reorganizing,
rehabilitating, or winding up the affairs of a regulated entity.</text>
</paragraph><paragraph id="HAB4C3F6203394EB1A64108F6C06D2EA"><enum>(3)</enum><header>Grounds for
discretionary appointment of conservator or receiver</header><text>The grounds
for appointing conservator or receiver for any regulated entity under paragraph
(2) are as follows:</text>
<subparagraph id="HAC780AC6267B4F3F87957F135447A8B1"><enum>(A)</enum><header>Substantial
dissipation</header><text>Substantial dissipation of assets or earnings due
to—</text>
<clause id="H0363A1818A8D4955854075C4A679808"><enum>(i)</enum><text>any
violation of any provision of Federal or State law; or</text>
</clause><clause id="H03F1AE16180B45AFA0887549A7793083"><enum>(ii)</enum><text>any unsafe or
unsound practice.</text>
</clause></subparagraph><subparagraph id="HED6F8EA611DC4CC1A0CC842C7D0016C1"><enum>(B)</enum><header>Unsafe or
unsound condition</header><text>An unsafe or unsound condition to transact
business.</text>
</subparagraph><subparagraph id="H263990E23AF44578A2409B928BCCA22C"><enum>(C)</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="H34839226F90145B28DAFE2A32DFDD8DB"><enum>(D)</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="HD481D4E245FF4D9F91701F47C8BA69FB"><enum>(E)</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="H0D4B68691D8946BFB5FFD9D38203F00"><enum>(F)</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="HB0F80678EFF5411589FDA555CE7319F7"><enum>(G)</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="H165B60641D244FECAE681961ED5BF404"><enum>(i)</enum><text>cause insolvency
or substantial dissipation of assets or earnings; or</text>
</clause><clause id="HDD7B6B2CBD2B4D62A692526DDAB47563"><enum>(ii)</enum><text>weaken the
condition of the regulated entity.</text>
</clause></subparagraph><subparagraph id="H50CB3A70FDEF425485583455CBD9FCAD"><enum>(H)</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="H60DD4E6D0EE141DA8FBA0089B713CD40"><enum>(I)</enum><header>Undercapitalization</header><text>The
regulated entity is undercapitalized or significantly undercapitalized (as
defined in section 1364(a)(3)), and—</text>
<clause id="H94481961778646AE87321E73CDACD6B2"><enum>(i)</enum><text>has no reasonable
prospect of becoming adequately capitalized;</text>
</clause><clause id="H1D032D0B87FD4B8DBD84F18B5790BAF"><enum>(ii)</enum><text>fails to become
adequately capitalized, as required by—</text>
<subclause id="H7A5D9C76E6214947ACE9B675CE55E0EA"><enum>(I)</enum><text>section 1365(a)(1)
with respect to a regulated entity; or</text>
</subclause><subclause id="H5A456DA1CE444AFC8B83F19B08B70275"><enum>(II)</enum><text>section
1366(a)(1) with respect to a significantly undercapitalized regulated
entity;</text>
</subclause></clause><clause id="HD05D6D63035447189BB0773F7C67FF01"><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="HE6A578D856224DC087E8958D5EAED554"><enum>(iv)</enum><text>materially fails
to implement a capital restoration plan submitted and accepted under section
1369C.</text>
</clause></subparagraph><subparagraph id="H30C5722AA4994191008D9400D186769D"><enum>(J)</enum><header>Critical
undercapitalization</header><text>The regulated entity is critically
undercapitalized, as defined in section 1364(a)(4).</text>
</subparagraph><subparagraph id="HFBB105FC9F0C4B3FBA8C1CF635090794"><enum>(K)</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 5322 or 5324
of title 31, United States Code.</text>
</subparagraph></paragraph><paragraph id="H34D2393F65DE40739B9F98A7AD45849C"><enum>(4)</enum><header>Mandatory
receivership</header>
<subparagraph id="H1ED5BF36EE594519A719ADD71B1C63A8"><enum>(A)</enum><header>In
general</header><text>The Director shall appoint the Agency as receiver for a
regulated entity if the Director determines, in writing, that—</text>
<clause id="H4D00EA692A214966BC58F5791118F1C"><enum>(i)</enum><text>the
assets of the regulated entity are, and during the preceding 60 calendar days
have been, less than the obligations of the regulated entity to its creditors
and others; or</text>
</clause><clause id="HCEB58DA2623F4BCEAE013C2847868DA4"><enum>(ii)</enum><text>the regulated
entity is not, and during the preceding 60 calendar days has not been,
generally paying the debts of the regulated entity (other than debts that are
the subject of a bona fide dispute) as such debts become due.</text>
</clause></subparagraph><subparagraph id="HFE8D102613F5488EBA86FAC564185400"><enum>(B)</enum><header>Periodic
determination required for critically undercapitalized regulated
entity</header><text>If a regulated entity is critically undercapitalized, the
Director shall make a determination, in writing, as to whether the regulated
entity meets the criteria specified in clause (i) or (ii) of subparagraph
(A)—</text>
<clause id="H06C9D4A1DCCE4BFFBF9339FCF2EAF383"><enum>(i)</enum><text>not later than 30
calendar days after the regulated entity initially becomes critically
undercapitalized; and</text>
</clause><clause id="H1B3E8E51A8C8453CAF7EDB28CA9810C"><enum>(ii)</enum><text>at
least once during each succeeding 30-calendar day period.</text>
</clause></subparagraph><subparagraph id="HD9E0EDCEC9D84D3FBC8C7000FAE0BDA1"><enum>(C)</enum><header>Determination
not required if receivership already in place</header><text>Subparagraph (B)
does not apply with respect to a regulated entity in any period during which
the Agency serves as receiver for the regulated entity.</text>
</subparagraph><subparagraph id="H4A3C50A0BCAF4EDE8DE4DAB248E8931"><enum>(D)</enum><header>Receivership
terminates conservatorship</header><text>The appointment of the Agency as
receiver of a regulated entity under this section shall immediately terminate
any conservatorship established for the regulated entity under this
title.</text>
</subparagraph></paragraph><paragraph id="H23A52DF579244CB7AEF11C5E1500C128"><enum>(5)</enum><header>Judicial
review</header>
<subparagraph id="H43826F5C59D94BB585A4F4F4FCB78245"><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 home office 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="H2DDD43A9E3554DB992CC703F991FC85E"><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="H101F780344EA49D9BAA5FD0063A6724B"><enum>(6)</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="HEB2CB869D60E4F23BC1FAC00A9E9D1B4"><enum>(7)</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="HC1ADD42A6D3D415C893B4F20E412BEB9"><enum>(b)</enum><header>Powers and
duties of the agency as conservator or receiver</header>
<paragraph id="HC9D9EC5F046C48B1A19C42A066171F31"><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="H45EECB65872A4E61BE75FDE9301D6646"><enum>(2)</enum><header>General
powers</header>
<subparagraph id="H1A13E0ECF2164834BA926EE9B07C04CA"><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="H7F4106BEDBFF478FBD5CA6086F84F43C"><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="HF1297D3B5ACA4E0C88CB432BC923D53"><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="HEF48F848C8B247A0A239BDDCC563C555"><enum>(B)</enum><header>Operate the
regulated entity</header><text>The Agency may, as conservator or
receiver—</text>
<clause id="H34DE45B4FB5043B29EA6381F36266472"><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="HB1AE0773268246E5BCE9E501EFEA03D"><enum>(ii)</enum><text>collect all
obligations and money due the regulated entity;</text>
</clause><clause id="H3616DBF4F2B240E68D1C71D89476F0F3"><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;</text>
</clause><clause id="HB5D736165D314B088B59F539DAD3B187"><enum>(iv)</enum><text>preserve and
conserve the assets and property of the regulated entity; and</text>
</clause><clause id="H9DF051F1DFC342C986BE44F8C6C3FB06"><enum>(v)</enum><text>provide by
contract for assistance in fulfilling any function, activity, action, or duty
of the Agency as conservator or receiver.</text>
</clause></subparagraph><subparagraph id="HEBFE4911E89A40019DEBDAD230AE8669"><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="HE216E45D3A13400FABF64C25DDC6CC5"><enum>(D)</enum><header>Powers as
conservator</header><text>The Agency may, as conservator, take such action as
may be—</text>
<clause id="H380192A249C84A9E92A6F292AAFDCDFF"><enum>(i)</enum><text>necessary to put
the regulated entity in a sound and solvent condition; and</text>
</clause><clause id="H2B76132192214CD3834D237B4DE9A56C"><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="HD0087F7E1F2E4A879E00F5D643814522"><enum>(E)</enum><header>Additional
powers as receiver</header><text>In any case in which the Agency is acting as
receiver, the Agency shall place the regulated entity in liquidation and
proceed to realize upon the assets of the regulated entity in such manner as
the Agency deems appropriate, including through the sale of assets, the
transfer of assets to a limited-life regulated entity established under
subsection (i), or the exercise of any other rights or privileges granted to
the Agency under this paragraph.</text>
</subparagraph><subparagraph id="H9AE9D539C0654C52AB006BCED9F4DFC4"><enum>(F)</enum><header>Organization of
new enterprise</header><text>The Agency shall, as receiver for an enterprise,
organize a successor enterprise that will operate pursuant to subsection
(i).</text>
</subparagraph><subparagraph id="H834D7CC4EA27419983161643E897AB54"><enum>(G)</enum><header>Transfer or sale
of assets and liabilities</header><text>The Agency may, as conservator or
receiver, transfer or sell any asset or liability of the regulated entity in
default, and may do so without any approval, assignment, or consent with
respect to such transfer or sale.</text>
</subparagraph><subparagraph id="HDDADA631EA854B71BFE7F4D4B23EBF32"><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
that are due and payable at the time of the appointment of the Agency as
conservator or receiver, in accordance with the prescriptions and limitations
of this section.</text>
</subparagraph><subparagraph id="H5C655D0757E249C4BFE58EEF2FDD4B8B"><enum>(I)</enum><header>Subpoena
authority</header>
<clause id="H523C748519D441EEA1FC03872CF7391"><enum>(i)</enum><header>In
general</header>
<subclause id="H51258F9167F84812AC982B7FD9777818"><enum>(I)</enum><header>Agency
authority</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="H4E81DEEBC2364D408087952E4479BF2D"><enum>(II)</enum><header>Applicability
of law</header><text>The provisions of section 1348 shall apply with respect to
the exercise of any power under this subparagraph, in the same manner as such
provisions apply under that section.</text>
</subclause></clause><clause id="H24C779901CAA425DA961002DA86BDC6E"><enum>(ii)</enum><header>Subpoena</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="H1EFBF649EA64413786B7B6BBA6DBD4B8"><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 1379B.</text>
</clause></subparagraph><subparagraph id="H84CC76915032462D8028E47983696DE"><enum>(J)</enum><header>Incidental
powers</header><text>The Agency may, as conservator or receiver—</text>
<clause id="H5B5C818BBC884563BC5B535F8170575E"><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="H3CFBFC696FE449C7842100CB9136B034"><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><subparagraph id="H763CA0925ED741EEB584FEA3116F0000"><enum>(K)</enum><header>Other
provisions</header>
<clause id="H375E5C94051D4350A108B9F324488E4B"><enum>(i)</enum><header>Shareholders and
creditors of failed regulated entity</header><text>Notwithstanding any other
provision of law, the appointment of the Agency as receiver for a regulated
entity pursuant to paragraph (2) or (4) of subsection (a) and its succession,
by operation of law, to the rights, titles, powers, and privileges described in
subsection (b)(2)(A) shall terminate all rights and claims that the
stockholders and creditors of the regulated entity may have against the assets
or charter of the regulated entity or the Agency arising as a result of their
status as stockholders or creditors, except for their right to payment,
resolution, or other satisfaction of their claims, as permitted under
subsections (b)(9), (c), and (e).</text>
</clause><clause id="HE8AE2B39CA3E452A8706BB0026F502AD"><enum>(ii)</enum><header>Assets of
regulated entity</header><text>Notwithstanding any other provision of law, for
purposes of this section, the charter of a regulated entity shall not be
considered an asset of the regulated entity.</text>
</clause></subparagraph></paragraph><paragraph id="H42BC26CA5ABB4977B431107CD6785C67"><enum>(3)</enum><header>Authority of
receiver to determine claims</header>
<subparagraph id="H3A837896ED064C03B7CC9B567B8F300"><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="H2E76BB0E3B274E099B338BEA00AC1C06"><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="HD2DA80EAC06747768E054E35B0F1B65E"><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 date of publication of such notice;
and</text>
</clause><clause id="HCC11E96168984D45A43CDB8ECA26BA6"><enum>(ii)</enum><text>republish such
notice approximately 1 month and 2 months, respectively, after the date of
publication under clause (i).</text>
</clause></subparagraph><subparagraph id="HF0EFAFC2589549A7AFEDC24DF4972"><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="H611423CEA8844B2F83F8EFD9A8F659E1"><enum>(i)</enum><text>at
the last address of the creditor appearing in such books; or</text>
</clause><clause id="HF6F2EA4A124645D0ACAB4D6F740019C5"><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="H272853DA03574636B41465E02CB9BF81"><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="H274E329233F44EED937716BCAA359FF0"><enum>(5)</enum><header>Procedures for
determination of claims</header>
<subparagraph id="H1B7F648D552543F9B2D6685D00EBB55"><enum>(A)</enum><header>Determination
period</header>
<clause id="H2E437431200A4C4B99B75DAD95007761"><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="H7E2F2EAF41AC481884AB217E2465EB07"><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="HF1BC0810AD894B5689C07946C9D79D19"><enum>(iii)</enum><header>Mailing of
notice sufficient</header><text>The 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="H0E9A897D2D4A464196A54D45112DE00"><enum>(I)</enum><text>on the books of the
regulated entity;</text>
</subclause><subclause id="H426A0416585D4E1C9191D169EAC03445"><enum>(II)</enum><text>in the claim
filed by the claimant; or</text>
</subclause><subclause id="H3664B4AB98694CFA8CEC8EF79C7800F8"><enum>(III)</enum><text>in documents
submitted in proof of the claim.</text>
</subclause></clause><clause id="HEEF0375EE3C14E5F91229C885CE949E"><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="H6F0BF33D3B2E4CFDACBDB16D9EDD0002"><enum>(I)</enum><text>a statement of
each reason for the disallowance; and</text>
</subclause><subclause id="HB174BF3DF6F842A700D1E1CEC38BB588"><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="H5D815FF8FBC14D03AE473E7306D58534"><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) by
the receiver from any claimant which is proved to the satisfaction of the
receiver.</text>
</subparagraph><subparagraph id="H3BE4FE7C5097453A82128587BF6CBF20"><enum>(C)</enum><header>Disallowance of
claims filed after 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="H1F4CB839D71844C887A99C8DA51F9600"><enum>(D)</enum><header>Authority to
disallow claims</header>
<clause id="H7AB4A73B97CE43E9B87833FB335694C9"><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="H7A25C3727FD645B3B7D2CC064CF7F99E"><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="HC958EFA9C4A748468475175E63C09B6"><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="H5874FC4FCE4543D8891761B8273683DB"><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="HEBB9F32D5C064121BDC8A9E0FFD47CA"><enum>(iii)</enum><header>Exceptions</header><text>No
provision of this paragraph shall apply with respect to—</text>
<subclause id="H7E13B77E76324CC69051EF2C55E007C5"><enum>(I)</enum><text>any extension of
credit from any Federal Reserve Bank, Federal Home Loan Bank, or the United
States Treasury; or</text>
</subclause><subclause id="H4842AAE6BE5B4C49A41830AC44C8E984"><enum>(II)</enum><text>any security
interest in the assets of the regulated entity securing any such extension of
credit.</text>
</subclause></clause></subparagraph><subparagraph id="H36B61E9AC7C7499A8289EFE2F5B0E432"><enum>(E)</enum><header>No judicial
review of determination pursuant to subparagraph (d)</header><text>No court may
review the determination of the Agency under subparagraph (D) to disallow a
claim.</text>
</subparagraph><subparagraph id="H718306848A744EEC838307C2E3F7BE7"><enum>(F)</enum><header>Legal effect of
filing</header>
<clause id="H4A7B5DDC59F743FFAEDE664BB27250DB"><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="HE4C5DF72E4BF4BBFB1E0837EEFAE404B"><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="H32C78FF0ECD84FEA985E20531C21F989"><enum>(6)</enum><header>Provision for
judicial determination of claims</header>
<subparagraph id="H666F3EBF12DE41D7A8FB765BEADF3CBF"><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="HB0AB2912912444C6B373906F331B9B93"><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="HE6A31B9DE4F1449A9968B36E50AB0087"><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="H73F7C7EC12C74C6CA4913B78CE1D6DC7"><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="H1053D18B4CBD40C6A2CABCAA0047D8D"><enum>(7)</enum><header>Review of
claims</header>
<subparagraph id="H24116D5D378849E2A9D9E89F9ED1ED73"><enum>(A)</enum><header>Other review
procedures</header>
<clause id="H6737D3F953164BCAAE406D87C90143EC"><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="H8199255969E041CDB9B0BCC662EC3CDB"><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="H7D37008EE3F8481682B9E93F47F06366"><enum>(iii)</enum><header>Voluntary
binding or nonbinding procedures</header><text>The Agency may establish both
binding and nonbinding processes under this subparagraph, 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="H000F98FC33074C3DB4146BC3173FD9EB"><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="H23F6CFDB29EE461BACD67535B1133D9C"><enum>(8)</enum><header>Expedited
determination of claims</header>
<subparagraph id="HD62B981673B3462582B14893558100AB"><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="H57DF1F5CE2A0445B90FC11EC39CF71C6"><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="HE2CB5D4AFA05458FA9422F14945DCD00"><enum>(ii)</enum><text>allege that
irreparable injury will occur if the routine claims procedure is
followed.</text>
</clause></subparagraph><subparagraph id="HF4CA0085931F49D5BB74A32EF5789F06"><enum>(B)</enum><header>Determination
period</header><text>Before the end of the 90-day period beginning on the date
on which any claim is filed in accordance with the procedures established under
subparagraph (A), the Director shall—</text>
<clause id="H912F9FDAEA8948ED9723FB1BA316D466"><enum>(i)</enum><text>determine—</text>
<subclause id="HEB41D5DDA6E54CDEB159790593134532"><enum>(I)</enum><text>whether to allow
or disallow such claim; or</text>
</subclause><subclause id="H21E9E49EBD5445A190BF0649B6A03991"><enum>(II)</enum><text>whether such
claim should be determined pursuant to the procedures established under
paragraph (5); and</text>
</subclause></clause><clause id="HE856B6EB816240A69F397BED73025B49"><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="H3A373702C20D43FA9F3978649C4030D5"><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 date of 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="HAD84EA47A1C045BBAAC768A4004DB09B"><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="H130D219CD97B4950A2306D339FC300F4"><enum>(ii)</enum><text>the date on which
the Agency denies the claim.</text>
</clause></subparagraph><subparagraph id="H9D90D76D07B64310A1D3EB6E327E744D"><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="H52B26BE622DD4969BD2656E8B52D514C"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="HFB0250F331CC4012AD5266C1C537ACB9"><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="H986DA0906BC7446F8244E8660034D585"><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="H3CAAB8CB88D44C4EB8848144BBDEBB83"><enum>(9)</enum><header>Payment of
claims</header>
<subparagraph id="H9A765585C55246A3AF387F24CEB43710"><enum>(A)</enum><header>In
general</header><text>The receiver may, in the discretion of the receiver, and
to the extent that 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="H1B9C51BB02F9403790B1D185805CC370"><enum>(i)</enum><text>allowed by the
receiver;</text>
</clause><clause id="H5065C179C7DD438C8F3412CCEC3923BA"><enum>(ii)</enum><text>approved by the
Agency pursuant to a final determination pursuant to paragraph (7) or (8);
or</text>
</clause><clause id="H1919161CC4524D7ABFA2979C44816779"><enum>(iii)</enum><text>determined by
the final judgment of any court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph id="HD1DE7376C06245C084189B90B8CCD51F"><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 officer or
representative of the regulated entity.</text>
</subparagraph><subparagraph id="H6F41D39361184D86B24363B2ED00DC7F"><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="H6071D724221C4F03B867C899A306311C"><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
the regulated entity, following satisfaction by the receiver of the principal
amount of all creditor claims.</text>
</subparagraph></paragraph><paragraph id="H63E3120D6DA24617B56EF3CFF0CD00D0"><enum>(10)</enum><header>Suspension of
legal actions</header>
<subparagraph id="H909D3D8D2743457685E15B3801D4300"><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="H20352D4D877D43318B9105A65EAB90BC"><enum>(i)</enum><text>45
days, in the case of any conservator; and</text>
</clause><clause id="H56C8ACAA59344557AAB33600D4C1EB23"><enum>(ii)</enum><text>90 days, in the
case of any receiver.</text>
</clause></subparagraph><subparagraph id="H541B4E95A5BC46DBAEDEEE15F3FAB7D"><enum>(B)</enum><header>Grant of stay by
all courts required</header><text>Upon receipt of a request by the 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="HC9C1F97F82F744EB99ED53A302A44E3F"><enum>(11)</enum><header>Additional
rights and duties</header>
<subparagraph id="HBC136A7EA11944EFADAEE82CFA76E5E5"><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="HFABFECD60D9C4919B991E182400081DB"><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—</text>
<clause id="H48D019004012489CA0A661F4A920B9CD"><enum>(i)</enum><text>shall have all of
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="H93D68C14AEF14767B4C804BA6D33CCDC"><enum>(ii)</enum><text>shall not be
required to post any bond in order to pursue such remedies.</text>
</clause></subparagraph><subparagraph id="HA32FF5812AF643EEBFC099DFEC039D00"><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, or upon the charter, of a regulated
entity for which the Agency has been appointed receiver.</text>
</subparagraph><subparagraph id="HC60105E5EFE9439BB7909CB7983C6CF8"><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="H7231C9FB6E8B45B0BA003600BBE2C7AD"><enum>(i)</enum><text>any claim or
action for payment from, or any action seeking a determination of rights with
respect to, the assets or charter of any regulated entity for which the Agency
has been appointed receiver; or</text>
</clause><clause id="H80A38189EBE94D2F96D42F818F714970"><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="H664CC5F45BB94AB4955854276F6260BD"><enum>(E)</enum><header>Disposition of
assets</header><text>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—</text>
<clause id="HA0BE92E7737C4D87899EC55B481911E0"><enum>(i)</enum><text>maximizes the net
present value return from the sale or disposition of such assets;</text>
</clause><clause id="H63FC6999372B41169B03D100E74EAA00"><enum>(ii)</enum><text>minimizes the
amount of any loss realized in the resolution of cases; and</text>
</clause><clause id="H3AA91954AA7A4B74B2066E97C1EC2D2B"><enum>(iii)</enum><text>ensures adequate
competition and fair and consistent treatment of offerors.</text>
</clause></subparagraph></paragraph><paragraph id="H9797631FE1EF489C90A582D6F66100B7"><enum>(12)</enum><header>Statute of
limitations for actions brought by conservator or receiver</header>
<subparagraph id="H86413AC8976A4A6DA817B1CE609F00FF"><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="H1D38C5B376214EB6B08989DEAE04CE00"><enum>(i)</enum><text>in
the case of any contract claim, the longer of—</text>
<subclause id="H61C14F547EAE42B39B3D03F6DDD07985"><enum>(I)</enum><text>the 6-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="H4347B903168649FAAF19729CF4A45F5E"><enum>(II)</enum><text>the period
applicable under State law; and</text>
</subclause></clause><clause id="HB2B51F14D6704694B434B168F224F545"><enum>(ii)</enum><text>in the case of
any tort claim, the longer of—</text>
<subclause id="HCD61F8A84AFD47CDB9ED85C78760071"><enum>(I)</enum><text>the 3-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="HFBC48E0F08694A51B15989C7AFC45B37"><enum>(II)</enum><text>the period
applicable under State law.</text>
</subclause></clause></subparagraph><subparagraph id="H5E89D2BEB7884E08872723B4A6862ED"><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="H23BE15E754A24C1F892EA3260069483E"><enum>(i)</enum><text>the date of the
appointment of the Agency as conservator or receiver; or</text>
</clause><clause id="H7D1C5E88BFFA431FB91253725F227631"><enum>(ii)</enum><text>the date on which
the cause of action accrues.</text>
</clause></subparagraph></paragraph><paragraph id="H0F2E5CA2789F45A690F55E7BFC81C68"><enum>(13)</enum><header>Revival of
expired state causes of action</header>
<subparagraph id="HE5CAC3B5CD98413F84541610046113D"><enum>(A)</enum><header>In
