1.Short
title; table of contents
(a)This Act may be cited
as the Federal Housing Enterprise
Regulatory Reform Act of 2007
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; 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 Enterprise
Regulatory Agency.
Sec. 102. Duties and authorities of Director.
Sec. 103. Federal Housing Enterprise Board.
Sec. 104. Authority to require reports by regulated
entities.
Sec. 105. Examiners and accountants; authority to contract for
reviews of regulated entities.
Sec. 106. Assessments.
Sec. 107. Regulations and orders.
Sec. 108. Prudential management and operations
standards.
Sec. 109. Capital levels and holdings.
Sec. 110. Risk-Based capital test for enterprises.
Sec. 111. Registration of enterprise
securities.
Sec. 112. Limit on golden parachutes.
Sec. 113. Reporting of fraudulent loans.
Subtitle B—Improvement of Mission Supervision
Sec. 121. Transfer of program approval and housing goal
oversight.
Sec. 122. Review of enterprise products.
Sec. 123. Monitoring and enforcing compliance with housing
goals.
Sec. 124. Assumption by Director of other HUD
responsibilities.
Sec. 125. Administrative and judicial enforcement
proceedings.
Sec. 126. Conforming loan limits.
Sec. 127. Reporting of mortgage data; housing
goals.
Sec. 128. Duty to serve underserved markets.
Sec. 129. Home purchase goal.
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. Directors.
Sec. 202. Definitions.
Sec. 203. Agency oversight of Federal home loan
banks.
Sec. 204. Federal Home Loan Bank Finance Facility.
Sec. 205. Exclusion from certain securities reporting
requirements.
Sec. 206. Mergers.
Sec. 207. Authority to reduce districts.
Sec. 208. Management of home loan banks.
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
regulations.
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
regulations.
Sec. 313. Transfer and rights of employees of the Federal
Housing Finance Board.
Sec. 314. Transfer of property and facilities.
TITLE IV—STUDIES AND REPORTS
Sec. 401. Study and report on Basel II and enterprise
debt.
Sec. 402. Affordable housing audits.
Sec. 403. Report on insured depository institution holdings of
regulated entity debt and mortgage-backed securities.
Sec. 404. Report on risk-based capital levels.
Sec. 405. Report on resources and allocations.
Sec. 406. Study and report on guarantee fees.
Sec. 407. Report on conforming loan limits.
Sec. 408. Reviews and studies relating to enterprises and
related foundations.
Sec. 409. Recommendations.
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)in paragraph
(14), by striking Office of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development
and inserting
Federal Housing Enterprise Regulatory Agency
;
(3)by redesignating
paragraphs (16) through (19) as paragraphs (22) through (25),
respectively;
(4)by striking
paragraph (15) and inserting the following:
(21)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.
;
(5)by striking
paragraph (13);
(6)by redesignating
paragraph (7) as paragraph (13);
(7)by redesignating
paragraphs (11), (12), and (14) as paragraphs (18) through (20),
respectively;
(8)by striking
paragraphs (8) through (10) and inserting the following:
(15)The
term low-income means a family income that is less than 50 percent
of the area median income, or a family income that is less than 50 percent of
the area median income.
(16)The term area median income means—
(A)the median family
income for a metropolitan statistical area (as designated under 13 U.S.C. 421),
if the family is located in a metropolitan statistical area; or
(B)the statewide
nonmetropolitan median family income, if the family is located outside a
metropolitan statistical area.
(17)The
term moderate-income means an individual income that is at least
50 percent and less than 80 percent of the area median income, or a median
family income that is at least 50 percent and not more than 80 percent of the
area median
income.
;
(9)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
Enterprise Regulatory Agency
;
(10)by redesignating
paragraph (6) as paragraph (10);
(11)by redesignating
paragraphs (2) through (4) as paragraphs (5) through (7), respectively;
(12)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—
(i)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 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.
;
(13)by inserting
after paragraph (1) the following:
(2)The term—
(A)Agency
means the Federal Housing Enterprise Regulatory Agency established under
section 1311; and
(B)Director
means the Director of the Agency, appointed under section 1312;
(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 Enterprise Board established
under section
1313A.
;
(14)by inserting
after paragraph (10), as redesignated, 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;
and
(D)any
not-for-profit corporation that receives its principal funding, on an ongoing
basis, from any regulated entity; and
(E)the Finance
Facility.
(12)The term Finance Facility means the Federal
Home Loan Bank Finance Facility established under section 11A of the
Federal Home Loan Bank Act.
(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.
;
(15)in paragraph
(25), as so redesignated by this section, by striking 60
each
place that term appears and inserting 30
; and
(16)by adding at the
end the following:
(26)
(A)The
term upper-income means a family income that is 120 percent of the
area median income or greater.
(B)The
term middle-income means a family income that is not less than 80
percent but less than 120 percent of the area median income, or a median family
income that is at least 80 percent and not more than 120 percent.
(27)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 Enterprise Regulatory
Agency;
(2)the term
Director means the Director of the Agency; and
(3)the terms
enterprise, Finance Facility, 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="ID90E7940A26A54993B9E538A0B80BF429"><enum>A</enum><header>Improvement of
Safety and Soundness Supervision</header>
<section id="ID02C889C304B64E6B9FADE9C0AE122D35"><enum>101.</enum><header>Establishment
of the Federal Housing Enterprise Regulatory Agency</header><text display-inline="no-display-inline">The <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4501 et seq.) is amended by
striking sections 1311 and 1312 and inserting the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID05A2A59F16C247FEBB8B605AFCCC0D67" style="OLC">
<section id="ID5DE58191434448E6A347F6D050EBA1F6"><enum>1311.</enum><header>Establishment
of the Federal Housing Enterprise Regulatory Agency</header>
<subsection id="ID20614FB8B4204760B0F3AFCA70FBBC5A"><enum>(a)</enum><header>Establishment</header><text>There
is established the Federal Housing Enterprise Regulatory Agency, which shall be
an independent agency of the Federal Government.</text>
</subsection><subsection id="ID1F1D8FD120134ECDB0611AE15623BD7B"><enum>(b)</enum><header>General
Supervisory and Regulatory Authority</header>
<paragraph id="ID86ACB03C844D483AAEECE10297B18DC0"><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="ID438DF38BD2E94F10A9529A11AE2A71F3"><enum>(2)</enum><header>Authority over
fannie mae, freddie mac, the federal home loan banks, and the finance
facility</header><text>The Director shall have general regulatory authority
over each regulated entity and the Finance Facility, 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="IDF12F3D6A3BAB4EA680F9A6633B6C9762"><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="IDEAEC1757B27744C99454C25BD3F1283D"><enum>1312.</enum><header>Director</header>
<subsection id="ID750CDA35AA504DECB6A174034688C5E6"><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="IDA6D7685C3C654E7AB8A72D6D73A8621E"><enum>(b)</enum><header>Appointment;
Term</header>
<paragraph id="ID0840A67FF3C44474A12081A9578C566A"><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="ID3E79B2018F1C43148201CB250269C248"><enum>(2)</enum><header>Term</header><text>The
Director shall be appointed for a term of 6 years, unless removed before the
end of such term for cause by the President.</text>
</paragraph><paragraph id="IDDB579AD984C84918A2507CBCC210E66C"><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="ID416E8555687A4C0294BE3B02F263BC15"><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="ID9D6B4E516D474B57A06267C6B0C20DDD"><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 Enterprise Regulatory Reform Act of
2007</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="IDC7EADC16F3A146D3B7C7010BDFC827D9"><enum>(c)</enum><header>Deputy Director
of the Division of Enterprise Regulation</header>
<paragraph id="IDD7771C515FCC4B86AE54898E06DEAA71"><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="ID44B67D40745E433995EDB865C0404418"><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="IDB00FBBE688AB4731BF5E5C2C6FC2B3B8"><enum>(d)</enum><header>Deputy Director
of the Division of Federal Home Loan Bank Regulation</header>
<paragraph id="ID2C32B448DDD84D8DBC94AB65125E76D5"><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="ID02D6D361A3D14E378BC0E60F778856B1"><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="IDAE66C1B85C7342E8AAC16B4D18AC8252"><enum>(e)</enum><header>Deputy Director
for Housing Mission and Goals</header>
<paragraph id="ID5349450324DE48E09C06C9453E4CEB11"><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="ID5C19EA1060614990BD694203A230D929"><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 regulated entities as the Director shall prescribe.</text>
</paragraph></subsection><subsection id="ID37F0697F1E784C67AFDEFF361E33C4BF"><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="ID4D938EB41D034C76BD65D3557845298E"><enum>(g)</enum><header>Limitations</header><text>The
Director and each of the Deputy Directors may not—</text>
<paragraph id="IDA5AE8DB98B7B4D27BC66456BF94EE627"><enum>(1)</enum><text>have any direct
or indirect financial interest in any regulated entity or entity-affiliated
party;</text>
</paragraph><paragraph id="IDB3EE8872BB7841179EBE8B8CF5E489B8"><enum>(2)</enum><text>hold any office,
position, or employment in any regulated entity or entity-affiliated party;
or</text>
</paragraph><paragraph id="ID30F48431014045C3A1F319C0A94A672F"><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 of
such individual as Director or Deputy
Director.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDF6209D936A30473EADAB354BD83B8D0E"><enum>102.</enum><header>Duties and
authorities of Director</header>
<subsection id="IDF7940CBFF99C49E581933A5E5BB095B5"><enum>(a)</enum><header>In
General</header><text>Section 1313 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4513) is amended to read as
follows:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="IDBEACD36004864BCE8F3DF96AF2921D6A" style="OLC">
<section id="ID4DFD7F329BB042BBAE0FD11F6BB5E9EC"><enum>1313.</enum><header>Duties and
authorities of Director</header>
<subsection id="IDEDE137A79C5246478AA2529E4AABB217"><enum>(a)</enum><header>Duties</header>
<paragraph id="ID7DD2C44610E247EC8E10CD95C5232B97"><enum>(1)</enum><header>Principal
duties</header><text>The principal duties of the Director shall be—</text>
<subparagraph id="ID91499C0884054472A2F070CA81C6EC34"><enum>(A)</enum><text>to oversee the
prudential operations of each regulated entity; and</text>
</subparagraph><subparagraph id="ID3B4F3B2F983D4033A372FA3A2472B136"><enum>(B)</enum><text>to ensure
that—</text>
<clause id="IDD59AD429E96047569C9D91975E5F80E7"><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="ID067E6213C16A458589D0D92B9E2EE3E0"><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="ID798E71E27E074B0287A42A67BBEC1B39"><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="IDA58A678FBDE44AE79AB7F6603CF27096"><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;</text>
</clause><clause id="IDF56B2EF15DCD4309B8B2C4A62AAAFC07"><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><clause id="IDC2FD41E9047E4B38AACC5499A32FFAC4"><enum>(vi)</enum><text>each regulated
entity remains adequately capitalized, after due consideration of the risk to
such regulated entity; and</text>
</clause><clause id="IDEDFACC3BFC5C4F03B2101EC1294ED024"><enum>(vii)</enum><text>in the case of
the Federal Home Loan Banks, they provide funds to community financial
institutions for small businesses, small farms, and small agricultural
businesses and accept as collateral whole interests in such obligations.</text>
</clause></subparagraph></paragraph><paragraph id="IDE9E85754052449529B850E2FA79AB2A1"><enum>(2)</enum><header>Scope of
authority</header><text>The authority of the Director shall include the
authority—</text>
<subparagraph id="IDFA2A9FB7CBB3464887A61F90541295BA"><enum>(A)</enum><text>to review and, if
warranted based on the principle duties described in paragraph (1), reject any
acquisition or transfer of a controlling interest in a regulated entity;
and</text>
</subparagraph><subparagraph id="ID3554CB558A2149989567DDF880A4EA61"><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="IDDCA6142BCE374AF1B67ED8E20ED509F3"><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="ID15F3DB03AAD64B1C9F5F02C1241542D4"><enum>(c)</enum><header>Litigation
Authority</header>
<paragraph id="ID3E8676162CEE4C6EB2A6FA95E0D9F95D"><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="ID1EB5377C0A694629BF4543E24D5D219D"><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 principle 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="IDCCD8BA28AB484AFF9A8B85BFEC198C3B"><enum>(b)</enum><header>Independence in
Congressional Testimony and Recommendations</header><text>Section 111 of Public
Law 93–495 (12 U.S.C. 250) is amended by striking <quote>the Federal Housing
Finance Board</quote> and inserting <quote>the Director of the Federal Housing
Enterprise Regulatory Agency</quote>.</text>
</subsection></section><section id="ID3B6BCC8A831E4F608387A86D905305E4"><enum>103.</enum><header>Federal
Housing Enterprise Board</header>
<subsection id="IDA074ECEA6ED04FD2AE77F841C18272BB"><enum>(a)</enum><header>In
General</header><text>The <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4501 et seq.) is amended by inserting after section 1313 the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID35BCF70ED8834CBAA94A1FBA404BDCCE" style="OLC">
<section id="IDC2CF4A1461A248089D2B55C81A6C62D5"><enum>1313A.</enum><header>Federal
Housing Enterprise Board</header>
<subsection id="IDDEBAAAE7089A475381D024FDDD53BAE6"><enum>(a)</enum><header>In
General</header><text>There is established the Federal Housing Enterprise
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="ID31CF7E31107D44028F7C79C99105AD8C"><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="ID0F3D7EEB70AB4398A3D47B0CA76BC4C7"><enum>(c)</enum><header>Composition</header><text>The
Board shall be comprised of 4 members, of whom—</text>
<paragraph id="ID7AF478DC2B28437D8AFB47205D9567CC"><enum>(1)</enum><text>1 member shall be
the Secretary of the Treasury;</text>
</paragraph><paragraph id="ID1183D84845B04B9AA8FCC6D9380F8270"><enum>(2)</enum><text>1 member shall be
the Secretary of Housing and Urban Development;</text>
</paragraph><paragraph id="ID5A098DE1EC0449589CB466D8C9B45043"><enum>(3)</enum><text>1 member shall be
the Chairman of the Securities and Exchange Commission; and</text>
</paragraph><paragraph id="IDDCDC6730D3EE4C9EAD8755299F243B54"><enum>(4)</enum><text>1 member shall be
the Director, who shall serve as the Chairperson of the Board.</text>
</paragraph></subsection><subsection id="IDF0ED39723C9D49E2AB053C0030718617"><enum>(d)</enum><header>Meetings</header>
<paragraph id="ID4B85618FD7C64E0B8C2E6401DFDBF107"><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="ID690B98F4ECF544E39B15E634BC7D7730"><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="ID0E8E7843A6894808BA8A73653362D93C"><enum>(e)</enum><header>Testimony</header><text>On
an annual basis, the Board shall testify before Congress regarding—</text>
<paragraph id="ID5AC6EB2508A64D6CAC9070A07D888A9D"><enum>(1)</enum><text>the safety and
soundness of the regulated entities;</text>
</paragraph><paragraph id="IDC80A0B5F84224EC588D6138040E8C601"><enum>(2)</enum><text>any material
deficiencies in the conduct of the operations of the regulated entities;</text>
</paragraph><paragraph id="ID5471F674DCED4FA99E4BDBC42F81C13B"><enum>(3)</enum><text>the overall
operational status of the regulated entities;</text>
</paragraph><paragraph id="IDC0720944A9B949638C86448A1868CD6B"><enum>(4)</enum><text>an evaluation of
the performance of the regulated entities in carrying out their respective
missions;</text>
</paragraph><paragraph id="ID1D9A43BE35DE4D2BB328F239272312C3"><enum>(5)</enum><text>operations,
resources, and performance of the Agency; and</text>
</paragraph><paragraph id="ID7F19D235D2F44418AE24ED70C2D40E57"><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="ID5630CD55B4C6472296166CF6A9B0BEAE"><enum>(b)</enum><header>Annual Report
of the Director</header><text>Section 1319B(a) of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4521(a)) is amended—</text>
<paragraph id="IDC1AA31CA61BF4E2E8E639EB5A194CAF4"><enum>(1)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</paragraph><paragraph id="IDDABEA04726314EB687ADA430FD268DB9"><enum>(2)</enum><text>by striking
<quote>enterprises</quote> each place that term appears and inserting
<quote>regulated entities</quote>;</text>
</paragraph><paragraph id="IDFAF7E6DAE54245319B6092DD2A842CE2"><enum>(3)</enum><text>in paragraph (3),
by striking <quote>; and</quote> and inserting a semicolon;</text>
</paragraph><paragraph id="ID5967C794C9CB49348A1C4D524788ED2C"><enum>(4)</enum><text>in paragraph (4),
by striking <quote>1994.</quote> and inserting <quote>1994; and</quote>;
and</text>
</paragraph><paragraph id="IDB12FFD5BC49A47C0A542830E8E5087C5"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block id="IDB0D3778E7594451FAC9E8D7476979866" style="OLC">
<paragraph id="IDFAFE7C96349B48399CA8D3D7E9874FFA"><enum>(5)</enum><text>the assessment of
the Board or any of its members with respect to—</text>
<subparagraph id="ID7D352FA90ABB47E0A3165526587021C5"><enum>(A)</enum><text>the safety and
soundness of the regulated entities;</text>
</subparagraph><subparagraph id="ID8F7054B1AC0F440AB2015E79B4C956E4"><enum>(B)</enum><text>any material
deficiencies in the conduct of the operations of the regulated entities;</text>
</subparagraph><subparagraph id="IDA01E5806B3634568B11B714379A8147B"><enum>(C)</enum><text>the overall
operational status of the regulated entities; and</text>
</subparagraph><subparagraph id="ID4F9A55C37A10470EA95B41907C40B101"><enum>(D)</enum><text>an evaluation of
the performance of the regulated entities in carrying out their respective
missions;</text>
</subparagraph></paragraph><paragraph id="ID436A9FC107344A83B8EA8E1A9DEDD503"><enum>(6)</enum><text>operations,
resources, and performance of the Agency; and</text>
</paragraph><paragraph id="ID6A0A16714EA840AC9D61D554767BB3CA"><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="ID60DBE4D57F244B71A20ACCFD2390FDD1"><enum>104.</enum><header>Authority to
require reports by regulated entities</header>
<subsection id="IDF39F6D85642742A99FC66ABA85F47CB4"><enum>(a)</enum><header>In
General</header><text>Section 1314 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4514) is amended—</text>
<paragraph id="IDA4FD871CA1604988AF35F3C65D126334"><enum>(1)</enum><text>in the section
heading, by striking
<quote><header-in-text>enterprises</header-in-text></quote> and inserting
<quote><header-in-text>regulated entities</header-in-text></quote>;</text>
</paragraph><paragraph id="IDA70AA85A7F5D446C92D5EC03C5AEE1FA"><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="ID32E0BED5571641B7AD32EB910515EDBA"><enum>(3)</enum><text>by striking
<quote>the enterprise</quote> and inserting <quote>the regulated
entity</quote>;</text>
</paragraph><paragraph id="ID6DF5B6BE0181446D9A315AC5FF237B89"><enum>(4)</enum><text>in subsection
(a)—</text>
<subparagraph id="ID561DA65F14A14035ABF7AEBB73E3C2FA"><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 id="ID6270DABABC7A4B25B7EE729D5681EA84" style="OLC">
<subsection id="ID7E88820F58704147B020B6072735F37F"><enum>(a)</enum><header>Regular and
Special Reports</header>
<paragraph id="IDDC2CE4DAAA1241A3BFF830768C68E4C8"><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="IDA2B76949952F41EB8045372B14DEFC62"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="ID6CD433E3E114467CA49D7E3ED5F05EC8"><enum>(i)</enum><text>by
inserting <quote>, by general or specific orders,</quote> after <quote>may also
require</quote>; and</text>
</clause><clause id="IDEF20233C6A3442BB8B5AB78EABE9D6E9"><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="ID888C9C57227B42D78709FBB3551B567F"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID81E305B19A23465B8BDB2FFAE29C2B66" style="OLC">
<subsection id="ID7F9C2D2D585A4A6588B0FF02FBF4F90A"><enum>(c)</enum><header>Penalties for
Failure To Make Reports</header>
<paragraph id="IDE06293BE43394D4494CB6B82A64906DE"><enum>(1)</enum><header>Violations</header><text>It
shall be a violation of this section for any regulated entity—</text>
<subparagraph id="ID70001800C8F44F1FB22CF38931F5626B"><enum>(A)</enum><text>to fail to make,
obtain, transmit, or publish any report or information required by the Director
under this section, section 309(k) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name>, or section 307(c) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>,
within the period of time specified in such provision of law or otherwise by
the Director; or</text>
</subparagraph><subparagraph id="ID5D4869B6B0C343C1936212CDC1372FC9"><enum>(B)</enum><text>to submit or
publish any false or misleading report or information under this
section.</text>
</subparagraph></paragraph><paragraph id="ID21F4A752FFF6457D91912B4A742FEE45"><enum>(2)</enum><header>Penalties</header>
<subparagraph id="ID3B74175FCACC40F5923FA6563882B98B"><enum>(A)</enum><header>Tier 1</header>
<clause id="IDF252EB6916034AC486D25D7DE579AFCC"><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 id="IDAF763F7806594499A4C08E980020C863"><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 id="ID251B48EE32E44265B927B028EBF34E46"><enum>(II)</enum><text>the violation
was an inadvertent transmittal or publication of any report which was minimally
late.</text>
</subclause></clause><clause id="IDBF03EA97463C4C328E659F75FE7A5645"><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 id="IDC11D0CEE4AA1468F993442E4CF2FFD42"><enum>(B)</enum><header>Tier
2</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 id="IDD0317FAD82124ECF91754404880FF339"><enum>(C)</enum><header>Tier
3</header><text>A violation described in paragraph (1) shall be subject to a
penalty of not more than $2,000,000 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 id="IDC6DA14B07C2C40009ACC365FC7056AD1"><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 id="ID87E11E21F3764FCC829D08E6C15EF26B"><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="ID247A025E04C344CFA959BC0E373D1633"><enum>(b)</enum><header>Conforming
Amendment</header><text>The <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4501 et seq.) is amended by striking sections 1327 and 1328.</text>
</subsection></section><section id="IDD475A9B49D7343A58ADE178259A9C671"><enum>105.</enum><header>Examiners and
accountants; authority to contract for reviews of regulated entities</header>
<subsection id="IDF54D183B43764D0DA2967C469E7B47D0"><enum>(a)</enum><header>In
General</header><text>Section 1317 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4517) is amended—</text>
<paragraph id="ID856DA2A5C5964027A9DCFAB3F5071074"><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="IDD31BE42B1DA540E68A4DE076282D917D"><enum>(2)</enum><text>in subsection
(b), by striking <quote>an enterprise</quote> and inserting <quote>a regulated
entity</quote>;</text>
</paragraph><paragraph id="ID18350CC0F2434E049075FBC515622031"><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="ID25D1297A157E472A93A6002367859904"><enum>(4)</enum><text>by redesignating
subsections (d) through (f) as subsections (e) through (g), respectively;
and</text>
</paragraph><paragraph id="ID79CB1C1098B04F4EB119EF31914E5809"><enum>(5)</enum><text>by inserting
after subsection (c) the following:</text>
<quoted-block id="ID1B3D3732348746FE9F93BA74F1445D7E" style="OLC">
<subsection id="ID54BEAE491F6B428685E18925018A9D8C"><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="ID926486D897004B59806DF8755DA14900"><enum>(b)</enum><header>Direct Hire
Authority To Hire Accountants, Economists, and Examiners</header><text>Section
1317 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4517) is
amended by adding at the end the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID8F653D919028462D9E9F7FAF6B0C3768" style="OLC">
<subsection id="ID9CD466CEE9AF449EB5C75B21979458BB"><enum>(h)</enum><header>Appointment of
Accountants, Economists, and Examiners</header>
<paragraph id="ID89E221CF5BA04260AA3118D1C00E0BBD"><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="ID4114F408DEDD4D77870A6DA96C135DDC"><enum>(2)</enum><header>Appointment
authority</header><text>The Director may appoint candidates to any position
described in paragraph (1)—</text>
<subparagraph id="IDDBB4D020B95F48E68ECF7DC7FB825B17"><enum>(A)</enum><text>in accordance
with the statutes, rules, and regulations governing appointments in the
excepted service; and</text>
</subparagraph><subparagraph id="IDAED36DBDFBB54998A7625302F43A6D3C"><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="ID748E306C1D234F819501E00580E7506F"><enum>(c)</enum><header>Amendments to
Inspector General Act</header><text>Section 11 of the Inspector General Act of
1978 (5 U.S.C. 11 App.) is amended—</text>
<paragraph id="IDD313D808B3754C24A0BB351908B088AF"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>, the Director of the Federal Housing Enterprises
Regulatory Agency</quote> after <quote>Social Security Administration</quote>;
and</text>
</paragraph><paragraph id="ID21AD6E9A77B443639D8B8ABF2E8F3B24"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>, the Federal Housing Enterprises Regulatory Agency</quote>
after <quote>Social Security Administration</quote>.</text>
</paragraph></subsection><subsection id="ID01267CF7220A40D2946FEE7AE2FA8E0F"><enum>(d)</enum><header>Authority To
Contract for Reviews of Regulated Entities</header><text>Section 1319 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4519) is amended in the section
heading, by striking <quote><header-in-text>by rating
organization</header-in-text></quote>.</text>
</subsection></section><section id="ID2F09079087D6428FB0ECBA2071FE686F"><enum>106.</enum><header>Assessments</header><text display-inline="no-display-inline">Section 1316 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4516) is amended—</text>
<paragraph id="IDEF9323FA95C4432594BDA77E2AD56F68"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="IDFBF9AF91B9924A62AEBEEFBA20331153" style="OLC">
<subsection id="ID820FA8A4C5E34BEBA32618208FBE55DE"><enum>(a)</enum><header>Annual
Assessments</header><text>The Director shall establish and collect from the
regulated entities annual assessments in an amount not exceeding the amount
sufficient to provide for reasonable costs and expenses of the Agency,
including—</text>
<paragraph id="ID0BFDEB01BE36421699E3F5A255006885"><enum>(1)</enum><text>the expenses of
any examinations under section 1317;</text>
</paragraph><paragraph id="ID3DCD16521F9343238F33D436A6BD99A7"><enum>(2)</enum><text>the expenses of
obtaining any reviews and credit assessments under section 1319; and</text>
</paragraph><paragraph id="ID71F6FE9002AE474E915ECF24EE557FEF"><enum>(3)</enum><text>such amounts in
excess of actual expenses for any given fiscal year, as deemed necessary by the
Director to maintain working
capital.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID8A4CF4A7E1F148048733A8969F472FAA"><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="ID2B0253EF95384DAB8ACF7F2DA791579B"><enum>(3)</enum><text>by striking
<quote>enterprises</quote> each place that term appears and inserting
<quote>regulated entities</quote>;</text>
</paragraph><paragraph id="ID0141D7C1DD914272972B41B6F39211BE"><enum>(4)</enum><text>by striking
<quote>enterprise</quote> each place that term appears, other than in
subparagraph (B) of subsection (b)(3), and inserting <quote>regulated
entity</quote>;</text>
</paragraph><paragraph id="ID4611F4A39BC84207BE02AAD77E575379"><enum>(5)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID307B2928E57F45FDBACFC413C3741538"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="ID305E92BE28564D0BBC08AF8F41CD0227"><enum>(i)</enum><text>by
striking <quote>bears to</quote> and inserting <quote>bear to</quote>;
and</text>
</clause><clause id="IDA1410393D9374048A76038C00C6E2AF2"><enum>(ii)</enum><text>by
striking <quote>both</quote> and inserting <quote>all</quote>; and</text>
</clause></subparagraph><subparagraph id="IDBA11625D8EBB4E06B8B8968EC30C2438"><enum>(B)</enum><text>in paragraph
(3)(B)—</text>
<clause id="ID47A1A4295E524B3FB45D3A1C26FE273F"><enum>(i)</enum><text>by
inserting <quote>with respect to an enterprise,</quote> before <quote>the
unpaid principal</quote>; and</text>
</clause><clause id="ID2B7617B45BFE4DBA8E7B108059582BBE"><enum>(ii)</enum><text>by
striking <quote>by the enterprise</quote> and inserting <quote>by an
enterprise</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="IDBDBD0A470C934AB5A45D575CD6D7BC18"><enum>(6)</enum><text>in subsection
(c)—</text>
<subparagraph id="ID0FF2A5280D8140838A9434C07AB5CAB7"><enum>(A)</enum><text>by striking
<quote>The semiannual</quote> and inserting the following:</text>
<quoted-block id="IDD1E9B30062344A419E9FD6FF321790D2" style="OLC">
<paragraph id="ID494D2FF26EAE4BBDA18DA05C5F6602B3"><enum>(1)</enum><header>In
general</header><text>The semiannual</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDD01FA50EE51C41CABA4C1F1A41276934"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block id="IDE1EB4CAA6E0A471A8268F7DBA3F643E8" style="OLC">
<paragraph id="ID4FA88D8C0F7145A297997F4F7E7D1181"><enum>(2)</enum><header>Adjustments</header><text>The
Director may adjust the amounts of any semiannual assessments for an assessment
under subsection (a) that are to be paid pursuant to subsection (b) by a
regulated entity, as the Director determines necessary to ensure that the costs
of enforcement activities under subtitles B and C for a regulated entity are
borne only by that regulated entity.</text>
</paragraph><paragraph id="IDCB80F6D78AA244D4BBBA0714B785187B"><enum>(3)</enum><header>Special
circumstances</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 subtitle B or C for a regulated entity, the amount
available from any semiannual payment made by such regulated entity pursuant to
subsection (b) is insufficient to cover the costs of the Agency with respect to
such entity, the Director may make and collect from such 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><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID549A94C73EF14B9185AE0ED7EE9DE124"><enum>(7)</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>;</text>
</paragraph><paragraph id="ID620B6DDA7C9A4D3C9A41DBD801B343CA"><enum>(8)</enum><text>by striking
subsections (e) and (f) and inserting the following:</text>
<quoted-block id="ID831DAD4FB45A4D6782568957D9BE4956" style="OLC">
<subsection id="ID0CBD88FB58EA49C1AAB2BBB03199EE9E"><enum>(e)</enum><header>Remission of
Assessment</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 an assessment collected from the regulated entity that is
attributable to subsection (a)(3), and is in excess of the amount that the
Director deems necessary to maintain working capital.</text>
</subsection><subsection id="ID8B7C5270DA6F4F7BAE44F51599CCCA15"><enum>(f)</enum><header>No Appropriated
Funds</header><text>Salaries of the Director and other employees of the Agency,
and all other expenses thereof, may be paid from assessments collected under
this subsection or other sources, and shall not be construed to be Government
funds or appropriated monies, or subject to apportionment for the purposes of
chapter 15 of title 31, United States Code, or any other
authority.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID887FDDF5BB424657ACA9B014D24A75EE"><enum>(9)</enum><text>in subsection
(g)—</text>
<subparagraph id="ID9FE8D82B49804B4EAC7E1ECE801B544B"><enum>(A)</enum><text>by striking
<quote>the Secretary and</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="ID276DAFF70FFF4FB78C60201036B187AB"><enum>(B)</enum><text>in paragraph
(3)—</text>
<clause id="ID2F07775F08654CC6B11503AE993F9761"><enum>(i)</enum><text>by
striking <quote>(A)</quote>; and</text>
</clause><clause id="IDAF02BC1C04C640069FB7736FCA158507"><enum>(ii)</enum><text>by
striking <quote>, and (B)</quote> and all that follows through the end of the
paragraph and inserting a period.</text>
</clause></subparagraph></paragraph></section><section id="IDAE8FA9901DD5436C8AF172DC27DABF17"><enum>107.</enum><header>Regulations
and orders</header><text display-inline="no-display-inline">Section 1319G of
the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4526) is amended—</text>
<paragraph id="IDA7F3AD97DF504C26B5E487EA9E4F5EC9"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="IDC765FCBD5B064A668BDAD8E1C62C9283" style="OLC">
<subsection id="IDD7657D90D2804766A5D4DAF02966F35E"><enum>(a)</enum><header>Authority</header><text>The
Director shall issue any regulations, guidelines, directives, 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="IDB93A7C2CA878436FA5DF376BCCFCC376"><enum>(2)</enum><text>by striking
subsection (c).</text>
</paragraph></section><section id="ID6954DADB2DBF46C9AA0CAD0BA58BBF60"><enum>108.</enum><header>Prudential
management and operations standards</header><text display-inline="no-display-inline">The <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4501 et seq.) is amended by
inserting after section 1313A, as added by this Act, the following new
section:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID5B188E37227A4A11BB25F55E7FDE94E6" style="OLC">
<section id="IDDCC54BB8D6EF4A6B8A5E96E4CB0AEB2B"><enum>1313B.</enum><header>Prudential
management and operations standards</header><text display-inline="no-display-inline">The Director may establish standards, by
regulation, order, or guideline, for each regulated entity relating to—</text>
<paragraph id="IDA60532B5F77D47A29DB74CAEF3F8FBA0"><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="IDE7B8E62D89794E89BE46DD491DAAFE2C"><enum>(2)</enum><text>independence and
adequacy of internal audit systems;</text>
</paragraph><paragraph id="ID6FE854E4425B4CAE8DDF62DC924A42C9"><enum>(3)</enum><text>management of
interest rate risk exposure;</text>
</paragraph><paragraph id="ID919616094E984B018C63A19E82FD2EE0"><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="IDA420FB24165F4DE5BFEBD429CB1176FF"><enum>(5)</enum><text>adequacy and
maintenance of liquidity and reserves;</text>
</paragraph><paragraph id="IDED21C55A885C460E8C10380845965D1F"><enum>(6)</enum><text>management of
asset and investment portfolio growth;</text>
</paragraph><paragraph id="ID5190099C2A0642F0BD390DE9C6CEB6CD"><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="ID29AB3AF0819544EF9E81525825F1793A"><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; and</text>
</paragraph><paragraph id="ID31956E22F16E4E77A310B99CD10C07B7"><enum>(9)</enum><text>such other
operational and management standards as the Director determines to be
appropriate.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID1FF11B40AF894B96BD25A740C00C9DEA"><enum>109.</enum><header>Capital levels
and holdings</header><text display-inline="no-display-inline">Subtitle B of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4611 et seq.) is
amended—</text>
<paragraph id="IDF447E5CA54854C2D84B9C804118CF5F9"><enum>(1)</enum><text>by striking the
subtitle designation and heading and inserting the following:</text>
<quoted-block id="IDD812C49C2661411EA38A25EE2176EBAD" style="OLC">
<subtitle id="IDEE0DF50B357F4F77A919CC99730E8282"><enum>B</enum><header>Required Capital
Levels for Enterprises, Special Enforcement Powers, Limitation on Assets, and
Securities
Treatment</header>
</subtitle><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDDC863C370D1C40ADA51D05677399E863"><enum></enum><text>and</text>
</paragraph><paragraph id="ID43E0BED8EB504D41858CFDB08CEB53F4"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6A2B24AFBD684688897ABB0B7A356AB0" style="OLC">
<section id="ID65D82DED17B648EBA061B43FAD330423"><enum>1369E.</enum><header>Affordable
housing focused portfolios</header>
<subsection id="ID0fc6d96f701542629b7ac632049c6435"><enum>(a)</enum><header>Supporting
affordable housing</header><text>Congress finds that, consistent with the
missions of the enterprises, the portfolio holdings of the enterprises should
be focused, to the maximum extent possible, on mortgages and mortgage-backed
securities that meet the affordable housing goals established for the
enterprises pursuant to this Act.</text>
</subsection><subsection id="ID9a99eef41c0b4e6bbea72bc7070ae8d9"><enum>(b)</enum><header>Authority of
the director</header><text>The Director shall, by regulation, provide that any
mortgages or mortgage-related securities acquired by an enterprise after the
date of enactment of this Act shall—</text>
<paragraph id="IDff0b9543ed3e434699bb5daa092bc5d7"><enum>(1)</enum><text>meet one or more
of the housing goals established for the enterprise under this Act; or</text>
</paragraph><paragraph id="IDcf07206fedc94830a85623c0fecdcbf4"><enum>(2)</enum><text>be promptly
securitized and sold to third parties.</text>
</paragraph></subsection><subsection id="ID7d4aa8e7013748c7b89058ac477dd961"><enum>(c)</enum><header>Temporary
adjustments</header><text>The Director may, by order, make temporary
adjustments to the standards under subsection (b), if such action would help to
mitigate market disruptions in the housing finance
system.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID43611ED899C247A0BE9826785CEA2F4B"><enum>110.</enum><header>Risk-Based
capital test for enterprises</header>
<subsection id="ID5A08A284B3C24F3AAF936488913F7E42"><enum>(a)</enum><header>Risk-Based
Capital Levels</header><text>Section 1361 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4611) is amended to read as
follows:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="IDE367C8C0975144319256964C427AE1CF" style="OLC">
<section id="ID35ADBC95360B46F6A7CD322B4CFC10B2"><enum>1361.</enum><header>Risk-Based
capital levels</header>
<subsection id="IDC7C1D6EF9DBB400CB39EF3FE1E7F92A7"><enum>(a)</enum><header>In
General</header><text>The Director shall, by regulation or order, establish
risk-based capital requirements for each of the enterprises to ensure that the
enterprises operate in a safe and sound manner, with sufficient capital and
reserves to support the risks that arise in the operations and management of
each enterprise.</text>
</subsection><subsection id="IDDB5377CA19EB41AF9C8F4A928E590E4E"><enum>(b)</enum><header>No
Limitation</header><text>Nothing in this section limits the authority of the
Director to require other reports or undertakings 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="IDB854213DA8484B0587D0F10BC262EE06"><enum>(b)</enum><header>Minimum Capital
Levels for Regulated Entities</header>
<paragraph id="ID48EB645081564766884A5D974FAFC933"><enum>(1)</enum><header>Enterprises</header><text>Section
1362 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4612) is
amended—</text>
<subparagraph id="ID5527FB95F0984F00B7F35AE09CE2AE54"><enum>(A)</enum><text>in the section
heading, by inserting <quote><header-in-text>for
enterprises</header-in-text></quote> after
<quote><header-in-text>levels</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="IDEA8B66D52E5D45CA944220F697B11ED2"><enum>(B)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block id="IDFBF05958EA8F4796A42924B011F9D698" style="OLC">
<subsection id="ID9D982F09E45347B69F6246DBBA30C6FF"><enum>(b)</enum><header>Regulatory
Discretion</header><text>The Director may, by regulation or order, establish a
minimum capital level that is higher than the level specified in subsection
(a).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID01703222628C401F9744C839EC259E9D"><enum>(2)</enum><header>Federal home
loan banks</header><text>Section 6(a)(2) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C.
