[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 693 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 693

To establish a term certain for the conservatorships of Fannie Mae and 
  Freddie Mac, to provide conditions for continued operation of such 
 enterprises, and to provide for the wind down of such operations and 
                  the dissolution of such enterprises.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 31, 2011

 Mr. McCain (for himself and Mr. Hatch) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To establish a term certain for the conservatorships of Fannie Mae and 
  Freddie Mac, to provide conditions for continued operation of such 
 enterprises, and to provide for the wind down of such operations and 
                  the dissolution of such enterprises.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``GSE Bailout Elimination and Taxpayer 
Protection Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Charter.--The term ``charter'' means--
                    (A) with respect to the Federal National Mortgage 
                Association, the Federal National Mortgage Association 
                Charter Act (12 U.S.C. 1716 et seq.); and
                    (B) with respect to the Federal Home Loan Mortgage 
                Corporation, the Federal Home Loan Mortgage Corporation 
                Act (12 U.S.C. 1451 et seq.).
            (2) Director.--The term ``Director'' means the Director of 
        the Federal Housing Finance Agency.
            (3) Enterprise.--The term ``enterprise'' means--
                    (A) the Federal National Mortgage Association; and
                    (B) the Federal Home Loan Mortgage Corporation.
            (4) Guarantee.--The term ``guarantee'' means, with respect 
        to an enterprise, the credit support of the enterprise that is 
        provided by the Federal Government through its charter as a 
        government-sponsored enterprise.

SEC. 3. TERMINATION OF CURRENT CONSERVATORSHIP.

    (a) In General.--Upon the expiration of the period referred to in 
subsection (b), the Director of the Federal Housing Finance Agency 
shall determine, with respect to each enterprise, if the enterprise is 
financially viable at that time and--
            (1) if the Director determines that the enterprise is 
        financially viable, immediately take all actions necessary to 
        terminate the conservatorship for the enterprise that is in 
        effect pursuant to section 1367 of the Federal Housing 
        Enterprises Financial Safety and Soundness Act of 1992 (12 
        U.S.C. 4617); or
            (2) if the Director determines that the enterprise is not 
        financially viable, immediately appoint the Federal Housing 
        Finance Agency as receiver under section 1367 of the Federal 
        Housing Enterprises Financial Safety and Soundness Act of 1992 
        and carry out such receivership under the authority of such 
        section.
    (b) Timing.--The period referred to in this subsection is, with 
respect to an enterprise, the 24-month period beginning upon the date 
of the enactment of this Act.
    (c) Financial Viability.--The Director may not determine that an 
enterprise is financially viable for purposes of subsection (a) if the 
Director determines that any of the conditions for receivership set 
forth in paragraph (3) or (4) of section 1367(a) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4617(a)) exists at the time with respect to the enterprise.

SEC. 4. LIMITATIONS ON ENTERPRISE AUTHORITY.