general</header><text>In the case of any tort claim described under clause (ii)
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 limitations applicable under State law.</text>
</subparagraph><subparagraph id="HF0FAD478752F4E0CA2D9362C7C925F51"><enum>(B)</enum><header>Claims
described</header><text>A tort claim referred to under clause (i) 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="H46E58B0EAD7B4736BBBBCADBCFBAF65"><enum>(14)</enum><header>Accounting and
recordkeeping requirements</header>
<subparagraph id="HD954B9A2D0E74308B660309200A1C913"><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="H1E5766253048480D987C56EA5C9EB272"><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="H26F13E08A4A040B9AB2DDB25B0A4A44"><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="H6B75A0C5575C4646A41605D2BFF14668"><enum>(D)</enum><header>Recordkeeping
requirement</header><text>After the end of the 6-year period beginning on the
date on which 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="H6C0B9368257C4AD0ABEEAAA1E47346C"><enum>(15)</enum><header>Fraudulent
transfers</header>
<subparagraph id="HE2CC629824B7403995AD30294B82E5F0"><enum>(A)</enum><header>In
general</header><text>The Agency, as conservator or receiver, may avoid a
transfer of any interest of an entity-affiliated party, or any person
determined by the conservator or receiver to be 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="H92EBF91813044146BCCB80C22F73CAD9"><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="H73FAC0B18ABD4955A38466ABB0A4FE83"><enum>(i)</enum><text>the initial
transferee of such transfer or the entity-affiliated party or person for whose
benefit such transfer was made; or</text>
</clause><clause id="HBC135B3531334D49B500D39630F09677"><enum>(ii)</enum><text>any immediate or
mediate transferee of any such initial transferee.</text>
</clause></subparagraph><subparagraph id="H0528632CCDDA4FEEBB2EC8C6ADB641EC"><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="HACACB5607725459E8B4401C9E18DC3"><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="H3BE5751D878044629E7F172364BAEBB0"><enum>(ii)</enum><text>any immediate or
mediate good faith transferee of such transferee.</text>
</clause></subparagraph><subparagraph id="H5E6691D1425E4E528E89D888F8F7FDFC"><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="H4D770B8A3CFF485DB5D5892FB974D6D"><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 conservator or receiver under the control of the court, and appointing a
trustee to hold such assets.</text>
</paragraph><paragraph id="H51919D4BDB06438D8503DA3C4092A100"><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="H2D76088D76DD4FF0B81842AE140072D2"><enum>(18)</enum><header>Treatment of
claims arising from breach of contracts executed by the conservator or
receiver</header>
<subparagraph id="HD0D40EB73F7B48A3B2D342826CEB670"><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 the
conservator or receiver for the breach of an agreement executed or approved in
writing by the conservator or receiver after the date of its appointment, shall
be paid as an administrative expense of the conservator or receiver.</text>
</subparagraph><subparagraph id="H0F307660D8BF4855A921769B314C1459"><enum>(B)</enum><header>No limitation of
power</header><text>Nothing in this paragraph shall be construed to limit the
power of the conservator or receiver to exercise any rights under contract or
law, including to terminate, breach, cancel, or otherwise discontinue such
agreement.</text>
</subparagraph></paragraph><paragraph id="H467B1BF64DE647BCA0A9A6CBC867DDE3"><enum>(19)</enum><header>General
exceptions</header>
<subparagraph id="HCB37BE7A66E944E60065D5AF182E88A"><enum>(A)</enum><header>Limitations</header><text>The
rights of the 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="H5C2BF0AA8D74494181D39FA9672359BD"><enum>(B)</enum><header>Mortgages held
in trust</header>
<clause id="H4A8C5FBE199E45F990F37DCF4C003059"><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 any person other than the regulated entity shall not be
available to satisfy the claims of creditors generally, except that nothing in
this clause shall be construed to expand or otherwise affect the authority of
any regulated entity.</text>
</clause><clause id="H3ECD3EF3E7F24031AAF1A6F461001D83"><enum>(ii)</enum><header>Holding of
mortgages</header><text>Any mortgage, pool of mortgages, or interest in a pool
of mortgages described in 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 accordance with the terms of the
agreement creating such trust, custodial, or other agency arrangement.</text>
</clause><clause id="H814725C4CEDC4AD9A35DEF7DA2549F11"><enum>(iii)</enum><header>Liability of
conservator or receiver</header><text>The liability of the conservator or
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 with the regulations of the Director.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HA854E95762D047F9B40700C709DDB763"><enum>(c)</enum><header>Priority of
expenses and unsecured claims</header>
<paragraph id="H8037238D10FB490AA05C001C7DCCE2B5"><enum>(1)</enum><header>In
general</header><text>Unsecured claims against a regulated entity, or the
receiver therefor, that are proven to the satisfaction of the receiver shall
have priority in the following order:</text>
<subparagraph id="H66B46696B1FD45D5B4AB748D7BE6A7E9"><enum>(A)</enum><text>Administrative
expenses of the receiver.</text>
</subparagraph><subparagraph id="HFB7118C78374496FB3A5E7A8D38E7202"><enum>(B)</enum><text>Any other general
or senior liability of the regulated entity (which is not a liability described
under subparagraph (C) or (D).</text>
</subparagraph><subparagraph id="H161A904A8FF84A088E6B1BB1E74DB831"><enum>(C)</enum><text>Any obligation
subordinated to general creditors (which is not an obligation described under
subparagraph (D)).</text>
</subparagraph><subparagraph id="H2DD68F3E4A7145D198A5C43BEF0098"><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="H6BCADD3B6A0847B0836D3B36F34EBE3D"><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
receiver may take any action (including making payments) that does not comply
with this subsection, if—</text>
<subparagraph id="H869CFDBEBBFB4BAEAB48B5226DC0DC84"><enum>(A)</enum><text>the Director
determines that such action is necessary to maximize the value of the assets of
the regulated entity, to maximize the present value return from the sale or
other disposition of the assets of the regulated entity, or to minimize the
amount of any loss realized upon the sale or other disposition of the assets of
the regulated entity; and</text>
</subparagraph><subparagraph id="H977AB38510BD43AC9726400039DB45BF"><enum>(B)</enum><text>all creditors that
are similarly situated under paragraph (1) receive not less than the amount
provided in subsection (e)(2).</text>
</subparagraph></paragraph><paragraph id="HF461256722834154AF724BB46EBE60B8"><enum>(3)</enum><header>Definition</header><text>As
used in this subsection, the term <term>administrative expenses of the
receiver</term> includes—</text>
<subparagraph id="H1F09992E157248D183A3169D8E94DCE"><enum>(A)</enum><text>the actual,
necessary costs and expenses incurred by the receiver in preserving the assets
of a failed regulated entity or liquidating or otherwise resolving the affairs
of a failed regulated entity; and</text>
</subparagraph><subparagraph id="H2F49CF6D72D74BA7841B78F5002F3C44"><enum>(B)</enum><text>any obligations
that the receiver determines are necessary and appropriate to facilitate the
smooth and orderly liquidation or other resolution of the regulated
entity.</text>
</subparagraph></paragraph></subsection><subsection id="H65A5A39F9D024DC6BA7BD200B11D7838"><enum>(d)</enum><header>Provisions
relating to contracts entered into before appointment of conservator or
receiver</header>
<paragraph id="HC6D8163D97FE451B99EE8919834D00A"><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="H846BAE2605914FE5A86E009F899BC844"><enum>(A)</enum><text>to which such
regulated entity is a party;</text>
</subparagraph><subparagraph id="HE3607E64393442888F7EFE7EDBCAEDF"><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="H17C12EB92D0B4F81A4F9E07F67D9117B"><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="HF1ED26033D4D4C748F4700195499B8B1"><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="HB6CDB82A410C40DFA5608BD75CE07515"><enum>(3)</enum><header>Claims for
damages for repudiation</header>
<subparagraph id="H8C197287BCC14A899F7E2D828060ACE1"><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="H4B45215EDDBC410EAC3B0969364E53EF"><enum>(i)</enum><text>limited to actual
direct compensatory damages; and</text>
</clause><clause id="HFD34337AF4344A0C94F62CFD33F9796"><enum>(ii)</enum><text>determined as
of—</text>
<subclause id="H4914DA9477D0446688D3BCD4437869B1"><enum>(I)</enum><text>the date of the
appointment of the conservator or receiver; or</text>
</subclause><subclause id="HECA07DEFD6DB415FB8AAAA64305C05DB"><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="H216B5C6BA4E347BDA9665F3DDBFA0379"><enum>(B)</enum><header>No liability for
other damages</header><text>For purposes of subparagraph (A), the term
<term>actual direct compensatory damages</term> shall not include—</text>
<clause id="HCFB856624F6C448FB50092E4B8AE4799"><enum>(i)</enum><text>punitive or
exemplary damages;</text>
</clause><clause id="H80E048AD14F44CD9B6A4C8C6C3B54455"><enum>(ii)</enum><text>damages for lost
profits or opportunity; or</text>
</clause><clause id="H64E457A9BB6A490C85DE91538EB72CC2"><enum>(iii)</enum><text>damages for pain
and suffering.</text>
</clause></subparagraph><subparagraph id="H2ED9144CD40B4FECA419F20000681EA7"><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="HBE0444B3F09342099ECF66DF1C2FEC35"><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="H2ABA2EB21AB54A2CB326271CC84686F8"><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="H0A690D3E23B14301A6DE5414FBAC01ED"><enum>(4)</enum><header>Leases under
which the regulated entity is the lessee</header>
<subparagraph id="HCE1308E6829D4A78B9D8CC6B1162A813"><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="H47F124E88726445D9812BC6F39001F8B"><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="H6BB999C0935340DD003219374F39F0E2"><enum>(i)</enum><text>be
entitled to the contractual rent accruing before the later of the date on
which—</text>
<subclause id="H2FC4BA9B091D48D4A5312998A8494F7C"><enum>(I)</enum><text>the notice of
disaffirmance or repudiation is mailed; or</text>
</subclause><subclause id="HE97D463C7609485BBA999473A54D2523"><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="H06647067AF8544BAA765BB013DB6A679"><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="H90BE0386AFDC4C509F64C242852DFF33"><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="H650C62F44D5644EA8F1EF7E67BC042E2"><enum>(5)</enum><header>Leases under
which the regulated entity is the lessor</header>
<subparagraph id="H4EBEFDAD833347E9B57959429E879E85"><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="H85A77FA028B84C3CB6DD06FE538B8E21"><enum>(i)</enum><text>treat the lease as
terminated by such repudiation; or</text>
</clause><clause id="HB5BCE75847294D73932D0738E9A2F6EF"><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="HA24D182438904FF1842BA71436D3CBFA"><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 subparagraph (A)—</text>
<clause id="H5939D008A9544D8DAD00838778C2F64D"><enum>(i)</enum><text>the lessee—</text>
<subclause id="H1BC37223EA824D0B9F7EBE7CE0F3CF8"><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="HBF308FB77645493E8D4F0977A814795"><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="H27AA72B289A748ADAD9E4EE975DCAED8"><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="HABBC5C6160BA4F3DAB45ADD67C307DC9"><enum>(6)</enum><header>Contracts for
the sale of real property</header>
<subparagraph id="H085E75D7D4A54092ACDBE7F6D49DA54"><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="H4EF0CC5756994BD798A64118B3045134"><enum>(i)</enum><text>treat the contract
as terminated by such repudiation; or</text>
</clause><clause id="HFBCCC1C0DF8A4E9995C2FAEF49B9C517"><enum>(ii)</enum><text>remain in
possession of such real property.</text>
</clause></subparagraph><subparagraph id="H45D95C6C48BE4D708CD6F9744D74D85E"><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 subparagraph (A)—</text>
<clause id="HB4F7F391C88241BCBC64560021170570"><enum>(i)</enum><text>the
purchaser—</text>
<subclause id="HF129648624984E8ABAB54B2627AECC"><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="H3B6731C0C9524F7CA621ED762B174C7"><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="H1E765AC6D7DC452BB0F05526EE6BC065"><enum>(ii)</enum><text>the conservator
or receiver shall—</text>
<subclause id="H860298FC2583404AAA87DC515F2900EF"><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="H04106AE9F4EB469E8B9D40773E58FB53"><enum>(II)</enum><text>deliver title to
the purchaser in accordance with the provisions of the contract; and</text>
</subclause><subclause id="H03EF7DEF4BB3406A8FA0CC914798FB24"><enum>(III)</enum><text>have no
obligation under the contract other than the performance required under
subclause (II).</text>
</subclause></clause></subparagraph><subparagraph id="HE4FDD5638FBB4466BC3E610772D721BF"><enum>(C)</enum><header>Assignment and
sale allowed</header>
<clause id="HE06D09F5D3524D8A861231876B8B3F16"><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="HEBC858A60CE340EFAD6CAF11689C00B"><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="H07D9A1EAB05F4D3F86BCAD2583DFFE1B"><enum>(7)</enum><header>Service
contracts</header>
<subparagraph id="H1C720D69610C42068E2387464BA440A7"><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 receiver shall
be—</text>
<clause id="H2061CC13E8CB4AECA483AB006369891D"><enum>(i)</enum><text>a
claim to be paid in accordance with subsections (b) and (e); and</text>
</clause><clause id="H77C6D03643F047E496CDDBDB7C08FC01"><enum>(ii)</enum><text>deemed to have
arisen as of the date on which the conservator or receiver was
appointed.</text>
</clause></subparagraph><subparagraph id="H95A8482707994BD2914CC32B08F434A1"><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="HCE8266A106624D569B1BF7FDB45455CD"><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="HEA22CE4814C6460786E43A816F52AE"><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="H84FFEDA8DC09431D8BB900DA57855545"><enum>(C)</enum><header>Acceptance of
performance no bar to subsequent repudiation</header><text>The acceptance by
the 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="HD0564E2CE3574A1E99AA85CCEEB1E3FF"><enum>(8)</enum><header>Certain
qualified financial contracts</header>
<subparagraph id="H037BD24DF5CE475491B5BE7F32151FAD"><enum>(A)</enum><header>Rights of
parties to contracts</header><text>Subject to paragraphs (9) and (10), and
notwithstanding any other provision of this title (other than subsection
(b)(9)(B) of this section), any other Federal law, or the law of any State, no
person shall be stayed or prohibited from exercising—</text>
<clause id="H73543A5C28574EDBBA09C0FBB19047F"><enum>(i)</enum><text>any
right of that person 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="HC29291E0C49043FEB2826EC6F197EE47"><enum>(ii)</enum><text>any right under
any security agreement or arrangement or other credit enhancement relating to
one or more qualified financial contracts; or</text>
</clause><clause id="HED6CD04D733C4516A0862B505244B1CF"><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="HB2BDB2CDAC7A43929ECC4F94FAB09829"><enum>(B)</enum><header>Applicability of
other provisions</header><text>Subsection (b)(10) 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="H14153FA3265E43F4A636E8794D3CB5FF"><enum>(C)</enum><header>Certain
transfers not avoidable</header>
<clause id="HDB1C592A858E4790AAA984114983A723"><enum>(i)</enum><header>In
general</header><text>Notwithstanding paragraph (11), or any other provision of
Federal or State law 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="HCF5C984A9F994D07B18BDC0A5942942"><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="H12D09ED99B0B48D699BBB95182ECD55F"><enum>(D)</enum><header>Certain
contracts and agreements defined</header><text>In this subsection the following
definitions shall apply:</text>
<clause id="H10D2193E85EC48D895E526B85132DF75"><enum>(i)</enum><header>Qualified
financial contract</header><text>The term <term>qualified financial
contract</term> 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="H38520E6B293844588EBF5B06DC20084B"><enum>(ii)</enum><header>Securities
contract</header><text>The term <term>securities contract</term>—</text>
<subclause id="H24F6DA4145E44F6D876CE4086043EE79"><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="H9624DC4DF6514A6597A0C84BEF06C13C"><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="H92B4FB52ED4D4AA3B4AD94AD60525472"><enum>(III)</enum><text>means any option
entered into on a national securities exchange relating to foreign
currencies;</text>
</subclause><subclause id="H022D8E1ED61F4E7189564D003CBCC479"><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="H5645B28A9DAE4E42A6083945AC00739F"><enum>(V)</enum><text>means any margin
loan;</text>
</subclause><subclause id="H2701FDD0D85145C592D3E8B0669400DB"><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="HDFD7B74EC09A4379930013DBDDEF64E2"><enum>(VII)</enum><text>means any
combination of the agreements or transactions referred to in this
clause;</text>
</subclause><subclause id="H3F321A1FA8A944DAA0BAC62C49A74168"><enum>(VIII)</enum><text>means any
option to enter into any agreement or transaction referred to in this
clause;</text>
</subclause><subclause id="H291BF5C30D624AB4AABB50F1B57B01D"><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="HDFD6928FC8F04DAF84DA5645C125D725"><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="H26DF06DBEC1A4D4399B37000C6C35D73"><enum>(iii)</enum><header>Commodity
contract</header><text>The term <term>commodity contract</term> means—</text>
<subclause id="H1826BD59C4D24531B99B332CC5F3753B"><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="H2B7C00A11BB24D36AC8E46C60913CA60"><enum>(II)</enum><text>with respect to a
foreign futures commission merchant, a foreign future;</text>
</subclause><subclause id="H1559EC8C3D44467B8DD3439378B28CA6"><enum>(III)</enum><text>with respect to
a leverage transaction merchant, a leverage transaction;</text>
</subclause><subclause id="HA205DA8DB8584ECB9EB49366FE8C9C03"><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="H8338D83FFD024C83AE9B59BA410092A4"><enum>(V)</enum><text>with respect to a
commodity options dealer, a commodity option;</text>
</subclause><subclause id="HA92600C148074531A7694C808C8648DC"><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="H793F4FB156F14F18A99B05F0F17D507E"><enum>(VII)</enum><text>any combination
of the agreements or transactions referred to in this clause;</text>
</subclause><subclause id="H804201D3B22C4ADAA1905FB6CEF0ED"><enum>(VIII)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="H7C5FF4BE08CB45668E00F1552BF5B7D4"><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="H3D32E6961BEC4609870055661CA893E3"><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="HECE3DD73E737422F93F41F92917F8485"><enum>(iv)</enum><header>Forward
contract</header><text>The term <term>forward contract</term> means—</text>
<subclause id="HFA931AA49E6D45B4AED11C971C484442"><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 on which 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="HC4A4171374D2423D9EEEAD957D00E948"><enum>(II)</enum><text>any combination
of agreements or transactions referred to in subclauses (I) and (III);</text>
</subclause><subclause id="HB60019E87A054205917441C668C2E79B"><enum>(III)</enum><text>any option to
enter into any agreement or transaction referred to in subclause (I) or
(II);</text>
</subclause><subclause id="H2D2DC06503184144B2DA3243451F9756"><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="H90DA93B7F1BD44788000FCD6B71C88A3"><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="H80F4AB7C60624C6D8F612E87005B9C94"><enum>(v)</enum><header>Repurchase
agreement</header><text>The term <term>repurchase agreement</term> (including a
reverse repurchase agreement)—</text>
<subclause id="HF4E7F065C6E04D7F88E8F1F78BA18EFF"><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 section 3 of the Securities Exchange Act of 1934), mortgage loans,
interests in mortgage-related securities or mortgage loans, eligible bankers'
acceptances, qualified foreign government securities (defined for purposes of
this clause as 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), 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="HD10B052A010C4C09882BA6E806D4A999"><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="H035F315CF89D43C7A091DE4500B2E302"><enum>(III)</enum><text>means any
combination of agreements or transactions referred to in subclauses (I) and
(IV);</text>
</subclause><subclause id="H3985E301B98545E6BF5D82ACB9619D7"><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="HA58A0D391C95447091970031A300009F"><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="HAE451A878A32492AA9889D07626766A9"><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></clause><clause id="H7D922F1C77F8434A88D907738695C9B7"><enum>(vi)</enum><header>Swap
agreement</header><text>The term <term>swap agreement</term> means—</text>
<subclause id="H162A58826D604B179FF920BE10819D46"><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="H9AD57C3F13494A16A436A41651CD319F"><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="H43B3D6F8965C476583A8EB203247FC3"><enum>(III)</enum><text>any combination
of agreements or transactions referred to in this clause;</text>
</subclause><subclause id="HF140DEBE872B4862B47C0020D2553608"><enum>(IV)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="HD58F4CDDBB35435E951BC72E14C8E4C"><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="H8583B55F86C242759E57CCF397C84C00"><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></clause><clause id="H7DCEC25C984D4ED6981BCC640288A71F"><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="H5FC30A5FBD3840E4A7F168411B78B100"><enum>(viii)</enum><header>Transfer</header><text>The
term <term>transfer</term> 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 equity of redemption of the regulated
entity.</text>
</clause></subparagraph><subparagraph id="H27B9F404665C49168CBBCE51EA756B2D"><enum>(E)</enum><header>Certain
protections in event of appointment of
conservator</header><text>Notwithstanding any other provision of this section,
any other Federal law, or the law of any State (other than paragraph (10) of
this subsection and subsection (b)(9)(B)), no person shall be stayed or
prohibited from exercising—</text>
<clause id="H6D211C4F5309494AB322A9003D851F43"><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="H5FE295FF5A324895863C63CF8D0091AB"><enum>(ii)</enum><text>any right under
any security agreement or arrangement or other credit enhancement relating to 1
or more such qualified financial contracts; or</text>
</clause><clause id="H405BFF6C9C134CAD85CE7BA2506394D2"><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="H318F5D38245447AB00CDA02AE425D9E"><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), or to disaffirm or repudiate any such
contract in accordance with subsection (d)(1).</text>
</subparagraph><subparagraph id="HA9EBF39240984B7291EC007BE609ACDD"><enum>(G)</enum><header>Walkaway clauses
not effective</header>
<clause id="H1103D7D72C264591A4A2DEE4297EEAE3"><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="H9220766ECDE34138BA70C83C14500037"><enum>(ii)</enum><header>Walkaway clause
defined</header><text>For purposes of this subparagraph, the term
<term>walkaway clause</term> 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 the status of such party as a
nondefaulting party.</text>
</clause></subparagraph></paragraph><paragraph id="H7FB75E732410463B9431778F9C4133B0"><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="HA44697B3C5414B52003B275139F4AB03"><enum>(A)</enum><text>transfer to 1
person—</text>
<clause id="HAD18EEE933F947D0B4546EA13F75E0E3"><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="HC437BDE894834CDC81F96F7D3DB931AA"><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="H86B5216F5DCB41BC9E3FC6C1C5D90556"><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="HA5268FC4248C4451BBBC1CC15C3D3D06"><enum>(iv)</enum><text>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="H5DFF328E4BFB4E9B88FAE8214E4EEA34"><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="H6F84AFC490754A0BAD56187CFC7EFCE"><enum>(10)</enum><header>Notification of
transfer</header>
<subparagraph id="H0EFE89B29A414F9C94D4B32400DF6F73"><enum>(A)</enum><header>In
general</header><text>The conservator or receiver shall notify any person that
is a party to a contract or transfer by 5:00 p.m. (Eastern Standard 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, if—</text>
<clause id="H3B92B1BB6C8D47FEB7215F2146D9E7DB"><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="HC25CFE54FD3D4F51AA2B5495AEAC006E"><enum>(ii)</enum><text>such transfer
includes any qualified financial contract.</text>
</clause></subparagraph><subparagraph id="HCAA514A812504FBFA864D9DFBEA4968"><enum>(B)</enum><header>Certain rights
not enforceable</header>
<clause id="HC35254AC40104BB6AD0033401CAD2E00"><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 under 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="HCC35451F14EA426FB3C49D5FD72A777"><enum>(I)</enum><text>until 5:00 p.m.