1426(a)(2)) is amended by adding at the end the following:</text>
<quoted-block act-name="Federal Home Loan Bank Act" id="ID505B921C47EA48F2A6C970E97EE44BC9" style="OLC">
<subparagraph id="IDCB90FD0C58B24967A00FDC8EDC1609C1"><enum>(C)</enum><header>Authority to
alter level</header><text>The Director may, by regulation or order, establish a
minimum capital level that is higher than the level specified in subparagraph
(A).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id842EF506F27D4EACA1C05D50036656E6"><enum>111.</enum><header>Registration
of Enterprise Securities</header>
<subsection id="ID7B9A549B61914C04863B3DA3A0C1445B"><enum>(a)</enum><header>Fannie
Mae</header>
<paragraph id="ID58CE6E0CDC1D41818EFE1E9C9E4774B2"><enum>(1)</enum><header>Mortgage-backed
securities</header><text>Section 304(d) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1719(d)) is amended by striking the fourth sentence
and inserting the following: <quote>Securities issued by the corporation under
this subsection shall not be exempt securities for purposes of the Securities
Act of 1933.</quote>.</text>
</paragraph><paragraph id="ID899236CA7C4E4834B52A3CA5078FA4AA"><enum>(2)</enum><header>Subordinate
obligations</header><text>Section 304(e) of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1719(e)) is amended by striking the fourth sentence
and inserting the following: <quote>Obligations issued by the corporation under
this subsection shall not be exempt securities for purposes of the Securities
Act of 1933.</quote>.</text>
</paragraph><paragraph id="IDC2717C27ECB14C5481A29E7111F320FA"><enum>(3)</enum><header>Securities</header><text>Section
311 of the <act-name parsable-cite="FNMACA">Federal National Mortgage
Association Charter Act</act-name> (12 U.S.C. 1723c) is amended—</text>
<subparagraph id="IDFD01E3D3428144A69F17453E1A839A09"><enum>(A)</enum><text>in the section
heading, by striking <quote><header-in-text level="section" style="traditional">association</header-in-text></quote>;</text>
</subparagraph><subparagraph id="IDD9E53863D9F24E0790F71F4C8428F120"><enum>(B)</enum><text>by inserting
<quote>(a) <header-in-text level="subsection" style="OLC">In
General</header-in-text>.—</quote> after <quote><header-in-text level="section" style="traditional">Sec. 311.</header-in-text></quote>;</text>
</subparagraph><subparagraph id="ID774C3D746D3243D2A24C77BAFF88BE5A"><enum>(C)</enum><text>in the second
sentence, by inserting <quote>by the Association</quote> after
<quote>issued</quote>; and</text>
</subparagraph><subparagraph id="ID93A4F44171BE4456A9C00DF1F49242DD"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID09E5D596121F4D7AAFC80525D74F989B" style="OLC">
<subsection id="ID65DDA4128AB94F90B111B5C54F7C81BA"><enum>(b)</enum><header>Treatment of
corporation securities</header>
<paragraph id="IDD2C72DA15CB1490DB5280C3010F1283D"><enum>(1)</enum><header>In
general</header><text>Any stock, obligations, securities, participations, or
other instruments issued or guaranteed by the corporation pursuant to this
title shall not be exempt securities for purposes of the Securities Act of
1933.</text>
</paragraph><paragraph id="ID05D3F33A248945B2AA609CA66D402B30"><enum>(2)</enum><header>Exemption for
approved sellers</header><text>Notwithstanding any other provision of this
title or the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>,
transactions involving the initial disposition by an approved seller of pooled
certificates that are acquired by that seller from the corporation upon the
initial issuance of the pooled certificates shall be deemed to be transactions
by a person other than an issuer, underwriter, or dealer for purposes of the
Securities Act of 1933.</text>
</paragraph><paragraph id="ID59057FFA53844CCF88A015D95C162BA8"><enum>(3)</enum><header>Definitions</header><text>For
purposes of this subsection, the following definitions shall apply:</text>
<subparagraph id="IDC97A4FFD7D2F4966AB99DE3E2A4E48C1"><enum>(A)</enum><header>Approved
seller</header><text>The term <term>approved seller</term> means an institution
approved by the corporation to sell mortgage loans to the corporation in
exchange for pooled certificates.</text>
</subparagraph><subparagraph id="ID4D5648E68F304F1FBD04A1A330D31A2F"><enum>(B)</enum><header>Pooled
certificates</header><text>The term <term>pooled certificates</term> means
single class mortgage-backed securities guaranteed by the corporation that have
been issued by the corporation directly to the approved seller in exchange for
the mortgage loans underlying such mortgage-backed securities.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID93DF7EFC18504A66B1894A658E51EE12"><enum>(4)</enum><header>Mortgage
related securities</header><text>A single class mortgage-backed security
guaranteed by the corporation that has been issued by the corporation directly
to the approved seller in exchange for the mortgage loans underlying such
mortgage-backed securities or directly by the corporation for cash shall be
deemed to be a mortgage related security, as defined in section 3(a) of the
<act-name parsable-cite="SEA34">Securities Exchange Act of
1934</act-name>.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="ID9CDA9825304741418802B0FADD11B465"><enum>(b)</enum><header>Freddie
Mac</header><text>Section 306(g) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>
(12 U.S.C. 1455(g)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idA8397C2CF6894204870776DF863D4B7A" style="OLC">
<subsection id="IDE17A87FA95E84BFCB2BA71A8BBF7E6C8"><enum>(g)</enum><header>Treatment of
securities</header>
<paragraph id="ID7A8D5D91592C406CB92D3BE287DB319E"><enum>(1)</enum><header>In
general</header><text>Any securities issued or guaranteed by the Corporation
shall not be exempt securities for purposes of the Securities Act of
1933.</text>
</paragraph><paragraph id="IDD5FEA42E90A842A5B66E78FF4FD2E607"><enum>(2)</enum><header>Exemption for
approved sellers</header><text>Notwithstanding any other provision of this
title or the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>,
transactions involving the initial disposition by an approved seller of pooled
certificates that are acquired by that seller from the Corporation upon the
initial issuance of the pooled certificates shall be deemed to be transactions
by a person other than an issuer, underwriter, or dealer for purposes of the
Securities Act of 1933.</text>
</paragraph><paragraph id="ID43107579DBF9414FA7BB61A86614D850"><enum>(3)</enum><header>Definitions</header><text>For
purposes of this subsection, the following definitions shall apply:</text>
<subparagraph id="IDC44B9D7D51CA4833A5B3C0D732A3726D"><enum>(A)</enum><header>Approved
seller</header><text>The term <term>approved seller</term> means an institution
approved by the Corporation to sell mortgage loans to the Corporation in
exchange for pooled certificates.</text>
</subparagraph><subparagraph id="IDA4E00039DA3E4C6CA9B82D0FE99321F6"><enum>(B)</enum><header>Pooled
certificates</header><text>The term <term>pooled certificates</term> means
single class mortgage-backed securities guaranteed by the Corporation that have
been issued by the Corporation directly to the approved seller in exchange for
the mortgage loans underlying such mortgage-backed
securities.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idAA3F6DB8C7634441B42D42605395464E"><enum>(c)</enum><header>Limitation on
fees</header><text>Section 6(b)(2) of the <act-name parsable-cite="SA33">Securities Act of 1933</act-name> (15 U.S.C. 77f(b)(2)) is
amended by adding at the end the following: <quote>Notwithstanding any other
provision of this title, no applicant, or group of affiliated applicants that
does not include any investment company registered under the
<act-name parsable-cite="ICA40">Investment Company Act of 1940</act-name>,
filing a registration statement subject to a fee shall be required in any
fiscal year with respect to all registration statements filed by such applicant
in such fiscal year to pay an aggregate amount in fees to the Commission
pursuant to this subsection in an amount that exceeds 5 percent of the target
offsetting collection amount for such fiscal year. Fees paid in connection with
registration statements relating to business combinations shall not be included
in calculating the total fees paid by any such applicant.</quote>.</text>
</subsection><subsection id="idCDD62803DA7F4157A13190A70408B324"><enum>(d)</enum><header>No effect on
other law</header><text>Nothing in this section or the amendments made by this
section shall be construed to affect any exemption from the provisions of the
Trust Indenture Act of 1939 provided to the Federal National Mortgage
Association or the Federal Home Loan Mortgage Corporation.</text>
</subsection><subsection id="ID2D3897F7D30E47E89622DD74BD828B3F"><enum>(e)</enum><header>Regulations</header><text>The
Securities and Exchange Commission may issue such regulations as may be
necessary or appropriate to carry out this section and the amendments made by
this section.</text>
</subsection><subsection commented="no" id="IDE118074C9D074420BAC972125D83CFF1"><enum>(f)</enum><header>Effective
Date</header><text>The amendments made by this section shall become effective 1
year after the date of enactment of this Act.</text>
</subsection></section><section id="ID8724F07AF0264EA5993BCF56F48A0F06"><enum>112.</enum><header>Limit on
golden parachutes</header><text display-inline="no-display-inline">Section 1318
of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4518) is amended by
adding at the end the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID781EE80903494DD68682C6583A813152" style="OLC">
<subsection id="ID99CDBD88E62244688F4B80925A9FF550"><enum>(c)</enum><header>Authority To
Regulate or Prohibit Certain Forms of Benefits to Affiliated Parties</header>
<paragraph id="IDFE35840C7A44401DB727E050261BCC40"><enum>(1)</enum><header>Golden
parachutes and indemnification payments</header><text>The Agency may prohibit
or limit, by regulation or order, any golden parachute payment or
indemnification payment.</text>
</paragraph><paragraph id="IDAD438A41858647A5BB27D73D39B12461"><enum>(2)</enum><header>Factors to be
taken into account</header><text>The Agency shall prescribe, by regulation, the
factors to be considered by the Agency in taking any action pursuant to
paragraph (1), which may include such factors as—</text>
<subparagraph id="ID1F9405EE690144F79D178485FCA25EC0"><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="ID4ED071494EC84A0894932DF1F110AA48"><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
Agency);</text>
</subparagraph><subparagraph id="IDED9427C145CE48A09A0CCCEF44B0AD44"><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 affect on the financial condition of the regulated entity;</text>
</subparagraph><subparagraph id="ID8E14FA879D7041F39503C6C6BEED317A"><enum>(D)</enum><text>whether the
affiliated party was in a position of managerial or fiduciary responsibility;
and</text>
</subparagraph><subparagraph id="ID0137382E051E4080B4ACEBB9955905D8"><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="ID9DE631CA5D604091BDF900B279A6B2EF"><enum>(i)</enum><text>the payment
reasonably reflects compensation earned over the period of employment;
and</text>
</clause><clause id="ID82DA059DE3E048DB961AD0DC4C0C67B9"><enum>(ii)</enum><text>the compensation
involved represents a reasonable payment for services rendered.</text>
</clause></subparagraph></paragraph><paragraph id="IDD30E1F19448C49798F69C24757B17D77"><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="IDA229B922699C418C989013F7D04154E9"><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="IDD2B1C35DB11B4334B9FED73A2CFFCB6B"><enum>(B)</enum><text>with a view to,
or having the result of—</text>
<clause id="ID90750C1DAF2D40D5B59B1658761216FD"><enum>(i)</enum><text>preventing the
proper application of the assets of the regulated entity to creditors;
or</text>
</clause><clause id="ID1A8EAE6F902249FCA6A5C16DF167CF30"><enum>(ii)</enum><text>preferring one
creditor over another.</text>
</clause></subparagraph></paragraph><paragraph id="IDCC3AD92F28234D268409F59F2B2144DB"><enum>(4)</enum><header>Golden
parachute payment defined</header>
<subparagraph id="IDAE953C5DC9D0477C9069954DD6C6875B"><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="ID25132FFC83D94C4EA37F59A7CF1E6BBF"><enum>(i)</enum><text>is contingent on
the termination of such party’s affiliation with the regulated entity;
and</text>
</clause><clause id="ID423623E556F447539BFF3384551016B2"><enum>(ii)</enum><text>is received on
or after the date on which—</text>
<subclause id="IDCF9A57F31F654E11A2CDA9B56086B448"><enum>(I)</enum><text>the regulated
entity became insolvent;</text>
</subclause><subclause id="ID43E770D3F8244245A58F73BB0C3E7265"><enum>(II)</enum><text>any conservator
or receiver is appointed for such regulated entity; or</text>
</subclause><subclause id="IDDB81B4AA5AEF4318B2DE46F7F747C380"><enum>(III)</enum><text>the Agency
determines that the regulated entity is in a troubled condition (as defined in
the regulations of the Agency).</text>
</subclause></clause></subparagraph><subparagraph id="ID002A9FA87DC04E5892F8C2EB848B5F8F"><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="ID7E7D5DAF07204FBEB9C6D665E94DE2AF"><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="ID82F172F986D34C29A8C85C40C5231133"><enum>(i)</enum><text>any payment made
pursuant to a retirement plan which is qualified (or is intended to be
qualified) under section 401 of the Internal Revenue Code of 1986, or other
nondiscriminatory benefit plan;</text>
</clause><clause id="IDD54F90AD20C146848624AB547E46BEE8"><enum>(ii)</enum><text>any payment made
pursuant to a bona fide deferred compensation plan or arrangement which the
Board determines, by regulation or order, to be permissible; or</text>
</clause><clause id="ID44A9EE3E2A844E06AA366C06850AA68E"><enum>(iii)</enum><text>any payment
made by reason of the death or disability of an affiliated party.</text>
</clause></subparagraph></paragraph><paragraph id="ID1B009782BA6844DD9CA083771C27DD92"><enum>(5)</enum><header>Other
definitions</header><text>For purposes of this subsection, the following
definitions shall apply:</text>
<subparagraph id="ID6FA3109707A94BABBBCFEA259F4B15E8"><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="ID3B1DB62464C249D1A3F3255AE2CBD2B7"><enum>(i)</enum><text>is assessed a
civil money penalty;</text>
</clause><clause id="ID5F2E3FEC58FC44AE9D93BC29290AB1A1"><enum>(ii)</enum><text>is removed or
prohibited from participating in conduct of the affairs of the regulated
entity; or</text>
</clause><clause id="IDBDAB4917C8C14246B3818AAB7CE80995"><enum>(iii)</enum><text>is required to
take any affirmative action to correct certain conditions resulting from
violations or practices, by order of the Agency.</text>
</clause></subparagraph><subparagraph id="ID2BC148D4B57740A892A3F2A3584AB8FD"><enum>(B)</enum><header>Liability or
legal expense</header><text>The term <term>liability or legal expense</term>
means—</text>
<clause id="ID579DF056F78B48E8B4F5E3E1850E93A4"><enum>(i)</enum><text>any legal or
other professional expense incurred in connection with any claim, proceeding,
or action;</text>
</clause><clause id="IDE0A72E754F0E4DC8B3113AE8D7B4D00E"><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="ID3B2EA9D43D454EB29FCDFC96BFD6B098"><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="ID65EC30B87B2A4C7D98A081F68DE1A0C8"><enum>(C)</enum><header>Payment</header><text>The
term <term>payment</term> includes—</text>
<clause id="ID49A1ED907BA142E597EE69A12E29EF0A"><enum>(i)</enum><text>any direct or
indirect transfer of any funds or any asset; and</text>
</clause><clause id="ID70F94D938157452B8103A5D67737F857"><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="ID9B3A1814BB40448EADCF36F11287281D"><enum>(I)</enum><text>the
determination, after such date, of the liability for the payment of such
amount; or</text>
</subclause><subclause id="IDDF8740A8BC3A43DAB1F84A764A410D84"><enum>(II)</enum><text>the liquidation,
after such date, of the amount of such payment.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID2BE09F54ACB34267A2B6ADFB176695ED"><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="IDAD6A40441FF24D279CA5FEAE272C9341"><enum>113.</enum><header>Reporting of
fraudulent loans</header><text display-inline="no-display-inline">Part 1 of
subtitle C of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4631 et seq.),
as amended by this Act, is amended by adding at the end the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="IDBE2CFE482F56483EA540EC6EF4926909" style="OLC">
<section id="ID7CE5A71C32B348C094E9B6EBEC9B77F8"><enum>1379E.</enum><header>Reporting of
fraudulent loans</header>
<subsection id="ID3D520872143A41128D2AE376653FFF68"><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 id="ID963A2935D67B44BC9263B259A954B509"><enum>(b)</enum><header>Protection From
Liability for Reports</header><text>Any regulated entity that makes a report
pursuant to subsection (a), and any entity-affiliated party, that 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="ID0B6D0DF17EED40E7AE8653E0E2AE7C6E"><enum>B</enum><header>Improvement of
Mission Supervision</header>
<section id="ID1491A1B725D94B1FAB5ABE9DB8A42FC2"><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
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4541 et seq.) is
amended—</text>
<paragraph id="ID932AEC765BC640199948580DFCBF7B38"><enum>(1)</enum><text>by striking the
heading for the part and inserting the following:</text>
<quoted-block id="ID686347FE9D0D4C74AA9A0DDC2B3DA541" style="OLC">
<part id="ID24B0E33DF63649338BE961ABD79E6ADB"><enum><quote>2</quote></enum><header>ADDITIONAL
AUTHORITIES OF THE
DIRECTOR</header>
</part><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID069E988531264BCE84D186BE243FF397"><enum></enum><text>and</text>
</paragraph><paragraph id="ID2AC50BB8458C4FDA809FC65E2248188F"><enum>(2)</enum><text>by striking
sections 1321 and 1322.</text>
</paragraph></section><section id="ID83F3570DFF8B4CC4959073E938054ACF"><enum>122.</enum><header>Review of
enterprise products</header><text display-inline="no-display-inline">Part 2 of
subtitle A of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4501 et seq.),
as amended by this Act, is amended by inserting before section 1323 the
following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="IDBA55C2FD77C24161AE3420909F9F3269" style="OLC">
<section id="ID68527BA27EED4569A5071C1D153ADCA1"><enum>1321.</enum><header>Prior
approval authority for products</header>
<subsection id="ID2A809BCDDC5C404CA5E510CD5D73EAF1"><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="ID7A45E1C2FA954BE0A7E76AC01869B8DE"><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="ID7C6A5A4AD3804EA48DB98B23E68D408B"><enum>(1)</enum><text>in the case of a
product of the Federal National Mortgage Association, the Director determines
that the product is authorized under paragraph (2), (3), (4), or (5) of section
302(b) or section 304 of the <act-name parsable-cite="FNMACA">Federal National
Mortgage Association Charter Act</act-name> (12 U.S.C. 1717(b), 1719);</text>
</paragraph><paragraph id="ID70E9F8A154384018A7A5812A7A67B009"><enum>(2)</enum><text>in the case of a
product of the Federal Home Loan Mortgage Corporation, the Director determines
that the product is authorized under paragraph (1), (4), or (5) of section
305(a) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage
Corporation Act</act-name> (12 U.S.C. 1454(a));</text>
</paragraph><paragraph id="ID8A15DCEABB284690952874A95539BCB7"><enum>(3)</enum><text>the product is in
the public interest;</text>
</paragraph><paragraph id="ID7CEE35D15A904747ADE84EAC989A7B36"><enum>(4)</enum><text>the product is
consistent with the safety and soundness of the enterprise or the mortgage
finance system; and</text>
</paragraph><paragraph id="ID939B955526FB4538AC1B1505A50B1501"><enum>(5)</enum><text>the product does
not impair the stability or competitiveness of the mortgage finance
system.</text>
</paragraph></subsection><subsection id="ID2530B3E3744B45EB9E6D197F05660C40"><enum>(c)</enum><header>Procedure for
Approval</header>
<paragraph id="ID1320340FC23B457CA6E575F278895439"><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="ID85A29FF0DFE044EEBBD9F537D9A21630"><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="IDCE341AC4E09F485CBA9ADA7D90748A08"><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="IDD95D26688D8B48DA8AFF31B2D9800259"><enum>(4)</enum><header>Offering of
product</header>
<subparagraph id="ID8D4D9B16263446F69B2EE5C65CC2513D"><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="ID854E979B90224CADB300DBB254E54E58"><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></paragraph></subsection><subsection id="IDBEE2AE3C6E4542F099F196989B2FF429"><enum>(d)</enum><header>Expedited
Review</header>
<paragraph id="ID29477F60A331498F9FF4230C8FD62892"><enum>(1)</enum><header>Determination
and notice</header><text>If an enterprise determines that any new activity,
service, undertaking or offering is excluded from the definition of a product
under subsection (f), then the enterprise shall provide written notice to the
Director prior to the commencement of such activity, service, undertaking, or
offering.</text>
</paragraph><paragraph id="ID22D6EB938808449C9DEC9A20D582150C"><enum>(2)</enum><header>Director
determination of applicable procedure</header><text>Immediately upon receipt of
any notice pursuant to paragraph (1), the Director shall make a determination
under paragraph (3).</text>
</paragraph><paragraph id="IDBFFBADA46CDF4EF7AE3041ECA6C5545A"><enum>(3)</enum><header>Determination
and treatment as a product</header><text>If the Director determines that any
new activity, service, undertaking, or offering consists of, relates to, or
involves a product—</text>
<subparagraph id="ID71AC1FF9B96545F79EA7A2EC93B751E5"><enum>(A)</enum><text>the Director
shall notify the enterprise of the determination;</text>
</subparagraph><subparagraph id="IDBEF1A4B84D1342B0A49BB21EC8B383AF"><enum>(B)</enum><text>the new activity,
service, undertaking, or offering described in the notice under paragraph (1)
shall be considered a product for the purposes of this section; and</text>
</subparagraph><subparagraph id="ID1221BCB2ECEF4D179EBC9EB1AE3495A2"><enum>(C)</enum><text>the enterprise
shall withdraw its request or submit a written request for approval of the
product pursuant to subsection (c).</text>
</subparagraph></paragraph></subsection><subsection id="ID27711552104540B8A62AA922C98733F7"><enum>(e)</enum><header>Conditional
Approval</header><text>The Director may conditionally approve the offering of
any product by an enterprise, and 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="ID1C2B9F888C594061A45B764B960648C4"><enum>(f)</enum><header>Definition of
Product</header><text>As used in this section, the term
<term>product</term>—</text>
<paragraph id="ID7a14561c31524bea8cd54d9e9153e2f1"><enum>(1)</enum><text>all programs,
products, and activities, offered by the enterprise in the marketplace;
and</text>
</paragraph><paragraph id="idCF05AD447FEE430489A5D1CB0AD2C479"><enum>(2)</enum><text>does not
include—</text>
<subparagraph id="ID0CA3CD037D36475CA2B0DA2034C519B7"><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 Enterprise
Regulatory Reform Act of 2007</short-title>, including any upgrade to the
technology, operating system, or software to operate the underwriting system;
or</text>
</subparagraph><subparagraph id="IDB00A387172C64B629EBB7B5A33F00B77"><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
create significant new exposure to risk for the enterprise or the holder of the
mortgage.</text>
</subparagraph></paragraph></subsection><subsection id="ID457AB9487D97465B88518AFA2ED69221"><enum>(g)</enum><header>No
Limitation</header><text>Nothing in this section shall be deemed to
restrict—</text>
<paragraph id="ID6A605495A77941F6AFF2CAC4364F4AEF"><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="IDF056ED8FB6E1434481100B8D7DCC47F4"><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="ID5D625811FA7142D2AE18ED0107B14776"><enum>123.</enum><header>Monitoring and
enforcing compliance with housing goals</header><text display-inline="no-display-inline">Section 1336(a)(1) of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4566(a)(1)) is amended by
striking <quote>established</quote> and all that follows through
<quote>1334</quote> and inserting <quote>under this subpart</quote>.</text>
</section><section id="ID361098DF3F96475F950A88CD713037D9"><enum>124.</enum><header>Assumption by
Director of other HUD responsibilities</header>
<subsection id="ID979E68A9F70F466A9C0640660D08AAAD"><enum>(a)</enum><header>In
General</header><text>Part 2 of subtitle A of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4541 et seq.) is
amended—</text>
<paragraph id="IDB5EF7DCDCE074EF6A8BCF0BAA268CC01"><enum>(1)</enum><text>by striking
<quote>Secretary</quote> each place that term appears and inserting
<quote>Director</quote> in each of sections 1323, 1324, 1326, 1331, 1332, 1333,
1334, and 1336;</text>
</paragraph><paragraph id="IDE33AF1D433424AB5B89E3591BEB54CF9"><enum>(2)</enum><text>in section 1332
(12 U.S.C. 4562), by striking subsection (d);</text>
</paragraph><paragraph id="IDB596EC6CB46C4A90A880F124E62D6E54"><enum>(3)</enum><text>in section 1333
(12 U.S.C. 4563), by striking subsection (d);</text>
</paragraph><paragraph id="ID610251709E804129968616454485EDA4"><enum>(4)</enum><text>in section 1334
(12 U.S.C. 4564), by striking subsection (d); and</text>
</paragraph><paragraph id="ID7FA4E4651BA54D0C9ED67373ED60E531"><enum>(5)</enum><text>by striking
sections 1337, 1338, and 1349 (12 U.S.C. 4567, 4562 note, 4589).</text>
</paragraph></subsection><subsection id="ID26D60CCD26824170A3024A085BF98068"><enum>(b)</enum><header>Retention of
Fair Housing Responsibilities</header><text>Section 1325 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4545) 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="ID3F4072A956FB458CA962B523A787C819"><enum>125.</enum><header>Administrative
and judicial enforcement proceedings</header>
<subsection id="ID10A74A67C8B344889E757E9807094EB1"><enum>(a)</enum><header>Director
Authority</header><text>Subpart C of part 2 of subtitle A of the
<act-name parsable-cite="FHEFSSA">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>
<paragraph id="ID08B83B4B15B645709654BFD81F17F7A7"><enum>(1)</enum><text>section 1341 (12
U.S.C. 4581);</text>
</paragraph><paragraph id="IDD33460D01F484AC1B17A3B1681926749"><enum>(2)</enum><text>section 1342 (12
U.S.C. 4582);</text>
</paragraph><paragraph id="ID6CD4425FEDC34FDCA3162A3300A8FD07"><enum>(3)</enum><text>section 1343 (12
U.S.C. 4583);</text>
</paragraph><paragraph id="ID2902EF8830AE4940A2BFCCDA45E1529B"><enum>(4)</enum><text>section 1344 (12
U.S.C. 4584);</text>
</paragraph><paragraph id="IDB97847813B4A47519643BC1C5C26194D"><enum>(5)</enum><text>section 1345 (12
U.S.C. 4585);</text>
</paragraph><paragraph id="ID39A44D49E27441A0954B8CF2F3FBB485"><enum>(6)</enum><text>section 1346 (12
U.S.C. 4586);</text>
</paragraph><paragraph id="IDE93167BFB0E1450B99966A8AF4299E88"><enum>(7)</enum><text>section 1347 (12
U.S.C. 4587); and</text>
</paragraph><paragraph id="ID5A8220507726487C97AD6C53BDDFDE42"><enum>(8)</enum><text>section 1348 (12
U.S.C. 4588).</text>
</paragraph></subsection><subsection id="ID3760843863A246BBB88581463648386A"><enum>(b)</enum><header>Subpoena
Enforcement by Director</header><text>Section 1348(c) of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4588(c)) is amended by
inserting <quote>may bring an action or</quote> before <quote>may
request</quote>.</text>
</subsection></section><section id="ID90AD8F6FC00148BD886EDCC6195FF3D7"><enum>126.</enum><header>Conforming
loan limits</header>
<subsection id="IDDC35FA2F90134645B32D45F7E4504A49"><enum>(a)</enum><header>Fannie
Mae</header><text>Section 302(b)(2) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1717(b)(2)) is amended by striking <quote>The
Corporation shall establish</quote> and all that follows through the end of the
paragraph and inserting the following: <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, or $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 under section 163 of the
<short-title>Federal Housing Enterprise Regulatory Reform
Act of 2007</short-title>, subject to the limitations in this paragraph. Such
limitation shall be calculated with respect to the total original principal
obligation of the mortgage, and not merely with respect to the interest
purchased by the enterprise. Each adjustment shall be made by adding to or
subtracting from each such amount (as it may have been previously adjusted) a
percentage thereof equal to the percentage increase or decrease, during the
most recent 12-month or fourth quarter period ending before the time of
determining such annual adjustment, in the housing price index maintained by
the Director of the Federal Housing Enterprise Regulatory Agency (pursuant to
section 1321 of the <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4541)).</quote>.</text>
</subsection><subsection id="ID78DED40B48E14D1CACC1372AFDD7DE69"><enum>(b)</enum><header>Freddie
Mac</header><text>Section 305(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>
(12 U.S.C. 1454(a)(2)) is amended by striking <quote>The Corporation shall
establish</quote> and all that follows through the end of the paragraph and
inserting the following: <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, or $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 under section 163 of the
<short-title>Federal Housing Enterprise Regulatory Reform
Act of 2007</short-title>, subject to the limitations in this paragraph. Such
limitation shall be calculated with respect to the total original principal
obligation of the mortgage and not merely with respect to the interest
purchased by the enterprise. Each adjustment shall be made by adding to or
subtracting from each such amount (as it may have been previously adjusted) a
percentage thereof equal to the percentage increase or decrease, during the
most recent 12-month or fourth quarter period ending before the time of
determining such annual adjustment, in the housing price index maintained by
the Director of the Federal Housing Enterprise Regulatory Agency (pursuant to
section 1321 of the <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4541)).</quote>.</text>
</subsection><subsection id="IDD028EDF367964A81B226EF87D5A727C5"><enum>(c)</enum><header>Housing Price
Index</header><text>The <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name>, as amended
by this Act, is amended by inserting before section 1323 the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID7A917834603347BF9312E41CA609B365" style="OLC">
<section id="IDE4A68BD35EA1410C82B97C1085B462FE"><enum>1322.</enum><header>Housing Price
Index</header>
<subsection id="ID2BF0273FE09446D2B878442B37527652"><enum>(a)</enum><header>Method of
Assessment</header><text>The Director shall establish, by regulation, and
maintain a method of assessing the national average single-family housing price
for use in adjusting the conforming loan limitations of the enterprises.</text>
</subsection><subsection id="IDF8F24FED0A504DD8B530F052CBB1D8DD"><enum>(b)</enum><header>Considerations</header><text>The
Director shall take into consideration the monthly survey of all major lenders
conducted by the Agency to determine the national average single-family house
price, the Housing Price Index maintained by the Office of Federal Housing
Enterprise Oversight of the Department of Housing and Urban Development before
the effective date under section 163 of the <short-title>Federal Housing Enterprise Regulatory Reform Act of
2007</short-title>, any appropriate housing price indexes of the Bureau of the
Census of the Department of Commerce, and any other indexes or measure that the
Director considers
appropriate.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDAA5354FB534140CF81234074CBC88087"><enum>127.</enum><header>Reporting of
mortgage data; housing goals</header>
<subsection id="ID6C78488E7BB14BB7A5D474B003CA5E16"><enum>(a)</enum><header>Reporting of
Mortgage Data</header><text>Section 1325 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4546), as so redesignated by
this Act, is amended—</text>
<paragraph id="IDC14D4BF28A9647B09CE1AE33C7E119B6"><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="IDE8D79DF42615473DA4F7D55AD7C297A6"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID34A4F5C3E0FB4B3DA9C682405B289B48" style="OLC">