    (a) Limitations Effective Upon Enactment.--Upon the enactment of 
this Act, the following provisions shall take effect:
            (1) Repeal of mandatory housing activities.--
                    (A) Repeal of housing goals.--The Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                is amended by striking sections 1331 through 1336 (12 
                U.S.C. 4561-6).
                    (B) Conforming amendments.--Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                is amended--
                            (i) in section 1303(28) (12 U.S.C. 
                        4502(28)), by striking ``, and, for the 
                        purposes'' and all that follows through 
                        ``designated disaster areas'';
                            (ii) in section 1324(b)(1)(A) (12 U.S.C. 
                        4544(b)(1)(A)), by striking clauses (i), (ii), 
                        and (iv);
                            (iii) in section 1339(h) (12 U.S.C. 
                        4569(h)), by striking paragraph (7);
                            (iv) in section 1341 (12 U.S.C. 4581)--
                                    (I) in subsection (a)--
                                            (aa) in paragraph (1), by 
                                        inserting ``or'' after the 
                                        semicolon at the end;
                                            (bb) in paragraph (2), by 
                                        striking the semicolon at the 
                                        end and inserting a period; and
                                            (cc) by striking paragraphs 
                                        (3) and (4); and
                                    (II) in subsection (b)(2)--
                                            (aa) in subparagraph (A), 
                                        by inserting ``or'' after the 
                                        semicolon at the end;
                                            (bb) by striking 
                                        subparagraphs (B) and (C); and
                                            (cc) by redesignating 
                                        subparagraph (D) as 
                                        subparagraph (B);
                            (v) in section 1345(a) (12 U.S.C. 
                        4585(a))--
                                    (I) in paragraph (1), by inserting 
                                ``or'' after the semicolon at the end;
                                    (II) in paragraph (2), by striking 
                                the semicolon at the end and inserting 
                                a period; and
                                    (III) by striking paragraphs (3) 
                                and (4); and
                            (vi) in section 1371(a)(2) (12 U.S.C. 
                        4631(a)(2)), by striking ``with any housing 
                        goal established under subpart B of part 2 of 
                        subtitle A of this title, with section 1336 or 
                        1337 of this title,''.
                    (C) Repeal of housing trust fund.--
                            (i) Repeal.--The Federal Housing 
                        Enterprises Financial Safety and Soundness Act 
                        of 1992 is amended by striking sections 1337 
                        and 1338 (12 U.S.C. 4567, 4568).
                            (ii) Conforming amendments.--The Federal 
                        Housing Enterprises Financial Safety and 
                        Soundness Act of 1992 is amended--
                                    (I) in section 1303(24)(B) (12 
                                U.S.C. 4502(24)(B)), by striking ``1338 
                                and'';
                                    (II) in section 1324(b)(1)(A) (12 
                                U.S.C. 4544(b)(1)(A))--
                                            (aa) by striking clause 
                                        (iii);
                                            (bb) by striking the dash 
                                        after ``which'' and inserting 
                                        the text of clause (v) and a 
                                        period; and
                                            (cc) by striking clause 
                                        (v);
                                    (III) in section 1339(b)--
                                            (aa) by striking paragraph 
                                        (1);
                                            (bb) by striking the dash 
                                        after ``consist of'' and 
                                        inserting the text of paragraph 
                                        (2) and a period; and
                                            (cc) by striking paragraph 
                                        (2); and
                                    (IV) in section 1346 (12 U.S.C. 
                                4585), by striking subsection (f).
            (2) Portfolio limitations.--Subtitle B of title XIII of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 4611 
        et seq.) is amended by adding at the end the following new 
        section:

``SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF ENTERPRISES.