(Eastern Standard Time) on the business day following the date of the
appointment of the receiver; or</text>
</subclause><subclause id="H4D8CBED1483846769560C8AC948FBEC0"><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="HEFA87063CD0543A78648029FEBFFD5CC"><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 under 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="H2C2B4E1795F04AE0A8EA2A9570A198"><enum>(iii)</enum><header>Notice</header><text>For
purposes of this paragraph, the conservator or receiver 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 conservator or receiver
has taken steps reasonably calculated to provide notice to such person by the
time specified in subparagraph (A).</text>
</clause></subparagraph><subparagraph id="HC8BB558063114E8F0022112CB7F92D40"><enum>(C)</enum><header>Business day
defined</header><text>For purposes of this paragraph, the term <term>business
day</term> 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="H35BC260AE9EA4C07A640FB5D17F24193"><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="HBE7654A377294F1CA100C1EBA9813851"><enum>(A)</enum><text>disaffirm or
repudiate all qualified financial contracts between—</text>
<clause id="H7C211EF663A645C091CAEDACD683086"><enum>(i)</enum><text>any
person or any affiliate of such person; and</text>
</clause><clause id="HBD9CA67EBED74FB0BD4F00A65FB05547"><enum>(ii)</enum><text>the regulated
entity in default; or</text>
</clause></subparagraph><subparagraph id="H0CD2766C3683400887FADE2774E27B3B"><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="H31F492F5E5F440AF87AACD814A922C2"><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="H5388D0732B3C4BBDA6E288626E5FC209"><enum>(13)</enum><header>Authority to
enforce contracts</header>
<subparagraph id="H60FF7B2799094EEDB616BA197DA02342"><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, or the exercise of rights or
powers by, a conservator or receiver, the conservator or receiver may enforce
any contract, other than a contract for liability insurance for a director or
officer, or a contract or a regulated entity bond, entered into by the
regulated entity.</text>
</subparagraph><subparagraph id="H333C63F45E324BFA86049F22ADFB3CDE"><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 liability insurance contract for an officer or director, or
regulated entity bond under other applicable law.</text>
</subparagraph><subparagraph id="H0A51E74F64A34CEC8F2CC6428864A23"><enum>(C)</enum><header>Consent
requirement</header>
<clause id="H2B15B7E8BC834CB993BEA9AF73179308"><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="H5677DCDECD374F770004BA69E1EF4894"><enum>(I)</enum><text>45 days after the
date of appointment of a conservator; or</text>
</subclause><subclause id="HEC9BB0FE476241F7BD4785C2EC9850CD"><enum>(II)</enum><text>90 days after the
date of appointment of a receiver.</text>
</subclause></clause><clause id="HA5CB60E312014FD0AB12AD5F00DDD28B"><enum>(ii)</enum><header>Exceptions</header><text>This
subparagraph shall not—</text>
<subclause id="H6608DA65071E4F6B91F5FCF201B315F"><enum>(I)</enum><text>apply to a contract
for liability insurance for an officer or director;</text>
</subclause><subclause id="H978EBDB0CB4F4700B6298B492B7E6735"><enum>(II)</enum><text>apply to the
rights of parties to certain qualified financial contracts under subsection
(d)(8); and</text>
</subclause><subclause id="HC5ECB56D8F9A44B3B34067D772E7CC38"><enum>(III)</enum><text>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="H9A31157156024F65A489615646CF4305"><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 commented="no" id="HBF12059C66F14A61B3357B072C1E7548"><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 commented="no" id="H2AEDBBBCC7A644D3A658584E6616BFA0"><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 commented="no" id="HF69FBDE996844CA3A25648A02776B89"><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="H764E9A6273424545816EE0F7D775B68"><enum>(e)</enum><header>Valuation of
claims in default</header>
<paragraph id="H851CF1BE0B5E4780AB5300E14C53CF4D"><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="H10470726915E410C91F017C778A579DA"><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 be not more
than the amount that such claimant would have received if the Agency had
liquidated the assets and liabilities of the regulated entity without
exercising the authority of the Agency under subsection (i).</text>
</paragraph></subsection><subsection id="HBFD5360EE4654C3E9B6B314154DDD159"><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="HF9623750A09C466BB77C5E796CABE9B6"><enum>(g)</enum><header>Liability of
directors and officers</header>
<paragraph id="H22748B4BC45548B8A58DDD60CFCB7CE6"><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 described in
paragraph (2) brought by, on behalf of, or at the request or direction of the
Agency, and prosecuted wholly or partially for the benefit of the
Agency—</text>
<subparagraph id="H4EAC585D9B3D4AE9BF332348D8ED9EAB"><enum>(A)</enum><text>acting as
conservator or receiver of such regulated entity; or</text>
</subparagraph><subparagraph id="H10D90671CB4A40E9AE15BA4E5C9FC469"><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></paragraph><paragraph id="H907A16EB14BF46CD85EE75C5A5F3D310"><enum>(2)</enum><header>Actions
addressed</header><text>Paragraph (1) applies in any civil action 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.</text>
</paragraph><paragraph id="HEE3BD7B88EF14299AA95B1E1DA052B03"><enum>(3)</enum><header>No
limitation</header><text>Nothing in this subsection shall impair or affect any
right of the Agency under other applicable law.</text>
</paragraph></subsection><subsection id="HA465F5C6351643C89450B5A61428D301"><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="HB75BC32F5F5E455CAF485CD8EB86D4FB"><enum>(i)</enum><header>Limited-life
regulated entities</header>
<paragraph id="HA8B11376E5D348129F6952ACEC803900"><enum>(1)</enum><header>Organization</header>
<subparagraph id="HFEF36BAE4D3B4E3F83734CEE8494B8B"><enum>(A)</enum><header>Purpose</header><text>The
Agency, as receiver appointed pursuant to subsection (a)—</text>
<clause id="H2397E3DD982A4CFEA3D4E391814D0049"><enum>(i)</enum><text>may, in the case
of a Federal Home Loan Bank, organize a limited-life regulated entity with
those powers and attributes of the Federal Home Loan Bank in default or in
danger of default as the Director determines necessary, subject to the
provisions of this subsection, and the Director shall grant a temporary charter
to that limited-life regulated entity, and that limited-life regulated entity
shall operate subject to that charter; and</text>
</clause><clause id="H9921ADD1401740E2894808A5ABF7EE04"><enum>(ii)</enum><text>shall, in the
case of an enterprise, organize a limited-life regulated entity with respect to
that enterprise in accordance with this subsection.</text>
</clause></subparagraph><subparagraph id="H19BAC50307614C9EB63813F60011A78D"><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="H421200E71C194D6DBAE92B4B95435100"><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, except that
the liabilities assumed shall not exceed the amount of assets purchased or
transferred from the regulated entity to the limited-life regulated
entity;</text>
</clause><clause id="H55C0CA05811144F38866EB61CE3936AE"><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="H0CE495DC428D457F89DA7BA4841FA13"><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="H027A57D315944BA184C9531069B7323"><enum>(2)</enum><header>Charter and
establishment</header>
<subparagraph id="H6F95414A39A14CC3AEADF38001D4F91"><enum>(A)</enum><header>Transfer of
charter</header>
<clause id="H09A3C52DA94A4EEDAF8B3824688132BD"><enum>(i)</enum><header>Fannie
mae</header><text>If the Agency is appointed as receiver for the Federal
National Mortgage Association, the limited-life regulated entity established
under this subsection with respect to such enterprise shall, by operation of
law and immediately upon its organization—</text>
<subclause id="H610867DCF6A242C3BFA7E789C71CE2DA"><enum>(I)</enum><text>succeed to the
charter of the Federal National Mortgage Association, as set forth in the
Federal National Mortgage Association Charter Act; and</text>
</subclause><subclause id="H0031C37B67864D5EB3F39B702C2BD45E"><enum>(II)</enum><text>thereafter
operate in accordance with, and subject to, such charter, this Act, and any
other provision of law to which the Federal National Mortgage Association is
subject, except as otherwise provided in this subsection.</text>
</subclause></clause><clause id="HA591D801318241F3B271F4177C04EB4F"><enum>(ii)</enum><header>Freddie
mac</header><text>If the Agency is appointed as receiver for the Federal Home
Loan Mortgage Corporation, the limited-life regulated entity established under
this subsection with respect to such enterprise shall, by operation of law and
immediately upon its organization—</text>
<subclause id="H3C15A767B12A486800AC2DE544AD3FDF"><enum>(I)</enum><text>succeed to the
charter of the Federal Home Loan Mortgage Corporation, as set forth in the
Federal Home Loan Mortgage Corporation Charter Act; and</text>
</subclause><subclause id="H740B76128A364D0F96007F93E204D5B0"><enum>(II)</enum><text>thereafter
operate in accordance with, and subject to, such charter, this Act, and any
other provision of law to which the Federal Home Loan Mortgage Corporation is
subject, except as otherwise provided in this subsection.</text>
</subclause></clause></subparagraph><subparagraph id="H5580B55AE741473AAF1CDA81FD00F81D"><enum>(B)</enum><header>Interests in and
assets and obligations of regulated entity in
default</header><text>Notwithstanding subparagraph (A) or any other provision
of law—</text>
<clause id="H15462E87771848AD93832857DD50BFAF"><enum>(i)</enum><text>a
limited-life regulated entity shall assume, acquire, or succeed to the assets
or liabilities of a regulated entity only to the extent that such assets or
liabilities are transferred by the Agency to the limited-life regulated entity
in accordance with, and subject to the restrictions set forth in, paragraph
(1)(B);</text>
</clause><clause id="H97D3BB19B3B04E42BB00A8E747E1B1F2"><enum>(ii)</enum><text>a
limited-life regulated entity shall not assume, acquire, or succeed to any
obligation that a regulated entity for which a receiver has been appointed may
have to any shareholder of the regulated entity that arises as a result of the
status of that person as a shareholder of the regulated entity; and</text>
</clause><clause id="H70F03D712F64486680FCE2D9FFD3046"><enum>(iii)</enum><text>no shareholder or
creditor of a regulated entity shall have any right or claim against the
charter of the regulated entity once the Agency has been appointed receiver for
the regulated entity and a limited-life regulated entity succeeds to the
charter pursuant to subparagraph (A).</text>
</clause></subparagraph><subparagraph id="H773879AF8F9240A192A031DB30B0F0"><enum>(C)</enum><header>Limited-life
regulated entity treated 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="HBE3BEFF91A9E47838FDD61E1281E04C"><enum>(D)</enum><header>Management</header><text>Upon
its establishment, a limited-life regulated entity 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="HD4C45C9EEDE446F183296C64E248666D"><enum>(E)</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="H492245B7F2B34AA2B3B6124FE5316ED3"><enum>(3)</enum><header>Capital
stock</header>
<subparagraph id="HB30FC989F90C49AFA437C1C2ADE6FF59" indent="down1"><enum>(A)</enum><header>No agency requirement</header><text>The
Agency is not required to pay capital stock into a limited-life regulated
entity or to issue any capital stock on behalf of a limited-life regulated
entity established under this subsection.</text>
</subparagraph><subparagraph id="HEF78C84E326D43CAB3A0700C77F38D1" indent="down1"><enum>(B)</enum><header>Authority</header><text>If the Director
determines that such action is advisable, the Agency may cause capital stock or
other securities of a limited-life regulated entity established with respect to
an enterprise to be issued and offered for sale, in such amounts and on such
terms and conditions as the Director may determine, in the discretion of the
Director.</text>
</subparagraph></paragraph><paragraph id="H422F2A11AC81464CBA46A62DC4936512"><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="HFB2FB19658624547819187C3997B681B"><enum>(5)</enum><header>Exempt tax
status</header><text>Notwithstanding any other provision of Federal or State
law, a 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="HD2E18256D80649F3958582620024A9D2"><enum>(6)</enum><header>Winding
up</header>
<subparagraph id="H587DC84EEFE442BE86ABAE29E10F5B6"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraphs (B) and (C), not later than 2
years after the date of its organization, the Agency shall wind up the affairs
of a limited-life regulated entity.</text>
</subparagraph><subparagraph id="H91419D46831D42D08781CF7B60EB40C2"><enum>(B)</enum><header>Extension</header><text>The
Director may, in the discretion of the Director, extend the status of a
limited-life regulated entity for 3 additional 1-year periods.</text>
</subparagraph><subparagraph id="H054BE8D0FDE341349DE1F651C3DD018F"><enum>(C)</enum><header>Termination of
status as limited-life regulated entity</header>
<clause id="HFB11289D4E3C4CB998397D2792B19766"><enum>(i)</enum><header>In
general</header><text>Upon the sale by the Agency of 80 percent or more of the
capital stock of a limited-life regulated entity, as defined in clause (iv), to
1 or more persons (other than the Agency)—</text>
<subclause id="HA768A835BCE14DD189504188F89E2312"><enum>(I)</enum><text>the status of the
limited-life regulated entity as such shall terminate; and</text>
</subclause><subclause id="H4F3CBF2F72384ECEB361E91D5F344B74"><enum>(II)</enum><text>the entity shall
cease to be a limited-life regulated entity for purposes of this
subsection.</text>
</subclause></clause><clause id="H509A55B64BA94C44B7C4F225C3DCA11"><enum>(ii)</enum><header>Divestiture of
remaining stock, if any</header>
<subclause id="H6C75E02C1A7A45EF9ECF89C95E87EB0"><enum>(I)</enum><header>In
general</header><text>Not later than 1 year after the date on which the status
of a limited-life regulated entity is terminated pursuant to clause (i), the
Agency shall sell to 1 or more persons (other than the Agency) any remaining
capital stock of the former limited-life regulated entity.</text>
</subclause><subclause id="HF15172512F184E2CA3D8A0D773C39E2D"><enum>(II)</enum><header>Extension
authorized</header><text>The Director may extend the period referred to in
subclause (I) for not longer than an additional 2 years, if the Director
determines that such action would be in the public interest.</text>
</subclause></clause><clause id="HDC6BC5724EB94D798E392F814CC284B4"><enum>(iii)</enum><header>Savings
clause</header><text>Notwithstanding any provision of law, other than clause
(ii), the Agency shall not be required to sell the capital stock of an
enterprise or a limited-life regulated entity established with respect to an
enterprise.</text>
</clause><clause id="H527282C9D95F4ED5A81165DDAB83FCA3"><enum>(iv)</enum><header>Applicability</header><text>This
subparagraph applies only with respect to a limited-life regulated entity that
is established with respect to an enterprise.</text>
</clause></subparagraph></paragraph><paragraph id="HCDF327FF61E44FE4B263AD0000C46E49"><enum>(7)</enum><header>Transfer of
assets and liabilities</header>
<subparagraph id="HF80FF890E1AC4DC888D8469D56825ED0"><enum>(A)</enum><header>In
general</header>
<clause id="H014994880C134373807DA6CE2125A0B3"><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 and subject to
the restrictions of paragraph (1).</text>
</clause><clause id="HB78C20D73A024AE48978F659EE5293A7"><enum>(ii)</enum><header>Subsequent
transfers</header><text>At any time after the establishment of a limited-life
regulated entity, the Agency, as receiver, may transfer any assets and
liabilities of the regulated entity in default, or in danger of default, as the
Agency may, in its discretion, determine to be appropriate in accordance with
and subject to the restrictions of paragraph (1).</text>
</clause><clause id="H6421DE35C6C645CE88B2AD00C69488DA"><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 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><clause id="H7E8D8722C7A14EAE8B05CEFC15049B6B"><enum>(iv)</enum><header>Equitable
treatment of similarly situated creditors</header><text>The Agency shall treat
all creditors of a regulated entity in default or in danger of default that are
similarly situated under subsection (c)(1) in a similar manner in exercising
the authority of the Agency under this subsection to transfer any assets or
liabilities of the regulated entity to the limited-life regulated entity
established with respect to such regulated entity, except that the Agency may
take actions (including making payments) that do not comply with this clause,
if—</text>
<subclause id="H9A195E9468B94F4680E276001900461C"><enum>(I)</enum><text>the Director
determines that such actions are necessary to maximize the value of the assets
of the regulated entity, to maximize the present value return from the sale or
other disposition of the assets of the regulated entity, or to minimize the
amount of any loss realized upon the sale or other disposition of the assets of
the regulated entity; and</text>
</subclause><subclause id="H722CDE1BB7C1446CADDCC168DF18488"><enum>(II)</enum><text>all creditors that
are similarly situated under subsection (c)(1) receive not less than the amount
provided in subsection (e)(2).</text>
</subclause></clause><clause id="H700B3A1AA13C46B7ADAAA91E8FEE4773"><enum>(v)</enum><header>Limitation on
transfer of liabilities</header><text>Notwithstanding any other provision of
law, the aggregate amount of liabilities of a regulated entity that are
transferred to, or assumed by, a limited-life regulated entity may not exceed
the aggregate amount of assets of the regulated entity that are transferred to,
or purchased by, the limited-life regulated entity.</text>
</clause></subparagraph></paragraph><paragraph id="HB3405724EB364A21BE34D140819D615E"><enum>(8)</enum><header>Regulations</header><text>The
Agency may promulgate such regulations as the Agency determines to be necessary
or appropriate to implement this subsection.</text>
</paragraph><paragraph id="HA961CD75D5824ACEABA5A49C00C8C18F"><enum>(9)</enum><header>Powers of
limited-life regulated entities</header>
<subparagraph id="H502588C025FE4E06B69FF4873038F240"><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="H37687F77CB644E3BB140E369E54FC191"><enum>(i)</enum><text>the Agency
may—</text>
<subclause id="HC664414355DC478A97BDE7903F08611"><enum>(I)</enum><text>remove the
directors of a limited-life regulated entity;</text>
</subclause><subclause id="H78E6C766398D4671B2ED8E03F0D70012"><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;
and</text>
</subclause><subclause id="H2E45F969C24846DA825E0100D4EF57C8"><enum>(III)</enum><text>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>
</subclause></clause><clause id="H5B42811B8C0E45A88B3712AA78AA2D00"><enum>(ii)</enum><text>the board of
directors of a limited-life regulated entity—</text>
<subclause id="H9E9C82B0964B41D39015B8666E45F0F6"><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="H21D384A0AA9F4DE7961D083184B2889"><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="HC75431AC8DC54A4FAEB0DE8685874C40"><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 not longer than 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="HA0C1E6F772194026BAD3D6FB73F80E3"><enum>(10)</enum><header>No federal
status</header>
<subparagraph id="HF358A5FA1DEC477B96885E932C9F001B"><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="H8737B0A7D00A411D99AD38E131AABFD5"><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="HF71F4290562547B4A0584FCA5510D421"><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="H56523CECF3F447C0B410F185FD72CA"><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="H4E693F080F53480E919FDEA895245A9"><enum>(11)</enum><header>Authority to
obtain credit</header>
<subparagraph id="H9126401A5F334955AC550094A4FDB525"><enum>(A)</enum><header>In
general</header><text>A limited-life regulated entity may obtain unsecured
credit and issue unsecured debt.</text>
</subparagraph><subparagraph id="HA0447B3CF2454525827E04E859138135"><enum>(B)</enum><header>Inability to
obtain credit</header><text>If a limited-life regulated entity is unable to
obtain unsecured credit or issue unsecured debt, the Director may authorize the
obtaining of credit or the issuance of debt by the limited-life regulated
entity—</text>
<clause id="H1430741BE8924239B8E4FBF413A9DE67"><enum>(i)</enum><text>with priority over
any or all of the obligations of the limited-life regulated entity;</text>
</clause><clause id="H20801636AA6A48A7849EC6E4A534E3C6"><enum>(ii)</enum><text>secured by a lien
on property of the limited-life regulated entity that is not otherwise subject
to a lien; or</text>
</clause><clause id="H14BE7D8609C146F39FE18CAFA5589B7C"><enum>(iii)</enum><text>secured by a
junior lien on property of the limited-life regulated entity that is subject to
a lien.</text>
</clause></subparagraph><subparagraph id="HE2BF3193F41F4EB80061840875FA2582"><enum>(C)</enum><header>Limitations</header>
<clause id="HBA9EDC39DCA14A1F93A38B98D05571D"><enum>(i)</enum><header>In
general</header><text>The Director, after notice and a hearing, may authorize
the obtaining of credit or the issuance of debt by a limited-life regulated
entity that is secured by a senior or equal lien on property of the
limited-life regulated entity that is subject to a lien (other than mortgages
that collateralize the mortgage-backed securities issued or guaranteed by an
enterprise) only if—</text>
<subclause id="HEE5B019F4B02448000C24D82144C6D7C"><enum>(I)</enum><text>the limited-life
regulated entity is unable to otherwise obtain such credit or issue such debt;
and</text>
</subclause><subclause id="HF98A1B4A27CA48278DFD04EB62A06EC7"><enum>(II)</enum><text>there is adequate
protection of the interest of the holder of the lien on the property with
respect to which such senior or equal lien is proposed to be granted.</text>
</subclause></clause></subparagraph><subparagraph id="H457BC10A7FDF4F58A0EFD53EFB078E9D"><enum>(D)</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>
</subparagraph></paragraph><paragraph id="H2082F43552BD44BC9DDFAF2296481CCE"><enum>(12)</enum><header>Affect on debts
and liens</header><text>The reversal or modification on appeal of an
authorization under this subsection to obtain credit or issue debt, or of a
grant under this section of a priority or a lien, does not affect the validity
of any debt so issued, 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 issuance of such
debt, or the granting of such priority or lien, were stayed pending
appeal.</text>
</paragraph></subsection><subsection id="H43D278A0CDB34F93A4BD54A49C6FC1E3"><enum>(j)</enum><header>Other agency
exemptions</header>
<paragraph id="HB7F5710F1CCB4E8F9664DDD954D34E20"><enum>(1)</enum><header>Applicability</header><text>The
provisions of this subsection shall apply with respect to the Agency in any
case in which the Agency is acting as a conservator or a receiver.</text>
</paragraph><paragraph id="H1EBA2B74024245C0B300372F6CB68403"><enum>(2)</enum><header>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, county,
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="HBD7E8D7B96D1401C8994275D68EE77F6"><enum>(3)</enum><header>Property
protection</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="H9E64957FB0214829B1821E43357075A9"><enum>(4)</enum><header>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="H91861E78B6914ECDADD8DB7397B8B906"><enum>(k)</enum><header>Prohibition of
charter revocation</header><text>In no case may the receiver appointed pursuant
to this section revoke, annul, or terminate the charter of an
enterprise.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H30A267B7112A4FB187B01F1109890941"><enum>(b)</enum><header>Technical and
conforming amendments</header><text>The Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended—</text>
<paragraph id="HB45FDCE4CCBF42DEA3AE3E02A27F16E8"><enum>(1)</enum><text>in section 1368
(<external-xref legal-doc="usc" parsable-cite="usc/12/4618">12 U.S.C. 4618</external-xref>)—</text>
<subparagraph id="H9A131573691C4EFE8523B79BEDE16B12"><enum>(A)</enum><text>by striking
<quote>an enterprise</quote> each place that term appears and inserting
<quote>a regulated entity</quote>; and</text>
</subparagraph><subparagraph id="HD165002292CE435B8F0006A4B51F347B"><enum>(B)</enum><text>by striking
<quote>the enterprise</quote> each place that term appears and inserting
<quote>the regulated entity</quote>;</text>
</subparagraph></paragraph><paragraph id="H8D218DC6E20C4BC887D31C37DA009375"><enum>(2)</enum><text>in section 1369C
(<external-xref legal-doc="usc" parsable-cite="usc/12/4622">12 U.S.C. 4622</external-xref>), by striking <quote>enterprise</quote> each place that term
appears and inserting <quote>regulated entity</quote>;</text>
</paragraph><paragraph id="H123A436A56614EDA8506B78C37C8336"><enum>(3)</enum><text>in
section 1369D (<external-xref legal-doc="usc" parsable-cite="usc/12/4623">12 U.S.C. 4623</external-xref>)—</text>
<subparagraph id="HDBC87EBC31CB432CB2BB69EE80E063FE"><enum>(A)</enum><text>by striking
<quote>an enterprise</quote> each place that term appears and inserting
<quote>a regulated entity</quote>; and</text>
</subparagraph><subparagraph id="H3E64B750B4DD457999D6C2BC67A8E599"><enum>(B)</enum><text>in subsection
(a)(1), by striking <quote>An enterprise</quote> and inserting <quote>A
regulated entity</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEB27D44ACD314265829BC07FE921CAC"><enum>(4)</enum><text>by striking
sections 1369, 1369A, and 1369B (<external-xref legal-doc="usc" parsable-cite="usc/12/4619">12 U.S.C. 4619</external-xref>, 4620, and 4621).</text>
</paragraph></subsection></section></subtitle><subtitle id="HC1EE4E4D115643A2A0C6BCC7E2A671F"><enum>D</enum><header>Enforcement
actions</header>
<section id="H0CC6862AA404409E9F3D00CF3444D35B"><enum>151.</enum><header>Cease and
desist proceedings</header><text display-inline="no-display-inline">Section
1371 of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631</external-xref>) is amended—</text>
<paragraph id="H8AC2D8CE34214A58A87CB068EC43C2D7"><enum>(1)</enum><text>by striking
subsections (a) and (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HEC9213AED2064949BCA2DBA295CF248D" style="OLC">
<subsection id="HB847545937CF4461A600F9AF29FBDB39"><enum>(a)</enum><header>Issuance for
unsafe or unsound practices and violations</header>
<paragraph id="H04780FE227664EB983CAF1032C952665"><enum>(1)</enum><header>Authority of
director</header><text>If, in the opinion of the Director, a regulated entity
or any entity-affiliated party is engaging or has engaged, or the Director has
reasonable cause to believe that the regulated entity or any entity-affiliated
party is about to engage, in an unsafe or unsound practice in conducting the
business of the regulated entity or the Office of Finance, or is violating or
has violated, or the Director has reasonable cause to believe is about to