<subsection id="IDA9E1755DE3254272B85EB0A4CEEBD44D"><enum>(d)</enum><header>Mortgage
Data</header><text>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 the
same data from the enterprises that is required of insured depository
institutions under the Home Mortgage Disclosure
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID31FA6D8E28924305BC7A366CA24C82EB"><enum>(b)</enum><header>Definitions</header><text>Section
1334 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4564), as
amended by this Act, is amended by adding at the end the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="IDD0A1B83F6C75409C99E8AB7C3CB74159" style="OLC">
<subsection id="IDE48DD83E5D82489A93C0CAC973EC1D63"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section, the term <term>underserved area</term> means an urban
census tract that has—</text>
<paragraph id="ID70E28334BD5B4515AB979D7387D7D6BA"><enum>(1)</enum><text>an average median
family income of less than 80 percent of the area median family income;
or</text>
</paragraph><paragraph id="ID8796C7A6A8744E9CBBDC92B9FD37B653"><enum>(2)</enum><text>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></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID9C6A5BE5F3AC472EB546702256F39069"><enum>128.</enum><header>Duty to serve
underserved markets</header>
<subsection id="ID53D7830315574E309CA1542E0ADEEC85"><enum>(a)</enum><header>Establishment
and Evaluation of Performance</header><text>Section 1335 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4565) is amended—</text>
<paragraph id="ID48ACF8D5383349C4AF9638AC041D1E2D"><enum>(1)</enum><text>in the section
heading, by inserting <quote><header-in-text>DUTY TO SERVE UNDERSERVED MARKETS
AND</header-in-text></quote> before
<quote><header-in-text>OTHER</header-in-text></quote>;</text>
</paragraph><paragraph id="ID5E188D3CC3144031B12B985743E5DDB3"><enum>(2)</enum><text>by striking
subsection (b);</text>
</paragraph><paragraph id="ID79E39C8EB8EA40F3817A1E3CEE0901F6"><enum>(3)</enum><text>in subsection
(a)—</text>
<subparagraph id="ID89809A88C14E46D2BC288F9EEEE5AC4D"><enum>(A)</enum><text>by inserting
<quote>and to carry out the duty under subsection (a)</quote> before <quote>,
each enterprise shall</quote>;</text>
</subparagraph><subparagraph id="IDE2B85289030E4CCAAEBCA83DA9AEA20C"><enum>(B)</enum><text>in paragraph (3),
by inserting <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="ID481033FCEECB459B949D4927E61FD96A"><enum>(C)</enum><text>in paragraph (4),
by striking <quote>; and</quote> and inserting a period; and</text>
</subparagraph><subparagraph id="IDE1F3C74919264A4E96A3C80722A680F9"><enum>(D)</enum><text>by striking
paragraph (5); and</text>
</subparagraph></paragraph><paragraph id="ID2A52A4B39D884B0495655A3CA42E79E1"><enum>(4)</enum><text>by redesignating
subsection (a) as subsection (b);</text>
</paragraph><paragraph id="ID3538399DF63845C28AB35E33D4A4FD2F"><enum>(5)</enum><text>by inserting
before subsection (b) (as so redesignated) the following:</text>
<quoted-block id="ID003EA78AF54745ED9335A1E496491348" style="OLC">
<subsection id="ID4C9DB6C9E31347D29E52F883C17CCCCA"><enum>(a)</enum><header>Duty To Serve
Underserved Markets</header>
<paragraph id="IDE0B75481032C4B05B93633141EDB7678"><enum>(1)</enum><header>Duty</header><text>In
accordance with the purposes of the enterprises under section 301(3) of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1716) and section 301(b)(3) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name> (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.</text>
</paragraph><paragraph id="ID392E50C9ABF64706BE9112F993376A1A"><enum>(2)</enum><header>Underserved
markets</header><text>To meet its duty under paragraph (1), each enterprise
shall lead the industry in developing loan products and flexible underwriting
guidelines to facilitate a secondary market—</text>
<subparagraph id="IDC636E71C38454F429277053863F1398C"><enum>(A)</enum><text>for mortgages on
manufactured homes for very low-, low-, and moderate-income families;</text>
</subparagraph><subparagraph id="ID807A5B4098214B9EA2C98E5E071FAF7D"><enum>(B)</enum><text>to preserve
housing affordable to very low-, low-, and moderate-income families, including
housing projects subsidized under—</text>
<clause id="ID5A99FF36897342759D1D0BEA726E99A2"><enum>(i)</enum><text>the project-based
and tenant-based rental assistance programs under section 8 of the
<act-name parsable-cite="USHA">United States Housing Act of
1937</act-name>;</text>
</clause><clause id="IDD9E71966F0DB4A008AAF16423CF4FFEF"><enum>(ii)</enum><text>the program
under section 236 of the <act-name parsable-cite="NHA">National Housing
Act</act-name>;</text>
</clause><clause id="IDE3040A3FCB9940F3815D3715D87EEA97"><enum>(iii)</enum><text>the below
market interest rate mortgage program under section 221(d)(4) of the
<act-name parsable-cite="NHA">National Housing Act</act-name>;</text>
</clause><clause id="ID2BDD7E3F09304D7AAA582D17009A3CF9"><enum>(iv)</enum><text>the supportive
housing for the elderly program under section 202 of the Housing Act of
1959;</text>
</clause><clause id="ID5537881BCBEC43BA853F12CDFAAC45F0"><enum>(v)</enum><text>the supportive
housing program for persons with disabilities under section 811 of the
<act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing
Act</act-name>; and</text>
</clause><clause id="ID2FF551917BE34648A1F968AD3BBE8B6B"><enum>(vi)</enum><text>the rural rental
housing program under section 515 of the <act-name parsable-cite="HA49">Housing
Act of 1949</act-name>;</text>
</clause></subparagraph><subparagraph id="IDE18E25B7CCF7411AB066B7520354ABF6"><enum>(C)</enum><text>for mortgages on
housing for very low-, low-, and moderate-income families in rural areas, and
for mortgages for housing for any other underserved market for very low-, low-,
and moderate-income families that the Director identifies as lacking adequate
credit through conventional lending sources, which underserved markets may be
identified by borrower type, market segment, or geographic area; and</text>
</subparagraph><subparagraph id="id2FFBEE6B18874B188CA799DA28333AE2"><enum>(D)</enum><text>for mortgages
originated through State or local affordable or subsidized housing
programs.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDA0321162E97F4A06BB2F6159630CEDE4"><enum>(6)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="IDA4D6D8BAED7044BDB157BB5CDA770075" style="OLC">
<subsection id="IDF9E13B38D5B44B2D8196B4F0E2C2BA80"><enum>(c)</enum><header>Evaluation and
Reporting of Compliance</header>
<paragraph id="IDBA274DA40313431FB4621312A65EF4F6"><enum>(1)</enum><header>Method of
evaluation</header><text>Not later than 6 months after the effective date of
title I of the <short-title>Federal Housing Enterprise
Regulatory Reform Act of 2007</short-title>, the Director shall establish a
method 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.</text>
</paragraph><paragraph id="IDB1B684D4F5A543418DE7DA0A28ECC218"><enum>(2)</enum><header>Annual
evaluations</header><text>Using the method established under paragraph (1), the
Director shall, for each year, evaluate such compliance and rate the
performance of each enterprise as to the 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="ID9561C2D6105F4D95803CA98F523B27D7"><enum>(3)</enum><header>Separate
evaluations</header><text>In determining whether an enterprise has complied
with the duty under subsection (a), 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="IDCAA7748B7B2C47D7BF2A8000936AB9EC"><enum>(A)</enum><text>the development
of loan products and more flexible underwriting guidelines;</text>
</subparagraph><subparagraph id="IDC0724F2EC35545B4BAD93EFDBFC664B5"><enum>(B)</enum><text>the extent of
outreach to qualified loan sellers in each of such underserved markets;
and</text>
</subparagraph><subparagraph id="ID83A3BDA4DFF44B098E0AD41CB8693BF4"><enum>(C)</enum><text>the volume of
loans purchased in each of such underserved
markets.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDA6EA5B6F4514449082CBCC838E79ED6B"><enum>(b)</enum><header>Enforcement</header><text>Section
1336(a) of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4566(a)) is
amended—</text>
<paragraph id="ID7CAAD4590B654A329DF0F88AED8A5456"><enum>(1)</enum><text>in paragraph (1),
by inserting before the period <quote>and with the duty under section 1335A of
each enterprise with respect to underserved markets</quote>; and</text>
</paragraph><paragraph id="IDBAB2DCDC1A7844E0900FEECD6FFD25F3"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID2127D74C9F1649F68A9B87E3CEC6CC1C" style="OLC">
<paragraph id="ID97DFD0CD8293419EA04E98E1B266683A"><enum>(4)</enum><header>Enforcement of
duty to provide mortgage credit to underserved markets</header><text>Compliance
with the duty under section 1335(a) of each enterprise to serve underserved
markets (as determined in accordance with section 1335(c)) shall be enforceable
under this section to the same extent and under the same provisions that the
housing goals established under sections 1332, 1333, and 1334 are enforceable.
Such duty shall not be enforceable under any provision of this title (including
subpart C), other than this section, or under any provision of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> or the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name>, as
applicable.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID3F880DB63421448DA875F201FE2F8B4F"><enum>129.</enum><header>Home purchase
goal</header><text display-inline="no-display-inline">The
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4501 et seq.) is
amended—</text>
<paragraph id="IDA5D564CD2ACE40C9B514B348462A98CE"><enum>(1)</enum><text>by inserting
after section 1334 the following:</text>
<quoted-block id="IDE6F70BD413524052AAA30B19CB027DDC" style="OLC">
<section id="IDF9F488662E584B29891651004E545FFE"><enum>1334A.</enum><header>Home
purchase goal</header>
<subsection id="ID7B61224187DC45E69389FBB2F2F503F0"><enum>(a)</enum><header>Establishment</header>
<paragraph id="IDB467173045074D4DB8277131C37F8F67"><enum>(1)</enum><header>In
general</header><text>The Director shall establish an annual home purchase goal
for the purchase by each enterprise of mortgage financing of owner-occupied
single family dwelling units.</text>
</paragraph><paragraph id="IDC1CA661058CD4FE2BC10053D3CCCDF7E"><enum>(2)</enum><header>Components</header><text>The
Director may, by regulation, establish components for the goal established
under paragraph (1) to include any or all of the following:</text>
<subparagraph id="IDAE0A1764B0ED44D0950274B5B80AEF37"><enum>(A)</enum><text>First-time home
buyers.</text>
</subparagraph><subparagraph id="IDC5A2D7CEE6A54AC3A4BFD504EB67B4F1"><enum>(B)</enum><text>Low- and
moderate-income home buyers.</text>
</subparagraph><subparagraph id="ID84FA2ECACFBA4C7280DCBB0800DC9724"><enum>(C)</enum><text>Home buyers in
central cities, rural areas, and other underserved areas.</text>
</subparagraph><subparagraph id="id80B0540249C941FE9963F2C737873A6C"><enum>(D)</enum><text>Home buyers who
obtain financing through State or local affordable or subsidized housing
programs.</text>
</subparagraph></paragraph><paragraph id="ID21B9EBC860BD42308E4285C9D9B9EB2E"><enum>(3)</enum><header>Other
authority</header><text>The Director may, by regulation, establish the goal
under paragraph (1) with components as percentages of enterprise business, or
by such other means as necessary to increase the secondary market financing of
mortgages by the enterprises for home purchases, consistent with the missions
of the enterprises.</text>
</paragraph><paragraph id="ID03FA837175CA471B93E84EE1FD58FCAD"><enum>(4)</enum><header>Enforceability</header><text>The
components of the goal established by the Director under paragraph (1) shall be
enforceable as goals under subpart C.</text>
</paragraph></subsection><subsection id="IDA9229869FF6E4CD6BB97F2E935F80D78"><enum>(b)</enum><header>Factors To Be
Considered</header><text>In establishing the home purchase goal for an
enterprise under this section, the Director shall consider—</text>
<paragraph id="IDEB8A1553B8C9430EAD099F71756EC1BF"><enum>(1)</enum><text>national housing
needs;</text>
</paragraph><paragraph id="IDF74630498AF640FB8FC197494F749862"><enum>(2)</enum><text>economic,
housing, and demographic conditions;</text>
</paragraph><paragraph id="IDBA187D741EE24FE084A21E4825ADF87F"><enum>(3)</enum><text>the performance
and effort of the enterprises toward achieving the home purchase goal in
previous years;</text>
</paragraph><paragraph id="ID1D33B9F04B1F4AD0A1B50348DD80807C"><enum>(4)</enum><text>the size of the
conventional mortgage market serving home purchasers, relative to the size of
the overall conventional mortgage market;</text>
</paragraph><paragraph id="IDCE3FA274DABF4400A88ADC9349DFC7B9"><enum>(5)</enum><text>the ability of
the enterprises to lead the industry in making mortgage credit available for
home purchasers; and</text>
</paragraph><paragraph id="IDB5249402A5604F27A8AA67F8861DAF09"><enum>(6)</enum><text>the need to
maintain the sound financial condition of the enterprises.</text>
</paragraph></subsection><subsection id="ID3618AE4D8F614FFB9766C1B0D9E2E319"><enum>(c)</enum><header>Transition</header><text>In
order to permit a transition to the establishment of the goal under this
section, such goal shall not be effective or enforceable during the 1-year
period beginning on the date of its establishment under subsection (a).</text>
</subsection><subsection id="ID8945633690FF4FB6BE8F43170C17D31A"><enum>(d)</enum><header>Implementation
During Transition</header><text>The Director shall establish, by rule, any
requirements necessary to implement the transition provisions under subsection
(c), after providing the enterprises with an opportunity to review and comment
not less than 30 days before the issuance of such notice.</text>
</subsection></section><section id="ID36310652BC59474B9B5B04EC08C2EE5A"><enum>1334B</enum><header>Housing
goals, additions, modifications, and rescissions</header>
<subsection id="IDA4F319940E5344469A95FC1F964961CB"><enum>(a)</enum><header>In
General</header>
<paragraph id="ID2A9E47396E8C4286A3295312DDB76D42"><enum>(1)</enum><header>Authority to
address goals</header><text>The Director may, by regulation, establish
additional annual housing goals, or modify or rescind existing housing goals,
to address national housing needs consistent with the missions, of the
enterprises and the authorizing statutes, for the purchase of mortgages, if the
Director determines, by regulation, that the housing need is greatest.</text>
</paragraph><paragraph id="ID292FFBEDA7464D2ABB7DA17C87007060"><enum>(2)</enum><header>Methodology</header><text>The
Director may issue a regulation which establishes or modifies any goal under
this subsection—</text>
<subparagraph id="ID34703E4C26DA415BB93A66837086537C"><enum>(A)</enum><text>as a percentage
of the mortgage purchases of each enterprise;</text>
</subparagraph><subparagraph id="ID319BE148D5E64C9A94F7E037992304F6"><enum>(B)</enum><text>as a dollar
amount of each enterprise’s mortgage purchases; or</text>
</subparagraph><subparagraph id="IDA69BE78D05B04E6D91329A9345006BC5"><enum>(C)</enum><text>by such other
means as necessary to increase the enterprises’ secondary market financing of
mortgages addressed by the goal.</text>
</subparagraph></paragraph></subsection><subsection id="ID55A3161E4BD645ADA0EAD2C8F3169688"><enum>(b)</enum><header>Factors To Be
Considered</header><text>In establishing any additional goals under this
section, the Director shall consider—</text>
<paragraph id="ID53D587B9483145238CFE8C4C708C5F53"><enum>(1)</enum><text>national housing
needs;</text>
</paragraph><paragraph id="ID95A8F9A3DF15438698E6B804F88AD92E"><enum>(2)</enum><text>economic,
housing, and demographic conditions;</text>
</paragraph><paragraph id="IDBF51F30256064E97A1BA0D64546DD1AD"><enum>(3)</enum><text>the performance
and effort of the enterprises toward achieving the need addressed by any such
additional goal in previous years;</text>
</paragraph><paragraph id="IDA143474322FF4DF6B1614AFD65A3CA36"><enum>(4)</enum><text>the size of the
conventional mortgage market serving the need addressed by the goal, relative
to the size of the overall conventional mortgage market;</text>
</paragraph><paragraph id="IDCF7167751C92475F8D444A46FC6ADDAD"><enum>(5)</enum><text>the ability of
the enterprises to lead the industry in making mortgage credit available to
meet the need addressed by the goal; and</text>
</paragraph><paragraph id="IDBE2E1BCCC02B4BF89E365166CD09975C"><enum>(6)</enum><text>the need to
maintain the sound financial condition of the enterprises.</text>
</paragraph></subsection><subsection id="ID67C9914D75F542ED923ECDF4D3A56690"><enum>(c)</enum><header>Transition</header><text>In
order to permit a transition to the establishment of any goal under this
section, such goal shall not be effective or enforceable during the 1-year
period beginning on the date of its establishment under subsection
(a).</text>
</subsection></section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDF14C96F5BB8247F7BC6B38F7D8D10F7F"><enum>(2)</enum><text>in section 1335
(12 U.S.C. 4565(a)), by striking <quote>meet the low-</quote> and all that
follows through <quote>1334</quote> and inserting <quote>meet the goals under
this subpart</quote>;</text>
</paragraph><paragraph id="IDC49D4F187D5E4BBD86CB5CB7235C1165"><enum>(3)</enum><text>in section 1336
(12 U.S.C. 4566), by striking subsections (b) and (c) and inserting the
following:</text>
<quoted-block id="ID5598774BB66546C08CA7BAEAB14E9F21" style="OLC">
<subsection id="IDBE5F975454874AA9A1DEF731FE5FD67E"><enum>(b)</enum><header>Notice and
Preliminary Determination of Failure To Meet Goals</header>
<paragraph id="IDAA713D66E2454651811D7D0A4EE4A1A8"><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="IDBDFABAD6216A4E02A1B415FB0FD77638"><enum>(2)</enum><header>Response
period</header>
<subparagraph id="ID8B83C39F7A6D4798B899C4B5E52BA70A"><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="ID10ECB13F762244609DA6B7DDC114EDF6"><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="IDA813EB32F1FB4BF9BA03C5B0C346382E"><enum>(C)</enum><header>Shortened
period</header><text>The Director may shorten the period under subparagraph (A)
for good cause.</text>
</subparagraph><subparagraph id="ID1D8AAB9A4D574B10A70E9546F1302CC3"><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="ID23E34F8C40E14BFB95558E26603CB8C9"><enum>(3)</enum><header>Consideration
of information and final determination</header>
<subparagraph id="ID639C3AEF0BB94722A86553A9B2DE2050"><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="ID8F62EFB25ED04CDEBCA1F83F0567E17F"><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="IDFF36B0758EF84FE78ED9961E7CC11AB1"><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="ID07A1C69662124BA18922D2E32C944184"><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="ID7BA364A5AF294F73B0DC83AF630FF197"><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="ID2228305F9951424EADD9DAC292EEFEBF"><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="IDCA8DD4BF48824C6ABEA8E69040F43880"><enum>(ii)</enum><text>each final
determination that the achievement of a housing goal was or is feasible;
and</text>
</clause><clause id="ID51886E09EA6A486A9EB55A19B35D6AF5"><enum>(iii)</enum><text>the reasons for
each such final determination.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID42A1526E1BA0400A94557E2864A2FD5E"><enum>(c)</enum><header>Cease and
Desist, Civil Money Penalties, and Remedies Including Housing Plans</header>
<paragraph id="ID1A14825D9D444C6B9C7288A8042428A6"><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="IDBE7D795A3D024B2F9E51E939D86111ED"><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="ID9B6BB8D85A8F4F15905F60F9E1BF3376"><enum>(A)</enum><text>a feasible plan
describing the specific actions the enterprise will take—</text>
<clause id="IDEAF5F9F40E8041C2A56726C819B1F93F"><enum>(i)</enum><text>to achieve the
goal for the next calendar year; and</text>
</clause><clause id="IDB88D05DB86944D4288953F231B79AECE"><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="IDF4CAEB3290FF466FBBC5011B406CB214"><enum>(B)</enum><text>sufficiently
specific to enable the Director to monitor compliance periodically.</text>
</subparagraph></paragraph><paragraph id="IDBDE727221A894745A876F69FBED19828"><enum>(3)</enum><header>Deadline for
submission</header><text>The Director shall, by regulation, 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 regulations shall provide that 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="IDF74D986605FE4236A7289ADABACF85A5"><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
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> or the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name> (as applicable), this title, and any other
applicable provision of law.</text>
</paragraph><paragraph id="ID5FC3E6C91AAA48E18E65EC89F2402FC9"><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="ID76B7354A1F5A4EAD9A062A649C5DC39F"><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 30 days after such disapproval, or such longer period
that the Director determines is in the public interest.</text>
</paragraph><paragraph id="ID8B3F7D8E1023444C932B0F4B3ED729CC"><enum>(7)</enum><header>Additional
remedies for failure to meet goals</header><text>In addition to ordering a
housing plan under this section, issuing a cease and desist order under section
1341, and ordering civil money penalties under section 1345, the Director may
seek other actions when an enterprise fails to meet a goal, including
requesting that the Director exercise appropriate enforcement authority
available to the Director under this title to prohibit the enterprise from
entering into new activities, to freeze any pending approval of new activities,
and to order the enterprise to suspend activities pending its achievement of
the
goal.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID8483D67B1AA24398B8B171C6F964B57C"><enum>(4)</enum><text>by striking
section 1338 (12 U.S.C. 4568);</text>
</paragraph><paragraph id="ID465EB7596DEE4C54808A1BC38388844E"><enum>(5)</enum><text>by striking from
the heading of subpart C <quote><header-in-text level="subpart">of Housing
Goals</header-in-text></quote>;</text>
</paragraph><paragraph id="IDB2ADFE1A8EB04BAE9448D22137160833"><enum>(6)</enum><text>by striking
section 1341 (12 U.S.C. 4581) and inserting the following:</text>
<quoted-block id="IDEE475850273C4861B00415C6B21BC3AF" style="OLC">
<section id="ID807529EDC377481AB211F5A1C09EFD50"><enum>1341.</enum><header>Cease-and-desist
proceedings</header>
<subsection id="IDF92C9319C0624102B424B8F53805B4EA"><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="ID3EC1EA234A944EC0B292CD4B877F2B3F"><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="IDCF843632A72946D6BE72DACEA7668EEE"><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="IDAD552F5256DB41C89FA26CD842326C05"><enum>(3)</enum><text>the enterprise
has failed to submit the information required under subsection (m) or (n) of
section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage
Association Charter Act</act-name>, subsection (e) or (f) of section 307 of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>, or section 1337 of this title;</text>
</paragraph><paragraph id="ID7DFC70FC6D864B88BB9EA19C2DC9B1AE"><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="ID389C4E8F755F4B32A8CD5C8F9C0BC226"><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="IDA7B1E2FAB21B4810BBDEBF5121077D9F"><enum>(6)</enum><text>the enterprise
has failed to comply with a housing plan under section 1336(c).</text>
</paragraph></subsection><subsection id="ID849D62B708054F7991AE3DD08560BE60"><enum>(b)</enum><header>Procedure</header>
<paragraph id="ID4AE04BAF26E04624A0282EE5BC62E7AB"><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="IDE998D19C179F4CE5BF6F45EA6A3783D5"><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="IDC70D4C3BC9FC4274AADD264603CCD072"><enum>(A)</enum><text>comply with the
goals;</text>
</subparagraph><subparagraph id="ID52BE5191FC6642588E266A9546248BDA"><enum>(B)</enum><text>submit a report
under section 1327;</text>
</subparagraph><subparagraph id="IDB05042C0FBDC437E900353F21319A14A"><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="IDE5065751491E428FAD480B25512E2DD6"><enum>(D)</enum><text>submit a housing
plan in compliance with section 1336(c);</text>
</subparagraph><subparagraph id="ID9DC9E210CC814ECCB39A5098237992CD"><enum>(E)</enum><text>comply with the
housing plan in compliance with section 1336(c); or</text>
</subparagraph><subparagraph id="ID227568E135834178BE123CE93697DA58"><enum>(F)</enum><text>provide the
information required under subsection (m) or (n) of section 309 of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name>, or subsection (e) or (f) of section 307 of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>.</text>
</subparagraph></paragraph></subsection><subsection id="ID5CABE0D525DB463BA11418E68649EC0D"><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 of or otherwise, as provided in this
subpart.</text>
</subsection></section><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID7E2A2AE066984083808C9BFD3C89B49F"><enum>(7)</enum><text>by striking
section 1345 and inserting the following:</text>
<quoted-block id="IDEB02B884106A40E6A1178EB011D70F07" style="OLC">
<section id="ID9BF0378DE0E4474AB44563F49E212DAB"><enum>1345.</enum><header>Civil money
penalties</header>
<subsection id="ID17374C6277A946C6ADBA6FB08488C9EA"><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="IDDC6436E7C84F42E9835AF94CA08AB325"><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="ID1DD807B04A0A4914B75F7CBADF0E0481"><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="ID52BFC1EDE73D41D0AA827284E69DCDCA"><enum>(3)</enum><text>submit the
information required under subsection (m) or (n) of section 309 of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> or subsection (e) or (f) of section 307 of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>;</text>
</paragraph><paragraph id="IDB915495C91D0480CA0DFA307AA48ACB2"><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="IDF76AA4B1108149AD8531FE69A5E12632"><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="ID439D7DDCB275435F9E263BAD8761D2A1"><enum>(6)</enum><text>comply with a
housing plan for the enterprise under section 1336(c).</text>
</paragraph></subsection><subsection id="ID5E93E46433B247D48343D61B012BD716"><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="ID9F255A9A91C44DAF82B442E7125C61ED"><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="ID8AFB808168B54095B177BE82AA0FA560"><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="ID052640060A4D4E59ABB6028D04C7C777"><enum>(c)</enum><header>Procedures</header>
<paragraph id="IDF17FE66535814333BA1F3543CBE26157"><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="ID8FD652C7CED445829F4EC4A00E71A739"><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="ID3F126E5ECF7841139B739C04D9C6D9FB"><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="ID1E5C417773684EC784422F5E39F770F4"><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="ID7687A6A74B054810971AC77FD7E6C2BC"><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="IDA735A5D65ECE49B8AFAB4CD5A508772D"><enum>(A)</enum><text>the gravity of
the offense;</text>
</subparagraph><subparagraph id="ID87BC9F2E3D164057824A409B40C71C2F"><enum>(B)</enum><text>any history of
prior offenses;</text>
</subparagraph><subparagraph id="ID68457878D4A14037B50AB1629198505B"><enum>(C)</enum><text>ability to pay
the penalty;</text>
</subparagraph><subparagraph id="IDC60885766E8E41AAA3CE98005EF11130"><enum>(D)</enum><text>injury to the
public;</text>
</subparagraph><subparagraph id="ID21A13F195A934A3FA6A2FEDA945AF8A9"><enum>(E)</enum><text>benefits
received;</text>
</subparagraph><subparagraph id="ID60E7B040AD3F48119187AFC45FC39ECE"><enum>(F)</enum><text>deterrence of
future violations;</text>
</subparagraph><subparagraph id="ID67DCCF652BB74590BC20C7EE3B76F9CD"><enum>(G)</enum><text>the length of
time that the enterprise should reasonably take to achieve the goal; and</text>
</subparagraph><subparagraph id="IDFBB47B1D3DE44522862245313F707E5F"><enum>(H)</enum><text>such other
factors as the Director may determine, by regulation, to be appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="IDC8DA80A588E343138F0DC3260E7CB164"><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 request the Attorney General of the United States to 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="IDBD96E80733EC4C918A2DBF90EC54E0F9"><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><subsection id="IDAE04C2F9B26341EE8642F2B6A4F17E2A"><enum>(f)</enum><header>Deposit of
Penalties</header><text>The Director shall deposit any civil money penalties
collected under this section into the General Fund of the
Treasury.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="ID496B91CBF33D4458AAAAC16301D6821C"><enum>C</enum><header>Prompt Corrective
Action</header>
<section id="ID7EABE5FCAF3B49138CCD279896C02468"><enum>141.</enum><header>Critical
capital levels</header><text display-inline="no-display-inline">Section 1363 of
the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4613) is amended—</text>
<paragraph id="ID278F08526F0B4943A4AC29332CC5878D"><enum>(1)</enum><text>by redesignating
paragraphs (1) through (3) as clauses (i) through (iii), respectively, and
indenting appropriately;</text>
</paragraph><paragraph id="IDE87335B2BF7F438E9E76B03AF16A85DF"><enum>(2)</enum><text>by striking “this
subtitle, the critical capital level for each enterprise shall be the sum of—”
and inserting the following: “this subtitle, the critical capital level—</text>
<quoted-block id="IDC223F62A615940C19AE94E0168689DC7" style="OLC">
<paragraph id="ID29A1374E59554E5DB83F41DC9BCE3254"><enum>(1)</enum><text>for each
enterprise shall be—</text>
<subparagraph id="ID9D6352DC95984C7587FB93BE2A61E5EF"><enum>(A)</enum><text>the sum
of—</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID6F409E23AFDC40A9AB526506925442B1"><enum>(3)</enum><text>in paragraph
(1)(A)(iii), as so designated by this section, by striking the period at the
end and inserting the following: “; or</text>
<quoted-block id="IDE76171D8B269480DB5C6A89F4A2596FD" style="OLC">
<subparagraph id="ID08B2A1AA6CEC467FB9D1D0E2E82DD05F"><enum>(B)</enum><text>such other level
as the Director shall establish, by regulation; and</text>
</subparagraph><paragraph id="ID6460FB5F993D47A0AF01612F187131EE"><enum>(2)</enum><text>for each Federal
Home Loan Bank, shall be the level that the Director shall establish, by
regulation.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID1F1B02B86C4E45B6A28F64577FE56D31"><enum>142.</enum><header>Capital
classifications</header><text display-inline="no-display-inline">Section 1364
of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4614) is amended—</text>
<paragraph id="IDC4F880595EB14C9AA5710966D01BD29B"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="ID9C575C9AEB0D49A982236D7C4F9C5270"><enum>(A)</enum><text>in paragraph
(3)(A)—</text>
<clause id="IDF086C670B18D43ADBB9E0C75F6B1EBCD"><enum>(i)</enum><text>by
striking clause (i); and</text>
</clause><clause id="ID23C2763894D84F6CB7738EF4C35396EE"><enum>(ii)</enum><text>by
redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively;
and</text>
</clause></subparagraph><subparagraph id="IDD233E732EF0D49529E236E2F9C4A77C1"><enum>(B)</enum><text>in paragraph
(4)(A), by striking <quote>enterprise—</quote> and all that follows through
<quote>(ii) does</quote> and inserting <quote>enterprise does</quote>;</text>
</subparagraph></paragraph><paragraph id="ID1FEFA1E3E8F0405ABE7A25485BAE9F22"><enum>(2)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block id="IDBFA7989FEFA3435796CBB1D3138FEABC" style="OLC">
<subsection id="ID21B5BC57BD7D4AC1B957E57BC12C9D0D"><enum>(b)</enum><header>Discretionary
Classification</header>
<paragraph id="ID30FF9AA2409B4660973CE411EFF34943"><enum>(1)</enum><header>Grounds for
reclassification</header><text>The Director may reclassify a regulated entity
under paragraph (2) if—</text>
<subparagraph id="IDA455C012ED6A43C89A076FBE207B3F47"><enum>(A)</enum><text>at any time, the
Director determines in writing that a regulated entity is engaging in conduct
that could result in a rapid depletion of core capital, or that the value of
the property subject to mortgages held or securitized by an enterprise, or the
value of collateral pledged as security, has decreased significantly;</text>