    ``(a) Restriction.--No enterprise shall own, as of any applicable 
date in this subsection or thereafter, mortgage assets in excess of--
            ``(1) upon the expiration of the 1-year period that begins 
        upon the enactment of the GSE Bailout Elimination and Taxpayer 
        Protection Act or thereafter, $700,000,000,000;
            ``(2) upon the expiration of the 2-year period that begins 
        upon the enactment of such Act or thereafter, $600,000,000,000;
            ``(3) upon the expiration of the 3-year period that begins 
        upon the enactment of such Act or thereafter, $475,000,000,000;
            ``(4) upon the expiration of the 4-year period that begins 
        upon the enactment of such Act or thereafter, $350,000,000,000; 
        and
            ``(5) upon the expiration of the 5-year period that begins 
        upon the enactment of such Act or thereafter, $250,000,000,000.
    ``(b) Definition of Mortgage Assets.--For purposes of this section, 
the term `mortgage assets' means, with respect to an enterprise, assets 
of such enterprise consisting of mortgages, mortgage loans, mortgage-
related securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage investment 
conduits and similar assets, in each case to the extent such assets 
would appear on the balance sheet of such enterprise in accordance with 
generally accepted accounting principles in effect in the United States 
as of September 7, 2008 (as set forth in the opinions and 
pronouncements of the Accounting Principles Board and the American 
Institute of Certified Public Accountants and statements and 
pronouncements of the Financial Accounting Standards Board from time to 
time; and without giving any effect to any change that may be made 
after September 7, 2008, in respect of Statement of Financial 
Accounting Standards No. 140 or any similar accounting standard).''.
            (3) Repeal of increases to conforming loan limits.--
                    (A) Repeal of temporary increases.--
                            (i) Continuing appropriations act, 2011.--
                        Section 146 of the Continuing Appropriations 
                        Act, 2011 (Public Law 111-242; 124 Stat. 2615) 
                        is hereby repealed.
                            (ii) Continuing appropriations resolution, 
                        2010.--Section 167 of the Continuing 
                        Appropriations Resolution, 2010 (division B of 
                        Public Law 111-68 (as added by section 104 of 
                        division B of Public Law 111-88; 123 Stat. 
                        2973)) is hereby repealed.
                            (iii) American recovery and reinvestment 
                        act of 2009.--Section 1203 of division A of the 
                        American Recovery and Reinvestment Act of 2009 
                        (Public Law 111-5; 123 Stat. 225) is hereby 
                        repealed.
                            (iv) Economic stimulus act of 2008.--
                        Section 201 of the Economic Stimulus Act of 
                        2008 (Public Law 110-185; 122 Stat. 619) is 
                        hereby repealed.
                    (B) Repeal of general limit and permanent high-cost 
                area increase.--Paragraph (2) of section 302(b) of the 
                Federal National Mortgage Association Charter Act (12 
                U.S.C. 1717(b)(2)) and paragraph (2) of section 305(a) 
                of the Federal Home Loan Mortgage Corporation Act (12 
                U.S.C. 1454(a)(2)) are each amended to read as such 
                sections were in effect immediately before the 
                enactment of the Housing and Economic Recovery Act of 
                2008 (Public Law 110-289).
                    (C) Repeal of new housing price index.--Section 
                1322 of the Federal Housing Enterprises Financial 
                Safety and Soundness Act of 1992, as added by section 
                1124(d) of the Housing and Economic Recovery Act of 
                2008 (Public Law 110-289), is hereby repealed.
                    (D) Repeal.--Section 1124 of the Housing and 
                Economic Recovery Act of 2008 (Public Law 110-289) is 
                hereby repealed.
                    (E) Establishment of conforming loan limit.--For 
                the first year beginning after the date of the 
                enactment of this Act, the limitations governing the 
                maximum original principal obligation of conventional 
                mortgages that may be purchased by the Federal National 
                Mortgage Association and the Federal Home Loan Mortgage 
                Corporation, referred to in section 302(b)(2) of the 
                Federal National Mortgage Association Charter Act (12 
                U.S.C. 1717(b)(2)) and section 305(a)(2) of the Federal 
                Home Loan Mortgage Corporation Act (12 U.S.C. 
                1454(a)(2)), respectively, shall be considered to be--
                            (i) $417,000 for a mortgage secured by a 
                        single-family residence,
                            (ii) $533,850 for a mortgage secured by a 
                        2-family residence,
                            (iii) $645,300 for a mortgage secured by a 
                        3-family residence, and
                            (iv) $801,950 for a mortgage secured by a 
                        4-family residence,
                and such limits shall be adjusted effective each 
                January 1 thereafter in accordance with such sections 
                302(b)(2) and 305(a)(2).
            (4) Increase in guarantee fees.--Subpart A of part 2 of 
        subtitle A of Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 is amended by adding after section 1326 
        (12 U.S.C. 4546) the following new section:

``SEC. 1327. ENTERPRISE GUARANTEE FEES.