violate, a law, rule, regulation, or order, 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 the Office of Finance or any written
agreement entered into with the Director, the Director may issue and serve upon
the regulated entity or entity-affiliated party a notice of charges in respect
thereof.</text>
</paragraph><paragraph id="HD04F24A8BE554968A2AFE04C97F1E17"><enum>(2)</enum><header>Limitation</header><text>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 of this title, with subsection (m) or (n) of section 309 of the
Federal National Mortgage Association Charter Act (<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 Federal Home Loan Mortgage
Corporation Act (<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 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><subsection id="HCE594AC51EDC4057B24F7CCCE6655C6E"><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 subsection
(a).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H23F3EBB8EE574CFD9C66C13344285413"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="HBEFC686188364864BCA8D2D2FFDD75D9"><enum>(A)</enum><text>in paragraph (1),
by inserting before the period at the end the following: <quote>, unless the
party served with a notice of charges shall appear at the hearing personally or
by a duly authorized representative, the party shall be deemed to have
consented to the issuance of the cease and desist order</quote>; and</text>
</subparagraph><subparagraph id="HBD73929999564D3D9FE6303239DB130"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="H0718AA38B3A14D10B3092BD76CEC6197"><enum>(i)</enum><text>by
striking <quote>or director</quote> and inserting <quote>director, or
entity-affiliated party</quote>; and</text>
</clause><clause id="H0F606A74BFC34F51BE7FB03F50CEBE00"><enum>(ii)</enum><text>by
inserting <quote>or entity-affiliated party</quote> before
<quote>consents</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H371D8210358440A19507C3005FB0001D"><enum>(3)</enum><text>in each of
subsections (c), (d), and (e)—</text>
<subparagraph id="H1EBDD6C9F25848B1B27C007F97B3A9F3"><enum>(A)</enum><text>by striking
<quote>the enterprise</quote> each place that term appears and inserting
<quote>the regulated entity</quote>;</text>
</subparagraph><subparagraph id="H223E4E8D45444E5A9813D820596020D1"><enum>(B)</enum><text>by striking
<quote>an enterprise</quote> each place that term appears and inserting
<quote>a regulated entity</quote>; and</text>
</subparagraph><subparagraph id="H3C6B2D63C8F44286BE43109DFE76D756"><enum>(C)</enum><text>by striking
<quote>conduct</quote> each place that term appears and inserting
<quote>practice</quote>;</text>
</subparagraph></paragraph><paragraph id="H06480AD75EF74C2F8EA5FDB3EA67B6F"><enum>(4)</enum><text>in
subsection (d)—</text>
<subparagraph id="HB31669C84C8442F200CE399D86C0BB75"><enum>(A)</enum><text>in the matter
preceding paragraph (1)—</text>
<clause id="HC7C9EE2CDBCF471EBFB0CDE7464800EC"><enum>(i)</enum><text>by
striking <quote>or director</quote> and inserting <quote>director, or
entity-affiliated party</quote>; and</text>
</clause><clause id="HC77BBB6E67B349A9007441CF3B47700"><enum>(ii)</enum><text>by
inserting <quote>to require a regulated entity or entity-affiliated
party</quote> after <quote>includes the authority</quote>;</text>
</clause></subparagraph><subparagraph id="H090391C57806445C87BD58AA2DFA3367"><enum>(B)</enum><text>in paragraph
(1)—</text>
<clause id="HC1B5B7CC22994A5E00DB500009E9002E"><enum>(i)</enum><text>by
striking <quote>to require an executive officer or a director to</quote>;
and</text>
</clause><clause commented="no" id="H69D4A2FB11084ED285E857751B989347"><enum>(ii)</enum><text>by striking
<quote>loss</quote> and all that follows through <quote>person</quote> and
inserting <quote>loss, if</quote>;</text>
</clause><clause id="H8E28B764B58A4AAB988C9CFFBFC3163B"><enum>(iii)</enum><text>in
subparagraph (A), by inserting <quote>such entity or party or finance
facility</quote> before <quote>was</quote>; and</text>
</clause><clause id="HC118AB73E59F449D90DEC2529300C044"><enum>(iv)</enum><text>by
striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC6FB738DFB704AAC93D8FFF22CC4429" style="OLC">
<subparagraph id="H158E6B8F3EEA49C1B839DE30860538B6"><enum>(B)</enum><text>the violation or
practice involved a reckless disregard for the law or any applicable
regulations or prior order of the
Director;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HF542E2EE72E04D1A92C958C5D69559B8"><enum>(C)</enum><text>in paragraph (4),
by inserting <quote>loan or</quote> before <quote>asset</quote>;</text>
</subparagraph></paragraph><paragraph id="HCE7E019831DD4B72A27E0363A5074115"><enum>(5)</enum><text>in subsection (e),
by inserting <quote>or entity-affiliated party</quote>—</text>
<subparagraph id="H9A4A391EE1F64620851CBA926F4BAC77"><enum>(A)</enum><text>before <quote>or
any executive</quote>; and</text>
</subparagraph><subparagraph id="H9BA10A9CB3014767B08678AD27EDF663"><enum>(B)</enum><text>before the period
at the end; and</text>
</subparagraph></paragraph><paragraph id="H7909137E660145ACA6DFE2B77968C29"><enum>(6)</enum><text>in
subsection (f)—</text>
<subparagraph id="H43420107196540F0B2E82109C553A350"><enum>(A)</enum><text>by striking
<quote>enterprise</quote> and inserting <quote>regulated entity, finance
facility,</quote>; and</text>
</subparagraph><subparagraph id="H608264A127C845D8BD002D863600E21E"><enum>(B)</enum><text>by striking
<quote>or director</quote> and inserting <quote>director, or entity-affiliated
party</quote>.</text>
</subparagraph></paragraph></section><section id="HA293F5406FAC417CA5C018E73423E3D"><enum>152.</enum><header>Temporary cease
and desist proceedings</header><text display-inline="no-display-inline">Section
1372 of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632</external-xref>) is amended—</text>
<paragraph id="H1FDC86AE63EE4212B5BB34758D3F879F"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9C90551F5F844228892CFA18A91EFF04" style="OLC">
<subsection id="HE039DF1B73C34BFCA558EFD46BFEA9D6"><enum>(a)</enum><header>Grounds for
issuance</header>
<paragraph id="H39F37259A42A4BD49831B412008C5DB5"><enum>(1)</enum><header>In
general</header><text>If the Director determines that the actions specified in
the notice of charges served upon a regulated entity or any 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 that
entity, or is likely to weaken the condition of that entity prior to the
completion of the proceedings conducted pursuant to sections 1371 and 1373, the
Director may—</text>
<subparagraph id="H35B9181428FB4DCD82D47377494FA1B5"><enum>(A)</enum><text>issue a temporary
order requiring that regulated entity or entity-affiliated party to cease and
desist from any such violation or practice; and</text>
</subparagraph><subparagraph id="HE582596B86E0453EA7ECF940C3D6A7DF"><enum>(B)</enum><text>require that
regulated entity or entity-affiliated party to take affirmative action to
prevent or remedy such insolvency, dissipation, condition, or prejudice pending
completion of such proceedings.</text>
</subparagraph></paragraph><paragraph id="H7763E51892E34EC581A4C35032827191"><enum>(2)</enum><header>Additional
requirements</header><text>An order issued under paragraph (1) may include any
requirement authorized under subsection
1371(d).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD53BA7C6BE7A481C9DAD92C59D58FDAD"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H92FCD1F1E9D54F159078A9FF54E06ED2"><enum>(A)</enum><text>by striking
<quote>or director</quote> and inserting <quote>director, or entity-affiliated
party</quote>; and</text>
</subparagraph><subparagraph id="H94FF4504BDF34B91ADB9E4FFA4D77400"><enum>(B)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</subparagraph></paragraph><paragraph id="H7EDF9C54C5044FB1B8AD72055F66BDCC"><enum>(3)</enum><text>in subsection (c),
by striking <quote>enterprise</quote> each place that term appears and
inserting <quote>regulated entity</quote>;</text>
</paragraph><paragraph id="H79CCA534CD124EA3B816B568BF005F97"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph id="H83E99172220747D6A145AC46DED7087C"><enum>(A)</enum><text>by striking
<quote>or director</quote> each place that term appears and inserting
<quote>director, or entity-affiliated party</quote>; and</text>
</subparagraph><subparagraph id="HABC2A0CF850745CB983C7CC5DCBCA85"><enum>(B)</enum><text>by striking
<quote>An enterprise</quote> and inserting <quote>A regulated entity</quote>;
and</text>
</subparagraph></paragraph><paragraph id="H136B2516660941B8B18C126E82BDBBF6"><enum>(5)</enum><text>in subsection
(e)—</text>
<subparagraph id="HD6DB06BDD06C466E8F59F2CDCA09A5B3"><enum>(A)</enum><text>by striking
<quote>request the Attorney General of the United States to</quote>; and</text>
</subparagraph><subparagraph id="H55EFBA79343B45E98F53F5E322032912"><enum>(B)</enum><text>by striking
<quote>or may, under the direction and control of the Attorney General, bring
such action</quote>.</text>
</subparagraph></paragraph></section><section id="HC06D57E5272E450790913514097EAC9"><enum>153.</enum><header>Removal and
prohibition authority</header>
<subsection id="H69B6BCD5FE254F0CAC532F5B68440681"><enum>(a)</enum><header>In
general</header><text>Part 1 of subtitle C of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>) is
amended—</text>
<paragraph id="H97BF55F4DF704DDFB301FA4EA716E1E7"><enum>(1)</enum><text>by redesignating
sections 1377 through 1379B (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637–4641</external-xref>) as sections 1379 through
1379D, respectively; and</text>
</paragraph><paragraph id="H53FC42CB6CFD4D0588E1661E6CB66797"><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:</text>
<quoted-block display-inline="no-display-inline" id="H306569BFC54345F78782443E004300F" style="OLC">
<section id="H4D0AD49053794382001124BAE884D279"><enum>1377.</enum><header>Removal and
prohibition authority</header>
<subsection id="H123C1ED88501428400371F7BD2C84734"><enum>(a)</enum><header>Authority To
issue order</header>
<paragraph id="H4C5990903F654FAD9243EB00EAF71B9E"><enum>(1)</enum><header>In
general</header><text>The Director may serve upon a party described in
paragraph (2), or any officer, director, or management of the Office of Finance
a written notice of the intention of the Director to suspend or remove such
party from office, or prohibit any further participation by such party, in any
manner, in the conduct of the affairs of the regulated entity.</text>
</paragraph><paragraph id="H0E71F3D1C15D4FDD9E55654EFA2398DD"><enum>(2)</enum><header>Applicability</header><text>A
party described in this paragraph is an entity-affiliated party or any officer,
director, or management of the Office of Finance, if the Director determines
that—</text>
<subparagraph id="H0075BDA4D9B24EC3A62D0087B83656B7"><enum>(A)</enum><text>that party,
officer, or director has, directly or indirectly—</text>
<clause id="HD796CA128F7D418900D47B876E388EA"><enum>(i)</enum><text>violated—</text>
<subclause id="H6DCFB134F6E1423C8632B053026DEC6F"><enum>(I)</enum><text>any law or
regulation;</text>
</subclause><subclause id="HC6D450A278A24BFAA96FAFAED4AA2083"><enum>(II)</enum><text>any cease and
desist order which has become final;</text>
</subclause><subclause id="H61E5C40296BD4D3480A4F87EE0ED3C2D"><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>
</subclause><subclause id="HC13B320339FC4091962804006B1CD09B"><enum>(IV)</enum><text>any written
agreement between such regulated entity and the Director;</text>
</subclause></clause><clause id="H58A434E0DB8945799B98AB5D98C86D7"><enum>(ii)</enum><text>engaged or
participated in any unsafe or unsound practice in connection with any regulated
entity or business institution; or</text>
</clause><clause id="HFC7874367C49490C905C1FA626108419"><enum>(iii)</enum><text>committed or
engaged in any act, omission, or practice which constitutes a breach of such
party's fiduciary duty;</text>
</clause></subparagraph><subparagraph id="H0297B6597CCE4168B9F0656500AD70C5"><enum>(B)</enum><text>by reason of the
violation, practice, or breach described in subparagraph (A)—</text>
<clause id="H20E2AF40381C48318541F9B6A278F710"><enum>(i)</enum><text>such regulated
entity or business institution has suffered or will probably suffer financial
loss or other damage; or</text>
</clause><clause id="HDAF80742583A474088CFD1B82400CAEA"><enum>(ii)</enum><text>such party has
received financial gain or other benefit; and</text>
</clause></subparagraph><subparagraph id="HC9A3301ADB82415FAFCBAA5C8D64F5C2"><enum>(C)</enum><text>the violation,
practice, or breach described in subparagraph (A)—</text>
<clause id="H09E5C0D45D26427A86F158FB4FB912A6"><enum>(i)</enum><text>involves personal
dishonesty on the part of such party; or</text>
</clause><clause id="H4F199C6A4D014B55B0C5BBFE7C184B56"><enum>(ii)</enum><text>demonstrates
willful or continuing disregard by such party for the safety or soundness of
such regulated entity or business institution.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H97D4079D591A4463890081006EF6B10"><enum>(b)</enum><header>Suspension
order</header>
<paragraph id="HE1EA644B96A045D2BFF6D0A67D674C00"><enum>(1)</enum><header>Suspension or
prohibition authority</header><text>If the Director serves written notice under
subsection (a) upon a party subject to that subsection (a), the Director may,
by order, suspend or remove 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>
<subparagraph id="H6E07C1231D564DF18B9D7E5FBF6EF4EA"><enum>(A)</enum><text>determines that
such action is necessary for the protection of the regulated entity; and</text>
</subparagraph><subparagraph id="H5CB26C9195EC42549F69BA1B72BA871C"><enum>(B)</enum><text>serves such party
with written notice of the order.</text>
</subparagraph></paragraph><paragraph id="HB16162B1B2544F97907ECAD9FE98706C"><enum>(2)</enum><header>Effective
period</header><text>Any order issued under this subsection—</text>
<subparagraph id="HDB481FF1DC754F0E866E23AC3C1BD7F"><enum>(A)</enum><text>shall become
effective upon service; and</text>
</subparagraph><subparagraph id="H138AD2F432224FDBAB1C721673271400"><enum>(B)</enum><text>unless a court
issues a stay of such order under subsection (g), shall remain in effect and
enforceable until—</text>
<clause id="H715247187CA84F119BBE22006063BAB0"><enum>(i)</enum><text>the date on which
the Director dismisses the charges contained in the notice served under
subsection (a) with respect to such party; or</text>
</clause><clause id="HF2A13E6424CF4128B7AD2456C35EBEB"><enum>(ii)</enum><text>the effective date
of an order issued under subsection (b).</text>
</clause></subparagraph></paragraph><paragraph id="H80775C24A54F4D02BFCA049B74068A"><enum>(3)</enum><header>Copy of
order</header><text>If the Director issues an order under subsection (b) to any
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="H40BFD99251F146FCA4D009746C678174"><enum>(c)</enum><header>Notice, hearing,
and order</header>
<paragraph id="H089799512CC54C87958567EA9E48DEA7"><enum>(1)</enum><header>Notice</header><text>A
notice under subsection (a) of the intention of the Director to issue an order
under this section 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.</text>
</paragraph><paragraph id="H9DEDEA24B62942848CADA0D92CD91B9C"><enum>(2)</enum><header>Timing of
hearing</header><text>A hearing shall be fixed for a date not earlier than 30
days, nor later than 60 days, after the date of service of notice under
subsection (a), unless an earlier or a later date is set by the Director at the
request of—</text>
<subparagraph id="H5CB069BAE7EA44D5BE85000601850326"><enum>(A)</enum><text>the party
receiving such notice, and good cause is shown; or</text>
</subparagraph><subparagraph id="H1BD6E9A250C3469BAAFE006CB9A92674"><enum>(B)</enum><text>the Attorney
General of the United States.</text>
</subparagraph></paragraph><paragraph id="HC3147B99EE78471EA74CF474C2101139"><enum>(3)</enum><header>Consent</header><text>Unless
the party that is the subject of a notice delivered under subsection (a)
appears 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 under this
section.</text>
</paragraph><paragraph id="H2D738187956C442B92C529AC4800A565"><enum>(4)</enum><header>Issuance of
order of suspension</header><text>The Director may issue an order under this
section, as the Director may deem appropriate, if—</text>
<subparagraph id="H6C24103969684DFC851F65C0C7C7F26D"><enum>(A)</enum><text>a party is deemed
to have consented to the issuance of an order under paragraph (3); or</text>
</subparagraph><subparagraph id="H3335A522AE174BBBB51488E0C1E696C0"><enum>(B)</enum><text>upon the record
made at the hearing, the Director finds that any of the grounds specified in
the notice have been established.</text>
</subparagraph></paragraph><paragraph id="H42B15420A6F1418EAA7F8D4BD6CB65F2"><enum>(5)</enum><header>Effectiveness of
order</header><text>Any order issued under paragraph (4) shall become effective
at the expiration of 30 days after the date of service upon the relevant
regulated entity and party (except in the case of an order issued upon consent
under paragraph (3), 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>
</paragraph></subsection><subsection id="HC39986D05F274FD5917E9292AA2740A2"><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="HD0DD0A7D5A1F4A57943378441F6182F1"><enum>(1)</enum><text>participate in any
manner in the conduct of the affairs of any regulated entity or the Office of
Finance;</text>
</paragraph><paragraph id="HB19A98A831214B7896E893CB7FD0387C"><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="H81819D8E72204567A576A8397EBD218B"><enum>(3)</enum><text>violate any voting
agreement previously approved by the Director; or</text>
</paragraph><paragraph id="H47B5880FE31F40A6B67380AA22A31313"><enum>(4)</enum><text>vote for a
director, or serve or act as an entity-affiliated party of a regulated entity
or as an officer or director of the Office of Finance.</text>
</paragraph></subsection><subsection id="H6567A89842B54EAC90900226F85EF957"><enum>(e)</enum><header>Industry-wide
prohibition</header>
<paragraph id="H7823095124074CB19418497F234DFAF3"><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 the Office of Finance, or prohibited from
participating in the conduct of the affairs of a regulated entity or the Office
of Finance, 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 or the Office of Finance.</text>
</paragraph><paragraph id="H527C86ECEEDD4F7FBFEA5587C5EB1C4B"><enum>(2)</enum><header>Exception if
director provides written consent</header><text>If, on or after the date on
which an order is issued under this section which removes or suspends from
office any party, or prohibits such party from participating in the conduct of
the affairs of a regulated entity or the Office of Finance, 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 or
such Office of Finance described in the written consent. Any such consent shall
be publicly disclosed.</text>
</paragraph><paragraph id="H91B758C2044640E68400AC8E07B2A3FE"><enum>(3)</enum><header>Violation of
paragraph (1) treated as violation of order</header><text>Any violation of
paragraph (1) by any person who is subject to an order issued under subsection
(h) shall be treated as a violation of the order.</text>
</paragraph></subsection><subsection id="HFC78A56D704843A9B50082E0175C2657"><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 entity.</text>
</subsection><subsection id="HDBDA45A12EAB454298CA782F3EF95649"><enum>(g)</enum><header>Stay of
suspension and prohibition of entity-affiliated party</header><text>Not later
than 10 days after the date on which any entity-affiliated party has been
suspended from office 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 or prohibition
pending the completion of the administrative proceedings pursuant to subsection
(c). The court shall have jurisdiction to stay such suspension or
prohibition.</text>
</subsection><subsection id="H6A9209C20FC649D3961D60F08955E96F"><enum>(h)</enum><header>Suspension or
removal of entity-affiliated party charged with felony</header>
<paragraph id="H8BC363CBD27C4E12A8490568219B7000"><enum>(1)</enum><header>Suspension or
prohibition</header>
<subparagraph id="HA9BB81DA0DD8469CAD2DFD2CEEC375DA"><enum>(A)</enum><header>In
general</header><text>Whenever any 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 1 year under Federal or State 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, 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.</text>
</subparagraph><subparagraph id="H6780639CE06E4D72A0C34223A8273BF5"><enum>(B)</enum><header>Provisions
applicable to notice</header>
<clause id="HFAB25DFAAB6741D98030294816D67991"><enum>(i)</enum><header>Copy</header><text>A
copy of any notice under subparagraph (A) shall be served upon the relevant
regulated entity.</text>
</clause><clause id="H81442258E84847269230534CB1787665"><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
subparagraph (A) is finally disposed of, or until terminated by the
Director.</text>
</clause></subparagraph></paragraph><paragraph id="HAB6812918C0D4A9684EE80143219529E"><enum>(2)</enum><header>Removal or
prohibition</header>
<subparagraph id="H76F3AE4DF3C64203A4E5AFCA87A0344F"><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 an
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 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 without the prior written
consent of the Director.</text>
</subparagraph><subparagraph id="H5080F1C48479492FB1307CBB14A9DEB9"><enum>(B)</enum><header>Provisions
applicable to order</header>
<clause id="H8191FFDEDE0C474DA43181A4F6DF869B"><enum>(i)</enum><header>Copy</header><text>A
copy of any order under subparagraph (A) shall be served upon the relevant
regulated entity, at which time the 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="HCF2FEB2888D440488F74E79EA2527CA5"><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 a party from office or to prohibit further
participation in the affairs of a regulated entity pursuant to subsection (a)
or (b).</text>
</clause><clause id="H43A8158E105749FEA0073DA160C5D711"><enum>(iii)</enum><header>Effective
period</header><text>Unless terminated by the Director, 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).</text>
</clause></subparagraph></paragraph><paragraph id="H71CE4FA01B76421000004DC39CDF79C3"><enum>(3)</enum><header>Authority of
remaining board members</header>
<subparagraph id="H45C16B7E9F554BBEAAE84E61D19E44F7"><enum>(A)</enum><header>In
general</header><text>If at any time, because of the suspension of 1 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.</text>
</subparagraph><subparagraph id="HCE5377A2D58D4DFBAF6B615F50ACDF5"><enum>(B)</enum><header>Appointment of
temporary directors</header><text>If all of the directors of a regulated entity
are suspended pursuant to this section, the Director shall appoint persons to
serve temporarily as directors 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>
</subparagraph></paragraph><paragraph id="H2D4329917E7D47C597606235427F4F42"><enum>(4)</enum><header>Hearing
regarding continued participation</header>
<subparagraph id="H05481326C59C43E689C500321B528122"><enum>(A)</enum><header>In
general</header><text>Not later than 30 days after the date of service of any
notice of suspension or order of removal issued pursuant to paragraph (1) or
(2), the entity-affiliated party may request in writing an opportunity to
appear before the Director to show that the continued service 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.</text>
</subparagraph><subparagraph id="HFAD0D1D3215F49FBA43F7C50B3FEDEB"><enum>(B)</enum><header>Timing and form
of hearing</header><text>Upon receipt of a request for a hearing under
subparagraph (A), the Director shall fix a time (not later than 30 days after
the date of receipt of such request, unless extended at the request of such
party) and place at which the entity-affiliated party may appear, personally or
through counsel, before the Director or 1 or more designated employees of the
Director to submit written materials (or, at the discretion of the Director,
oral testimony) and oral argument.</text>
</subparagraph><subparagraph id="HCD20673520D24F1A8E4096BD944363C9"><enum>(C)</enum><header>Determination</header><text>Not
later than 60 days after the date of a hearing under subparagraph (B), the
Director shall notify the entity-affiliated 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 will be rescinded or otherwise modified. Such notification
shall contain a statement of the basis for any adverse decision of the
Director.</text>
</subparagraph></paragraph><paragraph id="HC822EB679B6C45F8BEC04FC4B582F505"><enum>(5)</enum><header>Rules</header><text>The
Director is authorized to prescribe such rules as may be necessary to carry out
this
subsection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDAE1B6C1FE544AF3A75581F4682FAE35"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H24171F92EAB64C5B8E20820000010248"><enum>(1)</enum><header>Safety and
soundness act</header><text>Subtitle C of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is
amended—</text>
<subparagraph id="H999DA7963FAE4D5398BC39141C085860"><enum>(A)</enum><text>in section
1317(f), by striking <quote>section 1379B</quote> and inserting <quote>section
1379D</quote>;</text>
</subparagraph><subparagraph id="HCF00FDFF39334E058DE9A297B32FBCF6"><enum>(B)</enum><text>in section
1373(a)—</text>
<clause id="H94AFFBCB2D684A61B8D595E4DDE2B0AA"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>or 1376(c)</quote> and inserting <quote>,
1376(c), or 1377</quote>;</text>
</clause><clause id="H60B37ABB2DDF432F9BD0BA72E4B471A7"><enum>(ii)</enum><text>in
paragraph (2), by inserting “or 1377” after ”1371”; and</text>
</clause><clause id="H4C1932C1635D409CA943F6A9F7345CDC"><enum>(iii)</enum><text>in
paragraph (4), by inserting <quote>or removal or prohibition</quote> after
<quote>cease and desist</quote>; and</text>
</clause></subparagraph><subparagraph id="H744BD0B6722C45039B6F2857F25069E"><enum>(C)</enum><text>in section
1374(a)—</text>
<clause id="H5BE2B3E078FA4E0C9461810322B6FC3E"><enum>(i)</enum><text>by
striking <quote>or 1376</quote> and inserting <quote>1313B , 1376, or
1377</quote>; and</text>
</clause><clause id="HA153E150ABD64213989758E7FC8C069"><enum>(ii)</enum><text>by
striking <quote>such section</quote> and inserting <quote>this
title</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="H54EB1FCDB2C148A0B9546E71707645B6"><enum>(2)</enum><header>Fannie mae
charter act</header><text>Section 308(b) of the Federal National Mortgage
Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended in the second sentence,
by striking <quote>The</quote> and inserting <quote>Except to the extent that
action under section 1377 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 temporarily results in a lesser number,
the</quote>.</text>
</paragraph><paragraph id="H93FB40CAB2E14DB192D168BDC4978DF3"><enum>(3)</enum><header>Freddie mac
charter act</header><text>Section 303(a)(2)(A) of the Federal Home Loan
Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)(A)</external-xref>) is amended, in the second
sentence, by striking <quote>The</quote> and inserting <quote>Except to the
extent action under section 1377 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 temporarily results in a lesser number,
the</quote>.</text>