</subparagraph><subparagraph id="ID243EE13B913741C2B66EA649AF36340E"><enum>(B)</enum><text>after notice and
an opportunity for hearing, the Director determines that a regulated entity is
in an unsafe or unsound condition; or</text>
</subparagraph><subparagraph id="ID6152207DD561443DAA910A82D7DA64A1"><enum>(C)</enum><text>pursuant to
section 1371(b), the Director determines that a regulated entity is engaging in
an unsafe or unsound practice.</text>
</subparagraph></paragraph><paragraph id="IDFDD5B370791440FC87DCEAAC6E351C47"><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 reclassify a regulated entity—</text>
<subparagraph id="IDA176955D46AE49BC88107024D1352546"><enum>(A)</enum><text>as
<quote>undercapitalized</quote>, if the regulated entity is otherwise
classified as adequately capitalized;</text>
</subparagraph><subparagraph id="ID93B61A3533B04C76A1A624653F1FA491"><enum>(B)</enum><text>as
<quote>significantly undercapitalized</quote>, if the regulated entity is
otherwise classified as undercapitalized; and</text>
</subparagraph><subparagraph id="IDE7F70EFBFD924C1E92B949A6144B0E8A"><enum>(C)</enum><text>as
<quote>critically undercapitalized</quote>, 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="ID914CCE647A204E27A6CCAC93F99D65F6"><enum>(3)</enum><text>by striking
subsection (d) and inserting the following:</text>
<quoted-block id="ID1539830680854D248D00A4A974139CE6" style="OLC">
<subsection id="IDE84E19A65E4E4596851224840872FB9D"><enum>(d)</enum><header>Restriction on
Capital Distributions</header>
<paragraph id="ID86B2A4FA65A14263A645BD7344071C2F"><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="ID639BB031FC7F4540A187AD9BCE0E6985"><enum>(2)</enum><header>Exception</header><text>Notwithstanding
paragraph (1), the Director may permit a regulated entity to repurchase,
redeem, retire, or otherwise acquire shares or ownership interests if the
repurchase, redemption, retirement, or other acquisition—</text>
<subparagraph id="IDA25A4C44A57E4A5D966E585A8F79DEB8"><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="IDAFD490D4AE49417DAC318386180426B5"><enum>(B)</enum><text>will reduce the
financial obligations of the regulated entity or otherwise improve the
financial condition of the regulated
entity.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDE37E5C5A8DC542728585C712BC5D17A3"><enum>143.</enum><header>Supervisory
actions applicable to undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1365 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4615) is amended—</text>
<paragraph id="ID585E01CAC90643058F934DFE4C8B71A3"><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="ID1497E52EC4D24C0D9482BBA3FA58150B"><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="IDA6BBA9429DF4491D8E97F8EF212A14E8"><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="ID47043F4471CC45718B6790327F0E10A1"><enum>(4)</enum><text>in subsection
(a)—</text>
<subparagraph id="IDD579193A782F48C9BF604AB04D858ABB"><enum>(A)</enum><text>by redesignating
paragraphs (1) and (2) as paragraphs (2) and (3), respectively;</text>
</subparagraph><subparagraph id="ID88858E8C393B4E6BBF0DF636B314A8BD"><enum>(B)</enum><text>by inserting
before paragraph (2), as redesignated, the following:</text>
<quoted-block id="IDD889A81257CD47F7896BECCE49635716" style="OLC">
<paragraph id="ID79BEF94B850E4CC99FEE8A04FEEA0262"><enum>(1)</enum><header>Required
monitoring</header><text>The Director shall—</text>
<subparagraph id="ID38B9B25B1F2449CAB8D04121A454784F"><enum>(A)</enum><text>closely monitor
the condition of any undercapitalized regulated entity;</text>
</subparagraph><subparagraph id="IDC45ACB48DF2D4B2BA0E7785573C663AD"><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="IDCA0DB0DCFA6F480099D064962EFE1DC6"><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="ID2382C97E1E634BC8B44FBCC9B52BF1B6"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID58EFC38E744C4166BE81A4301EBDC19E" style="OLC">
<paragraph id="ID33C4118281AF4194A210E39CFC082DC8"><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="ID6E103C39AA49465C94F0ACDDED4FED3B"><enum>(A)</enum><text>the Director has
accepted the capital restoration plan of the regulated entity;</text>
</subparagraph><subparagraph id="ID3EE5431DFF644F6BB53384B976F00D47"><enum>(B)</enum><text>any increase in
total assets is consistent with the capital restoration plan; and</text>
</subparagraph><subparagraph id="IDDB80A70A4AEA4F2680EA64F626225A14"><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="ID731612EE6ADC4A2681367BEF5B81337F"><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="ID8E2EAAAC84F7489DA38289557A8E1DDB"><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="ID19B93888209340DEA7268DF5DE75114D"><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="IDE35B52A078BB4ED89B466A3FE30869CA"><enum>(5)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID1A48CEF66CD44DC8B244766FA119D86E"><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="IDB2C6453C539640D4BBD2C67DE9243384"><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="IDBE33C3425CAC46D8A0806CAF965E1267"><enum>(C)</enum><text>in paragraph
(2)—</text>
<clause id="ID64A0D3A6A2FB43498A82ECC9893C494D"><enum>(i)</enum><text>by
striking <quote>make, in good faith, reasonable efforts necessary to</quote>;
and</text>
</clause><clause id="ID6CEBBAC601D149BCA57F92E068B81C9B"><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="IDC4E6663EB80D412C9D4E62A4F88F52AB"><enum>(6)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block id="ID94DFA247A7C04EF1968398FCD50DBF5B" style="OLC">
<subsection id="IDDB1726C64A2642A488AA741E2E82C176"><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="ID3222FDDF80E84EE9BE1F1A87D8BA94C2"><enum>144.</enum><header>Supervisory
actions applicable to significantly undercapitalized regulated
entities</header><text display-inline="no-display-inline">Section 1366 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4616) is amended—</text>
<paragraph id="ID53D217311421418E8F4A2848F5652FB7"><enum>(1)</enum><text>in subsection
(a)(2), by striking <quote>undercapitalized enterprise</quote> and inserting
<quote>undercapitalized</quote>;</text>
</paragraph><paragraph id="ID095E0908A8DC48DFB80934EDCB2EADA5"><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="ID27A02E3D91FE4753ACE76408B87BAE55"><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="IDCB0DE839590B4D7EB4B8E8F498C5524F"><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="ID6A5BCC3BBEB348D2AB0391A0A6884DD6"><enum>(5)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID863CB640A96049929F35D86DC893B4B0"><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="ID0A60A6D260224F4D9F13CAE347613D76"><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="ID5BA5C7D5ABEF42DD8F83D52C23A72A5F"><enum>(C)</enum><text>by striking
paragraph (6);</text>
</subparagraph><subparagraph id="IDFC2159F2210A4A39B50113AD6690C071"><enum>(D)</enum><text>by redesignating
paragraph (5) as paragraph (6);</text>
</subparagraph><subparagraph id="ID2934B619EC65401F8A465BE352C85DBB"><enum>(E)</enum><text>by inserting
after paragraph (4) the following:</text>
<quoted-block id="ID45F00EFD7B224F1D8CC129C4D3B1A200" style="OLC">
<paragraph id="ID26A2483DBC084140A7D00423349F1E02"><enum>(5)</enum><header>Improvement of
management</header><text>Take 1 or more of the following actions:</text>
<subparagraph id="ID1783ACA7CCF049A6937EB5C2005716DE"><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="ID045F29896F1E41B3B84F287173057E96"><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="ID084E156585D440FB9C6EFB5259509409"><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="ID1AE25E95F4AA469896FE729D01B217C7"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID57DA40F2F46843F48E733D46B942A499" style="OLC">
<paragraph id="ID35CFC47EA32C4881A5625B7F31FDE5B8"><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="ID713A827574924230AB0C4D74BA1D5608"><enum>(6)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block id="IDC98B5F8979BC4A548DADF0FA17B98BC0" style="OLC">
<subsection id="ID86F5820F71264DC0BCC3BB6BA7B8ACE9"><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="IDE501DFF036274C0284D39A2251E58299"><enum>(1)</enum><text>pay any bonus to
any executive officer; or</text>
</paragraph><paragraph id="ID04B4173609C7404285923E3EBB7F79D4"><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="IDB477BC7AE6D34C8287CB59E42F3EFAC6"><enum>145.</enum><header>Authority over
critically undercapitalized regulated entities</header>
<subsection id="IDD61490484ACF41A281B947C0EAC7ACBF"><enum>(a)</enum><header>In
General</header><text>Section 1367 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4617) is amended to read as
follows:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID16A8B02E81BE4B8795D85A1183173355" style="OLC">
<section id="ID3C90E6650E794695A8C25C567DE261F1"><enum>1367.</enum><header>Authority
over critically undercapitalized regulated entities</header>
<subsection id="ID10B9ED6F556A4F09B322B831DBA310C1"><enum>(a)</enum><header>Appointment of
the Agency as Conservator or Receiver</header>
<paragraph id="ID78757D5B438E45898FCED46CF9F803FC"><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="ID33236B210BA0469D903CF174FC664927"><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="IDF5EF43B1E188409C8CCEC0F3D159EB8A"><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="ID96F9915C580643E3B150649EB8001864"><enum>(A)</enum><header>Substantial
dissipation</header><text>Substantial dissipation of assets or earnings due
to—</text>
<clause id="ID7FC5F67533F44422986D95AE2F531304"><enum>(i)</enum><text>any violation of
any provision of Federal or State law; or</text>
</clause><clause id="ID6F54BDC56CEE48DBACB6CAABE137F9F3"><enum>(ii)</enum><text>any unsafe or
unsound practice.</text>
</clause></subparagraph><subparagraph id="ID6D6039CB4D474F0F97E38DBF4C5A617B"><enum>(B)</enum><header>Unsafe or
unsound condition</header><text>An unsafe or unsound condition to transact
business.</text>
</subparagraph><subparagraph id="ID1A93777D0A954A1C9555F5CCBA19420A"><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="IDD9CA71AEC2914D91A1E1060B5882B02E"><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="ID4A52FAFFF01048BD960BA1AF1F4D6BF0"><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="ID2C7F982E2FE64692BD5C58E71C3404DC"><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="ID514FF92F6954440F83BF663264B8213A"><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="IDE44DA4847E624EBA86E31C73ECED8A59"><enum>(i)</enum><text>cause insolvency
or substantial dissipation of assets or earnings; or</text>
</clause><clause id="ID81C0EC6F8CC94AA1AE15BDE1F26F88F7"><enum>(ii)</enum><text>weaken the
condition of the regulated entity.</text>
</clause></subparagraph><subparagraph id="IDAC52EC7B835342F2BD42E8F94B6AFA9D"><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="ID564D53169C1941B995409D32AD3F5DD6"><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="IDCC58D3EBA3E44A6FA12936FAE9D34086"><enum>(i)</enum><text>has no reasonable
prospect of becoming adequately capitalized;</text>
</clause><clause id="ID7DDC9D6779B34B7BA14ABC56A505EDE7"><enum>(ii)</enum><text>fails to become
adequately capitalized, as required by—</text>
<subclause id="ID01131BB501CE48858B675852457F834A"><enum>(I)</enum><text>section
1365(a)(1) with respect to a regulated entity; or</text>
</subclause><subclause id="ID13F663E7AADD440D921891F413BFEAC0"><enum>(II)</enum><text>section
1366(a)(1) with respect to a significantly undercapitalized regulated
entity;</text>
</subclause></clause><clause id="IDCC25AA589ABF4A218864EC9B72F0D48C"><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="IDA2EB8954A97B4676B52A8324FB2A26FE"><enum>(iv)</enum><text>materially fails
to implement a capital restoration plan submitted and accepted under section
1369C.</text>
</clause></subparagraph><subparagraph id="IDED8650E93A694C67BF8CE8B6EAC00D12"><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="ID74FBF8D8DE9943AEB323574DB5323599"><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 1956 or 1957 of title 18, United States Code, or section 5322 or 5324
of title 31, United States Code.</text>
</subparagraph></paragraph><paragraph id="ID4338200F15094C0E827FA4E50A0AF99D"><enum>(4)</enum><header>Mandatory
receivership</header>
<subparagraph id="IDE6EE3F8612FA4E4C9EE801BE0C7ABE56"><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="ID604B75626C68485581C270B111F6E428"><enum>(i)</enum><text>the assets of the
regulated entity are, and during the preceding 30 calendar days have been, less
than the obligations of the regulated entity to its creditors and others;
or</text>
</clause><clause id="ID0678017EF7F44EAC9DF0EBCD7DDB8608"><enum>(ii)</enum><text>the regulated
entity is not, and during the preceding 30 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="ID25554164859F4FEF8B688BDDFF5C8C6F"><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="IDAA953759C2AD4D9792C2C177F8442ED1"><enum>(i)</enum><text>not later than 30
calendar days after the regulated entity initially becomes critically
undercapitalized; and</text>
</clause><clause id="ID3968CE67AA5749A5BD2B7A0B2D28A0AA"><enum>(ii)</enum><text>at least once
during each succeeding 30-calendar day period.</text>
</clause></subparagraph><subparagraph id="ID7BB5B9C6A6CD4C528F61EDA59E7F3946"><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="ID82F88D3816E344B4B7555D951334954A"><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="IDD3C5229BEFA1460A8ABF140877130C49"><enum>(5)</enum><header>Judicial
review</header>
<subparagraph id="IDE82A3F59376C496699A107DBE54D930B"><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="IDA3E02F075F0049D1B152AB3E60AD926B"><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="IDD868587A0BE3406EBA446B381E07C515"><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="ID962B4F614BC9445794F9FE8007625539"><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="IDF477B288C832495F8B2B99F854D6B66E"><enum>(b)</enum><header>Powers and
Duties of the Agency as Conservator or Receiver</header>
<paragraph id="ID7A3F836024FF49F198739D2CB7716BA1"><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="ID7DFD7BB7B2104131BF4BAAA339F0175F"><enum>(2)</enum><header>General
powers</header>
<subparagraph id="ID7BDEF8C3CE534B2FBB93DDA201138DD8"><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="ID49F4229413DB47A4B2F1A1AA08850192"><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="ID709B56DFC5294476AC3BCE7568207A95"><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="ID1470C3BF6ED2414C8BEA39F7F36F7D6C"><enum>(B)</enum><header>Operate the
regulated entity</header><text>The Agency may, as conservator or
receiver—</text>
<clause id="ID919C8DD58F05462F90916521060277DF"><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="ID8B5A4CD8EE00414B9333242D611477AE"><enum>(ii)</enum><text>collect all
obligations and money due the regulated entity;</text>
</clause><clause id="IDC0ED748FCC9B47A382C90F7C46E16587"><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="ID48E560A5EBB1454D96D5C4185F6258DC"><enum>(iv)</enum><text>preserve and
conserve the assets and property of the regulated entity; and</text>
</clause><clause id="ID09C24A2866AC4B3C97AD5C16296853DB"><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="ID5F9290B707974621867D1D5481C092E4"><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="ID886696942BDA4E4DBDC76CB8CA3C2253"><enum>(D)</enum><header>Powers as
conservator</header><text>The Agency may, as conservator, take such action as
may be—</text>
<clause id="ID30E4C33F1B464C7BB08AB49D1AD02830"><enum>(i)</enum><text>necessary to put
the regulated entity in a sound and solvent condition; and</text>
</clause><clause id="ID36A11427578245BF92AC3E8C4E7D86D5"><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="ID3B1B197F94AD4E7D89E1C4A466FF30F1"><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="ID904E83D41EAA4B97A12F14D231F23B1F"><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="IDC42BE7450AD84544B4C090E1F139F856"><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="IDD4DDD368397F43E882207EBBBD86F823"><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="IDC5C806DE5C4B435FB4D7F1108B98E377"><enum>(I)</enum><header>Subpoena
authority</header>
<clause id="ID88C1CA33FB47478993418BAFE921B14E"><enum>(i)</enum><header>In
general</header>
<subclause id="ID638F8D1818B749B589358FFFC03C56CB"><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="ID819A04CC614E43609C1B7420F3FB7361"><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="IDCD38ED6FDB4340D685503AE0679ABD26"><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="ID1E78AAB9ABF04785950C8D19C9D90D56"><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="ID368DE1E73B564939AC438240E0E09DE7"><enum>(J)</enum><header>Incidental
powers</header><text>The Agency may, as conservator or receiver—</text>
<clause id="IDC075B25604F6403680670A0F53143890"><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="ID4DFDF758C30D4D82B7C3945F421D36B5"><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="ID4443FB2323F449559E52A089A3B37359"><enum>(K)</enum><header>Other
provisions</header>
<clause id="ID87E8E86C952042D38C2DCDFDA101764B"><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="ID938DE3E571944F2BA8CD09069DD93F79"><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="IDBB8876E43FDD4BBC8202EDEAB18484F0"><enum>(3)</enum><header>Authority of
receiver to determine claims</header>
<subparagraph id="ID7BC24A2DF804422AAA9FF68A9DA49449"><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="ID821B73CB5107476ABBAF7799FDD288B2"><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="ID972CFBC0B13546DAA0A7C9A8458D3F3C"><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="IDC04AB98C860E4FC5801B1D34460D61FD"><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="IDC7DF814F5D884277BB5239095FF9703D"><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="ID9E9E810C735E433D92C20C6976D3BA68"><enum>(i)</enum><text>at the last
address of the creditor appearing in such books; or</text>
</clause><clause id="ID8898168721D340E1AF6380E8AD651D8F"><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="ID56A98CDBC0134A1EA9CF0BECBC1A601C"><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="ID67294611E8F64CC48BC37A3C30C381DC"><enum>(5)</enum><header>Procedures for
determination of claims</header>
<subparagraph id="ID98BA4FCA15DA4A6C839F04E8E46DB856"><enum>(A)</enum><header>Determination
period</header>
<clause id="ID6DD37CF7B61B43E7AE3F3DB5CA9E74A5"><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="IDAF3168CF7FDA47A6A4C22A3CAAAEDB94"><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="IDB16A2B0C66B341F3BC4DC61944B3F37C"><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="ID18B7EC84FD304967876792EAA6FA45EE"><enum>(I)</enum><text>on the books of
the regulated entity;</text>
</subclause><subclause id="ID225DF6B0BD63433A805DB12EEAF63462"><enum>(II)</enum><text>in the claim
filed by the claimant; or</text>
</subclause><subclause id="IDD224DB0BE780454C970571EF150DD37B"><enum>(III)</enum><text>in documents
submitted in proof of the claim.</text>
</subclause></clause><clause id="IDEA30D06DC4FF480B8C27B1A850078D2B"><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="IDAB972B3CE0F045AFB3563FFE747F17A5"><enum>(I)</enum><text>a statement of
each reason for the disallowance; and</text>
</subclause><subclause id="ID1133CC98F15B45A9BEAE0F4900A66214"><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="ID74D583E2B33E476EA17E666763B988FB"><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="IDF6DCF432C101429EBC3B1231810FA253"><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="IDE168E24DA27E4D3CADCC25D345313EF9"><enum>(D)</enum><header>Authority to
disallow claims</header>
<clause id="ID667015D427024592BC759A75ADB55D31"><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="ID288D1DFE723F4C59B9B1BA50495A10A2"><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="ID31240B3F11A14D61A38BFA1BB436EBB6"><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="IDFF1A97227CA14369802E2E24203E7263"><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="ID757418EE088C47B7A9B2DD2FF3E6CFDC"><enum>(iii)</enum><header>Exceptions</header><text>No
provision of this paragraph shall apply with respect to—</text>
<subclause id="ID6633B88DD11B4229BE02D2D9E02B25A3"><enum>(I)</enum><text>any extension of
credit from any Federal Reserve Bank or the United States Treasury; or</text>
</subclause><subclause id="IDE0E769CE46B9409F99DB244FF4A03FC5"><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="ID22D9D459679540618347B75DD137E06F"><enum>(E)</enum><header>No judicial
review of determination pursuant to subparagraph
<enum-in-header>(d)</enum-in-header></header><text>No court may review the
determination of the Agency under subparagraph (D) to disallow a claim.</text>
</subparagraph><subparagraph id="IDC50E5AC7B29540A7BEE1037BD2D573D3"><enum>(F)</enum><header>Legal effect of
filing</header>
<clause id="ID2D9774B3D81943BE8AB329C234366A44"><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="IDDE769AE2F1FC4B2998F4CF00B2DA3A63"><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="ID858DA94283994EE0BAD8638BA40C8BA9"><enum>(6)</enum><header>Provision for
judicial determination of claims</header>
<subparagraph id="IDB1DBE836E9E046B3A1B08DA3816A56D6"><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="ID16D3CC69A6B34E4DADAA203E228B9203"><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="IDF33D1534983D49959204799B269D19CF"><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="ID815561781D8042558ED5F055DCD59638"><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="ID65C2167694EC44E1A2D9C5BA88FECB24"><enum>(7)</enum><header>Review of
claims</header>
<subparagraph id="ID89E3B463B5F148A0B22E2EAACD96946C"><enum>(A)</enum><header>Other review
procedures</header>
<clause id="ID37D01261A80B4C9894130DCC679AC571"><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="IDE6DF5B02D6E4450C80587E3F19842FB9"><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="IDF504E670CD8E469790B9D08ED0B09C1F"><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="IDE75B138DA99C4BB3835D1D40F7721EB3"><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="ID684E41A1D1204CD699023BC7C9A56351"><enum>(8)</enum><header>Expedited
determination of claims</header>
<subparagraph id="IDD07030CAC9E441738844ACE09310112F"><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="ID81C4FDFAE8B14E6E9741184E2B9ADCFF"><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="ID05DD0AD02A054F849D1F96F85D16EDF5"><enum>(ii)</enum><text>allege that
irreparable injury will occur if the routine claims procedure is
followed.</text>
</clause></subparagraph><subparagraph id="ID301DC8D0FC204B23A007E1A6FA4D2B58"><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="ID264B167B5AEC4E619F133760AEEE63F2"><enum>(i)</enum><text>determine—</text>
<subclause id="IDC523C0BF7F0C4975B571140A509B6EAB"><enum>(I)</enum><text>whether to allow
or disallow such claim; or</text>
</subclause><subclause id="ID829D314FFC36439B8DDB582BBDE21739"><enum>(II)</enum><text>whether such
claim should be determined pursuant to the procedures established under
paragraph (5); and</text>
</subclause></clause><clause id="IDC7F968A7F86B477F9E04C6A08316E6FC"><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="IDC06B1B8422424107BCE4A243B3763809"><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="ID9745BCC59F5C4066A63308D4E69CDBE4"><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="ID2CA69B0064F044D0B33E8DAD9889DEDE"><enum>(ii)</enum><text>the date on
which the Agency denies the claim.</text>
</clause></subparagraph><subparagraph id="ID08826CA8520B4B2082E8752BD6050346"><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="ID8B7261CF059B4F1FACCAE7D4ECD30894"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="IDA6231AB520FE4BF68316F3E57A752A5C"><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="IDA92225C0CCEE4199A11A370BC508C72E"><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="ID1AA543799C0141DAB1AB4DFD0FDE46C2"><enum>(9)</enum><header>Payment of
claims</header>
<subparagraph id="ID9A4655C7C52F4FD0B71074CE4B3E162D"><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="ID25EFA14981D3467AAAE3309E367DFDCC"><enum>(i)</enum><text>allowed by the
receiver;</text>
</clause><clause id="IDF779BFB205314C99BBDE356BB93A22C9"><enum>(ii)</enum><text>approved by the
Agency pursuant to a final determination pursuant to paragraph (7) or (8);
or</text>
</clause><clause id="ID35F59688DB5C43D29BAC195EEFAE7018"><enum>(iii)</enum><text>determined by
the final judgment of any court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph id="ID5D92AECCCFFF4454A75B8F5CC8C1B96A"><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="ID17F51ADEC0114A3E9EEE4BE1BA71F30B"><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="ID7F6ED43F8F3F4E629D0CFC965E56714D"><enum>(D)</enum><header>Rulemaking
authority of the director</header><text>The Director may prescribe such rules,
including definitions of terms, as the Director deems appropriate to establish
a single uniform interest rate for, or to make payments of post-insolvency
interest to creditors holding proven claims against the receivership estates of
regulated entity, following satisfaction by the receiver of the principal
amount of all creditor claims.</text>
</subparagraph></paragraph><paragraph id="IDDD48A07B410C4A068D38D62D4F126167"><enum>(10)</enum><header>Suspension of
legal actions</header>
<subparagraph id="ID10D8CBCCF0DC4D9CA401083AB0D47A0D"><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="ID28B8CF341B694A17AF925EF04E61EF42"><enum>(i)</enum><text>45 days, in the
case of any conservator; and</text>
</clause><clause id="ID03A0DCED7C434FC6AC3BCB004D3EBA5C"><enum>(ii)</enum><text>90 days, in the
case of any receiver.</text>
</clause></subparagraph><subparagraph id="ID7D437DC4AF744123A98E7CD60705F544"><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="ID159491D1037246EE9737F7232936F1C9"><enum>(11)</enum><header>Additional
rights and duties</header>
<subparagraph id="ID81EE1980833D460E9533E5206EB4E68B"><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="ID8BB7AB9D0D0F414FBBAC32662AAE3CF8"><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="IDEE2F2BF8187F49A18F07AB2745387229"><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="IDF1DA46F26B9E4C46882541EE44A25880"><enum>(ii)</enum><text>shall not be
required to post any bond in order to pursue such remedies.</text>
</clause></subparagraph><subparagraph id="ID2B00574639E34373993CBF9D5F9EF233"><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="ID67240DA61A8643EE9D5A89E0C1988F89"><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="ID4A5507CF746F4CF19036189487AEEB8A"><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="ID8DDEC15615DD409EA231E38D01815F4F"><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="ID14CD1FCCBC7243A284FCE62477500638"><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="ID1A676E831BFD4975AAF349BDAD85CA04"><enum>(i)</enum><text>maximizes the net
present value return from the sale or disposition of such assets;</text>
</clause><clause id="ID817EED64E94840C4AA85C83A3A183181"><enum>(ii)</enum><text>minimizes the
amount of any loss realized in the resolution of cases; and</text>
</clause><clause id="IDFA2E8EB71A074117A90E0671BB3EA4B7"><enum>(iii)</enum><text>ensures
adequate competition and fair and consistent treatment of offerors.</text>
</clause></subparagraph></paragraph><paragraph id="ID38B3A31DA7784C749D693CE0FF2ED726"><enum>(12)</enum><header>Statute of
limitations for actions brought by conservator or receiver</header>
<subparagraph id="IDB5E15EDC820F48B7ADB7BE14C5326BFE"><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="IDE3550328672C403BBABA9A2ADBD85C9E"><enum>(i)</enum><text>in the case of
any contract claim, the longer of—</text>
<subclause id="IDEFA581BAB96643E185CF87022768066E"><enum>(I)</enum><text>the 6-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="ID2AEFAD8C771043A4B77FDA7D29CF359F"><enum>(II)</enum><text>the period
applicable under State law; and</text>
</subclause></clause><clause id="ID1A007681DFC14A1B95E82E074494EEBF"><enum>(ii)</enum><text>in the case of
any tort claim, the longer of—</text>
<subclause id="ID69E0BA3F893D49F992917D9C0CC4C8DE"><enum>(I)</enum><text>the 3-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="ID812F28E6D08D46CFA150AAC97F592E28"><enum>(II)</enum><text>the period
applicable under State law.</text>
</subclause></clause></subparagraph><subparagraph id="ID9865427AD992474B80B5C5C8F329A73D"><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="ID7D97A8B325E045C9B43A424EDEC565EB"><enum>(i)</enum><text>the date of the
appointment of the Agency as conservator or receiver; or</text>
</clause><clause id="ID2D6EC68B2AB844DE9993C8555B6BCE34"><enum>(ii)</enum><text>the date on
which the cause of action accrues.</text>
</clause></subparagraph></paragraph><paragraph id="IDD32BBFAB70424EBEB82B6653AB413019"><enum>(13)</enum><header>Revival of
expired state causes of action</header>
<subparagraph id="IDEB4A8FC42B6A4E90AC0ABF844671A362"><enum>(A)</enum><header>In
general</header><text>In the case of any tort claim described under
subparagraph (B) for which the statute of limitations applicable under State
law with respect to such claim has expired not more than 5 years before the
appointment of the Agency as conservator or receiver, the Agency may bring an
action as conservator or receiver on such claim without regard to the
expiration of the statute of limitations applicable under State law.</text>
</subparagraph><subparagraph id="ID2150C44951214B9DAA70D6DE398B3751"><enum>(B)</enum><header>Claims
described</header><text>A tort claim referred to under subparagraph (A) is a
claim arising from fraud, intentional misconduct resulting in unjust
enrichment, or intentional misconduct resulting in substantial loss to the
regulated entity.</text>
</subparagraph></paragraph><paragraph id="IDD33AF5D1DA1943F9AF2F8BCA9AA12936"><enum>(14)</enum><header>Accounting and
recordkeeping requirements</header>
<subparagraph id="ID9025B2342DF842A98403E924F69810BE"><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="ID7F4D09A7544F4BF9B152395E8755D78F"><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="ID4AD061CB0C174CA5946D6CEF42B7150F"><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="ID5247E3755572495EA9C13C51159F4F23"><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="IDE579D45AEC644144A07C6932D8DD6DD5"><enum>(15)</enum><header>Fraudulent
transfers</header>
<subparagraph id="IDD488B9F9304E4251B1FEAFB9AD70A414"><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="IDF497703E80274A7DAAA77A7234CF635A"><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="IDA723CDE21A374C0CA770334CE1B3B6E5"><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="ID3F8B5227CCFE41EA88BAE0EF5199DDDC"><enum>(ii)</enum><text>any immediate or
mediate transferee of any such initial transferee.</text>
</clause></subparagraph><subparagraph id="IDF496052E2FAA484E9496E3CD2B0CCA8C"><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="ID5042B45F1A6945C7AA3DA246370A152F"><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="IDC11B16D15E504399BA7A078396569603"><enum>(ii)</enum><text>any immediate or
mediate good faith transferee of such transferee.</text>
</clause></subparagraph><subparagraph id="ID215A965A0A124468BB32B09AC75C6781"><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="IDC0078A67839D443BA296196BCE5CD3C0"><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="IDE7A732E02D3E4138A1CAFE0BFBEA493F"><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="IDFCCB4BD1EF8D4F06B226FADBBADB8B03"><enum>(18)</enum><header>Treatment of
claims arising from breach of contracts executed by the conservator or
receiver</header>
<subparagraph id="IDB0B8336F8728463CA7268F9CC58B7CB1"><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="ID03B4083CBFE744E2817D010F07996520"><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="IDB9784375A49842FAA0A47C65A7D0265D"><enum>(19)</enum><header>General
exceptions</header>
<subparagraph id="ID794E8B7D4F6C48FB87DD8B5C8F1B22BD"><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="ID39489206EE1E48678CC1CD68A6B882A5"><enum>(B)</enum><header>Mortgages held
in trust</header>
<clause id="ID607A08F64BB24B4DA9763120DB7DD621"><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 an enterprise for the
benefit of any person other than the enterprise shall not be available to
satisfy the claims of creditors generally.</text>