    ``(a) Increase.--Subject to subsection (b), the Director shall, by 
regulation or order, require that each enterprise charge a guarantee 
fee, in connection with any mortgage guaranteed after the expiration of 
the 3-year period beginning on the date of the enactment of the GSE 
Bailout Elimination and Taxpayer Protection Act, in an amount that the 
Director determines is equivalent to the amount that the enterprise 
would charge for such a fee if the enterprise were held to the same 
capital standards as private banks or financial institutions.
    ``(b) Option To Phase-In Over 3 Years.--The Director may, at the 
discretion of the Director, by regulation or order, provide for 
compliance with subsection (a) by requiring each enterprise to increase 
the guarantee fee charged by the enterprise incrementally during the 3-
year period specified in subsection (a) in a manner sufficient to 
comply with subsection (a) upon the expiration of the period specified 
in subsection (a).
    ``(c) Flexibility in Determination of Increase.--To determine the 
amount of the increase under subsection (a), the Director shall 
establish a pricing mechanism as the Director considers appropriate, 
taking into consideration current market conditions and any data 
collected pursuant to section 1601 of the Housing and Economic Recovery 
Act of 2008 (12 U.S.C. 4514a).
    ``(d) Definition of Guarantee Fee.--For purposes of this section, 
the term `guarantee fee' means a fee charged by an enterprise in 
connection with any guarantee, issued by the enterprise, of the timely 
payment of principal and interest on securities, notes, and other 
obligations based on or backed by mortgages on residential real 
properties. Such term includes--
            ``(1) the guaranty fee charged by the Federal National 
        Mortgage Association with respect to mortgage-backed 
        securities; and
            ``(2) the management and guarantee fee charged by the 
        Federal Home Loan Mortgage Corporation with respect to 
        participation certificates.''.
            (5) Prohibition of reduction in rate of dividends.--
                    (A) Fannie mae.--Section 304 of the Federal 
                National Mortgage Association Charter Act (12 U.S.C. 
                1719) is amended by adding at the end the following new 
                subsection:
    ``(h) Prohibition of Reduction in Rate of Dividends on Senior 
Preferred Stock.--Notwithstanding any other provision of law, any 
provision of the Senior Preferred Stock Purchase Agreement entered into 
between the Department of the Treasury and the corporation in September 
2008 (as such Agreement may be amended and restated), or any provision 
of any certificate in connection with such Agreement creating or 
designating the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Preference Senior 
Preferred Stock of the corporation issued pursuant to such Agreement, 
the rate of dividends paid on the Variable Liquidation Preference 
Senior Preferred Stock of the corporation issued pursuant to such 
Agreement shall not be reduced from the rate in effect pursuant to such 
Agreement as of March 1, 2011.''.
                    (B) Freddie mac.--Section 306 of the Federal Home 
                Loan Mortgage Corporation Act (12 U.S.C. 1455) is 
                amended by adding at the end the following new 
                subsection:
    ``(m) Prohibition of Reduction in Rate of Dividends on Senior 
Preferred Stock.--Notwithstanding any other provision of law, any 
provision of the Senior Preferred Stock Purchase Agreement entered into 
between the Department of the Treasury and the Corporation in September 
2008 (as such Agreement may be amended and restated), or any provision 
of any certificate in connection with such Agreement creating or 
designating the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Preference Senior 
Preferred Stock of the Corporation issued pursuant to such Agreement, 
the rate of dividends paid on the Variable Liquidation Preference 
Senior Preferred Stock of the Corporation issued pursuant to such 
Agreement shall not be reduced from the rate in effect pursuant to such 
Agreement as of March 1, 2011.''.
    (b) Revised Authority.--Upon the expiration of the period referred 
to in section 3(b), if the Director makes the determination under 
section 3(a)(1), the following provisions shall take effect:
            (1) Increase in minimum capital requirement.--Section 1362 
        of the Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 (12 U.S.C. 4612) is amended--
                    (A) in subsection (a), by striking ``For purposes 
                of this subtitle, the minimum capital level for each 
                enterprise shall be'' and inserting ``The minimum 
                capital level established under subsection (g) for each 
                enterprise may not be lower than'';
                    (B) in subsection (c)--
                            (i) by striking ``subsections (a) and'' and 
                        inserting ``subsection'';
                            (ii) by striking ``regulated entities'' the 
                        first place such term appears and inserting 
                        ``Federal Home Loan Banks'';
                            (iii) by striking ``for the enterprises,'';
                            (iv) by striking ``, or for both the 
                        enterprises and the banks,'';
                            (v) by striking ``the level specified in 
                        subsection (a) for the enterprises or''; and
                            (vi) by striking ``the regulated entities 
                        operate'' and inserting ``such banks operate'';
                    (C) in subsection (d)(1)--
                            (i) by striking ``subsections (a) and'' and 
                        inserting ``subsection''; and
                            (ii) by striking ``regulated entity'' each 
                        place such term appears and inserting ``Federal 
                        home loan bank'';
                    (D) in subsection (e), by striking ``regulated 
                entity'' each place such term appears and inserting 