</paragraph></subsection></section><section commented="no" id="H46CF0E1BE3C9414BBA2FFE46FA2EB857"><enum>154.</enum><header>Enforcement and
jurisdiction</header><text display-inline="no-display-inline">Section 1375 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4635) is amended—</text>
<paragraph commented="no" id="H93314F6D10A847059DDDB3231E4024C5"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE3389AE4CC5E4A9AB69DDD88ED5E5DAA" style="OLC">
<subsection commented="no" id="H035A68B1F1BB49BAB275AFCC00979D75"><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 commented="no" id="HCC1E6744E3C447F7AED0B7EC642E7B6C"><enum>(2)</enum><text>in subsection (b),
by striking <quote>or 1376</quote> and inserting <quote>1313B, 1376, or
1377</quote>.</text>
</paragraph></section><section id="HF3A65020341045B6BBDCDD2A4B7233E"><enum>155.</enum><header>Civil money
penalties</header><text display-inline="no-display-inline">Section 1376 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4636) is amended—</text>
<paragraph id="HC4E5520B421B448AA8DEC0AACAA967E6"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE3732B3B6AE948758C00C825E082C492" style="OLC">
<subsection id="HC2F884820A804C58B9D0FDB705E9A800"><enum>(a)</enum><header>In
general</header><text>The Director may impose a civil money penalty in
accordance with this section on any regulated entity or any entity-affiliated
party. The Director shall not impose a civil penalty in accordance with this
section on any regulated entity or any entity-affiliated party for any
violation that is addressed under section
1345(a).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFA5615A847B8481DA3782FC73382F792"><enum>(2)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H995AE224D0F2421E919DEBFF9C49C47E" style="OLC">
<subsection id="H4CB0ECB0840E4752B4A1F2CDC41144C"><enum>(b)</enum><header>Amount of
penalty</header>
<paragraph id="H82A4D212E0DA4B109977F7D2BC43EF22"><enum>(1)</enum><header>First
tier</header><text>A regulated entity or entity-affiliated party shall forfeit
and pay a civil penalty of not more than $10,000 for each day during which a
violation continues, if such regulated entity or party—</text>
<subparagraph id="HD1C9EA102A564B11A324EAA7E72ED850"><enum>(A)</enum><text>violates any
provision of this title, the authorizing statutes, or any order, condition,
rule, or regulation under this title or any authorizing statute;</text>
</subparagraph><subparagraph id="H11EBBFFAEBAD49B9906E637CF82DA400"><enum>(B)</enum><text>violates any final
or temporary order or notice issued pursuant to this title;</text>
</subparagraph><subparagraph id="H0246B88BB36E4EA4B441681DBABCCF3F"><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; or</text>
</subparagraph><subparagraph id="HC13631F919BD4723868C5D398DCA41FF"><enum>(D)</enum><text>violates any
written agreement between the regulated entity and the Director.</text>
</subparagraph></paragraph><paragraph id="HD71BC6ED54F8401D9EE0006BE1B588ED"><enum>(2)</enum><header>Second
tier</header><text>Notwithstanding paragraph (1), a regulated entity or
entity-affiliated party shall forfeit and pay a civil penalty of not more than
$50,000 for each day during which a violation, practice, or breach continues,
if—</text>
<subparagraph id="HDAC849D5F3F5463F9D3E6120554D58A8"><enum>(A)</enum><text>the regulated
entity or entity-affiliated party, respectively—</text>
<clause id="H8A6137EA5B0044BDB4159800DB467942"><enum>(i)</enum><text>commits any
violation described in any subparagraph of paragraph (1);</text>
</clause><clause id="H653C5297CD564D16903C7EB438D723AF"><enum>(ii)</enum><text>recklessly
engages in an unsafe or unsound practice in conducting the affairs of the
regulated entity; or</text>
</clause><clause id="HDC0C975598994F04AD62A361E8B01207"><enum>(iii)</enum><text>breaches any
fiduciary duty; and</text>
</clause></subparagraph><subparagraph id="H8493733D29F84787AC918DDF9671DAB3"><enum>(B)</enum><text>the violation,
practice, or breach—</text>
<clause id="H2DD1E4F4E1D540D584F613523C1D8DC6"><enum>(i)</enum><text>is
part of a pattern of misconduct;</text>
</clause><clause id="HBC32F219FC5747F7AC1F00444F80EF2"><enum>(ii)</enum><text>causes or is
likely to cause more than a minimal loss to the regulated entity; or</text>
</clause><clause id="H22378B5699C54C21901B4137A15DD75D"><enum>(iii)</enum><text>results in
pecuniary gain or other benefit to such party.</text>
</clause></subparagraph></paragraph><paragraph id="H8FD7CB1BD1E24051A8FAAA7EAE2CA639"><enum>(3)</enum><header>Third
tier</header><text>Notwithstanding paragraphs (1) and (2), any regulated entity
or entity-affiliated party 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, if such
regulated entity or entity-affiliated party—</text>
<subparagraph id="H86DC1C78480F43E1907FE4A32513AFD5"><enum>(A)</enum><text>knowingly—</text>
<clause id="H351D04AEA6444D37BBB66951BCDAD892"><enum>(i)</enum><text>commits any
violation described in any subparagraph of paragraph (1);</text>
</clause><clause id="H581FF63A1BDC4975B7B6FCE2FBFA76B"><enum>(ii)</enum><text>engages in any
unsafe or unsound practice in conducting the affairs of the regulated entity;
or</text>
</clause><clause id="HEFB85EFE57754385851F42BBEAF181C6"><enum>(iii)</enum><text>breaches any
fiduciary duty; and</text>
</clause></subparagraph><subparagraph id="H59D967BA63A844B9864126417151796E"><enum>(B)</enum><text>knowingly or
recklessly causes a substantial loss to the regulated entity or a substantial
pecuniary gain or other benefit to such party by reason of such violation,
practice, or breach.</text>
</subparagraph></paragraph><paragraph id="H8F71900BBCF346E19F99F58352CA5CD0"><enum>(4)</enum><header>Maximum amounts
of penalties for any violation described in paragraph (3)</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 paragraph (3)
is—</text>
<subparagraph id="H760DBFC62CFC495881CBBDF1E9B92547"><enum>(A)</enum><text>in the case of any
entity-affiliated party, an amount not to exceed $2,000,000; and</text>
</subparagraph><subparagraph id="H41C79A706583458AB2267D13002000D7"><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="H1979245FA44D42FB9E97FD8599705901"><enum>(3)</enum><text>in subsection
(c)—</text>
<subparagraph id="H2E854C35FBA94855B836FAA3F4E23B34"><enum>(A)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</subparagraph><subparagraph id="H439F1EBA94484B6896563B6D4F352EDC"><enum>(B)</enum><text>by inserting
<quote>or entity-affiliated party</quote> before <quote>in writing</quote>;
and</text>
</subparagraph><subparagraph id="HFD483F5E7DE942129250ECF2F2291F7"><enum>(C)</enum><text>by inserting
<quote>or entity-affiliated party</quote> before <quote>has been
given</quote>;</text>
</subparagraph></paragraph><paragraph id="HF68416C1BA224B24B921D285327022C6"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph id="HD7717F2BA32342E3BA285598983855BE"><enum>(A)</enum><text>by striking
<quote>or director</quote> each place such term appears and inserting
<quote>director, or entity-affiliated party</quote>;</text>
</subparagraph><subparagraph id="H3EACEB2737B142C8AEB59E7D1297F935"><enum>(B)</enum><text>by striking
<quote>an enterprise</quote> and inserting <quote>a regulated
entity</quote>;</text>
</subparagraph><subparagraph id="H8B5A3EB4004F4C978F0026C13997DBC1"><enum>(C)</enum><text>by striking
<quote>the enterprise</quote> and inserting <quote>the regulated
entity</quote>;</text>
</subparagraph><subparagraph id="HC7A58E3622F544DA80BA005FF2EA6D6C"><enum>(D)</enum><text>by striking
<quote>request the Attorney General of the United States to</quote>;</text>
</subparagraph><subparagraph id="HD74753F4735E475B9DA103DBF6818724"><enum>(E)</enum><text>by inserting
<quote>, or the United States district court within the jurisdiction of which
the headquarters of the regulated entity is located,</quote> after
<quote>District of Columbia</quote>;</text>
</subparagraph><subparagraph id="H77DACF737EF24B3CA9A03EF3F60F9F"><enum>(F)</enum><text>by striking <quote>,
or may, under the direction and control of the Attorney General of the United
States, bring such an action</quote>; and</text>
</subparagraph><subparagraph id="H016F8C9A516E44AEACF4000729EF09E"><enum>(G)</enum><text>by striking
<quote>and section 1374</quote>; and</text>
</subparagraph></paragraph><paragraph id="H6244DFB8F3A142BBA96316BE65483867"><enum>(5)</enum><text>in subsection (g),
by striking <quote>An enterprise</quote> and inserting <quote>A regulated
entity</quote>.</text>
</paragraph></section><section id="H209F746AA7A145650029103F004FD7C6"><enum>156.</enum><header>Criminal
penalty</header>
<subsection id="H6C36AB4919A74C8D00CEDB80C0CD38C7"><enum>(a)</enum><header>In
general</header><text>Subtitle C of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<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 this Act, the following:</text>
<quoted-block display-inline="no-display-inline" id="HF4EFC45EC3F14E77AB5722970017E3ED" style="OLC">
<section id="H64CFC1D2BEDE40759DFAFFB05D00EF70"><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>
</subsection><subsection id="H9167D0E0B2E04BCB945E6527856DC09"><enum>(b)</enum><header>Technical and
conforming amendments</header><text>The Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended—</text>
<paragraph id="HD4EA5466953A4070B020E0B08D474271"><enum>(1)</enum><text>in section 1379
(as so designated by this Act)—</text>
<subparagraph id="HCABC0962A6F4420A802E94C28BF4A281"><enum>(A)</enum><text>by striking
<quote>an enterprise</quote> and inserting <quote>a regulated entity</quote>;
and</text>
</subparagraph><subparagraph id="HD51F0E6D37BC43E39DC1C82200656EB6"><enum>(B)</enum><text>by striking
<quote>the enterprise</quote> and inserting <quote>the regulated
entity</quote>;</text>
</subparagraph></paragraph><paragraph id="H79818348C92D4E75B167B39BE667EAE"><enum>(2)</enum><text>in
section 1379A (as so designated by this Act), by striking <quote>an
enterprise</quote> and inserting <quote>a regulated entity</quote>;</text>
</paragraph><paragraph id="H8C0BC48113D14EE99356663060ED2B24"><enum>(3)</enum><text>in section
1379B(c) (as so designated by this Act), by striking <quote>enterprise</quote>
and inserting <quote>regulated entity</quote>; and</text>
</paragraph><paragraph id="H1A2E3D658E9D4D79942F107508F5FC01"><enum>(4)</enum><text>in section 1379D
(as so designated by this Act), by striking <quote>enterprise</quote> and
inserting <quote>regulated entity</quote>.</text>
</paragraph></subsection></section><section id="HFC225872DAD24A29A0C547F7D8055300"><enum>157.</enum><header>Notice after
separation from service</header><text display-inline="no-display-inline">Section 1379 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637</external-xref>), as so
designated by this Act, is amended—</text>
<paragraph id="H9FE17A8D5FA149A989B12E15E8B56BAA"><enum>(1)</enum><text>by striking
<quote>2-year</quote> and inserting <quote>6-year</quote>;</text>
</paragraph><paragraph id="HA7F038985BDE48C49F2D36926DA08078"><enum>(2)</enum><text>by striking
<quote>a director or executive officer of an enterprise</quote> and inserting
<quote>an entity-affiliated party</quote>;</text>
</paragraph><paragraph id="H5443158254BE4734AF00B6B900BD6D32"><enum>(3)</enum><text>by striking
<quote>director or officer</quote> each place that term appears and inserting
<quote>entity-affiliated party</quote>; and</text>
</paragraph><paragraph id="HFE447F7209804BFF8739B898A1944057"><enum>(4)</enum><text>by striking
<quote>enterprise.</quote> and inserting <quote>regulated
entity.</quote>.</text>
</paragraph></section><section id="H33A51A3A40694B58B168130001A0EC07"><enum>158.</enum><header>Subpoena
authority</header>
<subsection id="H4D96596FE8C04D989E33A7DB7E0021E5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1379B of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4641) is amended—</text>
<paragraph id="H7B171A8699484CAD8519C4551759F820"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H394EF3ADC1B3431F922CCC10B4D43DC1"><enum>(A)</enum><text>in the matter
preceding paragraph (1)—</text>
<clause id="H1369C2228F5E4CCC886ECAB4DF001E42"><enum>(i)</enum><text>by
striking <quote>administrative</quote>;</text>
</clause><clause id="H7EC8F92BB94B4B209DCA5FDAFE2E00E9"><enum>(ii)</enum><text>by
inserting <quote>, examination, or investigation</quote> after
<quote>proceeding</quote>;</text>
</clause><clause id="HAFE6BC3B42A4443B9EDAF40723399493"><enum>(iii)</enum><text>by
striking <quote>subtitle</quote> and inserting <quote>title</quote>; and</text>
</clause><clause id="H8FA1D2B56A654CAC8D716B6CB261943E"><enum>(iv)</enum><text>by
inserting <quote>or any designated representative thereof, including any person
designated to conduct any hearing under this subtitle</quote> after
<quote>Director</quote>; and</text>
</clause></subparagraph><subparagraph id="HC6E2BFAE0C404F2F8E3FC7A4FCBA372E"><enum>(B)</enum><text>in paragraph (4),
by striking <quote>issued by the Director</quote>;</text>
</subparagraph></paragraph><paragraph id="H22D50819415A428EAFDEF58C008DC549"><enum>(2)</enum><text>in subsection (b),
by inserting <quote>or in any territory or other place subject to the
jurisdiction of the United States</quote> after <quote>State</quote>;</text>
</paragraph><paragraph id="H097F9D773A2245A7A42E88710010469B"><enum>(3)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H999855C064B24073A7DD279C5FC2D0DE" style="OLC">
<subsection id="H7F94D591F00A44E795D12331465B4C05"><enum>(c)</enum><header>Enforcement</header>
<paragraph id="H89D6E3C635A7490BBBD048A0EDDA7D9B"><enum>(1)</enum><header>In
general</header><text>The Director, or any party to proceedings under this
subtitle, may apply to the United States District Court for the District of
Columbia, or the United States district court for the judicial district of the
United States in any territory in which such proceeding is being conducted, or
where the witness resides or carries on business, for enforcement of any
subpoena or subpoena duces tecum issued pursuant to this section.</text>
</paragraph><paragraph id="HCA6F0B87CBA04D8EB0EEEB03B3C3C9CD"><enum>(2)</enum><header>Power of
court</header><text>The courts described under paragraph (1) shall have the
jurisdiction and power to order and require compliance with any subpoena issued
under paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF62A4DE1851C4543AFF202F9E9C8F6C6"><enum>(4)</enum><text>in subsection (d),
by inserting <quote>enterprise-affiliated party</quote> before <quote>may
allow</quote>; and</text>
</paragraph><paragraph id="H2B11296B4FF34566831E00003027F078"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H3F31DFA9BBD14694A7B1D887E8DC46F8" style="OLC">
<subsection id="H145897D21CE6432DA4BF3D5D2CFAD747"><enum>(e)</enum><header>Penalties</header><text>A
person shall be guilty of a misdemeanor, and upon conviction, shall be subject
to a fine of not more than $1,000 or to imprisonment for a term of not more
than 1 year, or both, if that person willfully fails or refuses, in
disobedience of a subpoena issued under subsection (c), to—</text>
<paragraph id="H9E31E92C463D447AB07E4CA3CDD98E18"><enum>(1)</enum><text>attend
court;</text>
</paragraph><paragraph id="HB0F1C4961A70414B98BDA991EC6C944F"><enum>(2)</enum><text>testify in
court;</text>
</paragraph><paragraph id="H52570F6CF1834442A241B7CEAF002037"><enum>(3)</enum><text>answer any lawful
inquiry; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H15FF38A1B8194B4BB1C15CBC5095C7CD"><enum>(4)</enum><text>produce books,
papers, correspondence, contracts, agreements, or such other records as
requested in the
subpoena.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="H4E2C0DA20E65468881AC6C0663ED6E28"><enum>E</enum><header>General
provisions</header>
<section id="HA3B4DEF2C55442EBA1862D504E48EA24"><enum>161.</enum><header>Conforming and
technical amendments</header>
<subsection id="HD38E60BE7B7742CBB578F63ED830EB82"><enum>(a)</enum><header>Amendments to
1992 Act</header><text>The Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>), as amended by this Act, is
amended—</text>
<paragraph id="H2D06372B2EF649FE9DED7D1980D0F356"><enum>(1)</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="H7BD449069CF34831B88F48FC65C4FD56"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H7F257526B6DB4B7A97D42CD17172F0C9"><enum>(i)</enum><text>by
striking <quote>(a) <header-in-text level="subsection">Office
Personnel</header-in-text>.—The</quote> and inserting <quote>(a)
<header-in-text level="subsection">In General</header-in-text>.—Subject to
title III of the <short-title>Federal Housing Finance
Regulatory Reform Act of 2008</short-title>, the</quote>; and</text>
</clause><clause id="H5A4F331006FB4952BEF5CFE0A344F9AC"><enum>(ii)</enum><text>by
striking <quote>the Office</quote> each place that term appears and inserting
<quote>the Agency</quote>;</text>
</clause></subparagraph><subparagraph id="HF5053BB68732488BA182EB6E5FB1A258"><enum>(B)</enum><text>in subsection (c),
by striking <quote>the Office</quote> and inserting <quote>the
Agency</quote>;</text>
</subparagraph><subparagraph id="HD599321EB5A2486894E6D0FED121F501"><enum>(C)</enum><text>in subsection (e),
by striking <quote>the Office</quote> and inserting <quote>the
Agency</quote>;</text>
</subparagraph><subparagraph id="H94223AF73765418AA1931B667E8448F0"><enum>(D)</enum><text>by striking
subsection (d) and redesignating subsection (e) as subsection (d); and</text>
</subparagraph><subparagraph id="H146B4BF190434B34BDF6F6A068CF94B6"><enum>(E)</enum><text>by striking
subsection (f);</text>
</subparagraph></paragraph><paragraph id="H9432E03F75614BBAAEA300CA61977BF1"><enum>(2)</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="HF598708A82AD4C10878280955073D0D6"><enum>(A)</enum><text>by striking
<quote>(a) <header-in-text level="subsection">In
General</header-in-text>.—</quote>; and</text>
</subparagraph><subparagraph id="H7B1DFD90CB454D9D9909015272F321FF"><enum>(B)</enum><text>by striking
subsection (b);</text>
</subparagraph></paragraph><paragraph id="H40F4690780E44C62A43F88EEFAA8874"><enum>(3)</enum><text>in
section 1364(c) (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614(c)</external-xref>), by striking the last sentence;</text>
</paragraph><paragraph id="H02FE9A08111A4E369F9D1CD13015F9B5"><enum>(4)</enum><text>by striking
section 1383 (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note);</text>
</paragraph><paragraph id="H601B20788F4B43DBA0CF09EB6FC15040"><enum>(5)</enum><text>in each of
sections 1319D, 1319E, and 1319F (<external-xref legal-doc="usc" parsable-cite="usc/12/4523">12 U.S.C. 4523</external-xref>, 4524, 4525) by striking
<quote>the Office</quote> each place that term appears and inserting <quote>the
Agency</quote>; and</text>
</paragraph><paragraph id="HB56184DBB3E647D6004587FB5DAEDE9"><enum>(6)</enum><text>in
each of sections 1319B and 1369(a)(3) (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521</external-xref>, 4619(a)(3)), by striking
<quote>Committee on Banking, Finance and Urban Affairs</quote> each place such
term appears and inserting <quote>Committee on Financial
Services</quote>.</text>
</paragraph></subsection><subsection id="H6AFA7A0E775A4F8CA6831B8E59A300BE"><enum>(b)</enum><header>Amendments to
fannie mae charter act</header><text>The Federal National Mortgage Association
Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>) is amended—</text>
<paragraph id="H214D2A0AFDF042C183BD8F79BBE18001"><enum>(1)</enum><text>in each of
sections 303(c)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1718">12 U.S.C. 1718(c)(2)</external-xref>), 309(d)(3)(B) (12 U.S.C.
1723a(d)(3)(B)), and 309(k)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(k)(1)</external-xref>), by striking
<quote>Director of the Office of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development</quote> each place that term
appears, and inserting <quote>Director of the Federal Housing Finance
Agency</quote>; and</text>
</paragraph><paragraph id="H6948AEA01B264494BE0027AD92ED3DB"><enum>(2)</enum><text>in
section 309—</text>
<subparagraph id="HC9BDD77653174E6599CBD0A055F4B613"><enum>(A)</enum><text>in subsection (m)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(m)</external-xref>)—</text>
<clause id="H3C5AA7E7A4934D7B97FC0152E94865AE"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>to the Secretary, in a form determined by the
Secretary</quote> and inserting <quote>to the Director of the Federal Housing
Finance Agency, in a form determined by the Director</quote>; and</text>
</clause><clause id="H2D8F1EFD78AF4D57AF00C47C863767F9"><enum>(ii)</enum><text>in
paragraph (2), by striking <quote>to the Secretary, in a form determined by the
Secretary</quote> and inserting <quote>to the Director of the Federal Housing
Finance Agency, in a form determined by the Director</quote>;</text>
</clause></subparagraph><subparagraph id="H0B8AC19409BE4CB68572E5A05D61595B"><enum>(B)</enum><text>in subsection (n)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(n)</external-xref>)—</text>
<clause id="H36D3EE7CF65941A9B1CF264FA501993"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>and the Secretary</quote> and inserting
<quote>and the Director of the Federal Housing Finance Agency</quote>;
and</text>
</clause><clause id="HC2332C7C2EC94459009E35D4829F916B"><enum>(ii)</enum><text>in
paragraph (2), by striking <quote>Secretary</quote> each place that term
appears and inserting <quote>Director of the Federal Housing Finance
Agency</quote>; and</text>
</clause></subparagraph><subparagraph id="HB4BFC88B0CAF442300D2D527B568E163"><enum>(C)</enum><text>in paragraph
(3)(B), by striking <quote>Secretary</quote> and inserting <quote>Director of
the Federal Housing Finance Agency</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H63606761813E4BA988EAF12F7CF05757"><enum>(c)</enum><header>Amendments to
freddie mac charter act</header><text>The Federal Home Loan Mortgage
Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451 et seq.</external-xref>) is amended—</text>
<paragraph id="HCB839B95C2754B04A9CC842CCF398200"><enum>(1)</enum><text>in each of
sections 303(b)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(b)(2)</external-xref>), 303(h)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>),
and section 307(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(c)(1)</external-xref>), by striking <quote>Director of
the Office of Federal Housing Enterprise Oversight of the Department of Housing
and Urban Development</quote> each place that term appears, and inserting
<quote>Director of the Federal Housing Finance Agency</quote>;</text>
</paragraph><paragraph id="H1BC72E3079A04E9CA683A405F84C2133"><enum>(2)</enum><text>in section 306 (12
U.S.C. 1455)—</text>
<subparagraph id="HFB8D2245F5204AC8A55DBD52A7465000"><enum>(A)</enum><text>in subsection
(c)(2), by inserting <quote>the</quote> after <quote>Secretary
of</quote>;</text>
</subparagraph><subparagraph id="H651EAD6CBDAE45C4A250F29435FF5552"><enum>(B)</enum><text>in subsection
(i)—</text>
<clause id="HE6C9AA9B21984718BF9585E4582DB2BC"><enum>(i)</enum><text>by
striking <quote>section 1316(c)</quote> and inserting <quote>section
306(c)</quote>; and</text>
</clause><clause id="H203F888AFDD7407F8BF71F2A3648CDD"><enum>(ii)</enum><text>by
striking <quote>section 106</quote> and inserting <quote>section 1316</quote>;
and</text>
</clause></subparagraph><subparagraph id="H5ECA5F3EBB2A44A48FAB7F8787C7B9D6"><enum>(C)</enum><text>in subsection
(j)(2), by striking <quote>of substantially</quote> and inserting <quote>or
substantially</quote>; and</text>
</subparagraph></paragraph><paragraph id="HB50F3755E317483BBCCFCF4BB2676768"><enum>(3)</enum><text>in section 307 (12
U.S.C. 1456)—</text>
<subparagraph id="H5B5D386AF5AF4B94BE609308E59E7186"><enum>(A)</enum><text>in subsection
(e)—</text>
<clause id="H2E9C230326C64A27B8D1182E004EADA"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>to the Secretary, in a form determined by the
Secretary</quote> and inserting <quote>to the Director of the Federal Housing
Finance Agency, in a form determined by the Director</quote>; and</text>
</clause><clause id="HEC97D77A8BB14E288D1C1C541ED878F0"><enum>(ii)</enum><text>in
paragraph (2), by striking <quote>to the Secretary, in a form determined by the
Secretary</quote> and inserting <quote>to the Director of the Federal Housing
Finance Agency, in a form determined by the Director</quote>; and</text>
</clause></subparagraph><subparagraph id="H5B630DB3674B49CB93137CE3F2B813B3"><enum>(B)</enum><text>in subsection
(f)—</text>
<clause id="H094028CB824F489E9FEBA336F5753C6"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>and the Secretary</quote> and inserting
<quote>and the Director of the Federal Housing Finance Agency</quote>;</text>
</clause><clause id="H459F23C69EE64D16B459F635FA0265AF"><enum>(ii)</enum><text>in
paragraph (2), by striking <quote>the Secretary</quote> each place that term
appears and inserting <quote>the Director of the Federal Housing Finance
Agency</quote>; and</text>
</clause><clause id="HB21FA70A7AE04FF39266B7667C4EF1EA"><enum>(iii)</enum><text>in
paragraph (3)(B), by striking <quote>Secretary</quote> and inserting
<quote>Director of the Federal Housing Finance Agency</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HBF9D00D383614BADACEE94D3ACEA2EE6"><enum>(d)</enum><header>Amendment to
title 18, 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="H9F5D0203DF114C9E9731BDFFB12CB92F"><enum>(e)</enum><header>Amendments to
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="HC1E139275C514A2193AAEE32ED378BA2"><enum>(f)</enum><header>Amendment to
Department of Housing and Urban Development Act</header><text>Section 5 of the
Department of Housing and Urban Development Act (<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="H685B703209C24828B66E9F09F5DDFDB8"><enum>(g)</enum><header>Amendments to
title 5, united states code</header><text>Title 5, United States Code, is
amended—</text>
<paragraph id="HDC15BCF784FA456A92E05BC835BD28EB"><enum>(1)</enum><text>in section 5313,
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 display-inline="no-display-inline" id="H7DED64BF29F04E8C8511CC105D80AEB3" style="OLC">
<paragraph id="H01817FE6F7BE4116B96E7ECE342FC34B"><enum></enum><text>Director of the
Federal Housing Finance Agency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H24CA466D6A664D49BC87B7AA37E3FFFD"><enum>(2)</enum><text>in section
3132(a)(1)—</text>
<subparagraph id="H0FB067DAB28848E7BA6D50B892FCED13"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>,, and</quote> and inserting <quote>,
and</quote>;</text>
</subparagraph><subparagraph id="H835B4CE8459543D19F754772CCB7CFC7"><enum>(B)</enum><text>in subparagraph
(D)—</text>
<clause id="H2383A14906C2476C9DCB35A8A429DFDD"><enum>(i)</enum><text>by
striking <quote>the Federal Housing Finance Board</quote>;</text>
</clause><clause id="HACF5DB7ABF3F40E484DFCFF1952CCA5C"><enum>(ii)</enum><text>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>; and</text>
</clause><clause id="HA24194B8C5BA441C92CA1300D9D45BAB"><enum>(iii)</enum><text>by
striking <quote>or or</quote> at the end;</text>
</clause></subparagraph><subparagraph id="H2701CE9F899A4030861791803265D5ED"><enum>(C)</enum><text>in subparagraph
(E), as added by section 8(d)(1)(B)(iii) of <external-xref legal-doc="public-law" parsable-cite="pl/107/123">Public Law 107–123</external-xref>, by adding
<quote>or</quote> at the end; and</text>
</subparagraph><subparagraph id="H06A281FE2D044F4690C8503B81920025"><enum>(D)</enum><text>by redesignating