</clause><clause id="IDE0B63A77B37C459DBD85C25600176840"><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="ID02B0E73C848E49759D2AEAA600CBADE9"><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 in the regulations of the Director.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDF7F101A37B854032874AB27D7DDA5FC4"><enum>(c)</enum><header>Priority of
Expenses and Unsecured Claims</header>
<paragraph id="IDDE76A59A6E5E4293AA7E69B86F00A572"><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="ID08C109C0EC51457A9DDAF0806B43A6DE"><enum>(A)</enum><text>Administrative
expenses of the receiver.</text>
</subparagraph><subparagraph id="ID1356BEFE5F8F44B688FADE5C71307A82"><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="ID0DB51A45D47E44788F9D5D02E0B92C4D"><enum>(C)</enum><text>Any obligation
subordinated to general creditors (which is not an obligation described under
subparagraph (D)).</text>
</subparagraph><subparagraph id="IDFC2F400D655E478D838092CB448B0F5D"><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="ID2D86C935B7B34B038DE4FA566C369074"><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="ID8ADA3EEA41534C4C9908FAF4D62BAD64"><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 assets; and</text>
</subparagraph><subparagraph id="IDEC595A947F8A43D1A385C2894F69559C"><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="ID61FCC63016D04F2FAE4B39F3D08CFF18"><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="ID299DB2159EB54C9E9F2D67F15EF43EEE"><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="IDD67B3153506F49CA9867142D18E1D967"><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="IDE94E4F9382A743B497246F99D1FD132B"><enum>(d)</enum><header>Provisions
Relating to Contracts Entered Into Before Appointment of Conservator or
Receiver</header>
<paragraph id="IDB5871F45D229451EAB64EF9948B7F81D"><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="IDF15703F8A43E4E9D840B561298A5A0EE"><enum>(A)</enum><text>to which such
regulated entity is a party;</text>
</subparagraph><subparagraph id="ID7BAD5A614EBF47B0AD24072D10152ED6"><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="ID18961FCD2C474C0A92BEE8AEDE58197D"><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="IDAF5112AFAF224588B2188CF37BBC777B"><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="ID5A7752BF482943DAB95460C99B20064B"><enum>(3)</enum><header>Claims for
damages for repudiation</header>
<subparagraph id="IDFA438FD581A84FA38E1EDDCF5377C50B"><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="ID59F220799EDC4C7B8C90EA265908DB09"><enum>(i)</enum><text>limited to actual
direct compensatory damages; and</text>
</clause><clause id="IDFE419FB1984D4E93BC7DAE36AE74D304"><enum>(ii)</enum><text>determined as
of—</text>
<subclause id="IDBDBB60A1DFE74BECBE929364E7C77B0F"><enum>(I)</enum><text>the date of the
appointment of the conservator or receiver; or</text>
</subclause><subclause id="ID63E5F1CEF77A41E3AF71CFF0B6134ACC"><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="ID865AAAD317BC421EBA3D67D952F12DCC"><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="ID7F9665FD727143D09A57C5D9D121754F"><enum>(i)</enum><text>punitive or
exemplary damages;</text>
</clause><clause id="IDA02DF087CE504827B5EEA25D2CDA95C5"><enum>(ii)</enum><text>damages for lost
profits or opportunity; or</text>
</clause><clause id="ID3ECD1B8A53A24074A1153622BE113B81"><enum>(iii)</enum><text>damages for
pain and suffering.</text>
</clause></subparagraph><subparagraph id="IDA255009AC0184238B0CE73CB799B9E79"><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="ID5DA111F9A1314E2F978DF86293F90D16"><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="ID35F26D46293948469B843C719CFB9E95"><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="ID923141C5F6EE44B0BC1F629497CB6077"><enum>(4)</enum><header>Leases under
which the regulated entity is the lessee</header>
<subparagraph id="ID2489B817BB9E4425890B661C23285D13"><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="IDB80D3F7176074E90A708C5FD2682DA69"><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="IDB15B611AE5484CF48AF14B872A4ACFB9"><enum>(i)</enum><text>be entitled to
the contractual rent accruing before the later of the date on which—</text>
<subclause id="ID1CE88CFC580E458E9E166323396CF601"><enum>(I)</enum><text>the notice of
disaffirmance or repudiation is mailed; or</text>
</subclause><subclause id="IDAEDF1004D42C4C81BE28C6A8ECC0DFF3"><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="ID5CF48CA7743A4B34A1490DDA0591499A"><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="ID5CAB802150F5495D8E7B00B03B8907EB"><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="ID7FC98D3BB85A4BA4931BB31BFBDD5A9D"><enum>(5)</enum><header>Leases under
which the regulated entity is the lessor</header>
<subparagraph id="ID669CEEEAB74D4F2EBF6532DA348BF3B7"><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="IDAC59A98F68D14CAA93D74ED356FE07A6"><enum>(i)</enum><text>treat the lease
as terminated by such repudiation; or</text>
</clause><clause id="ID2C9E8DD953364C8089CBC7C22258822F"><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="ID5235E4BDC144429C8361CE7DC89D83F7"><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="ID8406BF32201040CB81484B9ACF3450FB"><enum>(i)</enum><text>the
lessee—</text>
<subclause id="IDCAF2C841AE924BD9BB09764D8C0AD1B6"><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="ID9D2D0462A8384CD59A855D82B63AB38A"><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="ID97DC1B0F52FB4D9B9F4C4ED7CD766677"><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="IDFD2817D04316449AB510A210972AE306"><enum>(6)</enum><header>Contracts for
the sale of real property</header>
<subparagraph id="ID7E561052DC9249F3A9ED0000472972CC"><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="ID0EA3BC0EE3464FCBB781374B24390558"><enum>(i)</enum><text>treat the
contract as terminated by such repudiation; or</text>
</clause><clause id="ID6070AE81D4B2441C82A79DDA1D7E34CB"><enum>(ii)</enum><text>remain in
possession of such real property.</text>
</clause></subparagraph><subparagraph id="ID1E4EB3A2568847C8BB71DAEE7A4FFF39"><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="IDDA79A3FC9E7940E68E86F7B4E8ECC64F"><enum>(i)</enum><text>the
purchaser—</text>
<subclause id="IDCCFA3D49692A4A0CBD776AC87062B29B"><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="IDF0FB409941994C35BC36807CA74C5F13"><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="ID39CAD81FDAC34C16807459952F1A210F"><enum>(ii)</enum><text>the conservator
or receiver shall—</text>
<subclause id="IDB87AEEA9F71E42FF9FFFE57BB2716355"><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="ID97CBFFB2D2B241F090F818F51768FF9A"><enum>(II)</enum><text>deliver title to
the purchaser in accordance with the provisions of the contract; and</text>
</subclause><subclause id="IDABA024B24C3745F1922CA7B81DB3D689"><enum>(III)</enum><text>have no
obligation under the contract other than the performance required under
subclause (II).</text>
</subclause></clause></subparagraph><subparagraph id="ID8BD34EC2EFB24339BDF78B86FA9CB9B3"><enum>(C)</enum><header>Assignment and
sale allowed</header>
<clause id="ID147E0A611B05461F936F4271078913EB"><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="IDD910C32700554F04929029C4A1D73220"><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="ID3C12EC27ADD84B80A3B2E29EEE092BE1"><enum>(7)</enum><header>Service
contracts</header>
<subparagraph id="IDBD6F3CB496BA47A78FBD9AEF1F784D0D"><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="ID4B606D9F1F6B4E33862526205A5DE58B"><enum>(i)</enum><text>a
claim to be paid in accordance with subsections (b) and (e); and</text>
</clause><clause id="ID7BD739E7611448B5993D8D6534077E20"><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="ID83D0D5B34F4F47CFAAA3BF40E2DC8A7B"><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="ID11C1B2A8C58247B28D5F4F2820E14C35"><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="ID2AFCC1C269CF49F296E0100ACC83BAB3"><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="IDACFECB01663F4297BDAAB1976BFD6AF7"><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="IDC4D0C20A51CC4B90BCF37F1D42F3AD28"><enum>(8)</enum><header>Certain
qualified financial contracts</header>
<subparagraph id="ID0F17D85C74264DBF929B8E6610B86BCA"><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="ID4140B97FA3EA47A79EFE13FE1E870F92"><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="ID231A24F83F0C411BB170DE5014C04222"><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="ID2A4E78F0C89A4FB5B5BAD4CEC1746547"><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="ID38B9FB61091A4D0D9941C37D810E70F6"><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="ID0A0032F9A9D14ABF8B673751EAF125A9"><enum>(C)</enum><header>Certain
transfers not avoidable</header>
<clause id="IDEB8597C9D08740ED9354166DFC52F1EC"><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="IDA62D50683EFD43C480128434794D0B58"><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="ID76D42944C9DC462B85A613FE706305F9"><enum>(D)</enum><header>Certain
contracts and agreements defined</header><text>In this subsection the following
definitions shall apply:</text>
<clause id="ID4FA231EF53B841C3B48B124EEC135689"><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="IDA1425AB297A74C4493A6A2B3D1735428"><enum>(ii)</enum><header>Securities
contract</header><text>The term <term>securities contract</term>—</text>
<subclause id="ID6752F90C142F4E7C9BC8807B2D87BF6E"><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="ID93C90AF9758C45EC97748849FA16C119"><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="IDE390203C1703405CBCF8C950D508EE04"><enum>(III)</enum><text>means any
option entered into on a national securities exchange relating to foreign
currencies;</text>
</subclause><subclause id="IDBF206011BBC04523804FAEBF88523580"><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="IDB67F383FDE344F11BF27F904089B7314"><enum>(V)</enum><text>means any margin
loan;</text>
</subclause><subclause id="IDCD7D0843049C47408C8404622B28B115"><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="ID1467B9202E7F4D398FD00BAA257D6AF7"><enum>(VII)</enum><text>means any
combination of the agreements or transactions referred to in this
clause;</text>
</subclause><subclause id="ID4E57B136E63E4619A045067BE9CC54C9"><enum>(VIII)</enum><text>means any
option to enter into any agreement or transaction referred to in this
clause;</text>
</subclause><subclause id="ID89FF9A2F43154763A1521986724FA6E4"><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="ID35ADD9214C6B4007996EF314722F7D29"><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="IDEA8D13E4D128442B9DBF5585EDD61D09"><enum>(iii)</enum><header>Commodity
contract</header><text>The term <term>commodity contract</term> means—</text>
<subclause id="IDE2224DBE34EA4BA3BF4785BA8A7DD2C7"><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="ID45397A79553F4CA796B44E2AB3BDD76A"><enum>(II)</enum><text>with respect to
a foreign futures commission merchant, a foreign future;</text>
</subclause><subclause id="ID7B2461826D8042D2B32F1CC10CC7C31A"><enum>(III)</enum><text>with respect to
a leverage transaction merchant, a leverage transaction;</text>
</subclause><subclause id="IDBE0F07329C7C490D87061BDFF63EEB10"><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="ID5EF52F6A4D7E4E42B086B944DF3798D1"><enum>(V)</enum><text>with respect to a
commodity options dealer, a commodity option;</text>
</subclause><subclause id="ID3A43584CA4A943A3BFBA26C2524E6FE9"><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="ID7B0375ACC1954A18A3E0FDA174CA0DD2"><enum>(VII)</enum><text>any combination
of the agreements or transactions referred to in this clause;</text>
</subclause><subclause id="ID527023BEEADB46C7A077EA33E9F5E600"><enum>(VIII)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="ID1B1D0CE95E8246E58C2180E79EF27E4B"><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="ID030D3CAC8D25449699A9DEBAA0D9101E"><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="ID61245D5BA97648B8B530FC5D44AE001F"><enum>(iv)</enum><header>Forward
contract</header><text>The term <term>forward contract</term> means—</text>
<subclause id="ID2634EFC425154229AD1358A9A8BDD293"><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="IDC27508EE211842C1AF04F95F1AF4F8DB"><enum>(II)</enum><text>any combination
of agreements or transactions referred to in subclauses (I) and (III);</text>
</subclause><subclause id="IDE94D74A17E5D4958A80B786A84FF07C3"><enum>(III)</enum><text>any option to
enter into any agreement or transaction referred to in subclause (I) or
(II);</text>
</subclause><subclause id="IDF85DF674ABF746DEA5859C374B99D5DF"><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="ID2B6D69AC46DE469FAF6820D7679925FE"><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="IDF39D64742F2D463BBF07BF7529C64AF2"><enum>(v)</enum><header>Repurchase
agreement</header><text>The term <term>repurchase agreement</term> (including a
reverse repurchase agreement)—</text>
<subclause id="IDD064BC80CB71460787C3A7950261EB4D"><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 <act-name parsable-cite="SEA34">Securities Exchange
Act of 1934</act-name>), 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="ID0087BA5993054DF7AF325CF7B654CD0D"><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="ID05CC1AB18595422D9BBA2509BEE53C43"><enum>(III)</enum><text>means any
combination of agreements or transactions referred to in subclauses (I) and
(IV);</text>
</subclause><subclause id="ID4BC8CDDF44274EB8AB4B658282D4D3E5"><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="IDCF36D048FD8D4F1F985A5D40E7B38517"><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="ID640035F5B34544B489F24FCC3E85230E"><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="ID2243A68CF1BE418486E7B340F5A9AE8E"><enum>(vi)</enum><header>Swap
agreement</header><text>The term <term>swap agreement</term> means—</text>
<subclause id="IDF814C76368FB44B4A91CF87323E3E210"><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="ID106F137EA911487582631F3619767E69"><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="ID8A4EE45379BE42128BC3E49073DD5762"><enum>(III)</enum><text>any combination
of agreements or transactions referred to in this clause;</text>
</subclause><subclause id="IDCD15181A85D045CB93B278FF61B00DD1"><enum>(IV)</enum><text>any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="ID411BB32107644E4FB6D749971F6F01C5"><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="ID961CE0FBE8A44100BA280ECB22410383"><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="ID305E7A79AB63403094DDC87A9FE65B0D"><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="ID6E46FF4AFFB142B4B722A57B72298B19"><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="IDD383A351BFB547E1AF74DDCB579994E0"><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="ID59C484BFE7AC4F039B27067287C76A94"><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="ID69554DC8FF5640AA8FF9B14592F120F0"><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="IDA94B5CD1B3064F5C8541BD85DE69C609"><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="ID6B96054F07BC4705931CD8C5BF9488F7"><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="IDE4AE24BAD76147CB852DBDF48A985D33"><enum>(G)</enum><header>Walkaway
clauses not effective</header>
<clause id="IDCD6232F0DD33405C83728D4BA74C8610"><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="ID9DB10536A0CE4292BA6490343E23C06D"><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="ID37FFF480E6F741CDA1F656C008969F1F"><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="IDC7A334FBB6E94722844782AC8C5B7420"><enum>(A)</enum><text>transfer to 1
person—</text>
<clause id="IDEE714601393A4CCB8FED1CF85BB6ACAB"><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="ID5972A221127A48D09D6B28DFC76E98B2"><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="ID45ACF566CC8041F0B3D4614CBDFAB978"><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="ID19E03E6D0EF24520AD4C6677046327F8"><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="ID9A1EED0AAC904E08B5CC61473CD3CE49"><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="IDA8F11A70363742C782F6F8A73A61DCA0"><enum>(10)</enum><header>Notification
of transfer</header>
<subparagraph id="ID3A20BA3462574E708C5E3519BDC75042"><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="ID442AF6B66F9242CEBBE928A1DE0ADFFB"><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="ID28131EB4F98745438659F888E7304781"><enum>(ii)</enum><text>such transfer
includes any qualified financial contract.</text>
</clause></subparagraph><subparagraph id="IDB84BC981E38B465492E2560DE3D25EB3"><enum>(B)</enum><header>Certain rights
not enforceable</header>
<clause id="ID6EC6EEC379D14556994B0EA81E8F19ED"><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="ID002DDB430D5A4DCE9D99950316041559"><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="ID16D419CA8C0B4032B10C9EF24C37B18A"><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="ID9EB1DAE4543746CABF98C5F62B3672C7"><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="ID381A82C725E14E6BB40E888A5BF4BE20"><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="ID71CAE64B5C654F80AB40E2B57CB3161D"><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="ID02C151EE352B4D58946E4BBD0B810030"><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="ID9D300D28B61C4CDAAECC33FE67B56E2F"><enum>(A)</enum><text>disaffirm or
repudiate all qualified financial contracts between—</text>
<clause id="ID2A9DA64D62B54A3581C23C94BDD78805"><enum>(i)</enum><text>any person or any
affiliate of such person; and</text>
</clause><clause id="IDDAC756D8C80A4888ABA4A2B6CC24C1E3"><enum>(ii)</enum><text>the regulated
entity in default; or</text>
</clause></subparagraph><subparagraph id="ID61B647FE801F46B88E52EB944B069E1F"><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="ID118C43A508874B0F8AAC805D1E3521F7"><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="ID40022561FAE74376ACF34B0C23BEC909"><enum>(13)</enum><header>Authority to
enforce contracts</header>
<subparagraph id="ID0570AF3041414F16A7735BF789204135"><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="IDC193F10908454D4F9DE5A5D1771D89AD"><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="IDF1C89109E78E4530B09C4EE7DC09594F"><enum>(C)</enum><header>Consent
requirement</header>
<clause id="ID6E2ECBAD41D640DEA0D947118CDF0110"><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="ID35B3AD3412DA4D6A8B3CA7FDF92EFD57"><enum>(I)</enum><text>45 days after the
date of appointment of a conservator; or</text>
</subclause><subclause id="IDE23BA4C388D0414C8099C1BFB7C3E054"><enum>(II)</enum><text>90 days after
the date of appointment of a receiver.</text>
</subclause></clause><clause id="IDE36A17F5891E4122BFB0452529946059"><enum>(ii)</enum><header>Exceptions</header><text>This
subparagraph shall not—</text>
<subclause id="ID0DC386F3D7364ECD88036DCE5E7BA57C"><enum>(I)</enum><text>apply to a
contract for liability insurance for an officer or director;</text>
</subclause><subclause id="ID4076DD8837E740ACB409E954462EE57A"><enum>(II)</enum><text>apply to the
rights of parties to certain qualified financial contracts under subsection
(d)(8); and</text>
</subclause><subclause id="ID5882BF6FA6564330AE2779C03DDDD184"><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="ID923A4F74A5D340E497DBABAB519B87D4"><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 <act-name parsable-cite="SEA34">Securities Exchange Act of
1934</act-name>), and the <act-name parsable-cite="COMEX">Commodity Exchange
Act</act-name>.</text>
</paragraph></subsection><subsection id="IDA80A374A928D4753BF512AAF01FA35E3"><enum>(e)</enum><header>Valuation of
Claims in Default</header>
<paragraph id="IDEC416A8FBA6946D78CEA0A965E1C16B1"><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="IDB0E9D356A7994F1BA418EFD9C46D5C4B"><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="IDC14BE13B51894358BE2C8AA4D986C086"><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="ID32BA75D04D4A4036A85D23E43DBEB24F"><enum>(g)</enum><header>Liability of
Directors and Officers</header>
<paragraph id="ID76AE2DCB7BD04A8F86D1299205218D4E"><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="ID3C3E9904AEB34880B09DADFAB41CA482"><enum>(A)</enum><text>acting as
conservator or receiver of such regulated entity; or</text>
</subparagraph><subparagraph id="IDCE32AD1BBE2A48F595D479741CB2B83A"><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="ID0FF0A40EA0FC4D8F9B11850E470621EE"><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="ID3DF4CB8430E14B379A25F8A30B28C1FF"><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="ID14817A1CB1A24DD8A9A01D3FC7DF139E"><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="IDEC8600603639475089E7B0DFC824DAE0"><enum>(i)</enum><header>Limited-Life
Regulated Entities</header>
<paragraph id="ID10CA1FAAC128462288FB6047C88F9B01"><enum>(1)</enum><header>Organization</header>
<subparagraph id="IDF5EECBD62E394B90BA8D313F941F3D67"><enum>(A)</enum><header>Purpose</header><text>The
Agency, as receiver appointed pursuant to subsection (a)—</text>
<clause id="IDB701A4D10D1842D98317269AD35E5EE8"><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="ID9CD547A0B19C4FD9AE24C9F27351398E"><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="IDEF6B6B88BE6D4004BAA8A2BB43DEC876"><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="ID1941171F1E7C451FBC51B276E0B698D9"><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="IDB0AABB0EC8634531937E0D2DFB99BE5B"><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="ID4731ED4787994DBFB37CE9597FDA89E3"><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="IDCF79D853D2394A71AEC7386872143EA5"><enum>(2)</enum><header>Charter and
establishment</header>
<subparagraph id="IDA7F2330DFD0C42F3B815568AABF9E201"><enum>(A)</enum><header>Transfer of
charter</header>
<clause id="IDC08B667F56F74E92A3C1EA802E83575A"><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="ID748E1E8296654CE0ABF6C3DDF33FA303"><enum>(I)</enum><text>succeed to the
charter of the Federal National Mortgage Association, as set forth in the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name>; and</text>
</subclause><subclause id="ID4F6A3EF0B99A48C392C8AA0E784AAFEC"><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="IDE3A4154AE9A345ECA22432EB3855A014"><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="ID4AF789679EB74FEAB410B2F42937327F"><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="ID6E21E12FE6F549688A8AE73B5FABA1DF"><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="IDA0A0871B7AC046EDBACF4AA5767A37BD"><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="IDD08030B0E0DB4602A142E759063F14C0"><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="ID529CD1EC61264D2F97176D21E7034078"><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="IDD18B07CBEFA34BE19632B76CB60DA68D"><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="IDAC8F0E35039C4F27B99AD0410F0E0A91"><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="ID4715B8579F75414A9810AE42D2B19EBA"><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="ID2FE526CBC0414191BB495BAF71746DDB"><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="IDAD88564C894747EFB960F592CDFC1609"><enum>(3)</enum><header>Capital
stock</header>
<subparagraph id="IDD904E60807E745BF8C38D9E2912B3A57" 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="IDA792C589672F4814AA12DEF5ECF9A622" 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="ID34F0E6CFC5374486970E2302F73AA1E2"><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="IDA7118B2464E44106B9B8026B87000F30"><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="IDFEA3F8E12DCE468398ADF028F98492A0"><enum>(6)</enum><header>Winding
up</header>
<subparagraph id="ID3CC0E5870ACA4A18B2E473979D69FB2B"><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="ID2FE9853968F54B6F90540FA5CE01343D"><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="ID9B87DCDE216B4949AEEF5129A971A1B8"><enum>(C)</enum><header>Termination of
status as limited-life regulated entity</header>
<clause id="IDBAAA1035FC9A41B880302240E02A1E84"><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="ID52C3BAE378F449DA83D742704F1A5008"><enum>(I)</enum><text>the status of the
limited-life regulated entity as such shall terminate; and</text>
</subclause><subclause id="IDE59A333D60A344859BD6757D80E924BB"><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="IDEF56A39FC9184732A4D71F0A3E3F0122"><enum>(ii)</enum><header>Divestiture of
remaining stock, if any</header>
<subclause id="IDBF2361425D0A4429904DB05EC940E860"><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="IDF3DCC2AC79AA459F83385C53648183B2"><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="ID0E9D7C715BC14AE8B3411A90D599F3B3"><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="ID17FB094689C64448933DAB0D8D7CB55A"><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="IDFD0A1C439B6342E9931447CC5877CF59"><enum>(7)</enum><header>Transfer of
assets and liabilities</header>
<subparagraph id="IDA54FF49CE72A4FCFA77908D58BA65FB6"><enum>(A)</enum><header>In
general</header>
<clause id="ID7720EA194C4E4089930D1B0B59FB9DFF"><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="IDCBE2610A4B6E4E4FBD4754D62F979792"><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="ID005A05AD884A4C84A2A8321AB90D2AAF"><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="IDACDE417A7D044DA7BB29A93CE629B8B9"><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="ID2236B04DB10840ABAE7BACC62666838F"><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="ID015850C8E1B84BCA8DBF41E62E924152"><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="ID2F507B43F23449D29B51ED820834B2BB"><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="IDA9BDF3A1253A4AEDBB3FBFBFD221FA05"><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="ID42602167F2634F90B8DCE4A48E790196"><enum>(9)</enum><header>Powers of
limited-life regulated entities</header>
<subparagraph id="ID34DF9A3B30214BB6966C7BDEEAF9FD2D"><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="ID968DCFC20DC344048755EC8805CE66C0"><enum>(i)</enum><text>the Agency
may—</text>
<subclause id="IDCE55FA414B344403A6FD52BA36DB050C"><enum>(I)</enum><text>remove the
directors of a limited-life regulated entity;</text>
</subclause><subclause id="ID7458FB24DDDB4166A5DD9C6AFED8E145"><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="ID466C9661C737449D8BE5E5120CE400E9"><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="ID7857FA3BD454406E8EB46563109FD049"><enum>(ii)</enum><text>the board of
directors of a limited-life regulated entity—</text>
<subclause id="ID5EAD088EED0B43F0829E17D344F2B578"><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="ID49804C7978EA4331A538D3B918BC1EEC"><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="IDB6FBE824C7BE4F728E64F4E830A7F7A6"><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="IDC5195C3AD750496FA8CD5CAEE6BDA874"><enum>(10)</enum><header>No federal
status</header>
<subparagraph id="ID8103FF2F2A9349328CF20325C9385BDF"><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="IDBDEA8FEFE65F4127AD90C12BED3AA953"><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="IDBCA5599D052B47A982F2B7501CE124BF"><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="IDE83D0A444BA6478D9FCE96B4EEE675C6"><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="IDA0FE691FE882447DADAD0B674A256162"><enum>(11)</enum><header>Authority to
obtain credit</header>
<subparagraph id="ID04D5A90CC45D43478ABAA4BF6E8AFAE2"><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="ID2AFF6C26F9614B3D996A7F0C2B8E3E04"><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="IDB78E14158AE24CD2AF2AECFD7B757797"><enum>(i)</enum><text>with priority
over any or all of the obligations of the limited-life regulated entity;</text>
</clause><clause id="ID327A0C0F6DB54E439267351397DCA4EF"><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="IDE62800991A80420A8FDE0FE568916229"><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="IDBAFB821860DC4A48B9039EFCEB86595E"><enum>(C)</enum><header>Limitations</header>
<clause id="IDFCAB7E8D8E984A53BCFE507BDC601388"><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="IDB78159287799484A8F7F89E3281B71C5"><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="ID6AEAAC2CF92A4223B8DEA4A568D18AF8"><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></paragraph><paragraph id="ID2743BEBDE28E437CAAF401FC09DC02F4"><enum>(12)</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>
</paragraph><paragraph id="ID85EF4D07F4974E1EBE6B76CA8139A706"><enum>(13)</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="ID5C0DC811B723445BA59F79EB0E89CC39"><enum>(j)</enum><header>Other Agency
Exemptions</header>
<paragraph id="ID95CFA88127E444129047461B0743DA24"><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="ID636C5403DDAD45118A36CAC5A23CA1FF"><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="IDAA816A0487024DA6ACAA3161712E5D89"><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="IDBFAE5B6E5806476386F0EEF07A65C870"><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="IDE059146B6D9545C1B8DE5B504BB5B999"><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="ID4940916251AE4416AB1D575232F50858"><enum>(b)</enum><header>Technical and
Conforming Amendments</header><text>The <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4501 et seq.) is amended—</text>
<paragraph id="ID728ED729E12E400AB0B5D5B8203FD9BE"><enum>(1)</enum><text>in section 1368
(12 U.S.C. 4618)—</text>
<subparagraph id="ID30E078F22A2449319EBF8E02F4E3223A"><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="ID0A43CD51A5964158A5223B1258472C98"><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="ID6B3740A956314116BEFEAC01FFCDEF14"><enum>(2)</enum><text>in section 1369C
(12 U.S.C. 4622), by striking <quote>enterprise</quote> each place that term
appears and inserting <quote>regulated entity</quote>;</text>
</paragraph><paragraph id="IDCAEEF3E7C7D24DF2ACA57E271F337829"><enum>(3)</enum><text>in section 1369D
(12 U.S.C. 4623)—</text>
<subparagraph id="IDA1A38EF36FA4499EACA887FA450B6407"><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="IDC0E3F07620CD46479896DAC72DC2C471"><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 id="ID31C8E3FD944947CDAF4673D8D3B9F33D"><enum>(4)</enum><text>by striking
sections 1369, 1369A, and 1369B (12 U.S.C. 4619, 4620, and 4621).</text>
</paragraph></subsection></section></subtitle><subtitle id="ID194CD9FBB0C442F1A4D5B9B2E4AEC32D"><enum>D</enum><header>Enforcement
Actions</header>
<section id="IDFE872D5BAE624FD4A5FADCF9874C9122"><enum>151.</enum><header>Cease-and-desist
proceedings</header><text display-inline="no-display-inline">Section 1371 of
the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4631) is amended—</text>
<paragraph id="IDDF470974C7684BAFB10C00D7984D8D97"><enum>(1)</enum><text>by striking
subsections (a) and (b) and inserting the following:</text>
<quoted-block id="IDE910957BF83F41CF92757AEDC96EACD8" style="OLC">
<subsection id="IDB41FF97486F246CCA55717F43AA4F909"><enum>(a)</enum><header>Issuance for
Unsafe or Unsound Practices and Violations</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
Finance Facility, 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
Finance Facility 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>
</subsection><subsection id="ID5BF8EC27BD7A4B8CBA12D7948B5880EF"><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 credit risk,
market risk, operations, or corporate governance, 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="ID33E3DC2B1A534BE9A555C1C08985BFC5"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="IDDFB2EA7231A745368195514A0F7EE711"><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="IDD36E5EDB038C41D08628309617771F9C"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="ID7828E384AF314F789370E0E07EBA8F8A"><enum>(i)</enum><text>by
striking <quote>or director</quote> and inserting <quote>director, or
entity-affiliated party</quote>; and</text>
</clause><clause id="ID08743D0201284BEB985E5FB20D5A83F3"><enum>(ii)</enum><text>by
inserting <quote>or entity-affiliated party</quote> before
<quote>consents</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="ID1A9AEA3786FD4211BD70E863809C82D2"><enum>(3)</enum><text>in each of
subsections (c), (d), and (e)—</text>
<subparagraph id="ID2F145E875BA8422FB4BB2BE253B1588F"><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="ID1192208FFCE94D3C9810429A6AD7C4EF"><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="ID4D15C00029464C05B32930A6032D9AF6"><enum>(C)</enum><text>by striking
<quote>conduct</quote> each place that term appears and inserting
<quote>practice</quote>;</text>
</subparagraph></paragraph><paragraph id="IDDD4F6768849947288A6AC70F04D47CA4"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph id="IDC4010A3698F244F4873DF2BE646E09CC"><enum>(A)</enum><text>in the matter
preceding paragraph (1)—</text>
<clause id="ID89C50A5F87EF40F6B919E3E904623D11"><enum>(i)</enum><text>by
striking <quote>or director</quote> and inserting <quote>director, or
entity-affiliated party</quote>;</text>
</clause><clause id="ID6DE34178BD2145C49A619812E0F258BF"><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="IDD58346129A7E49518CA55775E41FE0EC"><enum>(B)</enum><text>in paragraph
(1)—</text>
<clause id="IDF1224CE944704B818F0C3EDDE12B78FD"><enum>(i)</enum><text>by
striking <quote>to require an executive officer or a director to</quote>;
and</text>
</clause><clause commented="no" id="IDA6FF0471307B4A60AE23BBBEECB2C17E"><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="ID57EDEF56C1114DE79A0F2A1F959B53DB"><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="IDA4CA805B111242BB991F6786DA5DA7AA"><enum>(iv)</enum><text>by
striking subparagraph (B) and inserting the following:</text>
<quoted-block id="IDD13CA284BBE24298938C0B4A959EA995" style="OLC">
<subparagraph id="ID93FA682E4B4C4D3E94B10190550C485C"><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="ID9E2475317C0F4B22B118729C43DCBBF6"><enum>(C)</enum><text>in paragraph (4),
by inserting <quote>loan or</quote> before <quote>asset</quote>;</text>
</subparagraph></paragraph><paragraph id="ID44E21B2784DA44C7AD9722F64775395F"><enum>(5)</enum><text>in subsection
(e), by inserting <quote>or entity-affiliated party</quote>—</text>
<subparagraph id="ID001EA4286A9E4CFA8E6717818BCE463D"><enum>(A)</enum><text>before <quote>or
any executive</quote>; and</text>
</subparagraph><subparagraph id="IDB4E167F580F1409F8B778C50E31E4DD8"><enum>(B)</enum><text>before the period
at the end; and</text>
</subparagraph></paragraph><paragraph id="IDBDBD5F3B7C2E46EEAABFF477D099C414"><enum>(6)</enum><text>in subsection
(f)—</text>
<subparagraph id="IDDCBDFE6364EF494092E2E512F845AF10"><enum>(A)</enum><text>by striking
<quote>enterprise</quote> and inserting <quote>regulated entity, finance
facility,</quote>; and</text>
</subparagraph><subparagraph id="IDE4FA1349379A4C33B3307ADCF5F1B2F0"><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="ID3B19BC4EA4494F44BE1530033D7475DB"><enum>152.</enum><header>Temporary
cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1372 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4632) is amended—</text>
<paragraph id="IDFA541B8084B04947994FFBB0D5EF6E91"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="IDFCF6D8ADC5D54300A36B90D721CB4F32" style="OLC">
<subsection id="IDEA904138726D44AEBAC85B4178EEE6EE"><enum>(a)</enum><header>Grounds for
Issuance</header>
<paragraph id="ID387ADD01E6934D589BF68FC2F8117DD9"><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="ID494DA47FCE9C40D8B2C919EDEACF70C9"><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="IDE18B0DD7B1C14BEDA4064732FF576F1A"><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="ID87EF5DD2FC4B43E486BF39C90766C6DB"><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="IDBB40DB32234D499893EFB27773849665"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="IDDD6BE31977DF43FBB7DC8C634B9E4986"><enum>(A)</enum><text>by striking
<quote>or director</quote> and inserting <quote>director, or entity-affiliated
party</quote>; and</text>
</subparagraph><subparagraph id="IDFBB54AB30F374EF0BC2FAE135A7CDBA3"><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="IDDE1CFFC2E944467C987C700804BE3095"><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="IDBC378999583341EFB1623E4AB43357FB"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph id="ID505FC252300F47379F038EF8B58161FD"><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="ID6BC6894E05BE4B59B0E412348041EFB1"><enum>(B)</enum><text>by striking
<quote>An enterprise</quote> and inserting <quote>A regulated entity</quote>;
and</text>
</subparagraph></paragraph><paragraph id="ID3DAB344BD191414EB81A3D27CF595B70"><enum>(5)</enum><text>in subsection
(e)—</text>
<subparagraph id="ID517C2EFA950442E1BFE9D44EB0E474C5"><enum>(A)</enum><text>by striking
<quote>request the Attorney General of the United States to</quote>; and</text>
</subparagraph><subparagraph id="ID68F8ED39BD8849BAA3F9893427B61336"><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="IDDD025E9044FA40CCBF52DB72B1491EE2"><enum>153.</enum><header>Removal and
prohibition authority</header>
<subsection id="IDACC2B8D404344C0CAF56C749F8F143B9"><enum>(a)</enum><header>In
General</header><text>Part 1 of subtitle C of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4631 et seq.) is
amended—</text>
<paragraph id="IDD384AD2B97DB4FD0924B60395F007412"><enum>(1)</enum><text>by redesignating
sections 1377 through 1379B (12 U.S.C. 4637–4641) as sections 1379 through
1379D, respectively; and</text>
</paragraph><paragraph id="ID774B22CC8F854F0FAFA90938D0E5A9C0"><enum>(2)</enum><text>by inserting
after section 1376 (12 U.S.C. 4636) the following:</text>
<quoted-block id="IDF3157F8E2F114D8BB337F995D4B94CF9" style="OLC">
<section id="IDD417D63E9002402DB998F9988FAC53CA"><enum>1377.</enum><header>Removal and
prohibition authority</header>
<subsection id="IDD910E786541E46CB84140E8AA5ECACD8"><enum>(a)</enum><header>Authority To
Issue Order</header>
<paragraph id="IDBEACDC0A4D274ECD9530158CF408387A"><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 Finance Facility
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="ID82CF1ADC9E38495B8DA58205A4F35C5D"><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 Finance Facility, if the Director determines
that—</text>
<subparagraph id="IDA013EB80B91C4FCABD3365E09D5BFC8E"><enum>(A)</enum><text>that party,
officer, or director has, directly or indirectly—</text>
<clause id="ID2D3B9604197744549E2C32903570A4DC"><enum>(i)</enum><text>violated—</text>
<subclause id="IDE3E2FCCDE83A4A83B94137710C808F96"><enum>(I)</enum><text>any law or
regulation;</text>
</subclause><subclause id="ID009CADB4C5704B4FA9A75D53765588A3"><enum>(II)</enum><text>any
cease-and-desist order which has become final;</text>
</subclause><subclause id="ID2C66B920A65149379B99E6AFE8862F10"><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="ID59AFCFFBB18B4495A383C8251ECEE57C"><enum>(IV)</enum><text>any written
agreement between such regulated entity and the Director;</text>
</subclause></clause><clause id="ID492E36F220454C9BBF6A245EE8010359"><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="IDF2ACEDE6573246738C8ADD2C67B1A507"><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="ID846B5CABCB014B88B48441E34C07D173"><enum>(B)</enum><text>by reason of the
violation, practice, or breach described in subparagraph (A)—</text>
<clause id="IDC2568AC3E8244F36AD111C2125E2E2E8"><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="ID207F7DAB40954256B1A8881DCFBC6BD2"><enum>(ii)</enum><text>such party has
received financial gain or other benefit; and</text>
</clause></subparagraph><subparagraph id="ID5C78E37A75E44E84ACD462AA6FA387C4"><enum>(C)</enum><text>the violation,
practice, or breach described in subparagraph (A)—</text>
<clause id="ID5D563E0C1E7F41A68167F65D06F56B81"><enum>(i)</enum><text>involves personal
dishonesty on the part of such party; or</text>
</clause><clause id="IDF4222ED2A906494789C2BF4FD831D713"><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="ID61A37F9BEEB442F5A5E282D71AFA93CE"><enum>(b)</enum><header>Suspension
Order</header>
<paragraph id="ID746BCA74D9514827B7684F74EF5C2196"><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="ID8641C7789E614E578571FF8E8077DF14"><enum>(A)</enum><text>determines that
such action is necessary for the protection of the regulated entity; and</text>
</subparagraph><subparagraph id="IDAB0C37F101114B74A2A025BF28821438"><enum>(B)</enum><text>serves such party
with written notice of the order.</text>
</subparagraph></paragraph><paragraph id="ID95EA041BDD8F4560923111751521B5D2"><enum>(2)</enum><header>Effective
period</header><text>Any order issued under this subsection—</text>
<subparagraph id="ID6491423CE60B4F6EB94F86D4A6C61F70"><enum>(A)</enum><text>shall become
effective upon service; and</text>
</subparagraph><subparagraph id="ID163AC62C6AEE4EF2A0EB29E4DE9C3BB0"><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="ID61A0C4621F444C89BADD860012B3489D"><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="ID8AD2466D646747F487C41F1A96268164"><enum>(ii)</enum><text>the effective
date of an order issued under subsection (b).</text>
</clause></subparagraph></paragraph><paragraph id="ID835022FDE74C434580E35B9D0EA7C7FE"><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="IDCFF9D5BBE33D4029A69B09670ACCC743"><enum>(c)</enum><header>Notice,
Hearing, and Order</header>
<paragraph id="ID6E6EC738A3EA4BEA91DB8D68954F66BA"><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="ID798D3D1B5495414D97E18A46F413E718"><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="ID10A0D5CDA06A452EA8C0A1473AA8CCD3"><enum>(A)</enum><text>the party
receiving such notice, and good cause is shown; or</text>
</subparagraph><subparagraph id="ID78554E2283994352975E0A8AC35E3C31"><enum>(B)</enum><text>the Attorney
General of the United States.</text>
</subparagraph></paragraph><paragraph id="ID94DEA132FCA64510B44812C574D006F5"><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="ID2919EEC432AF4F04BC9D44DF43A5B57A"><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="IDED63EFEF2DC841BB98F9CBAC38DA6862"><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="IDCAAF0A56BA164D2BB651A1BCE3CB664D"><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="IDE08E1927E1684258A0D2EBE3A759FC6D"><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="ID64D8CFA5D59143A3A2F2176F05CCE2FF"><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="IDD81BBC406292449E8637FA122E625564"><enum>(1)</enum><text>participate in
any manner in the conduct of the affairs of any regulated entity or the Finance
Facility;</text>
</paragraph><paragraph id="IDADE788D2FF8143B0BFDDE11E293ED4FE"><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="IDACFFC4C1A4D64670BE779189534DE38F"><enum>(3)</enum><text>violate any
voting agreement previously approved by the Director; or</text>
</paragraph><paragraph id="ID3C0FFC7F5D1149F4B3E4D196EDCBB8EF"><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 Finance Facility.</text>
</paragraph></subsection><subsection id="ID0DB4F04230BF4239B8200F683811571B"><enum>(e)</enum><header>Industry-Wide
Prohibition</header>
<paragraph id="ID20208E339B8D4EB3BBB2716C1DFE80AF"><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 Finance Facility, or prohibited from
participating in the conduct of the affairs of a regulated entity or the
Finance Facility, 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 Finance Facility.</text>
</paragraph><paragraph id="ID131CFF5C21C4416CBC3B10A7E069341B"><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 Finance Facility, 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 Finance Facility described in the written consent. Any such consent shall
be publicly disclosed.</text>
</paragraph><paragraph id="IDFCEFA21D36CA494A8FC45C852824E9B2"><enum>(3)</enum><header>Violation of
paragraph <enum-in-header>(1)</enum-in-header> treated as violation of
order</header><text>Any violation of paragraph (1) by any person who is subject
to an order issued under subsection (h) shall be treated as a violation of the
order.</text>
</paragraph></subsection><subsection id="IDC4D278DD42F64FC2AEB6EF6E85D3C8C2"><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="ID13B556550C2247D6B3839EC53EE69F3D"><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="IDA6BE1DE284DC45519FE181538050A816"><enum>(h)</enum><header>Suspension or
Removal of entity-affiliated Party Charged With Felony</header>
<paragraph id="IDA2DBB0C2F76D458FB0AB5AD05D162784"><enum>(1)</enum><header>Suspension or
prohibition</header>
<subparagraph id="IDAE55668BF6CB42BA822B212CE8163CBB"><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="ID094D55A4E4454E578DC4BAF374564F43"><enum>(B)</enum><header>Provisions
applicable to notice</header>
<clause id="IDFAB49D32DDDB4574A14E1E67DF314EA8"><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="ID74B842A891B84FEDBF4EE2368E49A301"><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="ID6A9C6E17EC4345EC91D473BE7F83D0A3"><enum>(2)</enum><header>Removal or
prohibition</header>
<subparagraph id="IDED477C7875A24DE7A03868D5D3D83AE0"><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="ID0536BD985ADF4DEC9AF95B2AE0747AA0"><enum>(B)</enum><header>Provisions
applicable to order</header>
<clause id="ID55C24518D62B4E1AA70A14AC07767562"><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="ID092B7891EF604F3BB67969A8C69F3461"><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="ID741FA51586654603AFDEFD8548C0B825"><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="IDAEBA13D5553D4455AC55E0783E04B5B8"><enum>(3)</enum><header>Authority of
remaining board members</header>
<subparagraph id="ID4F9CD0D33C1840B08E483996129F4EC1"><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="ID70AD407FE2BC4BC493921430B3C99A5B"><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="ID69819961F8114185A0999E238F7721EB"><enum>(4)</enum><header>Hearing
regarding continued participation</header>
<subparagraph id="ID40B5D524B9AA44C9BFB72CEF652287BA"><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="ID8DBF8D6CF0944ACDA5D8537CC942F283"><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="ID56D3D2A4529B47DDB43815D64C2F7F13"><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="ID006E9C874278470581AEC08669D1EDE6"><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="IDBC44B702D7884BB18895C55E51FC1113"><enum>(b)</enum><header>Conforming
Amendments</header>
<paragraph id="IDC7209548258E45B7975FE8384676EE65"><enum>(1)</enum><header>Safety and
soundness act</header><text>Subtitle C of title XIII of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (42 U.S.C. 4501 et seq.) is
amended—</text>
<subparagraph id="IDB7336A9882DA402AAE17136CBEDAAE2A"><enum>(A)</enum><text>in section
1317(f), by striking <quote>section 1379B</quote> and inserting <quote>section
1379D</quote>;</text>
</subparagraph><subparagraph id="ID1A95FC4C82E2425B978A1E4132A66DEF"><enum>(B)</enum><text>in section
1373(a)—</text>
<clause id="IDEC8109B76F2A47A6AFBF4B365FA61A03"><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="IDB4532713ACCA40B78D780FA51CF5F856"><enum>(ii)</enum><text>in
paragraph (2), by inserting “or 1377” after ”1371”; and</text>
</clause><clause id="IDBE1086FC590A4C308C4DB0179EB40833"><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="ID3D06C2A529594C3689DB6C69CB6A5ECE"><enum>(C)</enum><text>in section
1374(a)—</text>
<clause id="ID3A15058A27CF48318FABC72535638AA7"><enum>(i)</enum><text>by
striking <quote>or 1376</quote> and inserting <quote>, 1376, or 1377</quote>;
and</text>
</clause><clause id="ID9AA9DAFC615A46F28225AB914B203267"><enum>(ii)</enum><text>by
striking <quote>such section</quote> and inserting <quote>this
title</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="ID8A5180CCDA394D559B8B3139FF886786"><enum>(2)</enum><header>Fannie mae
charter act</header><text>Section 308(b) of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1723(b)) 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 <act-name parsable-cite="FHEFSSA">Federal
Housing Enterprises Financial Safety and Soundness Act of 1992</act-name>
temporarily results in a lesser number, the</quote>.</text>
</paragraph><paragraph id="IDF2738249C18A43BE8AA01A8EB48DD668"><enum>(3)</enum><header>Freddie mac
charter act</header><text>Section 303(a)(2)(A) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name> (12 U.S.C. 1452(a)(2)(A)) is amended, in the second sentence, by
striking <quote>The</quote> and inserting <quote>Except to the extent action
under section 1377 of the <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> temporarily
results in a lesser number, the</quote>.</text>
</paragraph></subsection></section><section id="ID82E068207B2349358D07F625779A607F"><enum>154.</enum><header>Enforcement
and jurisdiction</header>
<subsection id="ID2FF1E8DE5D5C450BA04B224951ED9C43"><enum>(a)</enum><header>In
General</header><text>Section 1375 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4635) is amended—</text>
<paragraph id="ID5B87D7743BE940F9903A63A077E9638F"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="IDF30D6D3D1C484362B1BA033EBD71C067" style="OLC">
<subsection id="ID38FDF4B159234ACEA3F9B7F20F8CF30B"><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, order,
or subpoena issued under this title, 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, order, or
subpoena.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID544E5B7FB2D642A49622BE6A6E3D14E0"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID42E293EC81844E07B9562D27851A2D39"><enum>(A)</enum><text>by striking
<quote>section 1371, 1372, or 1376 or</quote>;</text>
</subparagraph><subparagraph id="IDD1882B7965D44037A4215B3EF331811C"><enum>(B)</enum><text>by inserting
<quote>subtitle C, or section 1313A</quote> after <quote>subtitle B,</quote>;
and</text>
</subparagraph><subparagraph id="IDCF4DD7C498EB42888F8678B8320BB1ED"><enum>(C)</enum><text>by inserting
<quote>, standard,</quote> after <quote>notice</quote> each place that term
appears.</text>
</subparagraph></paragraph></subsection><subsection id="ID2708853558EA48AAAE36A3005A6D0A11"><enum>(b)</enum><header>Conforming
Amendment</header><text>Section 1379B of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4641) is amended by striking
subsection (c) and redesignating subsection (d) as subsection (c).</text>
</subsection></section><section id="ID66AD77E213574AB49AB3816B195892CA"><enum>155.</enum><header>Civil money
penalties</header><text display-inline="no-display-inline">Section 1376 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4636) is amended—</text>
<paragraph id="IDCC7BF75C1E1041DFA14333FEE41CAF1A"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="ID3B0D6D2445C3461D9B8E05B4607C1B4D" style="OLC">
<subsection id="IDD74CB595864142A585F4BEE25D20F15F"><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 executive offices
of a regulated entity or any entity-affiliated
party.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID4AD39A4229624DF1BF6C9E35E0C6AB4D"><enum>(2)</enum><text>by striking
subsection (b) and inserting the following:</text>
<quoted-block id="ID650FEF2BD8BF45429CC16D636EED6C33" style="OLC">
<subsection id="ID82CA389BA89F40DD9D73C10D6B983816"><enum>(b)</enum><header>Amount of
Penalty</header>
<paragraph id="ID5A5F5877495F44EC928904E1E5368D45"><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="ID8269548C2062412487CF08F2948603FD"><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="ID01429017D4AE46399C28BBAB29FDD75E"><enum>(B)</enum><text>violates any
final or temporary order or notice issued pursuant to this title;</text>
</subparagraph><subparagraph id="IDB954A5A302BC46E491FB492856C82DC3"><enum>(C)</enum><text>violates any
condition imposed in writing by the Director in connection with the grant of
any application or other request by such regulated entity;</text>
</subparagraph><subparagraph id="ID9B2065D20751461BA42D06A65EBB789B"><enum>(D)</enum><text>violates any
written agreement between the regulated entity and the Director; or</text>
</subparagraph><subparagraph id="IDF2D41D35139F4CF298B97D27E840CA50"><enum>(E)</enum><text>engages in any
conduct that the Director determines to be an unsafe or unsound
practice.</text>
</subparagraph></paragraph><paragraph id="IDEC5F9F6E035A4956938FBBCBEF04AAB1"><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="ID89298C4846434C289CC0F5E0296C92BC"><enum>(A)</enum><text>the regulated
entity or entity-affiliated party, respectively—</text>
<clause id="IDCC4D1BF7C8D7451F90C4091A5AAA7492"><enum>(i)</enum><text>commits any
violation described in any subparagraph of paragraph (1);</text>
</clause><clause id="IDAF4938B38AA949B9B126923E33F516C2"><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="IDC8DEF7D11E1B478B88E366DABD41555C"><enum>(iii)</enum><text>breaches any
fiduciary duty; and</text>
</clause></subparagraph><subparagraph id="ID3CAB94A75D454921A25E3FBED683CD25"><enum>(B)</enum><text>the violation,
practice, or breach—</text>
<clause id="ID54594310907946A7A21D8FADE748E866"><enum>(i)</enum><text>is part of a
pattern of misconduct;</text>
</clause><clause id="IDC7D63A0E12844BC7A44F7E627E7560CB"><enum>(ii)</enum><text>causes or is
likely to cause more than a minimal loss to the regulated entity; or</text>
</clause><clause id="IDBBC76747A1D7496BB298B14792915F19"><enum>(iii)</enum><text>results in
pecuniary gain or other benefit to such party.</text>
</clause></subparagraph></paragraph><paragraph id="ID1D400F38A52F4801B5042F65CD3F35AA"><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="IDAB07590DF44F4DE3941CA875C36E77C3"><enum>(A)</enum><text>knowingly—</text>
<clause id="ID8A1FB37F714544719F190A31B6B2FE8F"><enum>(i)</enum><text>commits any
violation described in any subparagraph of paragraph (1);</text>
</clause><clause id="ID6B02379E840C4B2090A541FB88179328"><enum>(ii)</enum><text>engages in any
unsafe or unsound practice in conducting the affairs of the regulated entity;
or</text>
</clause><clause id="IDC2DE3FC3BF5347F8AC360103D8900373"><enum>(iii)</enum><text>breaches any
fiduciary duty; and</text>
</clause></subparagraph><subparagraph id="ID3A8E5794CFAC4883A577E17AB7763459"><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="ID44CC2107822D41DB906806A9F8AB2850"><enum>(4)</enum><header>Maximum amounts
of penalties for any violation described in paragraph
<enum-in-header>(3)</enum-in-header></header><text>The maximum daily amount of
any civil penalty which may be assessed pursuant to paragraph (3) for any
violation, practice, or breach described in paragraph (3) is—</text>
<subparagraph id="IDE379525054564E938FAE7EEB47DD3A27"><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="ID5B76F4ACD75B43E8A712D685F941CB8B"><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="ID836DF8D9B8BD45AA920C03D218F067CA"><enum>(3)</enum><text>in subsection
(c)—</text>
<subparagraph id="IDDBA3BB7038CA4F52A87DFA7AD17762AB"><enum>(A)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</subparagraph><subparagraph id="IDDE28CD23BA46443884092AB8B047B7D4"><enum>(B)</enum><text>by inserting
<quote>or entity-affiliated party</quote> before <quote>in writing</quote>;
and</text>
</subparagraph><subparagraph id="ID537C68192C9244B1980B2032E954E380"><enum>(C)</enum><text>by inserting
<quote>or entity-affiliated party</quote> before <quote>has been
given</quote>;</text>
</subparagraph></paragraph><paragraph id="ID6CFBDF02713D4EC3A046152DF852C050"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph id="ID0791A4ECE5A64B429813EE5DA8220FF9"><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="ID9CAE57AA1CE84BEDBFE47559A461D9BE"><enum>(B)</enum><text>by striking
<quote>an enterprise</quote> and inserting <quote>a regulated
entity</quote>;</text>
</subparagraph><subparagraph id="IDA6BACC53EA7C45159C02B031447E482E"><enum>(C)</enum><text>by striking
<quote>the enterprise</quote> and inserting <quote>the regulated
entity</quote>;</text>
</subparagraph><subparagraph id="IDB963F4E82E7148D6B9FD84D22A9737A6"><enum>(D)</enum><text>by striking
<quote>request the Attorney General of the United States to</quote>;</text>
</subparagraph><subparagraph id="ID6B79F4DB3FA442C6A482236E905B17D9"><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="IDA718ACEFEB8748ED893CF878E396D939"><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="ID1FCF1F3220BB486EBAFC820C4856B101"><enum>(G)</enum><text>by striking
<quote>and section 1374</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID61BCC57415524F53B7FACB0640211932"><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="ID67113EA793E74655800E8A6F577BA984"><enum>156.</enum><header>Criminal
penalty</header>
<subsection id="ID06E888BA52984CE3B1A4B6DC82BDD81E"><enum>(a)</enum><header>In
General</header><text>Subtitle C of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4631 et seq.), as amended by this
Act, is amended by adding at the end the following:</text>
<quoted-block act-name="Federal Housing Enterprises Financial Safety and Soundness Act of 1992" id="ID5F7EDE7EED1D4A88A3AEBE27D5836589" style="OLC">
<section id="ID3BEEBEF618D14D759AAE47E1609A8533"><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
section 3571 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="IDE07FB274EA784677A9891684F70E30A1"><enum>(b)</enum><header>Technical and
Conforming Amendments</header><text>The <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name> (12 U.S.C. 4501 et seq.) is amended—</text>
<paragraph id="ID735BF16F761D4D5DB4218D59FBE499E6"><enum>(1)</enum><text>in section 1379
(as so designated by this Act)—</text>
<subparagraph id="IDE7409FBFD3D74AD9A2479FBE74737C70"><enum>(A)</enum><text>by striking
<quote>an enterprise</quote> and inserting <quote>a regulated entity</quote>;
and</text>
</subparagraph><subparagraph id="ID56A568608E7D422CBB142306675E4D8E"><enum>(B)</enum><text>by striking
<quote>the enterprise</quote> and inserting <quote>the regulated
entity</quote>;</text>
</subparagraph></paragraph><paragraph id="IDE96E798F39BD4C9D8FF0C1D4EAD39748"><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="IDAD581C3C7D0B448991700F30C8F3C4AA"><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="IDE5D3E871E9104321AC402AC82EDC4C09"><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="ID45BC274DA4474BE8AED59575D20F5345"><enum>157.</enum><header>Notice after
separation from service</header><text display-inline="no-display-inline">Section 1379 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4637), as so designated by this
Act, is amended—</text>
<paragraph id="IDDDF860479A124ADEA54F6D3FC7231425"><enum>(1)</enum><text>by striking
<quote>2-year</quote> and inserting <quote>6-year</quote>; and</text>
</paragraph><paragraph id="IDCAFA11964BC248C0986FBC7B5B408E74"><enum>(2)</enum><text>by inserting
<quote>or an entity-affiliated party</quote> after <quote>enterprise</quote>
each place that term appears.</text>
</paragraph></section><section id="ID551785A0AF2948F9806F614DDEB72FF4"><enum>158.</enum><header>Subpoena
authority</header><text display-inline="no-display-inline">Section 1379B of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (12 U.S.C. 4641) is amended—</text>
<paragraph id="ID94ED025C929B4000A9790E5B3E4D113E"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="ID55FC52F8D0054EEDB39C13195898FCBC"><enum>(A)</enum><text>in the matter
preceding paragraph (1)—</text>
<clause id="IDAD9C1132BC024E7D8DE1E55BE7808901"><enum>(i)</enum><text>by
striking <quote>administrative</quote>;</text>
</clause><clause id="ID45D7D6CA741E433F8F3B30441BC67543"><enum>(ii)</enum><text>by
inserting <quote>, examination, or investigation</quote> after
<quote>proceeding</quote>;</text>
</clause><clause id="ID0C392A912A994857961FF7F88E05128E"><enum>(iii)</enum><text>by striking
<quote>subchapter</quote> and inserting <quote>title</quote>; and</text>
</clause><clause id="IDC251D7295BA1419AA6B91AC7A457213A"><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="ID146DF77FCEA548E5816777188200039D"><enum>(B)</enum><text>in paragraph (4),
by striking <quote>issued by the Director</quote>;</text>
</subparagraph></paragraph><paragraph id="ID20851915FD0A4AAAB482AF1B56C741A9"><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="ID3394CC36402C41F99D30A7DBEC44D271"><enum>(3)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block id="ID5A4932EFE58F4688B077410870F8D25F" style="OLC">
<subsection id="ID4B21E62E33124F18AE80F6FAC4FBC7A7"><enum>(c)</enum><header>Enforcement</header>
<paragraph id="ID0E35E301EDE340BE9E2469A5230BF905"><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="IDA583D055051247C7AD1FCA80653D4DC3"><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="IDB9493DFA5C88434EB8457749041EF821"><enum>(4)</enum><text>in subsection
(d), by inserting <quote>enterprise-affiliated party</quote> before <quote>may
allow</quote>; and</text>
</paragraph><paragraph id="ID09190E74B69B4D3DBD5B505C93FBDFE0"><enum>(5)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id35909A31AD1641A4954AF300357364F0" style="OLC">
<subsection id="ID83FEFBB61D4A47D294ACE3A6C25FA5E6"><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="IDA433E01CA2274064B2B439C2599753DE"><enum>(1)</enum><text>attend
court;</text>
</paragraph><paragraph id="ID1CB1B065830944CAAFB57495B9484351"><enum>(2)</enum><text>testify in
court;</text>
</paragraph><paragraph id="ID9EAE16D8CE8A4EA89C4DA5C2577F16E5"><enum>(3)</enum><text>answer any lawful
inquiry; or</text>
</paragraph><paragraph id="IDB0D94823F5B54AE7BC522BF3B43324A1"><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></section></subtitle><subtitle id="IDF4F6AC067A164C47BED2EB4DA4AD5DD4"><enum>E</enum><header>General
Provisions</header>
<section id="IDA2B7C9C751B44C039D42E5487CC3C932"><enum>161.</enum><header>Conforming and
technical amendments</header>
<subsection id="ID9A7DD2C9C047455A9ABD097D0D2431BA"><enum>(a)</enum><header>Amendments to
1992 Act</header><text>The <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4501 et seq.), as amended by this Act, is amended—</text>
<paragraph id="ID06A0457A665C47F782C3B033EF87BB42"><enum>(1)</enum><text>in section 1315
(12 U.S.C. 4515)—</text>
<subparagraph id="ID143FD019B2FD49F18B9A0240BF2A5404"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="IDE646D111A35347A28E7F60C6146F5E51"><enum>(i)</enum><text>by
striking <quote>(a) <header-in-text>Office
Personnel</header-in-text>.—The</quote> and inserting <quote>(a)
<header-in-text>In General</header-in-text>.—Subject to title III of the
<short-title>Federal Housing Enterprise Regulatory Reform
Act of 2007</short-title>, the</quote>; and</text>
</clause><clause id="ID4F91520207BD4134936228A0C995D3D6"><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="IDEDD1ECAEF7DC46528B9CCD9E74E227A4"><enum>(B)</enum><text>in subsection
(c), by striking <quote>the Office</quote> and inserting <quote>the
Agency</quote>;</text>
</subparagraph><subparagraph id="ID509D8D03CA724F028E7C4110B3EAE813"><enum>(C)</enum><text>in subsection
(e), by striking <quote>the Office</quote> and inserting <quote>the
Agency</quote>;</text>
</subparagraph><subparagraph id="ID45248EE022AB49F2A5D0B23EACB614D7"><enum>(D)</enum><text>by striking
subsections (d) and (f); and</text>
</subparagraph><subparagraph id="id2FE46DB8769A496DAEB208D6684DA8B9"><enum>(E)</enum><text>by redesignating
subsection (e) as subsection (d);</text>
</subparagraph></paragraph><paragraph id="ID90DE12B76D8047BA9EF76A125087BCFA"><enum>(2)</enum><text>in section 1319A
(12 U.S.C. 4520)—</text>
<subparagraph id="IDFBEB5F6EF368422B9F3AE9982D175E0B"><enum>(A)</enum><text>by striking
<quote>(a) <header-in-text>In General</header-in-text>.—</quote>; and</text>
</subparagraph><subparagraph id="ID0F5364D5664542E39083CCADDC2DBBD8"><enum>(B)</enum><text>by striking
subsection (b);</text>
</subparagraph></paragraph><paragraph id="IDFA0E0C4912ED4474B5732228EA70E255"><enum>(3)</enum><text>in section
1364(c) (12 U.S.C. 4614(c)), by striking the last sentence;</text>
</paragraph><paragraph id="IDE10BF2B04DB1411E8BEFF0B0124F89ED"><enum>(4)</enum><text>by striking
section 1383 (12 U.S.C. 1451 note);</text>
</paragraph><paragraph id="IDDB1B8DE7688648B6A662AE69D5DDB126"><enum>(5)</enum><text>in each of
sections 1319D, 1319E, and 1319F (12 U.S.C. 4523, 4524, 4525) by striking
<quote>the Office</quote> each place that term appears and inserting <quote>the
Agency</quote>; and</text>
</paragraph><paragraph id="ID01089D6743BA4CA6BE89663C3235A7D8"><enum>(6)</enum><text>in each of
sections 1319B and 1369(a)(3) (12 U.S.C. 4521, 4619(a)(3)), by striking
<quote>Committee on Banking, Finance and Urban Affairs</quote> each place that
term appears and inserting <quote>Committee on Financial
Services</quote>.</text>
</paragraph></subsection><subsection id="ID96093FA536B34812ACA91C7B919CCC42"><enum>(b)</enum><header>Amendments to
Fannie Mae Charter Act</header><text>The <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1716 et seq.) is amended—</text>
<paragraph id="IDC07198A4002F4A11921375A7DA19D704"><enum>(1)</enum><text>in each of
sections 303(c)(2) (12 U.S.C. 1718(c)(2)), 309(d)(3)(B) (12 U.S.C.