subparagraph (E), as added by section 10702(c)(1)(C) of <external-xref legal-doc="public-law" parsable-cite="pl/107/171">Public Law 107–171</external-xref>, as
subparagraph (F).</text>
</subparagraph></paragraph></subsection><subsection id="H4BA16D60002143E6A4C34FF209D2A54E"><enum>(h)</enum><header>Amendment to
sarbanes-oxley act</header><text>Section 105(b)(5)(B)(ii)(II) of the
Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7215">15 U.S.C. 7215(b)(5)(B)(ii)(II)</external-xref>) is amended by
inserting <quote>and the Director of the Federal Housing Finance
Agency,</quote> after <quote>Commission,</quote>.</text>
</subsection><subsection id="H127E3014E361420FA9228D8FECE813E"><enum>(i)</enum><header>Amendment to
Federal Deposit Insurance Act</header><text>Section 11(t)(2)(A) of the Federal
Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(t)(2)(A)</external-xref>) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H6CB306FE98704ACF98932252CAE200D3" style="OLC">
<clause id="H260E2A1EE18A4FD28F3939E5C55D063"><enum>(vii)</enum><text>Federal Housing
Finance
Agency.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H01832F553224498DB187506E891F0601"><enum>162.</enum><header>Presidentially-appointed
directors of enterprises</header>
<subsection id="H55E1DDE89C81491C8DEF39A776883298"><enum>(a)</enum><header>Fannie
mae</header>
<paragraph id="HD30ADDCA66B849F6B9B8EB14FD7E8E36"><enum>(1)</enum><header>In
general</header><text>Section 308(b) of the Federal National Mortgage
Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended—</text>
<subparagraph id="H60F07E1F3D1E4B62A0D24800EC0044F6"><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>13 persons, or such other number that the
Director determines appropriate, who</quote>;</text>
</subparagraph><subparagraph id="H74EADF061CD744658BAC32CBEED5CD05"><enum>(B)</enum><text>in the second
sentence, by striking <quote>appointed by the President</quote>;</text>
</subparagraph><subparagraph id="H70720E57AB494B2F9810D2915F2CDEFE"><enum>(C)</enum><text>in the third
sentence—</text>
<clause id="HE68BCE56960449C7B700A83DCDABBEA3"><enum>(i)</enum><text>by
striking <quote>appointed or</quote>; and</text>
</clause><clause id="HF5E59D6B2B34408187FB2B5B76A9D152"><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="H67F0285853AA411692E1C5C69F9982E7"><enum>(D)</enum><text>in the fourth
sentence, by striking <quote>elective</quote>; and</text>
</subparagraph><subparagraph id="H99D6D3AF99084DFD8215FC3BFC14C630"><enum>(E)</enum><text>by striking the
fifth sentence.</text>
</subparagraph></paragraph><paragraph id="H3FE9A37D3FA641FD99170030ED65B24"><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 163 occurs.</text>
</paragraph></subsection><subsection id="HD1A103F866AF47DF931E7FB3FECE00E9"><enum>(b)</enum><header>Freddie
mac</header>
<paragraph id="H0751201383E044E4A349F846FB16E4DD"><enum>(1)</enum><header>In
general</header><text>Section 303(a)(2) of the Federal Home Loan Mortgage
Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)</external-xref>) is amended—</text>
<subparagraph id="HCD19F51A446D45CD8DE60403ADFD29D1"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="HA01F153DCAF548028F93563E6FAE40CB"><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>13 persons, or such other number as the
Director determines appropriate, who</quote>; and</text>
</clause><clause id="HC1BDA19D5A374EEF81F38BE4705CFD3"><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="HEE31C9881DEE4721B25012D5FA94006C"><enum>(B)</enum><text>in subparagraph
(B)—</text>
<clause id="H88EFF3EC0CDC477F86CD032F2BF0919B"><enum>(i)</enum><text>by
striking <quote>such or</quote>; and</text>
</clause><clause id="HB78FD4EA755944D99BB814107EB0CA22"><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="H8423378112204B7FA3F48C09FA6ACE3"><enum>(C)</enum><text>in subparagraph
(C)—</text>
<clause id="HB139D18129104B8CAFE0298FF27E1779"><enum>(i)</enum><text>by
striking the first sentence; and</text>
</clause><clause id="HD8E93790B36A4DD500D56332DC2FDFE1"><enum>(ii)</enum><text>by
striking <quote>elective</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="HEE4F3C8B2F144CEAAB3EE039BA5B1D38"><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 163 occurs.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HF5FD0137C5B8470C986DDAA778034B3" section-type="subsequent-section"><enum>163.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
specifically provided in this title, this title and the amendments made by this
title shall take effect on, and shall apply beginning on, the date of enactment
of this Act.</text>
</section></subtitle><enum>II</enum><header>Federal home loan
banks</header>
<section id="H5F2AD90092EC48D2B0E558A23D935CEE"><enum>201.</enum><header>Recognition of
distinctions between the enterprises and the Federal Home Loan
Banks</header><text display-inline="no-display-inline">Section 1313 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4513) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7F9EE57762E948BB857EAD4C2583655C" style="OLC">
<subsection id="HCDF48357CD9946DAB0FA13CCDF4FFE36"><enum>(f)</enum><header>Recognition of
distinctions between the Enterprises and the Federal Home Loan
Banks</header><text>Prior to promulgating any regulation or taking any other
formal or informal agency action of general applicability relating to the
Federal Home Loan Banks, including the issuance of an advisory document or
examination guidance, the Director shall consider the differences between the
Federal Home Loan Banks and the enterprises with respect to—</text>
<paragraph id="H2836B2D0B6324C53ABADD0640094F2F9"><enum>(1)</enum><text>the Banks'—</text>
<subparagraph id="H443445999A7247499726E7301558C2D6"><enum>(A)</enum><text>cooperative
ownership structure;</text>
</subparagraph><subparagraph id="HD6B9B96E37124B1584ACE046C564DB86"><enum>(B)</enum><text>the mission of
providing liquidity to members;</text>
</subparagraph><subparagraph id="HD9DAFD16075B49A6942556E16226B14D"><enum>(C)</enum><text>affordable housing
and community development mission;</text>
</subparagraph><subparagraph id="HDA9FDD6573DB4368A9A895F2CBE4049"><enum>(D)</enum><text>capital structure;
and</text>
</subparagraph><subparagraph id="HBBA7AA8D68B2430682FD60A156CCC02E"><enum>(E)</enum><text>joint and several
liability; and</text>
</subparagraph></paragraph><paragraph id="HD06755488C47405198782CE3F589E96E"><enum>(2)</enum><text>any other
differences that the Director considers
appropriate.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H64CFDB8354EC4601A0A584F57356A47C"><enum>202.</enum><header>Directors</header><text display-inline="no-display-inline">Section 7 of the Federal Home Loan Bank Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended—</text>
<paragraph id="H652DE468005C4A1400E4FA0063E5A4B9"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA99FB43C34254C8F89920098972EC122" style="OLC">
<subsection id="HC28C4A88A3604DB692E73EF00B73089"><enum>(a)</enum><header>Number; election;
qualifications; conflicts of interest</header>
<paragraph id="H7594CAC016C2443493B023E4823E3CA6"><enum>(1)</enum><header>In
general</header><text>Subject to paragraphs (2) through (4), 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.</text>
</paragraph><paragraph id="HE702E1EDC7024FFA8940D7D6F7085DE9"><enum>(2)</enum><header>Board
makeup</header><text>The board of directors of each Bank shall be comprised
of—</text>
<subparagraph id="H4E3D0DACB40A4FD0AADC5079D0310874"><enum>(A)</enum><text>member directors,
who shall comprise at least the majority of the members of the board of
directors; and</text>
</subparagraph><subparagraph id="H6AD93494018941BE9345A04F6663258C"><enum>(B)</enum><text>independent
directors, who shall comprise not fewer than <fraction>2/5</fraction> of the
members of the board of directors.</text>
</subparagraph></paragraph><paragraph id="H5BB293DF497842669BE135E5443F7300"><enum>(3)</enum><header>Selection
criteria</header>
<subparagraph id="H25160A1B138E4551822F4CDDFD506F1F"><enum>(A)</enum><header>In
general</header><text>Each member of the board of directors shall be—</text>
<clause commented="no" id="HE365236366884AF88CA1FEE4C310B9BE"><enum>(i)</enum><text>elected by
plurality vote of the members, in accordance with procedures established under
this section; and</text>
</clause><clause id="H05BCB2B036FD4933AFD98DC024C8F310"><enum>(ii)</enum><text>a
citizen of the United States.</text>
</clause></subparagraph><subparagraph id="HEA95E5E87E7A401700012689568E49D8"><enum>(B)</enum><header>Independent
director criteria</header>
<clause id="HEB1555C5A84643078DB2E6A7B64B838F"><enum>(i)</enum><header>In
general</header><text>Each independent director that is not a public interest
director under clause (ii) 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>
</clause><clause id="HC581AF7B7C6847EEBEC9939AAAAC78D"><enum>(ii)</enum><header>Public
interest</header><text>Not fewer than 2 of the independent directors shall have
more than 4 years of experience in representing consumer or community interests
on banking services, credit needs, housing, or financial consumer
protections.</text>
</clause><clause id="H549F7882D6294D09AE5E7FDF8987C581"><enum>(iii)</enum><header>Conflicts of
interest</header><text>No independent director may, during the term of service
on the board of directors, serve as an officer of any Federal Home Loan Bank or
as a director, officer, or employee of any member of a Bank, or of any person
that receives advances from a Bank.</text>
</clause></subparagraph></paragraph><paragraph id="HFF2D2891CECE458E98C5544FD52C8E16"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<subparagraph id="H1EDADD7E16D24A338213508D6075EFD4"><enum>(A)</enum><header>Independent
director</header><text>The terms <term>independent director</term> and
<term>independent directorship</term> mean a member of the board of directors
of a Federal Home Loan Bank who is a bona fide resident of the district in
which the Federal Home Loan Bank is located, or the directorship held by such a
person, respectively.</text>
</subparagraph><subparagraph id="H10046B944A7B428B9E8B9563F9D023E8"><enum>(B)</enum><header>Member
director</header><text>The terms <term>member director</term> and <term>member
directorship</term> mean a member of the board of directors of a Federal Home
Loan Bank who is an officer or director of a member institution that is located
in the district in which the Federal Home Loan Bank is located, or the
directorship held by such a person,
respectively.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H783EDBA5E8BA4F46A3D434E1A2436464"><enum>(2)</enum><text>by striking
<quote>elective</quote> each place that term appears, other than in subsections
(d), (e), and (f), and inserting <quote>member</quote>;</text>
</paragraph><paragraph id="H22FA376F23BE4F64B8B4FBCE5D9E0060"><enum>(3)</enum><text>in subsection
(b)—</text>
<subparagraph id="H8944167921F0481EA65CF3894E6F695D"><enum>(A)</enum><text>by striking the
subsection heading and all that follows through <quote>Each elective
directorship</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H22B14D90C5BE4642A3DFAA2EDAD245EC" style="OLC">
<subsection id="H094256410DF24E4EB9E496299ECA574D"><enum>(b)</enum><header>Directorships</header>
<paragraph id="HA82272ED983B47B9B0BEE3B417E8A644"><enum>(1)</enum><header>Member
directorships</header><text>Each member
directorship</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD02F3134053F4B5C92317079AF33106C"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HCC34C61435254E15A055B216AE5F46AF" style="OLC">
<paragraph id="HB365F6422E7148ADB9BBC4713004537E"><enum>(2)</enum><header>Independent
directorships</header>
<subparagraph id="H9D4A49ED3A054971A0A0BF007958AB03"><enum>(A)</enum><header>Elections</header><text>Each
independent director—</text>
<clause id="HBC26E083EA0741EE95737B3B17C92E30"><enum>(i)</enum><text>shall be elected
by the members entitled to vote, from among eligible persons nominated, after
consultation with the Advisory Council of the Bank, by the board of directors
of the Bank; and</text>
</clause><clause id="H40F38806E55C446C93675B05D0DECF8E"><enum>(ii)</enum><text>shall be elected
by a plurality of the votes of the members of the Bank at large, with each
member having the number of votes for each such directorship as it has under
paragraph (1) in an election to fill member directorships.</text>
</clause></subparagraph><subparagraph id="HAFF9BD9D4D05424C84AF9CB3F72C0000"><enum>(B)</enum><header>Criteria</header><text>Nominees
shall meet all applicable requirements prescribed in this section.</text>
</subparagraph><subparagraph id="H68A17F697B5046929FB9D68F5E280952"><enum>(C)</enum><header>Nomination and
election procedures</header><text>Procedures for nomination and election of
independent directors shall be prescribed by the bylaws of each Federal Home
Loan Bank, in a manner consistent with the rules and regulations of the
Agency.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H44AB81E310C84365822501E45FB2C100"><enum>(4)</enum><text>in subsection
(c)—</text>
<subparagraph id="HB9CB0FCC8A8D400A84A872DC7CF96F68"><enum>(A)</enum><text>by striking
<quote>elective</quote> each place that term appears and inserting
<quote>member</quote>, except—</text>
<clause id="H9C5CE3880FD74A8F8115BE39BAA228E"><enum>(i)</enum><text>in
the second sentence, the second place that term appears; and</text>
</clause><clause id="H9C57E793D15F4589B0BF260000C6EC10"><enum>(ii)</enum><text>each place that
term appears in the fifth sentence; and</text>
</clause></subparagraph><subparagraph id="H6CB50212081548C38885D66C4CAF861C"><enum>(B)</enum><text>in the second
sentence—</text>
<clause id="HA7CECED2A34D410693A9E77E6B36FBC0"><enum>(i)</enum><text>by
inserting <quote>(A) except as provided in clause (B) of this sentence,</quote>
before <quote>if at any time</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEBF841E7EE164489A97337556D858785"><enum>(ii)</enum><text>by inserting
before the period at the end the following: <quote>, and (B) clause (A) of this
sentence shall not apply to the directorships of any Federal Home Loan Bank
resulting from the merger of any 2 or more such Banks</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H1DDE586C7E52447D8E604F04CA41B3BD"><enum>(5)</enum><text>in subsection
(d)—</text>
<subparagraph id="H93C61B54BC894451AC7F21C5DB52DB17"><enum>(A)</enum><text>in the first
sentence—</text>
<clause id="HDAA356254B0343FAB2F102FE8E007D32"><enum>(i)</enum><text>by
striking <quote>, whether elected or appointed,</quote>; and</text>
</clause><clause id="H02EC627A37114B45BFD8B42BBA4F17B1"><enum>(ii)</enum><text>by
striking <quote>3 years</quote> and inserting <quote>4 years</quote>;</text>
</clause></subparagraph><subparagraph id="HCA1699A0FCE14D73BAAF8C879C3D19EE"><enum>(B)</enum><text>in the second
sentence—</text>
<clause id="H5167CDEF2E3D4E08928124213279FF16"><enum>(i)</enum><text>by
striking <quote>Federal Home Loan Bank System Modernization Act of 1999</quote>
and inserting <quote><short-title>Federal Housing Finance
Regulatory Reform Act of 2008</short-title></quote>;</text>
</clause><clause id="H816B8E3B927443F692FFAF11E5B2FA1"><enum>(ii)</enum><text>by
striking <quote><fraction>1/3</fraction></quote> and inserting
<quote><fraction>1/4</fraction></quote>; and</text>
</clause><clause id="H3EAC7BAEDFA842B59704D2321D33BD8B"><enum>(iii)</enum><text>by
striking <quote>or appointed</quote>; and</text>
</clause></subparagraph><subparagraph id="H4C1DC86E455D4B8598BAD4D9B4900A2"><enum>(C)</enum><text>in the third
sentence—</text>
<clause id="HC71EEAC9991F45E5973B05B204C16E00"><enum>(i)</enum><text>by
striking <quote>an elective</quote> each place that term appears and inserting
<quote>a</quote>; and</text>
</clause><clause id="H17CBBDF2A30F4D598900FD34F55E623C"><enum>(ii)</enum><text>by
striking <quote>in any elective directorship or elective
directorships</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="HE507B8AA4C5B44C184916F3DB973B199"><enum>(6)</enum><text>in subsection
(f)—</text>
<subparagraph id="H3474E21025364D6FA06E449D36EFCEE5"><enum>(A)</enum><text>by striking
paragraph (2);</text>
</subparagraph><subparagraph id="H4103EDC9A30E483F9000A3A0402900FB"><enum>(B)</enum><text>by striking
<quote>appointed or</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="HA91A5275B02941ABB100492FD4CBC1C"><enum>(C)</enum><text>in paragraph
(3)—</text>
<clause id="HAB36D685DD0D40BE9E3E000035C33BF2"><enum>(i)</enum><text>by
striking <quote>(3) <header-in-text level="paragraph">Elected bank
directors</header-in-text>.—</quote> and inserting <quote>(2)
<header-in-text level="paragraph">Election process</header-in-text>.—</quote>;
and</text>
</clause><clause id="HA248989C4B8B4991A7E8CED08D1DEAF"><enum>(ii)</enum><text>by
striking <quote>elective</quote> each place that term appears;</text>
</clause></subparagraph></paragraph><paragraph id="H6354F461AF624E4B80C3A35B294E723D"><enum>(7)</enum><text>in subsection
(i)—</text>
<subparagraph id="H394149C64A574B088199E10B94B6FD3"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>Subject to paragraph (2), each</quote> and inserting
<quote>Each</quote>; and</text>
</subparagraph><subparagraph id="HA4910489156849C99DA9125B9700D563"><enum>(B)</enum><text>by striking
paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8CD11393CB9E4DF99D2EA35859F5EFD" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1E67647E2E2147DCBAB746DBF7E56700"><enum>(2)</enum><header display-inline="yes-display-inline">Annual report</header><text display-inline="yes-display-inline">The Director shall include, in the annual
report submitted to the Congress pursuant to section 1319B of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992, 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><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H55B99004AA6C475AA2AA1CCBC8B53D99"><enum>(8)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H97A81805846448839E4B5B45F5ED900" style="OLC">
<subsection id="H4FC14E32D2234C9B98B1F2A6552BD8C2"><enum>(l)</enum><header>Transition
rule</header><text>Any member of the board of directors of a Bank elected or
appointed in accordance with this section prior to the date of enactment of
this subsection may continue to serve as a member of that board of directors
for the remainder of the existing term of
service.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H03467FE7130245FCA0AFAAAD09ACC6E0"><enum>203.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 2 of the Federal Home Loan Bank Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422</external-xref>) is amended—</text>
<paragraph id="H0A57EA1210C14A0BAE55A1C6DEC34236"><enum>(1)</enum><text>by striking
paragraphs (1), (10), and (11);</text>
</paragraph><paragraph id="H4AE5148C4EA94390B14BA85B7E00C7FB"><enum>(2)</enum><text>by redesignating
paragraphs (2) through (9) as paragraphs (1) through (8), respectively;</text>
</paragraph><paragraph id="H143A6247D3244F01ADA12FA62C96095B"><enum>(3)</enum><text>by redesignating
paragraphs (12) and (13) as paragraphs (9) and (10), respectively; and</text>
</paragraph><paragraph id="H426F130673A9425E9CD2AA1C615EF491"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC09C80AE75844DEA86611445D8B4F6C5" style="OLC">
<paragraph id="H96E183DE79404E309523E1F3BFFC30D1"><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="H1D837D8134A943A58DF11536FE6567E4"><enum>(12)</enum><header>Agency</header><text>The
term <term>Agency</term> means the Federal Housing Finance Agency, established
under section 1311 of the Federal Housing Enterprises Financial Safety and
Soundness Act of
1992.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H565A0937C95C4CC993976FEABBD58007"><enum>204.</enum><header>Agency
oversight of Federal Home Loan Banks</header><text display-inline="no-display-inline">The Federal Home Loan Bank Act (12 U.S.C.
1421 et seq.), other than in provisions of that Act added or amended otherwise
by this Act, is amended—</text>
<paragraph id="H24FC7C4600834508B0F6F3897FF34F66"><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="H4BC8DBB0698B4F07934DDDDAA21118E0"><enum>(2)</enum><text>by striking
section 18 (<external-xref legal-doc="usc" parsable-cite="usc/12/1438">12 U.S.C. 1438</external-xref>) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2590CFE7A73C4718987E6933F2C3DBE5" style="OLC">
<section id="HE159E8E5FD27483B8890FAB5DD5B1198"><enum>18.</enum><header>Administrative
provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="H64DE8861F77241F799D426BD02BF7710"><enum>(a)</enum><header>Acquisition
authority</header><text>The Director of the Office of Thrift Supervision,
utilizing the services of the Administrator of General Services (hereinafter
referred to as the <quote>Administrator</quote>), and subject to any limitation
hereon which may hereafter be imposed in appropriation Acts, is hereby
authorized—</text>
<paragraph id="H3759C3027B284A388E1F779F38004E16"><enum>(1)</enum><text>to acquire, in the
name of the United States, real property in the District of Columbia, for the
purposes set forth in this section;</text>
</paragraph><paragraph id="H2C81BC987AA24EAE82F05748ED97331B"><enum>(2)</enum><text>to construct,
develop, furnish, and equip such buildings thereon and such facilities as in
its judgment may be appropriate to provide, to such extent as the Director of
the Office of Thrift Supervision may deem advisable, suitable and adequate
quarters and facilities for the Director of the Office of Thrift Supervision
and the agencies under its administration or supervision;</text>
</paragraph><paragraph id="HECC8CDDD21B44FC6B826522681ED201E"><enum>(3)</enum><text>to enlarge,
remodel, or reconstruct any of the same; and</text>
</paragraph><paragraph id="H4C5C4D1F16CC442A985C86E89FEE570"><enum>(4)</enum><text>to make or enter
into contracts for any of the foregoing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAB1DBA92DC8645508FD141E2EEB23CF0"><enum>(b)</enum><header>Advances</header><text>The
Director of the Office of Thrift Supervision may require of the respective
banks, and they shall make to the Director of the Office of Thrift Supervision,
such advances of funds for the purposes set out in subsection (a) as in the
sole judgment of the Director of the Office of Thrift Supervision may from time
to time be advisable. Such advances shall be apportioned by the Director of the
Office of Thrift Supervision among the banks in proportion to the total assets
of the respective banks, determined in such manner and as of such times as the
Director of the Office of Thrift Supervision may prescribe. Each such advance
shall bear interest at the rate of 4½ per centum per annum from the date of the
advance and shall be repaid by the Director of the Office of Thrift Supervision
in such installments and over such period, not longer than twenty-five years
from the making of the advance, as the Director of the Office of Thrift
Supervision may determine. Payments of interest and principal upon such
advances shall be made from receipts of the Director of the Office of Thrift
Supervision or from other sources which may from time to time be available to
the Director of the Office of Thrift Supervision. The obligation of the
Director of the Office of Thrift Supervision to make any such payment shall not
be regarded as an obligation of the United States. To such extent as the
Director of the Office of Thrift Supervision may prescribe any such obligation
shall be regarded as a legal investment for the purposes of subsections (g) and
(h) of section 11 and for the purposes of section 16.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD0CE2C0C1658445A962CDFBC78651800"><enum>(c)</enum><header>Plans and
designs</header><text>The plans and designs for such buildings and facilities
and for any such enlargement, remodeling, or reconstruction shall, to such
extent as the chairperson of the Director of the Office of Thrift Supervision
may request, be subject to the approval of the Director.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7A830D5A04994BCF8700CD0B5E8B200"><enum>(d)</enum><header>Custody,
management and control</header><text>Upon the making of arrangements mutually
agreeable to the Director of the Office of Thrift Supervision and the
Administrator, which arrangements may be modified from time to time by mutual
agreement between them and may include but shall not be limited to the making
of payments by the Director of the Office of Thrift Supervision and such
agencies to the Administrator and by the Administrator to the Director of the
Office of Thrift Supervision, the custody, management, and control of such
buildings and facilities and of such real property shall be vested in the
Administrator in accordance therewith. Until the making of such arrangements,
such custody, management, and control, including the assignment and allotment
and the reassignment and reallotment of building and other space, shall be
vested in the Director of the Office of Thrift Supervision.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H439A6F96831E4AFEB8E6CA021F2B3788"><enum>(e)</enum><header>Proceeds</header><text>Any
proceeds (including advances) received by the Director of the Office of Thrift
Supervision in connection with this subsection, and any proceeds from the sale
or other disposition of real or other property acquired by the Director of the
Office of Thrift Supervision under this section, shall be considered as
receipts of the Director of the Office of Thrift Supervision, and obligations
and expenditures of the Director of the Office of Thrift Supervision and such
agencies in connection with this section shall not be considered as
administrative expenses. As used in this section, the term
<term>property</term> shall include interests in property.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HADC92B01F0FB4B9D90392B2784AE9543"><enum>(f)</enum><header>Budget
program</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB7E4C51831CD4E76A198598C2EF34091"><enum>(1)</enum><header>In
general</header><text>With respect to its functions under this section, the
Director of the Office of Thrift Supervision shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC3D2055B6A549399B005D0075C4D184"><enum>(A)</enum><text>annually prepare
and submit a budget program as provided in title I of the Government
Corporation Control Act with regard to wholly owned Government corporations,
and for purposes of this paragraph, the terms <term>wholly owned Government
corporations</term> and <quote>Government corporations</quote>, wherever used
in such title, shall include the Director of the Office of Thrift Supervision;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0DA515378CCE4EBE98B6C8D41F009D06"><enum>(B)</enum><text>maintain an
integral set of accounts which shall be audited by the General Accounting
Office in accordance with the principles and procedures applicable to
commercial corporate transactions, as provided in such title, and no other
settlement or adjustment shall be required with respect to transactions under
this section or with respect to claims, demands, or accounts by or against any
person arising thereunder.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA1C169C2A284715AF531C2FEC6DAD94"><enum>(2)</enum><header>Miscellaneous
provisions</header><text>The first budget program shall be for the first full
fiscal year beginning on or after the date of enactment of this subsection.