1723a(d)(3)(B)), and 309(k)(1) (12 U.S.C. 1723a(k)(1)), 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 Enterprise
Regulatory Agency</quote>;</text>
</paragraph><paragraph id="ID7EC9C1386996461DA1538FBD461CF722"><enum>(2)</enum><text>in section
309—</text>
<subparagraph id="ID1A7B7F33C9FD4B76B6B1789B0D251F57"><enum>(A)</enum><text>in subsection (m)
(12 U.S.C. 1723a(m))—</text>
<clause id="ID941E060268D94C8F8E59C160827256BC"><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
Enterprise Regulatory Agency, in a form determined by the Director</quote>;
and</text>
</clause><clause id="ID2CDC1935C9FF4F7B9864FD0FF5E28345"><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
Enterprise Regulatory Agency, in a form determined by the
Director</quote>;</text>
</clause></subparagraph><subparagraph id="ID03531DF832A24517A8246B909EDF99B4"><enum>(B)</enum><text>in subsection (n)
(12 U.S.C. 1723a(n))—</text>
<clause id="IDEEDD52A6EC9B4624823A9ECCBD99DEB1"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>and the Secretary</quote> and inserting
<quote>and the Director of the Federal Housing Enterprise Regulatory
Agency</quote>; and</text>
</clause><clause id="ID685A124003424D3F97543E7F65018011"><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 Enterprise
Regulatory Agency</quote>; and</text>
</clause></subparagraph><subparagraph id="ID3B6AA6F670234B39A2F46519EFA7A247"><enum>(C)</enum><text>in paragraph
(3)(B), by striking <quote>Secretary</quote> and inserting <quote>Director of
the Federal Housing Enterprise Regulatory Agency</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDA62F22E107514F92B3B9C17790717E4D"><enum>(c)</enum><header>Amendments to
Freddie Mac Charter Act</header><text>The <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>
(12 U.S.C. 1451 et seq.) is amended—</text>
<paragraph id="ID41F24E2053564DAF99067D3A9DCD91B5"><enum>(1)</enum><text>in each of
sections 303(b)(2) (12 U.S.C. 1452(b)(2)), 303(h)(2) (12 U.S.C. 1452(h)(2)),
and section 307(c)(1) (12 U.S.C. 1456(c)(1)), 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 Enterprise Regulatory
Agency</quote>;</text>
</paragraph><paragraph id="ID917FF27C4AE3431DA50531190AA29FAE"><enum>(2)</enum><text>in section 306
(12 U.S.C. 1455)—</text>
<subparagraph id="ID47874E8363C748C4A1DF27F61A33018F"><enum>(A)</enum><text>in subsection
(c)(2), by inserting <quote>the</quote> after <quote>Secretary
of</quote>;</text>
</subparagraph><subparagraph id="IDC76131D73D6D456FB922915ECE0985A7"><enum>(B)</enum><text>in subsection
(i)—</text>
<clause id="ID2854D1C5BD7247F6B45B3DD5157353E8"><enum>(i)</enum><text>by
striking <quote>section 1316(c)</quote> and inserting <quote>section
306(c)</quote>; and</text>
</clause><clause id="ID2496C03D1DE640BA9915080E00B6096D"><enum>(ii)</enum><text>by
striking <quote>section 106</quote> and inserting <quote>section 1316</quote>;
and</text>
</clause></subparagraph><subparagraph id="IDC42E8B84599844B3BBD6C705A7AFDAD3"><enum>(C)</enum><text>in subsection
(j), by striking <quote>of substantially</quote> and inserting <quote>or
substantially</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID84E5EE02AE1D4BF39A50A3D362066127"><enum>(3)</enum><text>in section 307
(12 U.S.C. 1456)—</text>
<subparagraph id="IDE2FC0670EFEC43B8ABD8439AE769E89A"><enum>(A)</enum><text>in subsection
(e)—</text>
<clause id="ID5853513909C442D7B4DA10468BF42BC2"><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
Enterprise Regulatory Agency, in a form determined by the Director</quote>;
and</text>
</clause><clause id="ID6334DF57CC8B48CE9820A18B82FD62FE"><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
Enterprise Regulatory Agency, in a form determined by the Director</quote>;
and</text>
</clause></subparagraph><subparagraph id="ID46485E3522A34619A743BE35EF234D7E"><enum>(B)</enum><text>in subsection
(f)—</text>
<clause id="IDE637C60025AD47558C331B02C589997B"><enum>(i)</enum><text>in
paragraph (1), by striking <quote>and the Secretary</quote> and inserting
<quote>and the Director of the Federal Housing Enterprise Regulatory
Agency</quote>;</text>
</clause><clause id="ID586D62BD6EA04295AF3B66855585FFD3"><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 Enterprise
Regulatory Agency</quote>; and</text>
</clause><clause id="ID5541D30D99A9405397AC7C5F6C34CDCC"><enum>(iii)</enum><text>in paragraph
(3)(B), by striking <quote>Secretary</quote> and inserting <quote>Director of
the Federal Housing Enterprise Regulatory Agency</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDA8F2E1831AE641B3B94E12A4AD304271"><enum>(d)</enum><header>Amendment to
Title <enum-in-header>18</enum-in-header>, United States
Code</header><text>Section 1905 of title 18, United States Code, is amended by
striking <quote>Office of Federal Housing Enterprise Oversight</quote> and
inserting <quote>Federal Housing Enterprise Regulatory Agency</quote>.</text>
</subsection><subsection id="ID69E8BFEE8DBF49098909C7481495E17E"><enum>(e)</enum><header>Amendment to
Flood Disaster Protection Act of 1973</header><text>Section 102(f)(3)(A) of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(3)(A)) 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 Enterprise Regulatory
Agency</quote>.</text>
</subsection><subsection id="IDD8346DD1C67E44ECB2DCD4A86A37E927"><enum>(f)</enum><header>Amendment to
Department of <act-name parsable-cite="HUDA">Housing and Urban Development
Act</act-name></header><text>Section 5 of the Department of
<act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> (42
U.S.C. 3534) is amended by striking subsection (d).</text>
</subsection><subsection id="ID4975CFF777AE4D9CA107FAE28CA6C2C3"><enum>(g)</enum><header>Amendment to
Title <enum-in-header>5</enum-in-header>, United States
Code</header><text>Section 5313 of title 5, United States Code, is amended by
striking the item relating to the Director of the Office of Federal Housing
Enterprise Oversight, Department of Housing and Urban Development and inserting
the following new item:</text>
<quoted-block id="IDCE7040CAC98346E192D86DF80ED325CF" style="OLC">
<paragraph id="IDE6B30B3F9A3B41CC89627D7332EE769E"><enum></enum><text>Director of
the Federal Housing Enterprise Regulatory
Agency.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID70981C5FCB3F41B19B4D4EFE2E0899DB"><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 (15 U.S.C. 7215(b)(5)(B)(ii)(II)) is amended by
inserting <quote>and the Director of the Federal Housing Enterprise Regulatory
Agency,</quote> after <quote>Commission,</quote>.</text>
</subsection><subsection id="IDCFAB32A25BB949098FB47CFAF54A6C24"><enum>(i)</enum><header>Amendment to
<act-name parsable-cite="FDIA">Federal Deposit Insurance
Act</act-name></header><text>Section 11(t)(2)(A) of the
<act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12
U.S.C. 1821(t)(2)(A)) is amended by adding at the end the following:</text>
<quoted-block act-name="Federal Deposit Insurance Act" id="ID8121FCDD18664D859F66D0E91BD08A34" style="OLC">
<clause id="IDF87AAA71E5A64A7687FA90288BCCD80B"><enum>(vii)</enum><text>The Federal
Housing Enterprise Regulatory
Agency.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="IDEB02AF22D166408880E2A3828E99F373"><enum>162.</enum><header>Presidentially
appointed directors of enterprises</header>
<subsection id="ID07268301D06D4F5EA9FE5B10B7798747"><enum>(a)</enum><header>Fannie
Mae</header>
<paragraph id="ID3A61594DE0E2420C82276E6AF939DA67"><enum>(1)</enum><header>In
general</header><text>Section 308(b) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name> (12 U.S.C. 1723(b)) is amended—</text>
<subparagraph id="ID3AFABA09129C4D44AEB227C876FBDBD7"><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="ID2151A826E6604E91A50EAE3E2A39FDE0"><enum>(B)</enum><text>in the second
sentence, by striking <quote>appointed by the President</quote>;</text>
</subparagraph><subparagraph id="IDC34829D74D884B80B3D8DDCEC2032B0E"><enum>(C)</enum><text>in the third
sentence—</text>
<clause id="IDFC82787013AD47E79E063F4DD862D938"><enum>(i)</enum><text>by
striking <quote>appointed or</quote>; and</text>
</clause><clause id="IDE96259EC41C6487199A5CA69A1C2FC80"><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="ID3472940D07A849C19880D52301C57B66"><enum>(D)</enum><text>in the fourth
sentence, by striking <quote>elective</quote>; and</text>
</subparagraph><subparagraph id="ID19EF424A79D948A095615B76E1BAA5C6"><enum>(E)</enum><text>by striking the
fifth sentence.</text>
</subparagraph></paragraph><paragraph id="ID6BB40B04BDB145119F5F5012181DDD70"><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="ID40670A2BA8C241FDB231AB00582F0421"><enum>(b)</enum><header>Freddie
Mac</header>
<paragraph id="ID75F20864356B4387B3270F24F01772AB"><enum>(1)</enum><header>In
general</header><text>Section 303(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>
(12 U.S.C. 1452(a)(2)) is amended—</text>
<subparagraph id="ID8D3EEF487CFD4D54BA8D257C73432FFB"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="ID23C60206082B46E1B8E33F6F0C1B0A7B"><enum>(i)</enum><text>in
the first sentence, by striking <quote>13 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="ID3882032422AD4ECBB5B1445C1B835B37"><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="ID8923BC9CD3EC4045905E726BD4E5C8C5"><enum>(B)</enum><text>in subparagraph
(B)—</text>
<clause id="ID5EA47E50DF8346D9BC8CCDE4FB690131"><enum>(i)</enum><text>by
striking <quote>such or</quote>; and</text>
</clause><clause id="ID22671E4C81DD4B15B6E1AB3FD15BD769"><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="ID3720C56DDACD485EB0AD23B9D2F12741"><enum>(C)</enum><text>in subparagraph
(C)—</text>
<clause id="ID909FB96912E14654AA27EDF7C9C17858"><enum>(i)</enum><text>by
striking the first sentence; and</text>
</clause><clause id="IDBF5467B777774D99B1B0DF0540880207"><enum>(ii)</enum><text>by
striking <quote>elective</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="IDBFB866F9C18648C495F10A2564BBA427"><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 id="ID68E8001E17034CC69727501F4199411D"><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="ID5115BECC82DD477C919F24F94DD84F90"><enum>201.</enum><header>Directors</header><text display-inline="no-display-inline">Section 7 of the
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12
U.S.C. 1427) is amended—</text>
<paragraph id="ID85FB2CE8EA2D4B4CBB3F66C3D1F62F32"><enum>(1)</enum><text>by striking
subsection (a) and inserting the following:</text>
<quoted-block id="IDC5F1F19C8E1345F2BA502BD29F393BDB" style="OLC">
<subsection id="ID6877F7CCA20A45C58170FD7CCD1C9DB5"><enum>(a)</enum><header>Number;
Election; Qualifications; Conflicts of Interest</header>
<paragraph id="IDF434142ACC4B416BB403FC0384610277"><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="ID2FFF315FB02940A5B236E76F831F3776"><enum>(2)</enum><header>Board
makeup</header><text>The board of directors of each Bank shall be comprised
of—</text>
<subparagraph id="ID2055C9F38D45402C9684B33870556908"><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="IDC4614B0E89354755AF2BD0AE045C3F7E"><enum>(B)</enum><text>independent
directors, who shall comprise not fewer than <fraction>1/3</fraction> of the
members of the board of directors.</text>
</subparagraph></paragraph><paragraph id="ID9CDB89688C534F9A8568565333AF0833"><enum>(3)</enum><header>Selection
criteria</header>
<subparagraph id="IDC85BFA3DA0D14BB8B0A978A31D66BC8A"><enum>(A)</enum><header>In
general</header><text>Each member of the board of directors shall be—</text>
<clause commented="no" id="ID93086F48D55B4947B6D00ED6AAFE24C1"><enum>(i)</enum><text>elected by
plurality vote of the members, in accordance with procedures established under
this section; and</text>
</clause><clause id="IDD2466E06BC1D43F295BD25482FB2CDAE"><enum>(ii)</enum><text>a citizen of the
United States.</text>
</clause></subparagraph><subparagraph id="ID4CD0B4AB5E0044BAA2EB3DC18DD06A56"><enum>(B)</enum><header>Independent
director criteria</header>
<clause id="IDBDD9ED67FA924F84860E6458E0BF0E61"><enum>(i)</enum><header>Public
interest</header><text>Not fewer than 2 of the independent directors shall be
selected from among representatives of organizations having more than a 2-year
history of representing consumer or community interests on banking services,
credit needs, housing, or financial consumer protections.</text>
</clause><clause id="ID1BEC0911B5924338964F379B97DC514F"><enum>(ii)</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 or officer of any member Bank.</text>
</clause></subparagraph></paragraph><paragraph id="ID99616EF7B2E844D8AD52B701656ACB58"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<subparagraph id="ID0BAC95BC3B86495593CA756860038555"><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="ID087C887CD5974D328B06E93C1147F94B"><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="ID188C3AC2FE224738A99ACE52D9F34A67"><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="ID4BCA9EDF51C0417E99AE170A78931616"><enum>(3)</enum><text>in subsection
(b)—</text>
<subparagraph id="ID36FD287805BE4011923F62370764DC03"><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 id="ID67DB9FA2632F4A798226B546FEF2536A" style="OLC">
<subsection id="IDFDDC0CEC012E4BCF83F4F4EE2D3A44B2"><enum>(b)</enum><header>Directorships</header>
<paragraph id="ID07E5F05AED9643B1A4AF8F799FCBCFB3"><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="IDC5F5E1DFB82349188FDF35F67AAB0BE8"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block id="IDD78BEA5F5A1649A58812E9287ADB404E" style="OLC">
<paragraph id="ID8835F0F796344031BAB238378721E6E4"><enum>(2)</enum><header>Independent
directorships</header>
<subparagraph id="IDF103A9920B594586B15CD67593CBA060"><enum>(A)</enum><header>Elections</header><text>Each
independent director—</text>
<clause id="IDCF95A0B7E264497BB5FDF30773142A2E"><enum>(i)</enum><text>shall be elected
by the members entitled to vote, from among eligible persons nominated by the
board of directors of the Bank; and</text>
</clause><clause id="IDC89CE41E11D54F1C8EB1D4E7409753CD"><enum>(ii)</enum><text>shall be filled
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
subsection (b)(1) in an election to fill member directorships.</text>
</clause></subparagraph><subparagraph id="IDCF455E81E4D6434D92AA0182E1D1C7C9"><enum>(B)</enum><header>Criteria</header><text>Nominees
shall meet all applicable requirements prescribed in this section.</text>
</subparagraph><subparagraph id="ID1B368ABD72044F108CC4EC145A7671F1"><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="IDA242E834E1D44990933CB8CBDA139202"><enum>(4)</enum><text>in subsection
(c), by striking the second, third, and fifth sentences;</text>
</paragraph><paragraph id="IDE21182AD37834D79A5B3A428640F53C6"><enum>(5)</enum><text>in subsection
(d)—</text>
<subparagraph id="ID98C3106EE4654B76A8330F8A1A41B54D"><enum>(A)</enum><text>in the first
sentence—</text>
<clause id="IDBD74C618146D4EDBAC3F5974DBC554AB"><enum>(i)</enum><text>by
striking <quote>, whether elected or appointed,</quote>; and</text>
</clause><clause id="ID371F3AA9244342D79103CA6211CB6FCC"><enum>(ii)</enum><text>by
striking <quote>3 years</quote> and inserting <quote>4 years</quote>;</text>
</clause></subparagraph><subparagraph id="ID3625C3F4231349DB91BA664E7DDF7763"><enum>(B)</enum><text>in the second
sentence—</text>
<clause id="ID89816D7D5AEF4DA28EC266AC6A494E09"><enum>(i)</enum><text>by
striking <quote>Federal Home Loan Bank System Modernization Act of 1999</quote>
and inserting <quote><short-title>Federal Housing
Enterprise Regulatory Reform Act of 2007</short-title></quote>;</text>
</clause><clause id="ID5FCCE97AF65348448097497E376E0887"><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="ID317DADEC8F394865AA1FACF08B1458EA"><enum>(iii)</enum><text>by striking
<quote>or appointed</quote>; and</text>
</clause></subparagraph><subparagraph id="ID05E387C9618B4929BD697729F0778EF7"><enum>(C)</enum><text>in the third
sentence—</text>
<clause id="IDA8E7710F16C94547B57E3CF1B8D0D34B"><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="IDFEA93C2CC0E5495390950D7AF4CEF8D2"><enum>(ii)</enum><text>by
striking <quote>in any elective directorship or elective
directorships</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="ID3D3DF8AC61B14F3B8A4869308338B03A"><enum>(6)</enum><text>in subsection
(f)—</text>
<subparagraph id="IDAD82AF9EB76444BE912DDF288CD1CBAF"><enum>(A)</enum><text>by striking
paragraph (2);</text>
</subparagraph><subparagraph id="IDDD069F36DF374197995578056514E164"><enum>(B)</enum><text>by striking
<quote>appointed or</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="ID3702C3E878C14DBEB441A29EA52FBE36"><enum>(C)</enum><text>in paragraph
(3)—</text>
<clause id="ID1BCA17F2B6B44D2B8F83F4C7246AD347"><enum>(i)</enum><text>by
striking <quote>(3) <header-in-text>Elected bank
directors</header-in-text>.—</quote> and inserting <quote>(2)
<header-in-text>Election process</header-in-text>.—</quote>; and</text>
</clause><clause id="ID7AA713199CDA42B58816D7DA110A2FD6"><enum>(ii)</enum><text>by
striking <quote>elective</quote> each place that term appears;</text>
</clause></subparagraph></paragraph><paragraph id="ID50200DDD6AA6431B8261AD912BB8F966"><enum>(7)</enum><text>in subsection
(i)—</text>
<subparagraph id="IDA45B89A9874F413F8B01D7391A450E5F"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>(1) <header-in-text>In general</header-in-text>.—Subject to
paragraph (2), each</quote> and inserting <quote>Each</quote>; and</text>
</subparagraph><subparagraph id="ID82635AEBC95A4E798BEE80A4BB1DB831"><enum>(B)</enum><text>by striking
paragraph (2); and</text>
</subparagraph></paragraph><paragraph id="ID6024D2D3548647B3996821DA553A9710"><enum>(8)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID8BB159189EC44865AB69029934BEEAB2" style="OLC">
<subsection id="IDC079A31429E045F48120B40AF3BFE0A6"><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="ID95DD3E0F8E374009B2A81B159F260033"><enum>202.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 2 of the
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12
U.S.C. 1422) is amended—</text>
<paragraph id="IDBD53E407061248199040FBC9309E6033"><enum>(1)</enum><text>by striking
paragraphs (1), (10), and (11);</text>
</paragraph><paragraph id="IDA0F57552E1694EBABB94A848B2CF1B02"><enum>(2)</enum><text>by redesignating
paragraphs (2) through (9) as paragraphs (1) through (8), respectively;</text>
</paragraph><paragraph id="ID581D3380A70E4C7FB89705D6336918AE"><enum>(3)</enum><text>by redesignating
paragraphs (12) and (13) as paragraphs (9) and (10), respectively; and</text>
</paragraph><paragraph id="IDB869BE8837FE4C128910CE2CEBE50ADB"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID97ED936D5CAF472F9265DC75C9093A68" style="OLC">
<paragraph id="ID13E1BC80AC354E62A9D4D3107054BE22"><enum>(11)</enum><header>Director</header><text>The
term <term>Director</term> means the Director of the Federal Housing Enterprise
Regulatory Agency.</text>
</paragraph><paragraph id="ID220EDF646B294FBC902428BB6A7B8848"><enum>(12)</enum><header>Agency</header><text>The
term <term>Agency</term> means the Federal Housing Enterprise Regulatory
Agency, established under section 1311 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and
Soundness Act of 1992</act-name>.</text>
</paragraph><paragraph id="ID40313F5C055841AF850D31DA293CF574"><enum>(13)</enum><header>Finance
facility</header><text>The term <term>Finance Facility</term> means the Federal
Home Loan Bank Finance Facility established under section
11A.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID6201BD1A2D334756A48F0ADCF4008CB8"><enum>203.</enum><header>Agency
oversight of Federal home loan banks</header><text display-inline="no-display-inline">The <act-name parsable-cite="FHLBA">Federal
Home Loan Bank Act</act-name> (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="ID7F55DAD210A449F2B3FC09B5440E094E"><enum>(1)</enum><text>by striking
sections 2A, 2B, and 20 (12 U.S.C. 1422a, 1422b, 1440);</text>
</paragraph><paragraph id="ID15205BA7CCFE43FC94082AB8262911E3"><enum>(2)</enum><text>in section 18 (12
U.S.C. 1438), by striking subsection (b);</text>
</paragraph><paragraph id="ID18469AA35B5D474591C9AA89AF6CC066"><enum>(3)</enum><text>in section 11 (12
U.S.C. 1431)—</text>
<subparagraph id="ID9B0EADB2A80649E8AE030FC34E5F0F79"><enum>(A)</enum><text>by striking
subsections (b) and (c);</text>
</subparagraph><subparagraph id="IDACAAD952861D445CA1A8788D5DD4CCAA"><enum>(B)</enum><text>by redesignating
subsections (d) through (k) as subsections (c) through (j),
respectively;</text>
</subparagraph><subparagraph id="IDCF32978083C4401EACD9D001DCF896A5"><enum>(C)</enum><text>in subsection
(a)—</text>
<clause id="IDFF848AC91C3E406AA775B6D474A6C200"><enum>(i)</enum><text>by
striking <quote>Board</quote> each place that term appears and inserting
<quote>Director</quote>; and</text>
</clause><clause id="IDAC04EB315EB64D2E8974E8C9F09D277F"><enum>(ii)</enum><text>by
striking <quote>upon such terms and conditions as the Board may
approve</quote>; and</text>
</clause></subparagraph><subparagraph id="IDE2F330BBA3C0419F98557D044EF48981"><enum>(D)</enum><text>by inserting
after subsection (a) the following:</text>
<quoted-block id="ID501A669BB45F4030B0883F1294A12B70" style="OLC">
<subsection id="ID7790DADD48704DE6B79674AD17BE6087"><enum>(b)</enum><header>Issuance of
Federal Home Loan Bank Bonds</header><text>The Finance Facility may issue
consolidated Federal Home Loan Bank debt, which shall be the joint and several
obligations of all of the Federal Home Loan Banks, and shall be issued upon
such terms and conditions as set by the Finance Facility for the Federal Home
Loan
Banks.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID1A11264D64744C8792A684F1A13839D7"><enum>(4)</enum><text>in section 6 (12
U.S.C. 1426)—</text>
<subparagraph id="IDF56E747BE63A4E71BD5CCA697BBECB82"><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="ID3CBE3EB21009459BA087994FC60F90C3"><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="ID56287A6AD19B49C8BBEC9CD45588468A"><enum>(5)</enum><text>in section 10(b)
(12 U.S.C. 1430(b))—</text>
<subparagraph id="IDC44805E3AC1A43A69CB60C2E73C632E0"><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="ID14E60D0A787B49DAA6C82CCD3BDC4925"><enum>(B)</enum><text>by striking
<quote>by formal resolution</quote>;</text>
</subparagraph></paragraph><paragraph id="ID01CB5FB6AE834CA790F1600887B5A234"><enum>(6)</enum><text>in section
21(b)(5) (12 U.S.C. 1441(b)(5)), by striking <quote>Chairperson of the Federal
Housing Finance Board</quote> and inserting <quote>Director</quote>;</text>
</paragraph><paragraph id="ID7E10D6565E004265B915C3E1F1BFC461"><enum>(7)</enum><text>in section 15 (12
U.S.C. 1435), by striking <quote>issued with the approval of the Board</quote>
and inserting <quote>issued under section 11(b)</quote>;</text>
</paragraph><paragraph id="IDC721565115B34D3AB67ABF0A6DE325BB"><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="IDD2E3881379DA41AAB599E8A963571B0B"><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="IDEC3F0DBB44074328BB44E5CE1DC2E759"><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="ID4B8DD726DA15435BB7C5D6FD3F83AA63"><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="ID6A2AE78BEE9449C2BD0B2DCEB8A363A1"><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="ID9870708B92214CE5841E30D2A087981B"><enum>204.</enum><header>Federal Home
Loan Bank Finance Facility</header><text display-inline="no-display-inline">The
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12
U.S.C. 1421 et seq.) is amended by inserting after section 11 the
following:</text>
<quoted-block act-name="Federal Home Loan Bank Act" id="IDE20F1B8F70B746F9B308B176431ABED0" style="OLC">
<section id="ID1CF0A0850B6F4EB9AC5C86E4668D7A19"><enum>11A.</enum><header>Federal Home
Loan Bank Finance Facility</header>
<subsection id="IDB39914A9F5E248069EB44A7B95EB4568"><enum>(a)</enum><header>Establishment</header>
<paragraph id="IDF0448F0C797D495EA0CECD8E8348F2F3"><enum>(1)</enum><header>In
general</header><text>The Federal Home Loan Banks shall establish a Federal
Home Loan Bank Finance Facility.</text>
</paragraph><paragraph id="ID4BAB24E9223A4EF6A82FF50A6DB0A713"><enum>(2)</enum><header>Purposes</header><text>The
purposes of the Finance Facility are—</text>
<subparagraph id="ID9461D7C8F7EA47E49F38F5A0FB4E150A"><enum>(A)</enum><text>to issue and
service the consolidated obligations of the Federal Home Loan Banks in
accordance with this Act; and</text>
</subparagraph><subparagraph id="IDFE71BDD97AE74CFDBF89EBBF7C7B412C"><enum>(B)</enum><text>to perform all
other necessary and proper functions in relation to the issuance and service of
such obligations, as fiscal agent on behalf of the Federal Home Loan Banks, and
any other functions performed by the Office of Finance on behalf of the
Financing Corporation (established under section 21) and the Resolution Funding
Corporation (established under section 21B).</text>
</subparagraph></paragraph><paragraph id="IDE648256D4E244F6586B55F62A7FD35A0"><enum>(3)</enum><header>Transfer of
functions</header>
<subparagraph id="ID5B5EC85A688C42B4AA12BC9B417A14B3"><enum>(A)</enum><header>In
general</header><text>The functions of the Office of Finance of the Federal
Home Loan Banks shall be transferred to the Finance Facility on the effective
time.</text>
</subparagraph><subparagraph id="ID1FEACDA91A3B4E678938B9949744F91C"><enum>(B)</enum><header>Organizational
meeting</header><text>The organizational meeting of the management board of the
Finance Facility shall occur as soon as practicable after the date of enactment
of the <short-title>Federal Housing Enterprise Regulatory
Reform Act of 2007</short-title>.</text>
</subparagraph><subparagraph id="ID65EEFA3961C04C3CBAB0B4DCE8C375FB"><enum>(C)</enum><header>Interim
procedures</header><text>Until the effective time, the predecessor office shall
continue to operate as if this section had not been enacted.</text>
</subparagraph><subparagraph id="ID4DDDF1CAC9B144449C699DDD4364591D"><enum>(D)</enum><header>References</header><text>After
the effective time, any reference under any provision of Federal law to the
Office of Finance and the Managing Director of the Office of Finance shall be
deemed to be references to the Finance Facility and the chief executive officer
of the Finance Facility, respectively.</text>
</subparagraph></paragraph><paragraph id="ID96F5FDA28F5E4A13B1C522CB40ACC988"><enum>(4)</enum><header>Succession</header>
<subparagraph id="ID5224836658BB4128A1E1E249F9DF9C03" indent="down1"><enum>(A)</enum><header>Assets and liabilities</header><text>On
and after the effective time, the Finance Facility shall, by operation of law
and without any further action by the Federal Housing Finance Board, the
Director, the predecessor office, or any court, succeed to the assets of, and
assume all debts, obligations, contracts, and other liabilities of the
predecessor office, matured or unmatured, accrued or absolute, contingent or
otherwise, and whether or not reflected or reserved against on balance sheets,
books of account, or records of the predecessor office.</text>
</subparagraph><subparagraph id="ID4F1446AE133141F9B7441470421B3896" indent="down1"><enum>(B)</enum><header>Contracts</header><text>On and after
the effective time, the existing contractual obligations of the Federal Housing
Finance Board, solely in its capacity as issuer of consolidated obligations of
the Federal Home Loan Banks and the predecessor office shall, by operation of
law and without any further action by the Federal Housing Finance Board, the
Director, the predecessor office, or any court, become obligations,
entitlements, and instruments of the Finance Facility.</text>
</subparagraph><subparagraph id="ID3292E7363C8143409B2CD3C0A01FABFC" indent="down1"><enum>(C)</enum><header>Taxation</header><text>The succession
to assets, assumption of liabilities, conversion of obligations and
instruments, and effectuation of any other transaction by the Finance Facility
to carry out this subsection shall not be treated as a taxable event under the
laws of any State, or any political subdivision thereof.</text>
</subparagraph></paragraph></subsection><subsection id="ID401B5ADCA44C49899E103B7A09E20836"><enum>(b)</enum><header>Powers</header><text>Subject
to the provisions of this Act, and such regulations as the Director may
prescribe, the Finance Facility shall have the power—</text>
<paragraph id="ID09F4F1E881B34A46BCF160E013D4A7DF"><enum>(1)</enum><text>to issue and
service Federal Home Loan Bank consolidated notes, consolidated bonds,
consolidated debentures, and other consolidated obligations authorized under
section 11, as agent for the Federal Home Loan Banks;</text>
</paragraph><paragraph id="IDB2076429197147B0A6A46E387409FE85"><enum>(2)</enum><text>to determine the
amount, maturities, rate of interest, terms, and other conditions of Federal
Home Loan Bank consolidated obligations;</text>
</paragraph><paragraph id="ID65631270A63C4D7BB5D5DD92F26341FF"><enum>(3)</enum><text>to make
contracts;</text>
</paragraph><paragraph id="ID99D7056994434E5E903959BECA8A4626"><enum>(4)</enum><text>to determine the
terms and conditions under which the Finance Facility may indemnify the members
of the management board, as well as officers, employees, and agents of the
Finance Facility;</text>
</paragraph><paragraph id="ID8D3A02F807EC46E191E745247ABF5B6D"><enum>(5)</enum><text>to determine and
implement the methodology for assessments of the Federal Home Loan Banks to
fund all of the expenses of the Finance Facility; and</text>
</paragraph><paragraph id="IDC2F2A5DCFEE7427599AE5B629D8F2E2D"><enum>(6)</enum><text>to exercise such
incidental powers not inconsistent with the provisions of this Act as are
necessary or advisable to carry out the purposes of the Finance
Facility.</text>
</paragraph></subsection><subsection id="ID8248DE4D4E0347B09999C48F10B99594"><enum>(c)</enum><header>Management of
the Finance Facility</header>
<paragraph id="ID1E5A978C1917466699DC8C06361A58E4"><enum>(1)</enum><header>Establishment</header><text>The
management of the Finance Facility shall be vested in a management board
composed of the president of each of the Federal Home Loan Banks, ex
officio.</text>
</paragraph><paragraph id="ID99BCF90FE03C471383E8AD104514D71C"><enum>(2)</enum><header>Duties</header><text>The
management board of the Finance Facility shall administer the affairs of the
Finance Facility in accordance with the provisions of this section.</text>
</paragraph><paragraph id="ID63D541B5E9344EE8AEC11633DAD1F683"><enum>(3)</enum><header>Interim
appointments</header><text>If the office of the president of any Federal Home
Loan Bank is vacant, the person serving in such capacity on an acting basis
shall serve on the management board of the Finance Facility until replaced by
the next person to fill the office of the president of that Federal Home Loan
Bank.</text>
</paragraph><paragraph id="ID611A9E0259D8489DAAE1A9D21F5C0E79"><enum>(4)</enum><header>Powers</header><text>The
management board of the Finance Facility shall exercise such powers as may be
necessary or advisable to carry out this section, including the power
to—</text>
<subparagraph id="IDFFC9E3C5546D4E28B981A2F37D47CE6E"><enum>(A)</enum><text>set policies for
the management and operation of the Finance Facility;</text>
</subparagraph><subparagraph id="ID718C968889534BF2AAF5885987BEC89D"><enum>(B)</enum><text>approve a
strategic business plan for the Finance Facility;</text>
</subparagraph><subparagraph id="ID9A048CFF59F44AE493118E195FCA06A0"><enum>(C)</enum><text>review, adopt,
and monitor annual operation and capital budgets of the Finance
Facility;</text>
</subparagraph><subparagraph id="ID83A12BB6CF4F48EC9E36D7E7205A643E"><enum>(D)</enum><text>constitute and
perform the duties of an audit committee, which to the extent possible shall
operate consistent with—</text>
<clause id="ID37816158A76C43D1985D9D32A95FD8F6"><enum>(i)</enum><text>the requirements
established for the Federal Home Loan Banks; and</text>
</clause><clause id="IDB36F2B3410A64116A6A082EAC7C4E60B"><enum>(ii)</enum><text>the requirements
pertaining to audit committee reports set forth in the rules of the Securities
and Exchange Commission;</text>
</clause></subparagraph><subparagraph id="IDE6FF9D567BE0428EBAD7FC5AEB636F35"><enum>(E)</enum><text>select, employ,
determine the compensation for, and assign the duties and functions of the
President of the Finance Facility, who shall—</text>
<clause id="ID717673C46C9341619DAEE6D1B2673033"><enum>(i)</enum><text>be the chief
executive officer for the Finance Facility and shall direct the implementation
of the policies adopted by the management board of the Finance Facility;</text>
</clause><clause commented="no" id="IDCD5F4F70944B4BC9B91D7199879863ED"><enum>(ii)</enum><text>serve as a
member of the Directorate of the Financing Corporation, under section
21(b)(1)(A); and</text>
</clause><clause id="ID787E77192B814DB9A028A088D5997E19"><enum>(iii)</enum><text>serve as a
member of the Directorate of the Resolution Funding Corporation under section
21B(c)(1)(A);</text>
</clause></subparagraph><subparagraph id="ID8336248D8E6C4F96B3364A05D8B52B58"><enum>(F)</enum><text>provide for the
review and approval of all contracts of the Finance Facility;</text>
</subparagraph><subparagraph id="IDE0CC45BD6FD8480DA4494D6DD9C6602D"><enum>(G)</enum><text>have the
exclusive authority to employ and contract for the services of an independent,
external auditor for the annual and quarterly combined financial statements of
the Federal Home Loan Banks; and</text>
</subparagraph><subparagraph id="IDB51002097D6F47D696DBF581D4CA7319"><enum>(H)</enum><text>select, evaluate,
determine the compensation of, and, as appropriate, replace the internal
auditor of the Finance Facility, who may be removed only by vote of the
management board of the Finance Facility.</text>
</subparagraph></paragraph><paragraph id="ID527EC4E9AFF348A485633CF89482C667"><enum>(5)</enum><header>Pay</header><text>The
members of the management board of the Finance Facility shall not receive
compensation for their services as members of the management board.</text>
</paragraph><paragraph id="ID8E700453FD9647B0812BF3E3812199F8"><enum>(6)</enum><header>Quorum
requirement</header>
<subparagraph id="ID948A82BDA73A463DAD5039D8CF70676E"><enum>(A)</enum><header>In
general</header><text>No business of the Finance Facility may be conducted by
the management board unless a quorum of the members of the management board is
present in person or by telephone, or through action taken by written consent
executed by all of the members of the management board.</text>
</subparagraph><subparagraph id="ID7983BCCD1884469C85154058620BE913"><enum>(B)</enum><header>Number</header><text>A
quorum shall be a majority of the members of the management board.</text>
</subparagraph><subparagraph id="ID6A8D160ECA71402D9488010949BD6DC6"><enum>(C)</enum><header>Vote
required</header><text>Action taken by the management board shall be approved
by a majority of the members in attendance at any meeting at which a quorum is
present, unless the management board adopts procedures requiring a greater
voting requirement.</text>
</subparagraph></paragraph><paragraph id="IDF9CD65BB73C24ED3BB55A2185E3ECDB4"><enum>(7)</enum><header>Appointment of
officers and adoption of rules of procedure</header><text>The management board
of the Finance Facility shall—</text>
<subparagraph id="ID29A56490114A4E5CA62A8CEA68167038"><enum>(A)</enum><text>select, from
among the members of such board, a Chairperson and a Vice Chairperson;
and</text>
</subparagraph><subparagraph id="IDA902804FBC9F48968CAC6A86A2D96D02"><enum>(B)</enum><text>adopt bylaws and