Except as otherwise provided in this section or by the Director of the Office
of Thrift Supervision, the provisions of this section and the functions thereby
or thereunder subsisting shall be applicable and exercisable notwithstanding
and without regard to the Act of June 20, 1938 (D.C. Code, secs. 5–413—5–428),
except that the proviso of section 16 thereof shall apply to any building
constructed under this section, and section 306 of the Act of July 30, 1947 (61
Stat. 584), or any other provision of law relating to the construction,
alteration, repair, or furnishing of public or other buildings or structures or
the obtaining of sites therefor, but any person or body in whom any such
function is vested may provide for delegation or redelegation of the exercise
of such function.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6CC1B369DDFF427EB59C879D39618ED8"><enum>(g)</enum><header>Limitation</header><text>No
obligation shall be incurred and no expenditure, except in liquidation of
obligation, shall be made pursuant to paragraphs (1) and (2) of subsection (a),
if the total amount of all obligations incurred pursuant thereto would
thereupon exceed $13,200,000, or such greater amount as may be provided in an
appropriations Act or other
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5BC4CA5312E24A0AA7942D4C39AE4F13"><enum>(3)</enum><text>in section 11 (12
U.S.C. 1431)—</text>
<subparagraph id="H0406D89A40B049DD990006885F0019AB"><enum>(A)</enum><text>in subsection
(b)—</text>
<clause id="H90D38D2CACDE428DA71DBE5316B59ED"><enum>(i)</enum><text>in
the first sentence—</text>
<subclause id="H551B5F77D7694C20A130AD6D10DBF252"><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="H1076C0DB41694E5799E63CB5975C0500"><enum>(II)</enum><text>by striking
<quote>the Board</quote> and inserting <quote>such Office</quote>; and</text>
</subclause></clause><clause id="H0D7106A7115942F487C1905DA3B67D89"><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="H5F83ED1A70B44B88B54909BB4C164439"><enum>(B)</enum><text>in subsection
(c)—</text>
<clause id="HD360723C923848A6ADFB52E7FC245FA"><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="HD7DB5458574E4407B7A4A1E382E95D4C"><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="H24F4CC7C39CA4674850793FDED3527B1"><enum>(C)</enum><text>in subsection
(f)—</text>
<clause id="H6ECFD9B717534BD3A8007325B4D8204F"><enum>(i)</enum><text>by
striking the 2 commas after <quote>permit</quote> and inserting
<quote>or</quote>; and</text>
</clause><clause id="H6FDD01107A9640CBA2499E70EDDAB58"><enum>(ii)</enum><text>by
striking the comma after <quote>require</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H7998237FE32546A98B63B8486F0060A8"><enum>(4)</enum><text>in section 6 (12
U.S.C. 1426)—</text>
<subparagraph id="H257CCF513EE84F329DCECE356D72B14"><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="HCA66F7814DC94DD68B4D98E9FB83EEF2"><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="HA6986D857B7B4FFCB16B00FBF7EE839"><enum>(5)</enum><text>in
section 10(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(b)</external-xref>)—</text>
<subparagraph id="H02ABF6970BEC439D916DC9D96C1EE1C"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection">Formal Board
Resolution</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Approval of Director</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="HED63060C55CF40B7AB2467E97B3F85BC"><enum>(B)</enum><text>by striking
<quote>by formal resolution</quote>;</text>
</subparagraph></paragraph><paragraph id="HC884BBF6656D4A16BC29E9C293BC845E"><enum>(6)</enum><text>in section
21(b)(5) (<external-xref legal-doc="usc" parsable-cite="usc/12/1441">12 U.S.C. 1441(b)(5)</external-xref>), by striking <quote>Chairperson of the Federal
Housing Finance Board</quote> and inserting <quote>Director</quote>;</text>
</paragraph><paragraph id="H788FB37D73584FE4A863A3E6411B8A"><enum>(7)</enum><text>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="H6EEAE5A66E5F43BDBB2343776FD14C42"><enum>(8)</enum><text>by striking
<quote>the Board</quote> each place that term appears and inserting <quote>the
Director</quote>;</text>
</paragraph><paragraph id="H039ABFF287694E148FDD00AFEE316793"><enum>(9)</enum><text>by striking
<quote>The Board</quote> each place that term appears and inserting <quote>The
Director</quote>;</text>
</paragraph><paragraph id="H060F34A0C8754EDD98B5B23338E1EE3F"><enum>(10)</enum><text>by striking
<quote>the Finance Board</quote> each place that term appears and inserting
<quote>the Director</quote>;</text>
</paragraph><paragraph id="H4A122DCB09B14432A27957362589C6D2"><enum>(11)</enum><text>by striking
<quote>The Finance Board</quote> each place that term appears and inserting
<quote>The Director</quote>; and</text>
</paragraph><paragraph id="H111699B9504A4F5EAF00B1CB1E742EBA"><enum>(12)</enum><text>by striking
<quote>Federal Housing Finance Board</quote> each place that term appears and
inserting <quote>Director</quote>.</text>
</paragraph></section><section id="H9AA0BA0F525C4AA6B32FF93068A10513"><enum>205.</enum><header>Housing
goals</header><text display-inline="no-display-inline">The Federal Home Loan
Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1421">12 U.S.C. 1421 et seq.</external-xref>) is amended by inserting after section 10b the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H8BBCB24C2804495593AB4BFACDDC1F6D" style="OLC">
<section id="H19A0B1F7487C40DCA95600D2B0BD68F5"><enum>10C.</enum><header>Housing
goals</header>
<subsection id="HCA6B62A38CF24B80B13704085B00F02F"><enum>(a)</enum><header>In
general</header><text>The Director shall establish housing goals with respect
to the purchase of mortgages, if any, by the Federal Home Loan Banks. Such
goals shall be consistent with the goals established under sections 1331
through 1334 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992.</text>
</subsection><subsection id="HD5611F959EA647BE0074D147B7F15BF7"><enum>(b)</enum><header>Considerations</header><text>In
establishing the goals required by subsection (a), the Director shall consider
the unique mission and ownership structure of the Federal Home Loan
Banks.</text>
</subsection><subsection id="HE6A081D448404DA4838348394829A4CF"><enum>(c)</enum><header>Transition
period</header><text>To facilitate an orderly transition, the Director shall
establish interim target goals for purposes of this section for each of the 2
calendar years following the date of enactment of this section.</text>
</subsection><subsection id="HEB8FC202870740E195CA05D098C255A"><enum>(d)</enum><header>Monitoring and
enforcement of goals</header><text>The requirements of section 1336 of the
Federal Housing Enterprises Safety and Soundness Act of 1992, shall apply to
this section, in the same manner and to the same extent as that section applies
to the Federal housing enterprises.</text>
</subsection><subsection id="H503BF37E5CC04B2D848CF05C5436C9DD"><enum>(e)</enum><header>Annual
report</header><text>The Director shall annually report to Congress on the
performance of the Banks in meeting the goals established under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5D8FDCF06E2E4A7AACA55B1C42CB4B9"><enum>206.</enum><header>Community
development financial institutions</header><text display-inline="no-display-inline">Section 4(a)(1) of the Federal Home Loan
Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1424">12 U.S.C. 1424(a)(1)</external-xref>) is amended—</text>
<paragraph id="HAA8C5C0B01394AE585D1D4E12716BAF"><enum>(1)</enum><text>by
inserting after <quote>savings bank,</quote> the following: <quote>community
development financial institution,</quote>; and</text>
</paragraph><paragraph id="H1675079A1FD34D5A807E08D5786976F4"><enum>(2)</enum><text>in subparagraph
(B), by inserting after <quote>United States,</quote> the following: <quote>or,
in the case of a community development financial institution, is certified as a
community development financial institution under the Community Development
Banking and Financial Institutions Act of 1994.</quote>.</text>
</paragraph></section><section id="H7E7BBC0EE1B641AC9259776B03324FB1"><enum>207.</enum><header>Sharing of
information among Federal Home Loan Banks</header><text display-inline="no-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 display-inline="no-display-inline" id="HBF24A13BCA68420E82CF693830F62BC4" style="OLC">
<section id="HB3AB2C3FCC5D42B0BCADB70112001E1D"><enum>20A.</enum><header>Sharing of
information among Federal Home Loan Banks</header>
<subsection id="HEB1885EFEF474CB8BA67CED6BD66838"><enum>(a)</enum><header>Information on
financial condition</header><text>In order to enable each Federal Home Loan
Bank to evaluate the financial condition of one or more of the other Federal
Home Loan Banks individually and the Federal Home Loan Bank System (including
any risks associated with the issuance or repayment of consolidated Federal
Home Loan Bank bonds and debentures or other borrowings and the joint and
several liabilities of the Banks incurred due to such borrowings), as well as
to comply with any of its obligations under the Securities Exchange Act of 1934
(<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>), the Director shall make available to the Banks such
reports, records, or other information as may be available, relating to the
condition of any Federal Home Loan Bank.</text>
</subsection><subsection id="HF67D0FFA3B8249DF996169EE0052DB01"><enum>(b)</enum><header>Sharing of
information</header>
<paragraph id="H93532C8C539D486887AA355BE04D91D6"><enum>(1)</enum><header>In
general</header><text>The Director shall promulgate regulations to facilitate
the sharing of information made available under subsection (a) directly among
the Federal Home Loan Banks.</text>
</paragraph><paragraph id="H798786250FE04620AE5D1268D407A8E"><enum>(2)</enum><header>Limitation</header><text>Notwithstanding
paragraph (1), a Federal Home Loan Bank responding to a request from another
Bank or from the Director for information pursuant to this section may request
that the Director determine that such information is proprietary and that the
public interest requires that such information not be shared.</text>
</paragraph></subsection><subsection id="HE72F9C644D934F0C96C04123B347367"><enum>(c)</enum><header>Limitation</header><text>Nothing
in this section shall affect the obligations of any Federal Home Loan Bank
under the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>) or the
regulations issued by the Securities and Exchange Commission
thereunder.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H2E8080045D85479D9D7E98622BE1F939"><enum>208.</enum><header>Exclusion from
certain requirements</header>
<subsection id="H8EACC2429EF94E7C8B2F00F0F314B034"><enum>(a)</enum><header>In
general</header><text>The Federal Home Loan Banks shall be exempt from
compliance with—</text>
<paragraph id="H3A26B30C028549CDAE8E2B3DF1DDC1D"><enum>(1)</enum><text>sections 13(e),
14(a), and 14(c) of the Securities Exchange Act of 1934, and related Commission
regulations;</text>
</paragraph><paragraph id="H524A05ADE70746A0B184B23718D707E7"><enum>(2)</enum><text>section 15 of the
Securities Exchange Act of 1934, and related Commission regulations, with
respect to transactions in the capital stock of a Federal Home Loan
Bank;</text>
</paragraph><paragraph id="H09CBDE37CACA445486B96DF766A7402E"><enum>(3)</enum><text>section 17A of the
Securities Exchange Act of 1934, and related Commission regulations, with
respect to the transfer of the securities of a Federal Home Loan Bank;
and</text>
</paragraph><paragraph id="HD8865661D68049EEAF9895F5E4002ECD"><enum>(4)</enum><text>the Trust
Indenture Act of 1939.</text>
</paragraph></subsection><subsection id="HE7BAE8DD49114E049E91CECBD03F2EBA"><enum>(b)</enum><header>Member
exemption</header><text>The members of the Federal Home Loan Bank System shall
be exempt from compliance with sections 13(d), 13(f), 13(g), 14(d), and 16 of
the Securities Exchange Act of 1934, and related Commission regulations, with
respect to ownership of or transactions in the capital stock of the Federal
Home Loan Banks by such members.</text>
</subsection><subsection id="HF7852A2B4C0D46CC938E00CA7F30BD97"><enum>(c)</enum><header>Exempted and
government securities</header>
<paragraph id="H1E7444E0004D4685BD21632D87E7CF89"><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 Federal Home Loan Bank Act are—</text>
<subparagraph id="H62FA3AB17CCF493994ECECB24D522138"><enum>(A)</enum><text>exempted
securities, within the meaning of section 3(a)(2) of the Securities Act of
1933; and</text>
</subparagraph><subparagraph id="H027E31B4AC144C049DC3F2EA7FDAE300"><enum>(B)</enum><text>exempted
securities, within the meaning of section 3(a)(12)(A) of the Securities
Exchange Act of 1934, except to the extent provided in section 38 of that
Act.</text>
</subparagraph></paragraph><paragraph id="H7BC9A5B1F14C4D208E85CD9E44905EE4"><enum>(2)</enum><header>Other
obligations</header><text>The debentures, bonds, and other obligations issued
under 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>) are—</text>
<subparagraph id="H1BC89AF65817408D86DCA56222372EFE"><enum>(A)</enum><text>exempted
securities, within the meaning of section 3(a)(2) of the Securities Act of
1933;</text>
</subparagraph><subparagraph id="HC017C104378E4917BEFF4EEB09920600"><enum>(B)</enum><text>government
securities, within the meaning of section 3(a)(42) of the Securities Exchange
Act of 1934; and</text>
</subparagraph><subparagraph id="H84CC9988DD004AC4BADF75A93EE688CB"><enum>(C)</enum><text>government
securities, within the meaning of section 2(a)(16) of the Investment Company
Act of 1940.</text>
</subparagraph></paragraph><paragraph id="H43AA2963FDFC4A7F8BAFC516BF4D3DB4"><enum>(3)</enum><header>Brokers and
dealers</header><text>A person (other than a Federal Home Loan Bank effecting
transactions for members of the Federal Home Loan Bank System) that effects
transactions in the capital stock or other obligations of a Federal Home Loan
Bank, for the account of others or for that person's own account, as
applicable, is a broker or dealer, as those terms are defined in paragraphs (4)
and (5), respectively, of section 3(a) of the Securities Exchange Act of 1934,
but is excluded from the definition of—</text>
<subparagraph id="HFFF19ADAC57C41BA80DFCDB818A7C268"><enum>(A)</enum><text>the term
<term>government securities broker</term> under section 3(a)(43) of the
Securities Exchange Act of 1934; and</text>
</subparagraph><subparagraph id="HCB240871B06B4020B26C4EEF1FE0CD1D"><enum>(B)</enum><text>the term
<term>government securities dealer</term> under section 3(a)(44) of the
Securities Exchange Act of 1934.</text>
</subparagraph></paragraph></subsection><subsection id="HD4A3CBCC7E2B412EBAAE3FEB6B5902E3"><enum>(d)</enum><header>Exemption from
reporting requirements</header><text>The Federal Home Loan Banks shall be
exempt from periodic reporting requirements under the securities laws
pertaining to the disclosure of—</text>
<paragraph id="H52B31BE03E4746FB8D8152DBEF595770"><enum>(1)</enum><text>related party
transactions that occur in the ordinary course of the business of the Banks
with members; and</text>
</paragraph><paragraph id="H32C5411D058D4F32A181B1E5D80C893"><enum>(2)</enum><text>the unregistered
sales of equity securities.</text>
</paragraph></subsection><subsection id="H3AF8C53F8DB842D4AD119DA7E4DD025B"><enum>(e)</enum><header>Tender
offers</header><text>Commission rules relating to tender offers shall not apply
in connection with transactions in the capital stock of the Federal Home Loan
Banks.</text>
</subsection><subsection id="H03C635AE7507469594A97E60F9A20021"><enum>(f)</enum><header>Regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H619014A546B64D3E9535F900E9CF8B35"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall promulgate such rules
and regulations as may be necessary or appropriate in the public interest or in
furtherance of this section and the exemptions provided in this section.</text>
</paragraph><paragraph id="H9BECB9C2D4F4467296BE46927C590382"><enum>(2)</enum><header>Considerations</header><text>In
issuing regulations under this section, the Commission shall consider the
distinctive characteristics of the Federal Home Loan Banks when
evaluating—</text>
<subparagraph id="H783398B9C8F54FB4A518860075CA9F58"><enum>(A)</enum><text>the accounting
treatment with respect to the payment to the Resolution Funding
Corporation;</text>
</subparagraph><subparagraph id="HE9D02A029FA54B27B85B273D64DA1DB"><enum>(B)</enum><text>the role of the
combined financial statements of the Federal Home Loan Banks;</text>
</subparagraph><subparagraph id="HEFEE869C5CC5435B8E21346077C92273"><enum>(C)</enum><text>the accounting
classification of redeemable capital stock; and</text>
</subparagraph><subparagraph id="HB2D1C51A33CC482A98B26981CC9166E1"><enum>(D)</enum><text>the accounting
treatment related to the joint and several nature of the obligations of the
Banks.</text>
</subparagraph></paragraph></subsection><subsection id="HBB3EF9B2A76F44C7943B499C85304B07"><enum>(g)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="H6CE06A92DC5E4167AC413482E9CB2BE"><enum>(1)</enum><text>the terms
<term>Bank</term>, <term>Federal Home Loan Bank</term>, <term>member</term>,
and <term>Federal Home Loan Bank System</term> have the same meanings as in
section 2 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422</external-xref>);</text>
</paragraph><paragraph id="HBB7A8015215F451CB8CB69F7CD1158C"><enum>(2)</enum><text>the term
<term>Commission</term> means the Securities and Exchange Commission;
and</text>
</paragraph><paragraph id="H76B550FDA88D404AA7AAE66CBB7F3D5D"><enum>(3)</enum><text>the term
<term>securities laws</term> has the same meaning as in section 3(a)(47) of the
Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(47)</external-xref>).</text>
</paragraph></subsection></section><section id="H2EBBACE87D5547B0BCCC75C9FAFA1B5F"><enum>209.</enum><header>Voluntary
mergers</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="H84A857ED6B13444D9B131C7450EB6105"><enum>(1)</enum><text>by striking
<quote>Whenever</quote> and inserting <quote>(a)
<header-in-text level="subsection">In
General</header-in-text>.—Whenever</quote>; and</text>
</paragraph><paragraph id="H1A06FAB0A0034F2C909D77B500003CD0"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6DD58404F5FF4440A06C004DA951DF31" style="OLC">
<subsection id="H80C27CAE0C0D444786CBC563960033BD"><enum>(b)</enum><header>Voluntary
mergers authorized</header>
<paragraph id="H9BFEE40B23934A669E2C553C00F7FCDC"><enum>(1)</enum><header>In
general</header><text>Any Federal Home Loan Bank may, with the approval of the
Director and of the boards of directors of the Banks involved, merge with
another Bank.</text>
</paragraph><paragraph id="HD68A351F2CA441C5AF16063737E7CDEF"><enum>(2)</enum><header>Regulations
required</header><text>The Director shall promulgate regulations establishing
the conditions and procedures for the consideration and approval of any
voluntary merger described in paragraph (1), including the procedures for Bank
member
approval.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HE0C6B629659D489ABD05C1CA00EA3900"><enum>210.</enum><header>Authority to
reduce districts</header><text display-inline="no-display-inline">Section 3 of
the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1423">12 U.S.C. 1423</external-xref>) is amended—</text>
<paragraph id="H2D6B8D72D0234D72A39E7D55A89841D3"><enum>(1)</enum><text>by striking
<quote>As soon</quote> and inserting <quote>(a)
<header-in-text level="subsection">In General</header-in-text>.—As
soon</quote>; and</text>
</paragraph><paragraph id="H3321161732E4411CAE57DF37E85198E0"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8FA2C4E9ED5C49AABCF58BC31F006425" style="OLC">
<subsection id="HC1DCBE07C5A145ADB9FC42A79F888E64"><enum>(b)</enum><header>Authority To
reduce districts</header><text>Notwithstanding subsection (a), the number of
districts may be reduced to a number less than 8—</text>
<paragraph id="HCD9433868BCF4AD700EEF4B5B2D6E048"><enum>(1)</enum><text>pursuant to a
voluntary merger between Banks, as approved pursuant to section 26(b);
or</text>
</paragraph><paragraph id="HD92DEAF6078E463ABB4C4BEB6C867E26"><enum>(2)</enum><text>pursuant to a
decision by the Director to liquidate a Bank pursuant to section 1367 of the
Federal Housing Enterprises Financial Safety and Soundness Act of
1992.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H7CD94CEEEE234548A095E781EF70161"><enum>211.</enum><header>Community
financial institution members</header>
<subsection id="H31AB50DE0AD444ED00175C41EA8BB31"><enum>(a)</enum><header>Total asset
requirement</header><text>Paragraph (10) of section 2 of the Federal Home Loan
Bank Act (<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="H5BA2196AD0C440EDBAC6F54C5D044F34"><enum>(b)</enum><header>Use of advances
for community development activities</header><text>Section 10(a) of the Federal
Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(a)</external-xref>) is amended—</text>
<paragraph id="H09A5817AE8924E2E0026F2E5C6DCB33"><enum>(1)</enum><text>in
paragraph (2)(B)—</text>
<subparagraph id="H760B7D7DE0844A52AF618BCFED329996"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="HC5084FD307D2432DBA26D4DC2963E155"><enum>(B)</enum><text>by inserting
<quote>, and community development activities</quote> before the period at the
end;</text>
</subparagraph></paragraph><paragraph id="HB0027DA957A641799D33AF58F46B1B9"><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="H01BEB0B7969B4150ADA0A94442611C82"><enum>(3)</enum><text>in paragraph
(6)—</text>
<subparagraph id="HE2BF65981B8644F69593805E65623D40"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="H65384B87860C4D8000A618F557D1BB6"><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="HFD8E4B6511AF49AFA403CEF510EBB916"><enum>212.</enum><header>Public use data
base; reports to Congress</header><text display-inline="no-display-inline">Section 10 of the Federal Home Loan Bank Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430</external-xref>) is amended—</text>
<paragraph id="H407EA5A3CF804229808C71180202CEAD"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (j)(12)—</text>
<subparagraph id="H574FAF7CB8B14BCB98CAD53FF5873CF3"><enum>(A)</enum><text>by striking
subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF41AAE0FA2CD4CE59BA7648010E3275" style="OLC">
<subparagraph id="H3B8872BF42994C389783414B944E17D9"><enum>(C)</enum><header>Reports</header><text>The
Director shall annually report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives on the collateral pledged to the Banks, including an analysis
of collateral by type and by Bank
district.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF767BE12FA3C4A0C84D5E09B47E93056"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H24AFBC754E89432A9B3BA9355FA2018C" style="OLC">
<subparagraph id="HEDC411A6056049B8A8C8CCBF00C470B8"><enum>(D)</enum><header>Submission to
Congress</header><text>The Director shall submit the reports under
subparagraphs (A) and (C) to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives, not later than 180 days after the date of enactment of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HE910B2C403354543A9CEE8F0367C9457"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H75EDCA416944471196A246B4A2C12719" style="OLC">
<subsection id="H2F758DD8D7624B83964B9E80F66882B"><enum>(k)</enum><header>Public use
database</header>
<paragraph id="H6EE52BA4A8F4456596A795F57B9AB07"><enum>(1)</enum><header>Data</header><text>Each
Federal Home Loan Bank shall provide to the Director, in a form determined by
the Director, census tract level data relating to mortgages purchased, if any,
including—</text>
<subparagraph id="H34A8519A3B544D4C9F9CBBFAA582DCA0"><enum>(A)</enum><text>data consistent
with that reported under section 1323 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992;</text>
</subparagraph><subparagraph id="HE027C22F4B2F4294B713AB75B0447F25"><enum>(B)</enum><text>data elements
required to be reported under the Home Mortgage Disclosure Act of 1975;
and</text>
</subparagraph><subparagraph id="H3F901ED98B3143C588E65F1C89B22F5E"><enum>(C)</enum><text>any other data
elements that the Director considers appropriate.</text>
</subparagraph></paragraph><paragraph id="H109774C324F14DBF83D50007ACBA3CC9"><enum>(2)</enum><header>Public use
database</header>
<subparagraph id="HFC1A4B6A626141DFA7E7475074FDE16E"><enum>(A)</enum><header>In
general</header><text>The Director shall make available to the public, in a
form that is useful to the public (including forms accessible electronically),
and to the extent practicable, the data provided to the Director under
paragraph (1).</text>
</subparagraph><subparagraph id="HC973C1928AF6486E8C93D0F5478BBA07"><enum>(B)</enum><header>Proprietary
information</header><text>Not withstanding subparagraph (A), the Director may
not provide public access to, or disclose to the public, any information
required to be submitted under this subsection that the Director determines is
proprietary or that would provide personally identifiable information and that
is not otherwise publicly accessible through other forms, unless the Director
determines that it is in the public interest to provide such
information.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H98E740821B5E498B93E1D82EC05900FF"><enum>213.</enum><header>Semiannual
reports</header><text display-inline="no-display-inline">Section 21B of the
Federal Home Loan Bank Act is amended in subsection (f)(2)(C), by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9447E40254924C5CA711A61F3EEF88CF" style="OLC">
<clause id="HF2851DA4400C4BECA044F476296C19D"><enum>(v)</enum><header>Semiannual
reports</header><text>The Director shall report semiannually to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on the projected date for
the completion of contributions required by this
section.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H48C9DC8BD9564E4D987F1CCBAAB7978"><enum>214.</enum><header>Liquidation or
reorganization of a Federal Home Loan Bank</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 by adding at the end the following: <quote>At least
30 days prior to liquidating or reorganizing any Bank under this section, the
Director shall notify the Bank of its determination and the facts and
circumstances upon which such determination is based. The Bank may contest that
determination in a hearing before the Director, in which all issues shall be
determined on the record pursuant to <external-xref legal-doc="usc" parsable-cite="usc/5/554">section 554</external-xref> of title 5, United States
Code.</quote>.</text>
</section><section id="H40E0168C904742C4B7197E6939B56587"><enum>215.</enum><header>Study and
report to Congress on securitization of acquired member assets</header>
<subsection id="H8857B732873A4EDAA0AD77E4FC919E59"><enum>(a)</enum><header>Study</header><text>The
Director shall conduct a study on securitization of home mortgage loans
purchased or to be purchased from member financial institutions under the
Acquired Member Assets programs. In conducting the study, the Director shall
establish a process for the formal submission of comments.</text>
</subsection><subsection id="HE38984624670494BBDC2E19102772324"><enum>(b)</enum><header>Elements</header><text>The
study shall encompass—</text>
<paragraph id="HA226853DA75E48BFA6ADC9EE3E337EF"><enum>(1)</enum><text>the benefits and
risks associated with securitization of Acquired Member Assets;</text>
</paragraph><paragraph id="H4728B608AD854E578EEB3F2B14A22982"><enum>(2)</enum><text>the potential
impact of securitization upon liquidity in the mortgage and broader credit
markets;</text>
</paragraph><paragraph id="H6129D857A3B348FBA4F4F2A88DF8B2F1"><enum>(3)</enum><text>the ability of the
Federal Home Loan Bank or Banks in question to manage the risks associated with
such a program;</text>
</paragraph><paragraph id="H01CCEAE5C85446E886ADCF37492409EB"><enum>(4)</enum><text>the impact of such
a program on the existing activities of the Banks, including their mortgage
portfolios and advances; and</text>
</paragraph><paragraph id="HEBD87DEA99864E8087B8BDECE6EAA6D"><enum>(5)</enum><text>the joint and
several liability of the Banks and the cooperative structure of the Federal
Home Loan Bank System.</text>
</paragraph></subsection><subsection id="H686B3339B1E846EFA9633406CB4FFB85"><enum>(c)</enum><header>Consultations</header><text>In
conducting the study under this section, the Director shall consult with the
Federal Home Loan Banks, the Banks' fiscal agent, representatives of the
mortgage lending industry, practitioners in the structured finance field, and
other experts as needed.</text>
</subsection><subsection id="H920F7540192440F98500A1E0E70547DD"><enum>(d)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Director shall
submit a report to Congress on the results of the study conducted under
subsection (a), including policy recommendations based on the analysis of the
Director of the feasibility of mortgage-backed securities issuance by a Federal
Home Loan Bank or Banks and the risks and benefits associated with such program
or programs.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBD76475DBB5845B89C20629D0134D1B2"><enum>(e)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this section, the terms
<term>member</term>, <term>Bank</term>, and <term>Federal Home Loan Bank</term>
have the same meanings as in section 2 of the Federal Home Loan Bank Act (12
U.S.C. 1422).</text>
</subsection></section><section id="H27B3BA6F9BE5470BBF7EA90683BC3504"><enum>216.</enum><header>Technical and
conforming amendments</header>
<subsection id="H8011E52594BE442BA2087F74C088C2C1"><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="H44866A761A9E4D088D6DE49E1285673D"><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="H5E92BF777C434B28AF004978F1355891"><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="HDD90AB635AC94C809722007CE06887A6"><enum>(b)</enum><header>Riegle Community
Development and Regulatory Improvement Act of 1994</header><text>Section 117(e)
of the Riegle Community Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4716(e)) is amended by striking <quote>Federal Housing Finance
Board</quote> and inserting <quote>Federal Housing Finance
Agency</quote>.</text>
</subsection><subsection id="HB21CEE6BEDA04CED9239B4C100A6C24C"><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, and 1014, and inserting <quote>Federal Housing
Finance Agency</quote>.</text>
</subsection><subsection id="H4FC3364BFBB341CCB9847D00D266BCEF"><enum>(d)</enum><header>MAHRA Act of
1997</header><text>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="HAEFCC9FC297246BF914EAA388B71CA59"><enum>(e)</enum><header>Title 44, united
states code</header><text><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="HF2626D898A9C4CE8849DDEBDA500428F"><enum>(f)</enum><header>Access to local
TV act of 2000</header><text>Section 1004(d)(2)(D)(iii) of the Launching Our
Communities' Access to Local Television Act of 2000 (47 U.S.C.