other rules of procedure for actions before the management board,
including—</text>
<clause id="ID08D28067E77245EBAA40EB1357A86707"><enum>(i)</enum><text>the establishment
of 1 or more committees to take action on behalf of the management board;
and</text>
</clause><clause id="ID5F420A92D384470C9C0C303AAC07CB7B"><enum>(ii)</enum><text>the delegation
of powers of the management board to any committee or officer of the Finance
Facility.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDE54A601CED864DBFB75C7CEC904548B3"><enum>(d)</enum><header>Status</header><text>Except
to the extent expressly provided in this Act, or in rules or regulations
promulgated by the Director, or unless the context clearly indicates otherwise,
the Finance Facility shall be accorded the same status as a Federal Home Loan
Bank for purposes of any other provision of law (including section 13), other
than section 1369F of the <act-name parsable-cite="FHEFSSA">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name>.</text>
</subsection><subsection id="IDF369728B4F8646FEBB19A5747DBAC6BA"><enum>(e)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="IDF7E2D79C7B2845A2BF18C0B06BAAEE23"><enum>(1)</enum><text>the term
<term>effective time</term> means the conclusion of the organizational meeting
of the management board of the Finance Facility;</text>
</paragraph><paragraph id="IDBE45C2A83B3B4A37A4B383D34442A806"><enum>(2)</enum><text>the term
<term>Finance Facility</term> includes a corporation, partnership, limited
liability company, or joint venture that is jointly owned by the Federal Home
Loan Banks;</text>
</paragraph><paragraph id="IDBDAE2DAE4AF340B8B5BDDF5F78BAEFAF"><enum>(3)</enum><text>the term
<term>management board</term> means the management board of the Finance
Facility established in accordance with subsection (c); and</text>
</paragraph><paragraph id="ID3ABD383945DE45239BA664441EEB2FAF"><enum>(4)</enum><text>the term
<term>predecessor office</term> means the Office of Finance established as a
joint office of the Federal Home Loan
Banks.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID4907B03335144A8BB08B8D2B0A445538"><enum>205.</enum><header>Exclusion from
certain securities reporting requirements</header>
<subsection id="ID3549EA96F8924A0E98C3DA009574C293"><enum>(a)</enum><header>In
General</header><text>The Federal Home Loan Banks shall be exempt from
compliance with—</text>
<paragraph id="ID50CA6C5D667940299D92BC83EB65AF52"><enum>(1)</enum><text>sections 13(e),
14(a), 14(c), and 17A of the <act-name parsable-cite="SEA34">Securities
Exchange Act of 1934</act-name>, and related Commission regulations; and</text>
</paragraph><paragraph id="IDD33581AE52E54D928335C21E8EB140F7"><enum>(2)</enum><text>section 15 of the
<act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>, and
related Commission regulations, with respect to transactions in the capital
stock of a Federal Home Loan Bank.</text>
</paragraph></subsection><subsection id="ID68DAD9AF11724288AD38F31F2DF6CF90"><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 <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>,
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="IDAB70A38DD8DC46A8B66814D1FDF1A599"><enum>(c)</enum><header>Exempted and
Government Securities</header>
<paragraph id="IDBFE47D38BD594BB3B9A2F2EC7D08699C"><enum>(1)</enum><header>Capital
stock</header><text>The capital stock issued by each of the Federal Home Loan
Banks under section 6 of the <act-name parsable-cite="FHLBA">Federal Home Loan
Bank Act</act-name> are—</text>
<subparagraph id="ID29E0CD301AAB448A875C2AD449E64489"><enum>(A)</enum><text>exempted
securities, within the meaning of section 3(a)(2) of the
<act-name parsable-cite="SA33">Securities Act of 1933</act-name>; and</text>
</subparagraph><subparagraph id="ID2D58793C4D5041A3AF293429186FFD2C"><enum>(B)</enum><text>exempted
securities, within the meaning of section 3(a)(12)(A) of the
<act-name parsable-cite="SEA34">Securities Exchange Act of
1934</act-name>.</text>
</subparagraph></paragraph><paragraph id="ID691AEA2A02844CBEBAFDA7A808C50DBD"><enum>(2)</enum><header>Other
obligations</header><text>The debentures, bonds, and other obligations issued
under section 11 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank
Act</act-name> (12 U.S.C. 1431) are—</text>
<subparagraph id="IDE984C07117804EAD887BECECF81E0EB1"><enum>(A)</enum><text>exempted
securities, within the meaning of section 3(a)(2) of the
<act-name parsable-cite="SA33">Securities Act of 1933</act-name>;</text>
</subparagraph><subparagraph id="ID9FCC491AFA5A4F5DA982800269E5C121"><enum>(B)</enum><text>government
securities, within the meaning of section 3(a)(42) of the
<act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>;
and</text>
</subparagraph><subparagraph id="ID8D1E9DF82BBD4F26918C8436C397BF67"><enum>(C)</enum><text>government
securities, within the meaning of section 2(a)(16) of the
<act-name parsable-cite="ICA40">Investment Company Act of
1940</act-name>.</text>
</subparagraph></paragraph><paragraph id="IDE6F6035D8D944529A69E00CF53C44259"><enum>(3)</enum><header>Brokers and
dealers</header><text>A person that effects transactions in the capital stock
or other obligations of a Federal Home Loan Bank, for the account of others or
for his own account, as applicable, is excluded from the definition of—</text>
<subparagraph id="ID4D5AFA70754042F6A5A172B8290ACBB9"><enum>(A)</enum><text>the term
<term>government securities broker</term> under section 3(a)(43) of the
<act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>;
and</text>
</subparagraph><subparagraph id="ID69889904BBAF4F03ADA0AB01DC922236"><enum>(B)</enum><text>the term
<term>government securities dealer</term> under section 3(a)(44) of the
<act-name parsable-cite="SEA34">Securities Exchange Act of
1934</act-name>.</text>
</subparagraph></paragraph></subsection><subsection id="ID9E45C8E528F446468E8060A0A3D7733C"><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="IDFCA1627818E84EF6BCA08D34A64C6A1D"><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="ID9A40CAF47A9943C3AC9C8DB8817D0FCF"><enum>(2)</enum><text>the unregistered
sales of equity securities.</text>
</paragraph></subsection><subsection id="ID372F8AAFE82A4B52AC03190755445F85"><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="ID757FD43D330145BC80EA49B82453E80A"><enum>(f)</enum><header>Regulations</header>
<paragraph id="ID2A62213984C1457192B1DF46668189F3"><enum>(1)</enum><header>Final
rules</header><text>Not later than 1 year after the date of enactment of this
Act, the Commission shall issue final rules to implement this section and the
exemptions provided in this section.</text>
</paragraph><paragraph id="IDE462C2FCCF474F2499232EC931BDC083"><enum>(2)</enum><header>Considerations</header><text>In
issuing final regulations under this section, the Commission shall consider the
distinctive characteristics of the Federal Home Loan Banks when
evaluating—</text>
<subparagraph id="ID2A78688521904FA6A815827970B38A9E"><enum>(A)</enum><text>the accounting
treatment with respect to the payment to the Resolution Funding
Corporation;</text>
</subparagraph><subparagraph id="ID18D3DCF58D0E43FBBD52E74704F762E2"><enum>(B)</enum><text>the role of the
combined financial statements of the Federal Home Loan Banks;</text>
</subparagraph><subparagraph id="IDB7FBE21D5274464DA7770B75CC740EAA"><enum>(C)</enum><text>the accounting
classification of redeemable capital stock; and</text>
</subparagraph><subparagraph id="ID0A077E7D615F4686A3C18587CAC4B526"><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="IDD161C3BFAC3F4BA5AC40747BE2DE581B"><enum>(g)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="ID8AAC948D555B492BA3F02A0B8A2B1E2E"><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 <act-name parsable-cite="FHLBA">Federal Home Loan Bank
Act</act-name> (12 U.S.C. 1422);</text>
</paragraph><paragraph id="IDE229222AE80F4905A49D5E9F5F88AEAD"><enum>(2)</enum><text>the term
<term>Commission</term> means the Securities and Exchange Commission;
and</text>
</paragraph><paragraph id="IDA370D35558624D68913D6506D6A7B3BF"><enum>(3)</enum><text>the term
<term>securities laws</term> has the same meaning as in section 3(a)(47) of the
<act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (15
U.S.C. 78c(a)(47)).</text>
</paragraph></subsection></section><section id="ID4F44CA3E988F42D681AFE21404A4AF5E"><enum>206.</enum><header>Mergers</header><text display-inline="no-display-inline">Section 26 of the
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12
U.S.C. 1446) is amended—</text>
<paragraph id="ID3CAD02B523EC4F318706F80EECFD1D84"><enum>(1)</enum><text>by striking
<quote>Whenever</quote> and inserting <quote>(a) <header-in-text>In
General</header-in-text>.—Whenever</quote>; and</text>
</paragraph><paragraph id="IDCF65505B1A1844A28932175A61514B2E"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID8D1778E03E19490592819777289D924C" style="OLC">
<subsection id="ID094A3516712C4FEC82DB7C5D418356B8"><enum>(b)</enum><header>Mergers
Authorized</header>
<paragraph id="ID0B0BB0495E39448F958B79CF9FC6C217"><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="IDA896EBC0B5C04945A10B4130D5BDA537"><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).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDD8AC4C2D877E4A06AB79D6222F964074"><enum>207.</enum><header>Authority to
reduce districts</header><text display-inline="no-display-inline">Section 3 of
the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12
U.S.C. 1423) is amended—</text>
<paragraph id="ID261751DDB70B48E68F78E4569F5A77BA"><enum>(1)</enum><text>by striking
<quote>As soon</quote> and inserting <quote>(a) <header-in-text>In
General</header-in-text>.—As soon</quote>; and</text>
</paragraph><paragraph id="ID8E38DAB8738149EC96A5D8F14F14B883"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="ID8DE140CAA05E42E1BC3D78D920B7363A" style="OLC">
<subsection id="ID9E85CDD91562446B9D9749C3B471B71E"><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="ID8D2CD7554B114EFE80A68B51704E3CEB"><enum>(1)</enum><text>pursuant to a
voluntary merger between Banks, as approved pursuant to section 26(b);
or</text>
</paragraph><paragraph id="ID4617A2D5813649F7A5A13ACE8C86C7D6"><enum>(2)</enum><text>pursuant to a
decision by the Director to liquidate a bank pursuant to section 1367 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of
1992</act-name>.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idD9F719BED3214FEF92DA02A8970E1960"><enum>208.</enum><header>Management of
home loan banks</header>
<subsection id="ID4bd815d5e80643e09cfc58a97cf1b95c"><enum>(a)</enum><header>Board of
directors</header><text>Section 7(a)(1) of the Federal Home Loan Bank Act (12
U.S.C. 1427(a)(1)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idE7940E8D71A144C09483D6B235EECBF5" style="OLC">
<paragraph id="ID4723e19fb2ad4e90992db5b3889b5237"><enum>(1)</enum><header>In
general</header><text>Subject to paragraphs (2) through (4), and except to the
extent that action under section 1377 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 results in a lesser number, the
management of each Federal home loan bank shall be vested in a board of 13
directors, or such other number as the board of directors of each Federal home
loan bank determines
appropriate.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDfe39c55b44ea4ce485215701816d1dcc"><enum>(b)</enum><header>Apportionment
among States; designation of State location</header><text>Section 7(c) of the
Federal Home Loan Bank Act (12 U.S.C. 1427(c)) is amended to read s
follows:</text>
<quoted-block display-inline="no-display-inline" id="id01C9252C840D448A8B3D617A43548BC1" style="OLC">
<subsection id="IDb2535ddb04dc4a58b07aa6914e25454f"><enum>(c)</enum><header>Apportionment
among States; designation of State location</header><text>The number of
elective directorships designated as representing the members located in each
separate State in a bank district shall be determined by the Director, in the
approximate ratio of the percentage of the required stock, as determined
pursuant to regulation of the Director, of the members located in the State at
the end of the calendar year next preceding the date of the election to the
total required stock, as so determined, of all members of such bank at the end
of such year, except that in the case of each State, such number shall not be
less than 1 or 2, as determined by the board of directors of each Federal home
loan bank, and shall be not more than
6.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>III</enum><header>TRANSFER OF
FUNCTIONS, PERSONNEL, AND PROPERTY OF OFHEO AND THE FEDERAL HOUSING FINANCE
BOARD</header>
<subtitle id="ID32B3812FBD7640D5822F3F915FFFA1EF"><enum>A</enum><header>OFHEO</header>
<section id="ID83118349B7BD4AE4A77355CE5C818C84"><enum>301.</enum><header>Abolishment of
OFHEO</header>
<subsection id="ID0B684EAF52464A3FB6B340D553DAC2E6"><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="ID06277106D509488E8C5D8AA6D3920613"><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="ID6FF0CB9353BB4B48A3B882FB932F32C2"><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="IDA5D7D7E8AE714DF7AFE4D30B3836D71B"><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="IDB701B70337F34F9EBCC1BBADB4D7C7F2"><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="ID2C6489165F4543EFA2427E7A26773AB1"><enum>(d)</enum><header>Use of Property
and Services</header>
<paragraph id="ID400A7749C7F749DA85401E7EF9BFC737"><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="ID4743F00EDBF145C2A39F41805C08DEBC"><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="ID5AE64443137444C9AE2A9C7F967C62FF"><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="ID6BE8C22888AA4A2584252B733A6E9BEB"><enum>(B)</enum><text>consult with any
such agency to coordinate and facilitate a prompt and reasonable
transition.</text>
</subparagraph></paragraph></subsection><subsection id="ID92CED541D13E4EF2BB6833B594E19218"><enum>(e)</enum><header>Savings
Provisions</header>
<paragraph id="ID5CD797E37397420A9ED1ADFF6DD636E2"><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="ID8DB14D0ADEB34EC0A8906B575A00E33A"><enum>(A)</enum><text>arises
under—</text>
<clause id="IDBEB0F123D1F54AE98EDEE80691F30A40"><enum>(i)</enum><text>the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name>;</text>
</clause><clause id="IDA5354EE880674287B5E4332DA264891D"><enum>(ii)</enum><text>the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name>;</text>
</clause><clause id="ID2F6A163017C9422B99B08DAE322E952D"><enum>(iii)</enum><text>the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>;</text>
</clause><clause id="ID5445136C2E8F433EB8ECBD4721807270"><enum>(iv)</enum><text>or
any other provision of law applicable with respect to such Office; and</text>
</clause></subparagraph><subparagraph id="ID3F66E7FC83A94F469A0A4A20E2A08617"><enum>(B)</enum><text>existed on the
day before the date of abolishment under subsection (a).</text>
</subparagraph></paragraph><paragraph id="ID34DC9EF28012458A9A083120FE26B2FF"><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
Enterprise Regulatory Agency shall abate by reason of the enactment of this
Act, except that the Director of the Federal Housing Enterprise Regulatory
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="IDB47AD941F3A24707A73A1882FEACB26A"><enum>302.</enum><header>Continuation
and coordination of certain regulations</header>
<subsection id="ID885AA740D61C4E2FA5C79FDFB37F340E"><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="ID10111DAF6E0F4ABFB385FA0ED32D237E"><enum>(b)</enum><header>Applicability</header><text>A
regulation, order, or determination is described in this subsection if
it—</text>
<paragraph id="IDEC8E4E67AF1E4967994C27EB67D9A642"><enum>(1)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<subparagraph id="ID1504FCC9FE2B430681540C2E3858D17B"><enum>(A)</enum><text>the Office of
Federal Housing Enterprise Oversight;</text>
</subparagraph><subparagraph id="IDE7F113EC4A7844B883E4285EE03C2293"><enum>(B)</enum><text>the Secretary of
Housing and Urban Development, and relates to the authority of the Secretary
under—</text>
<clause id="IDAC95E98BC85742AE84295BB46BA1F79F"><enum>(i)</enum><text>the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name>;</text>
</clause><clause id="ID3E36784372DC4E0AAEBE4645DBE57A98"><enum>(ii)</enum><text>the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name>, with respect to the Federal National Mortgage Association;
or</text>
</clause><clause id="ID02A2BD9625DB4026BA9A71D6ADE8F334"><enum>(iii)</enum><text>the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>, with respect to the Federal Home Loan Mortgage Corporation;
or</text>
</clause></subparagraph><subparagraph id="IDA2EB91080FAF4CD1A1E151FB8B3E1B69"><enum>(C)</enum><text>a court of
competent jurisdiction, and relates to functions transferred by this Act;
and</text>
</subparagraph></paragraph><paragraph id="ID499E2C8464064D5FB94A25B40DFF9368"><enum>(2)</enum><text>is in effect on
the effective date of the abolishment under section 301(a).</text>
</paragraph></subsection></section><section id="ID8CB37E12575440F189C5407544CC4F05"><enum>303.</enum><header>Transfer and
rights of employees of OFHEO</header>
<subsection id="ID574724A739424DFEBE5E7463EF6C6483"><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 section 3503 of title 5, United States
Code.</text>
</subsection><subsection id="IDA9A4E6ABF41240F6BDDDFA4E87E89266"><enum>(b)</enum><header>Guaranteed
Positions</header>
<paragraph id="ID6F7ED6BCBCD149C798A9E577F76567CC"><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="IDE0957DEE8CED4E92A0BD826C9C73F926"><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="ID736EC4F083AA452E81C8FB423055C252"><enum>(c)</enum><header>Appointment
Authority for Excepted and Senior Executive Service Employees</header>
<paragraph id="IDA74872F59E7C4A10A004CFFA809A164D"><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="ID580B64F43CC74315804C0F29A0989099"><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="ID0140D0DC8ECF4D439DF225F44C71CC00"><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="ID98AD5FCC13BE48E38A3175E479E0FEC8"><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="IDF552F1AA1F5749558143A728A3EAF4A8"><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 8336(d)(2) or 8414(b)(1)(B) of title 5, United States
Code.</text>
</subsection><subsection id="ID72F71A8DC6E64E678FCB72815C5B691F"><enum>(e)</enum><header>Employee
Benefit Programs</header>
<paragraph id="ID211C56B4448448F2AA7170D2A5324F4E"><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="ID77F6B3081D784A9B94542820A1F5FB47"><enum>(A)</enum><text>the employee does
not elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="ID4EB88084A4CC46BD82DC05A8D562F2D7"><enum>(B)</enum><text>the benefit or
program is continued by the Director of the Federal Housing Enterprise
Regulatory Agency.</text>
</subparagraph></paragraph><paragraph id="IDEF81D7FBEAB14BF99401CA6A0851B2C1"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="ID347CA333448A4907A96D2BB5E5DB124A"><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="ID9F816DC7F8894FDE8D30DB31A1C976B5"><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="ID759D45FE31A34E9D8DB7E5DCB9B27ADB"><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="ID19A876DEF17E4B5C91F9088BD0AD99F5"><enum>B</enum><header>Federal Housing
Finance Board</header>
<section id="ID5FC361DAC8D142D3A303EAD427A8A795"><enum>311.</enum><header>Abolishment of
the Federal Housing Finance Board</header>
<subsection id="ID2528990F0ADE42BDA55AF090E9C583C7"><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="ID5D60F338843C41B59FD23C420DE71F62"><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="ID7DC5538107C4485085FD3FAE4A694403"><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="ID4A9F3BAEB23F433FB2789E65982BF3A3"><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="IDF0897CC779C943F4AEB82F29A061D8E0"><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="ID9BC8021726964747996880FF074C3D3B"><enum>(d)</enum><header>Use of Property
and Services</header>
<paragraph id="ID9EB0144FD70A43BE92C9677BF93807A3"><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="IDF1D02BE184AC42A898E3FF36FCBB6D8D"><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="ID4BEF607E39CB4C8BAC420BD5D7B41460"><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="IDFE40592DAD824A309A7FA6C1C4E96502"><enum>(B)</enum><text>consult with any
such agency to coordinate and facilitate a prompt and reasonable
transition.</text>
</subparagraph></paragraph></subsection><subsection id="ID28DA4D68F83D46A68E13E650DB62373F"><enum>(e)</enum><header>Savings
Provisions</header>
<paragraph id="IDA6C8D19384954AB7BEBB27A06C53F5D0"><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="IDCC90754FCF2E43379DBAF21A1AB33BFB"><enum>(A)</enum><text>arises under the
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>, or any
other provision of law applicable with respect to the Board; and</text>
</subparagraph><subparagraph id="IDDCF70D674AA041878A91ADA69FB78925"><enum>(B)</enum><text>existed on the
day before the effective date of the abolishment under subsection (a).</text>
</subparagraph></paragraph><paragraph id="IDB40B33B3C42946878AB2DD2A3F948AA3"><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="ID82683A435CDA4FCDBB18D98ABDD2A104"><enum>312.</enum><header>Continuation
and coordination of certain regulations</header>
<subsection id="IDAE6ED58A772D43389D3C6ADC216FB23C"><enum>(a)</enum><header>In
General</header><text>All regulations, orders, and determinations described
under subsection (b) shall remain in effect according to the terms of such
regulations, orders, and determinations, 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="ID07A929B90B524E9F9A90FF45AED470FA"><enum>(b)</enum><header>Applicability</header><text>A
regulation, order, or determination is described under this subsection if
it—</text>
<paragraph id="IDC16B93AA517E446A821F3C6FF483B022"><enum>(1)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<subparagraph id="ID79881DF4F62A4AA08BE26C8E1D08A479"><enum>(A)</enum><text>the Board;
or</text>
</subparagraph><subparagraph id="IDE2D9C1728CDD4871B78A68053A80BE40"><enum>(B)</enum><text>a court of
competent jurisdiction, and relates to functions transferred by this Act;
and</text>
</subparagraph></paragraph><paragraph id="ID4855339B59D94ECBBD88E85704604592"><enum>(2)</enum><text>is in effect on
the effective date of the abolishment under section 311(a).</text>
</paragraph></subsection></section><section id="ID1005E254649447FE8BCB604B3B121563"><enum>313.</enum><header>Transfer and
rights of employees of the Federal Housing Finance Board</header>
<subsection id="IDE65B2E03D7094BE8B53954EB867EDC71"><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="ID157B2691E37444E98CBABD5E2D59C76D"><enum>(b)</enum><header>Guaranteed
Positions</header>
<paragraph id="ID8199E3E53E294FA8AE6FA875CA47686D"><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="IDAED552B68B894CE686168B555BB502C4"><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="ID0655FC49F6684E39B3A1DFC71FC55065"><enum>(c)</enum><header>Appointment
Authority for Excepted and Senior Executive Service Employees</header>
<paragraph id="IDFA000290C9B0414A900D1DD02F4C6329"><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="ID6A287E2A96ED4FB4BF8286702DCB4FA7"><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="IDAC301A28C3CB422AA48C0A8B77B76F0F"><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="IDAF0808B3F479408093BE517704D65698"><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="IDD95337C97650436FBC962CC778444635"><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 8336(d)(2) or 8414(b)(1)(B) of title 5, United States
Code.</text>
</subsection><subsection id="IDFFF1A0ADDFCB472CA9EF8577C38D562A"><enum>(e)</enum><header>Employee
Benefit Programs</header>
<paragraph id="ID87B38DCA1CAF4A71A4EC481A598498C7"><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="ID92C1E5FB5E3640C89FFCD14D0CC392D8"><enum>(A)</enum><text>the employee does
not elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="ID219AB1555BD446D2A1776CB2A82DF616"><enum>(B)</enum><text>the benefit or
program is continued by the Director.</text>
</subparagraph></paragraph><paragraph id="IDED2BC376CD2E49DEB9F97A7CC1D307C2"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="ID194FF50522854CD28B5A42BA15E90245"><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="ID3D9C4134AF94453296782CBD0FBB5F9E"><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="IDEE041C46B9D048329CB0EB43B387CBCA"><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><enum>IV</enum><header>STUDIES AND
REPORTS</header>
<section id="IDE2AFB2CFF9FF445DAF45E3904D1AEFEF"><enum>401.</enum><header>Study and
report on Basel II and enterprise debt</header>
<subsection id="IDF39552610AA84FC893E0A6163AD72B0B"><enum>(a)</enum><header>Study</header><text>The
Board of Governors of the Federal Reserve System shall conduct a study on the
effects on the regulated entities of the new Basel Capital Accord (Basel II),
as endorsed by the Group of Ten countries in <quote>The International
Convergence of Capital Measurement and Capital Standards: a Revised
Framework</quote>. The study shall examine the debt of the regulated entities
and the capital classification on financial institutions that hold such
debt.</text>
</subsection><subsection id="ID83A9A7D8737348159371AAE843AE7705"><enum>(b)</enum><header>Report</header><text>The
Chairman of the Board of Governors of the Federal Reserve System shall submit a
report to Congress on the results of the study required by this section not
later than 2 years after the date of enactment of this Act.</text>
</subsection></section><section id="ID0CE292096E014A2AB77E5B5E550803F8"><enum>402.</enum><header>Affordable
housing audits</header><text display-inline="no-display-inline">The Inspector
General of the Agency shall conduct an annual audit of the affordable housing
activities, programs, and partnerships of the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation, to ensure that such
activities, programs, and partnerships support the affordable housing missions
of those enterprises.</text>
</section><section id="IDFD17DBB3C1A443D1937FC4F717F3DCF7"><enum>403.</enum><header>Report on
insured depository institution holdings of regulated entity debt and
mortgage-backed securities</header><text display-inline="no-display-inline">Not
later than 2 years after the date of enactment of this Act, the Director, the
Secretary of the Treasury, the Board of Governors of the Federal Reserve
System, the Board of Directors of the Federal Deposit Insurance Corporation,
and the National Credit Union Administration Board shall jointly submit a
report to Congress regarding—</text>
<paragraph id="ID686C4571235E4EE99AFA76D99E3A0DE4"><enum>(1)</enum><text>the extent to
which obligations issued or guaranteed by the regulated entities (including
mortgage-backed securities) are held by federally insured depository
institutions, including such extent by type of institution and such extent
relative to the capital of the institution;</text>
</paragraph><paragraph id="ID4D2C782DCAD54E5DA1AF4BB590AF696F"><enum>(2)</enum><text>the extent to
which the unlimited holdings by federally insured depository institutions of
the obligations of the regulated entities could produce systemic risk issues,
particularly for the safety and soundness of the banking system in the United
States, in the event of default or failure by a regulated entity;</text>
</paragraph><paragraph id="IDE46F07423A2E4B5182B3E2B84427FE99"><enum>(3)</enum><text>the effects on
the regulated entities, the banking industry, and mortgage markets, if prudent
limits on the holdings of the obligations of a regulated entity were placed on
federally insured depository institutions; and</text>
</paragraph><paragraph id="ID76B9D831C87B4C5E8E88DBDE16FBD3B7"><enum>(4)</enum><text>the extent to
which alternative investments are available to community depository
institutions, and the impact that such alternative investments would have on
the safety and soundness and capital levels of such community depository
institutions.</text>
</paragraph></section><section id="IDBA6CD7A83298440A83A844878118267E"><enum>404.</enum><header>Report on
risk-based capital levels</header>
<subsection id="ID470B8B69427844709888E7C5C7559DB3"><enum>(a)</enum><header>In
General</header><text>The Director shall submit a report to Congress at the end
of each fiscal quarter regarding—</text>
<paragraph id="IDF265FE2E7F4849F9844AD4B9D16086E4"><enum>(1)</enum><text>the risk-based
capital levels for the regulated entities under section 1361 of the
<act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name>, as amended by this Act, including a
description of the risk-based capital test under that section 1361 and any
assumptions of the Director and factors used by the Director in establishing
the test; and</text>
</paragraph><paragraph id="IDADB998EEF2544DA4A60E7C4A3E512285"><enum>(2)</enum><text>the minimum and
critical capital levels for the regulated entities pursuant to sections 1362
and 1363, respectively, of that Act, as so amended.</text>
</paragraph></subsection><subsection id="ID3FA699269F9F44799F7AA541E7B626FB"><enum>(b)</enum><header>Timing</header><text>Each
report under this section shall be submitted not later than 60 days after the
end of each fiscal quarter.</text>
</subsection></section><section id="ID2FC2819D549C4B2EAB5AFB55CF6CD2C9"><enum>405.</enum><header>Report on
resources and allocations</header><text display-inline="no-display-inline">The
Comptroller General of the United States shall submit a report to Congress
annually, on a fiscal year basis, regarding—</text>
<paragraph id="ID7D0289E6348A4D0197BC0FB554633FF9"><enum>(1)</enum><text>the allocation of
resources of the Agency by the Director; and</text>
</paragraph><paragraph id="IDF19A48EB5F2B47B5BD3F4B3F7F0FBD56"><enum>(2)</enum><text>the level of
assessments collected by the Director for the operation of the Agency.</text>
</paragraph></section><section id="ID6FE23930CE0B4C64893DE06A217308E8"><enum>406.</enum><header>Study and
report on guarantee fees</header>
<subsection id="ID8E89150F5548491D91777678EB03CE4C"><enum>(a)</enum><header>Ongoing Study
of Fees</header><text>The Director shall conduct an ongoing study of fees
charged by enterprises for guaranteeing a mortgage.</text>
</subsection><subsection id="ID5953CCA7720B4C04AE53BC8C7605EFB2"><enum>(b)</enum><header>Collection of
Data</header><text>The Director shall, by regulation or order, establish
procedures for the collection of data from enterprises for purposes of this
subsection, including the format and the process for collection of such
data.</text>
</subsection><subsection id="IDE770DD4FA9CB4A27A25C01686BE0BC54"><enum>(c)</enum><header>Report to
Congress</header><text>The Director shall annually submit a report to Congress
on the results of the study conducted under subsection (a), based on the
aggregated data collected under subsection (a) for the subject year, regarding
the amount of such fees and the criteria used by the enterprises to determine
such fees.</text>
</subsection><subsection id="IDF08707273B1E45D6BCA05277F0D30449"><enum>(d)</enum><header>Contents of
Reports</header><text>The reports required under subsection (c) shall identify
and analyze—</text>
<paragraph id="ID494AC018B3EA42E0A5F297319B8853A8"><enum>(1)</enum><text>the factors
considered in determining the amount of the guarantee fees charged;</text>
</paragraph><paragraph id="ID34CD1A81EE82471B96D8180791C51C8B"><enum>(2)</enum><text>the total revenue
earned by the enterprises from guarantee fees;</text>
</paragraph><paragraph id="IDDC0628A005BE4FD9A9DFCC6F26E37294"><enum>(3)</enum><text>the total costs
incurred by the enterprises for providing guarantees;</text>
</paragraph><paragraph id="IDF585535F68424307A82E784AE7088A2E"><enum>(4)</enum><text>the average
guarantee fee charged by the enterprises;</text>
</paragraph><paragraph id="IDD85A5EBF81AA479B915096A33D48EA06"><enum>(5)</enum><text>an analysis of
any increase or decrease in guarantee fees from the preceding year;</text>
</paragraph><paragraph id="ID159D4A801D8C41D8A7EDAD0E83ABD8AE"><enum>(6)</enum><text>a breakdown of
the revenue and costs associated with providing guarantees, based on product
type and risk classifications; and</text>
</paragraph><paragraph id="ID1139DD86AF58423C873CB00EDC288EA8"><enum>(7)</enum><text>a breakdown of
guarantee fees charged based on asset size of the originator and the number of
loans sold or transferred to an enterprise.</text>
</paragraph></subsection><subsection id="IDC0F451ACC3214072B72C5BE6A966FFF1"><enum>(e)</enum><header>Protection of
Information</header><text>Nothing in this section may be construed to require
or authorize the Director to publicly disclose information that is confidential
or proprietary.</text>
</subsection></section><section id="id6962442A306C4AC082931724437D789A"><enum>407.</enum><header>Report on
conforming loan limits</header><text display-inline="no-display-inline">The
Comptroller General of the United States shall submit a report to Congress on
whether raising the loan limits under section 302(b) of the Federal National
Mortgage Association Act (12 U.S.C. 1717(b)) and section 305(a) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) would promote the
availability of affordable housing.</text>
</section><section id="idBB55D0BA194143F19000B92436C8BD73"><enum>408.</enum><header>Reviews and
studies relating to enterprises and related foundations</header>
<subsection id="ID0eeb31869d474ebf817402743e18c2b7"><enum>(a)</enum><header>Annual
reviews</header><text>The Director shall annually conduct a review of the
Freddie Mac Foundation and the Office of Corporate Giving of the Federal
National Mortgage Corporation (formerly known as the <quote>Fannie Mae
Foundation</quote>), or any successors thereto, to ensure that such entities
are not engaged in impermissible lobbying activities.</text>
</subsection><subsection id="IDcd5e85a13dfc4ca783f485b5b4c16675"><enum>(b)</enum><header>Study on
lobbying activities To obstruct special examination</header><text>The Director
shall conduct a study to determine whether any actions or inactions by an
OFHEO-designated executive officer of a Government-Sponsored Enterprise, that
was an employee of the Government-Sponsored-Enterprise during the period of
review of the OFHEO Special Examination of Accounting Policies and Practices of
Fannie Mae for the years 1998 through mid-2004 and remains an employee of such
Government-Sponsored Enterprise as of the date of enactment of this Act, were
intended to obstruct the Special Examination by OFHEO.</text>
</subsection><subsection id="id3F191C90C49540E29CEFFBB1308DEA58"><enum>(c)</enum><header>Report</header><text>The
Director shall submit a report to Congress on the results of the reviews and
study required under subsections (a) and (b), not later than 60 days after the
date of enactment of this Act, and annually thereafter with respect to the
reviews conducted under subsection (a).</text>
</subsection></section><section id="IDE8FE2BACEC1748F8AE9B0DC22C8D4634"><enum>409.</enum><header>Recommendations</header><text display-inline="no-display-inline">Each report submitted pursuant to this title
shall include specific recommendations, if any, of appropriate policies,
limitations, regulations, legislation, or other actions to deal appropriately
and effectively with the issues addressed by such report.</text>
</section>