1103(d)(2)(D)(iii)) 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><subsection id="HBCFAFFE3040247D79E1B762564EC57B9"><enum>(g)</enum><header>FIRREA</header><text>Section
1216 of the Financial Institutions Reform, Recovery, and Enhancement Act of
1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/1833e">12 U.S.C. 1833e</external-xref>) is amended—</text>
<paragraph id="H73B89C76EB1B48CBBDEDFD77545D02D4"><enum>(1)</enum><text>in subsection (a),
by striking paragraph (3) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H43315283C52340C4A000D84DE3900CD" style="OLC">
<paragraph id="HFA48B46007BC4FB8998ECED33A14E"><enum>(3)</enum><text>the Federal Housing
Finance
Agency;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3A131630BA3449E29265E3C5EF004A8"><enum>(2)</enum><text>in
subsection (b), by striking <quote>Federal National Mortgage
Association</quote> and inserting <quote>Federal Home Loan Banks, the Federal
National Mortgage Association,</quote>; and</text>
</paragraph><paragraph id="H9BD41174055C48319CC64C24E81C38C0"><enum>(3)</enum><text>in subsection (c),
by striking <quote>Finance Board</quote> and inserting <quote>Finance
Agency</quote>.</text>
</paragraph></subsection></section><section id="H2AEE4235A95141EEBF00F210AB64EF"><enum>217.</enum><header>Study on Federal
Home Loan Bank advances</header>
<subsection id="H5D0B7C171F3E4297836C00C2D00C586"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of enactment of this Act, the Director shall conduct a study and
submit a report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House or Representatives
on the extent to which loans and securities used as collateral to support
Federal Home Loan Bank advances are consistent with the interagency guidance on
nontraditional mortgage products.</text>
</subsection><subsection id="HB917DD6C060140FFA2E5C62E5C973B85"><enum>(b)</enum><header>Required
content</header><text display-inline="yes-display-inline">The study required
under subsection (a) shall—</text>
<paragraph id="H0F78FA32F2EC4CF09F6EEDACA48BFCF0"><enum>(1)</enum><text display-inline="yes-display-inline">consider and recommend any additional
regulations, guidance, advisory bulletins, or other administrative actions
necessary to ensure that the Federal Home Loan Banks are not supporting loans
with predatory characteristics; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC27A43BC74C84BD28587F2B2DD3D8F2F"><enum>(2)</enum><text display-inline="yes-display-inline">include an opportunity for the public to
comment on any recommendations made under paragraph (1).</text>
</paragraph></subsection></section><section id="H704E56340AF64F8DA2F2BBF5778B24F4"><enum>218.</enum><header>Federal Home
Loan Bank refinancing authority for certain residential mortgage
loans</header><text display-inline="no-display-inline">Section 10(j)(2) of the
Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)(2)</external-xref>) is amended—</text>
<paragraph id="H0F89CEFC85964C67932FA7AC39E8E83"><enum>(1)</enum><text>in
subparagraph (A), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="HFEF476F9B4794CA3A0990056461ECBB"><enum>(2)</enum><text>in
subparagraph (B), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</paragraph><paragraph id="HE2D44320A469442A9466225667B9A01B"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H36448F0D8BC54A19B243944CEB0785DA" style="OLC">
<subparagraph id="H8F34C68BC6B04A80A8CF487D07D233B8"><enum>(C)</enum><text>during the 2-year
period beginning on the date of enactment of this subparagraph, refinance loans
that are secured by a first mortgage on a primary residence of any family
having an income at or below 80 percent of the median income for the
area.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>III</enum><header>Transfer of
functions, personnel, and property of OFHEO and the Federal Housing Finance
Board</header>
<subtitle id="H7BD9E3B6177743D385275F252859C1A7"><enum>A</enum><header>OFHEO</header>
<section id="H1531A86FB4E24D0FAE7FA114C384DA1B"><enum>301.</enum><header>Abolishment of
OFHEO</header>
<subsection id="H1C987DF316C74C90A7D675A143C82515"><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 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="H70DB5712FC8D40AE86E0A04833B62FD6"><enum>(b)</enum><header>Disposition of
affairs</header><text>During the 1-year period beginning on the date of
enactment of this Act, the Director of the Office of Federal Housing Enterprise
Oversight, solely for the purpose of winding up the affairs of the Office of
Federal Housing Enterprise Oversight—</text>
<paragraph id="HE52EF21C9DBF4E90A562D24F003E92F0"><enum>(1)</enum><text>shall 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 under section 303; and</text>
</paragraph><paragraph id="H0CADE87C95C6410088B3003130C62300"><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="H4589F6F2BBD94ADAA5B8E89B1008667"><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 an employee 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 303.</text>
</subsection><subsection id="H3A70E603D62C4374BBA52FF197E7BC76"><enum>(d)</enum><header>Use of property
and services</header>
<paragraph id="H62D414D7F7C64D51B7AFE2EBFC16161E"><enum>(1)</enum><header>Property</header><text>The
Director may use the property of the Office of Federal Housing Enterprise
Oversight to perform functions which have been transferred to the Director 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="HBD24AB6E3EF34C5DB0C04FA9C207A879"><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 shall—</text>
<subparagraph id="H5BF422D61D0342FEB23724166500E407"><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="H0278BDE688BA4F36B307C1D071E1F8EA"><enum>(B)</enum><text>consult with any
such agency to coordinate and facilitate a prompt and reasonable
transition.</text>
</subparagraph></paragraph></subsection><subsection id="HB7B361C7931F40FC98F726C7465FDC5"><enum>(e)</enum><header>Continuation of
services</header><text>The Director may use the services of employees and other
personnel of the Office of Federal Housing Enterprise Oversight, on a
reimbursable basis, to perform functions which have been transferred to the
Director for such time as is reasonable to facilitate the orderly transfer of
functions pursuant to any other provision of this Act or any amendment made by
this Act to any other provision of law.</text>
</subsection><subsection id="HD8B623C7B29C49808C27712D02363FD1"><enum>(f)</enum><header>Savings
provisions</header>
<paragraph id="H4DA09404333E43AFBF4B8FBDF8845807"><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="HD3AE9B2B81B74FE7BD51C43A975F601"><enum>(A)</enum><text>arises
under—</text>
<clause id="H5E6990AC14714C33B07F8C2105A6D614"><enum>(i)</enum><text>the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992;</text>
</clause><clause id="H4A9EEC3FC8EB4AB39223F9A6766B7B28"><enum>(ii)</enum><text>the
Federal National Mortgage Association Charter Act;</text>
</clause><clause id="HD83FED83A746451EAB6759ECA24EF894"><enum>(iii)</enum><text>the Federal Home
Loan Mortgage Corporation Act; or</text>
</clause><clause id="H312D254C81CA4753B8AAF02E642B00F4"><enum>(iv)</enum><text>any
other provision of law applicable with respect to such Office; and</text>
</clause></subparagraph><subparagraph id="H75C3A491762B48FF85322B08B7CC7668"><enum>(B)</enum><text>existed on the day
before the date of abolishment under subsection (a).</text>
</subparagraph></paragraph><paragraph id="H0E3AAD638A834F53B9389CAFAA33D187"><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="H9DA7474845394CAAB088942FE18813EE"><enum>302.</enum><header>Continuation
and coordination of certain actions</header>
<subsection id="H7D39CFAF6D5746B5BB8903DED5000007"><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, and determinations, and shall be enforceable by or against
the Director or the Secretary of Housing and Urban Development, as the case may
be, until modified, terminated, set aside, or superseded in accordance with
applicable law by the Director or the Secretary, as the case may be, any court
of competent jurisdiction, or operation of law.</text>
</subsection><subsection id="HEC4FC32AC5AD4C0EBF7151B700562678"><enum>(b)</enum><header>Applicability</header><text>A
regulation, order, or determination is described in this subsection if
it—</text>
<paragraph id="HC7F6678107F94D768F33E5800D33E00"><enum>(1)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<subparagraph id="HBFD3E4FD0657459480783400D9C19576"><enum>(A)</enum><text>the Office of
Federal Housing Enterprise Oversight;</text>
</subparagraph><subparagraph id="H92782DA2D36143C6BE3263F2A0044C53"><enum>(B)</enum><text>the Secretary of
Housing and Urban Development, and relates to the authority of the Secretary
under—</text>
<clause id="H0AB4529A239F4287826CFABEF6CCAF86"><enum>(i)</enum><text>the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992;</text>
</clause><clause id="HE85FE913EC8A42D4A653F763120976E6"><enum>(ii)</enum><text>the
Federal National Mortgage Association Charter Act, with respect to the Federal
National Mortgage Association; or</text>
</clause><clause id="H2E93F480203347D38F9C524D662E9FE2"><enum>(iii)</enum><text>the Federal Home
Loan Mortgage Corporation Act, with respect to the Federal Home Loan Mortgage
Corporation; or</text>
</clause></subparagraph><subparagraph id="HE6C3F90D69CD4F8486C5604824DF7662"><enum>(C)</enum><text>a court of
competent jurisdiction, and relates to functions transferred by this Act;
and</text>
</subparagraph></paragraph><paragraph id="H1C452E5003564772A6E14DC47BB4D26"><enum>(2)</enum><text>is
in effect on the effective date of the abolishment under section 301(a).</text>
</paragraph></subsection></section><section id="H1E57A92524EF4FC7BB962E9F00113366"><enum>303.</enum><header>Transfer and
rights of employees of OFHEO</header>
<subsection id="HEE3B781021914F3F8CB5B40088A37D8C"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Office of Federal Housing Enterprise Oversight shall be
transferred to the Agency for employment, not later than the effective date of
the abolishment under section 301(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="H92608DBB6EF048ABB9F564CE67746334"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph id="HDBDA46AD2B75464EB432CDE4FC2C507E"><enum>(1)</enum><header>In
general</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.</text>
</paragraph><paragraph id="HD46F050688974B77BAA62F46AC468EF5"><enum>(2)</enum><header>No involuntary
separation or reduction</header><text>An employee transferred under subsection
(a) holding a permanent position on the day immediately preceding the transfer
may not be involuntarily separated or reduced in grade or compensation during
the 12-month period beginning on the date of transfer, except for cause, or, in
the case of a temporary employee, separated in accordance with the terms of the
appointment of the employee.</text>
</paragraph></subsection><subsection id="H756148C14C844318BE456C4D81417CAF"><enum>(c)</enum><header>Appointment
authority for excepted and senior executive service employees</header>
<paragraph id="H09477EC88E70461DA620317189E23DD9"><enum>(1)</enum><header>In
general</header><text>In the case of an employee occupying a position 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 position shall be transferred, subject to paragraph
(2).</text>
</paragraph><paragraph id="H89B8B95DCB9E490BB855836D3C0006A4"><enum>(2)</enum><header>Decline of
transfer</header><text>The Director may decline a transfer of authority under
paragraph (1) to the extent that such authority relates to—</text>
<subparagraph id="H2D5F12A059844CEFA842F9E29AE356D"><enum>(A)</enum><text>a position excepted
from the competitive service because of its confidential, policymaking,
policy-determining, or policy-advocating character; or</text>
</subparagraph><subparagraph id="H6254F63BA7B44A4CA9FE222718ED1FD7"><enum>(B)</enum><text>a noncareer
position in the Senior Executive Service (within the meaning of section
3132(a)(7) of title 5, United States Code).</text>
</subparagraph></paragraph></subsection><subsection id="HA2B43EB9AD864E34A6199770E7A0300"><enum>(d)</enum><header>Reorganization</header><text>If
the Director determines, after the end of the 1-year period beginning on the
effective date of the abolishment under section 301(a), that a reorganization
of the combined workforce is required, that reorganization shall be deemed a
major reorganization for purposes of affording affected employee 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="H49F97A28A4864521A93C9DD6440705C9"><enum>(e)</enum><header>Employee benefit
programs</header>
<paragraph id="H2C19DAD2644A4A319C006F4FE50000C6"><enum>(1)</enum><header>In
general</header><text>Any employee of the Office of Federal Housing Enterprise
Oversight accepting employment with the 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 Agency or the Office
of Federal Housing Enterprise Oversight of the Department of Housing and Urban
Development, as applicable, including insurance, to which such employee belongs
on the date of the abolishment under section 301(a), if—</text>
<subparagraph id="H6054771212F946C8BC03FB63C8FEADAE"><enum>(A)</enum><text>the employee does
not elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="H22D3E35464804F17B478AC01DA4105D6"><enum>(B)</enum><text>the benefit or
program is continued by the Director of the Federal Housing Finance
Agency.</text>
</subparagraph></paragraph><paragraph id="H2E99E8D77A8645C5A9DC34F91267F7C"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="H2DA7A480B5E54E208B004B25001EA846"><enum>(A)</enum><header>In
general</header><text>The difference in the costs between the benefits which
would have been provided by the Office of Federal Housing Enterprise Oversight
and those provided by this section shall be paid by the Director.</text>
</subparagraph><subparagraph id="H0992FCDC1B5E45429C6281D371C292E6"><enum>(B)</enum><header>Health
insurance</header><text>If any employee elects to give up membership in a
health insurance program or the health insurance program is not continued by
the Director, the employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the date of such election
or notice, without regard to any other regularly scheduled open season.</text>
</subparagraph></paragraph></subsection></section><section id="H5C12B663DB2B4CEC992CBCBA661193F1"><enum>304.</enum><header>Transfer of
property and facilities</header><text display-inline="no-display-inline">Upon
the effective date of its abolishment under section 301(a), all property of the
Office of Federal Housing Enterprise Oversight shall transfer to the
Agency.</text>
</section></subtitle><subtitle id="H2DE28DB7BCEF414E9BB851D6268211F1"><enum>B</enum><header>Federal Housing
Finance Board</header>
<section id="H69AB8F23216E4ADB9EA926B823BF5487"><enum>311.</enum><header>Abolishment of
the Federal Housing Finance Board</header>
<subsection id="H628055115A0B4D3D8FB311F21042282E"><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
subtitle referred to as the <quote>Board</quote>) is abolished.</text>
</subsection><subsection id="HC04F310124974C82B9EFD297B3E1DDBB"><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="H939F1D9FE838442C9BC253E7FFDD55F7"><enum>(1)</enum><text>shall manage the
employees of the 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 313; and</text>
</paragraph><paragraph id="H6C556F4C0DB74C628B5DD6D26B31992"><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="H2119D805C80D41BF9FC32128B100AEC"><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 the Board as an employee 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 313.</text>
</subsection><subsection id="H9EB8CB4DA246453FBA51E9D738896880"><enum>(d)</enum><header>Use of property
and services</header>
<paragraph id="H5220A2024780426892E20038AD7B8055"><enum>(1)</enum><header>Property</header><text>The
Director may use the property of the Board to perform functions which have been
transferred to the Director, 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="H074D8BA59C6F400AB66B830056DCA93"><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 shall—</text>
<subparagraph id="H247B01B0E4AA44D7A22F047B0190BA38"><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="H67A051B3F872400AA63C0000F3EB82BF"><enum>(B)</enum><text>consult with any
such agency to coordinate and facilitate a prompt and reasonable
transition.</text>
</subparagraph></paragraph></subsection><subsection id="H7483A24BA79642A1912259A4469C3F39"><enum>(e)</enum><header>Continuation of
services</header><text>The Director may use the services of employees and other
personnel of the Board, on a reimbursable basis, to perform functions which
have been transferred to the Director for such time as is reasonable to
facilitate the orderly transfer of functions pursuant to any other provision of
this Act or any amendment made by this Act to any other provision of
law.</text>
</subsection><subsection id="H52CC504A243F412394A7E93CE11EA85B"><enum>(f)</enum><header>Savings
provisions</header>
<paragraph id="H75DE3C2A66C34710B276D2B3B4C79DB"><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="H27B2C9911825479C83FF188E1593A91D"><enum>(A)</enum><text>arises under the
Federal Home Loan Bank Act, or any other provision of law applicable with
respect to the Board; and</text>
</subparagraph><subparagraph id="H2FF0358140E2455EB2BCC172779158E5"><enum>(B)</enum><text>existed on the day
before the effective date of the abolishment under subsection (a).</text>
</subparagraph></paragraph><paragraph id="H77C6500DD18D4F7E004D4537000008D8"><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 under this Act to the
Director shall abate by reason of the enactment of this Act, except that the
Director 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="H1B774624286D410FA803BFD5F34F1250"><enum>312.</enum><header>Continuation
and coordination of certain actions</header>
<subsection id="HB99673BCDF6F4B6AAA5713E67C448C68"><enum>(a)</enum><header>In
general</header><text>All regulations, orders, determinations, and resolutions
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 until modified, terminated, set aside,
or superseded in accordance with applicable law by the Director, any court of
competent jurisdiction, or operation of law.</text>
</subsection><subsection id="H66610EB2D0C7473789CDCF39F33EB86"><enum>(b)</enum><header>Applicability</header><text>A
regulation, order, determination, or resolution is described under this
subsection if it—</text>
<paragraph id="H052839219F2D4F3A9807EFA952FE4029"><enum>(1)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<subparagraph id="H87B11EA9945A49F4B933ADC8FD59BDDC"><enum>(A)</enum><text>the Board;
or</text>
</subparagraph><subparagraph id="HFEAF8440279144119D166B4452C90369"><enum>(B)</enum><text>a court of
competent jurisdiction, and relates to functions transferred by this Act;
and</text>
</subparagraph></paragraph><paragraph id="HC50FCE6729454EC892A1AE677CC5F00"><enum>(2)</enum><text>is
in effect on the effective date of the abolishment under section 311(a).</text>
</paragraph></subsection></section><section id="H10DA8067A46F4BFF8500D45CA1ECF7E9"><enum>313.</enum><header>Transfer and
rights of employees of the Federal Housing Finance Board</header>
<subsection id="HAF3C0AF308124610841BDB06FF008125"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Board shall be transferred to the Agency for employment, not
later than the effective date of the abolishment under section 311(a), and such
transfer shall be deemed a transfer of function for purposes of section 3503 of
title 5, United States Code.</text>
</subsection><subsection id="HC2570AE675A8496900E365400059F98"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph id="HB0E7068B35BD466E833B94415389E96C"><enum>(1)</enum><header>In
general</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.</text>
</paragraph><paragraph id="HEA2964F4A78A410A9429F05D89BC35E2"><enum>(2)</enum><header>No involuntary
separation or reduction</header><text>An employee holding a permanent position
on the day immediately preceding the transfer may not be involuntarily
separated or reduced in grade or compensation during the 12-month period
beginning on the date of transfer, except for cause, or, if the employee is a
temporary employee, separated in accordance with the terms of the appointment
of the employee.</text>
</paragraph></subsection><subsection id="HA29BB707800F4AC8B376CC5FF2BE00BD"><enum>(c)</enum><header>Appointment
authority for excepted employees</header>
<paragraph id="HC30B97124DB047F6AB055C399928CBE7"><enum>(1)</enum><header>In
general</header><text>In the case of an employee occupying a position in the
excepted service, any appointment authority established under law or by
regulations of the Office of Personnel Management for filling such position
shall be transferred, subject to paragraph (2).</text>
</paragraph><paragraph id="HBD788E89CF0146CE837045F993B2ABFE"><enum>(2)</enum><header>Decline of
transfer</header><text>The Director may decline a transfer of authority under
paragraph (1), to the extent that such authority relates to a position excepted
from the competitive service because of its confidential, policymaking,
policy-determining, or policy-advocating character.</text>
</paragraph></subsection><subsection id="HAAD523478BD54F4A9E54C955854D4B2E"><enum>(d)</enum><header>Reorganization</header><text>If
the Director determines, after the end of the 1-year period beginning on the
effective date of the abolishment under section 311(a), that a reorganization
of the combined workforce is required, that reorganization shall be deemed a
major reorganization for purposes of affording affected employee 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="H4576CBA76EC04C46AF09D0F51F1F62BE"><enum>(e)</enum><header>Employee benefit
programs</header>
<paragraph id="HC6CDB7EA0F0846EEB98B842193369119"><enum>(1)</enum><header>In
general</header><text>Any employee of the Board accepting employment with the
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 Agency or the Board, as applicable, including insurance,
to which such employee belongs on the effective date of the abolishment under
section 311(a) if—</text>
<subparagraph id="H4206EA4A3BC04A5EAFF50007C5FF78D"><enum>(A)</enum><text>the employee does
not elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="HB31012FFDFDE405AA9A04D73DADC0080"><enum>(B)</enum><text>the benefit or
program is continued by the Director.</text>
</subparagraph></paragraph><paragraph id="H63BE229DF439443A80CA94A8AC6DB126"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="HF5C15627E53E440DB5B994D264D3CA89"><enum>(A)</enum><header>In
general</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.</text>
</subparagraph><subparagraph id="HB7322382F5BF4EF18F4BB2156224E91E"><enum>(B)</enum><header>Health
insurance</header><text>If any employee elects to give up membership in a
health insurance program or the health insurance program is not continued by
the Director, the employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the date of such election
or notice, without regard to any other regularly scheduled open season.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H6C18CE06B8A64F7AA700F5B4A1414ECB" section-type="subsequent-section"><enum>314.</enum><header>Transfer of property
and facilities</header><text display-inline="no-display-inline">Upon the
effective date of the abolishment under section 311(a), all property of the
Board shall transfer to the Agency.</text>
</section></subtitle>