                ``Federal home loan bank'';
                    (E) in subsection (f)--
                            (i) by striking ``the amount of core 
                        capital maintained by the enterprises,''; and
                            (ii) by striking ``regulated entities'' and 
                        inserting ``banks''; and
                    (F) by adding at the end the following new 
                subsection:
    ``(g) Establishment of Revised Minimum Capital Levels.--
            ``(1) In general.--The Director shall cause the enterprises 
        to achieve and maintain adequate capital by establishing 
        minimum levels of capital for such the enterprises and by using 
        such other methods as the Director deems appropriate.
            ``(2) Authority.--The Director shall have the authority to 
        establish such minimum level of capital for an enterprise in 
        excess of the level specified under subsection (a) as the 
        Director, in the Director's discretion, deems to be necessary 
        or appropriate in light of the particular circumstances of the 
        enterprise.
    ``(h) Failure To Maintain Revised Minimum Capital Levels.--
            ``(1) Unsafe and unsound practice or condition.--Failure of 
        a enterprise to maintain capital at or above its minimum level 
        as established pursuant to subsection (g) of this section may 
        be deemed by the Director, in his discretion, to constitute an 
        unsafe and unsound practice or condition within the meaning of 
        this title.
            ``(2) Directive to achieve capital level.--
                    ``(A) Authority.--In addition to, or in lieu of, 
                any other action authorized by law, including paragraph 
                (1), the Director may issue a directive to an 
                enterprise that fails to maintain capital at or above 
                its required level as established pursuant to 
                subsection (g) of this section.
                    ``(B) Plan.--Such directive may require the 
                enterprise to submit and adhere to a plan acceptable to 
                the Director describing the means and timing by which 
                the enterprise shall achieve its required capital 
                level.
                    ``(C) Enforcement.--Any such directive issued 
                pursuant to this paragraph, including plans submitted 
                pursuant thereto, shall be enforceable under the 
                provisions of subtitle C of this title to the same 
                extent as an effective and outstanding order issued 
                pursuant to subtitle C of this title which has become 
                final.
            ``(3) Adherence to plan.--
                    ``(A) Consideration.--The Director may consider 
                such enterprise's progress in adhering to any plan 
                required under this subsection whenever such enterprise 
                seeks the requisite approval of the Director for any 
                proposal which would divert earnings, diminish capital, 
                or otherwise impede such enterprise's progress in 
                achieving its minimum capital level.
                    ``(B) Denial.--The Director may deny such approval 
                where it determines that such proposal would adversely 
                affect the ability of the enterprise to comply with 
                such plan.''.
            (2) Requirement of minimum downpayment for mortgages 
        purchased.--
                    (A) Fannie mae.--Subsection (b) of section 302 of 
                the Federal National Mortgage Association Charter Act 
                (12 U.S.C. 1717(b)) is amended by adding at the end the 
                following new paragraph:
    ``(7) Notwithstanding any other provision of this Act, the 
corporation may not newly purchase any mortgage unless the mortgagor 
has paid, in cash or its equivalent on account of the property securing 
repayment such mortgage, in accordance with regulations issued by the 
Director of the Federal Housing Finance Agency, not less than--
            ``(A) for any mortgage purchased during the 12-month period 
        beginning upon the expiration of the period referred to in 
        section 3(b) of the GSE Bailout Elimination and Taxpayer 
        Protection Act, 5 percent of the appraised value of the 
        property;
            ``(B) for any mortgage purchased during the 12-month period 
        beginning upon the expiration of the 12-month period referred 
        to in subparagraph (A) of this paragraph, 7.5 percent of the 
        appraised value of the property; and
            ``(C) for any mortgage purchased during the 12-month period 
        beginning upon the expiration of the 12-month period referred 
        to in subparagraph (B) of this paragraph, 10 percent of the 
        appraised value of the property.''.
                    (B) Freddie mac.--Subsection (a) of section 305 of 
                the Federal Home Loan Mortgage Corporation Act (12 
                U.S.C. 1454(a)) is amended by adding at the end the 
                following new paragraph:
    ``(6) Notwithstanding any other provision of this Act, the 
Corporation may not newly purchase any mortgage unless the mortgagor 
has paid, in cash or its equivalent on account of the property securing 
repayment such mortgage, in accordance with regulations issued by the 
Director of the Federal Housing Finance Agency, not less than--
            ``(A) for any mortgage purchased during the 12-month period 
        beginning upon the expiration of the period referred to in 
        section 3(b) of the GSE Bailout Elimination and Taxpayer 
        Protection Act, 5 percent of the appraised value of the 
        property;
            ``(B) for any mortgage purchased during the 12-month period 
        beginning upon the expiration of the 12-month period referred 
        to in subparagraph (A) of this paragraph, 7.5 percent of the 
        appraised value of the property; and
            ``(C) for any mortgage purchased during the 12-month period 
        beginning upon the expiration of the 12-month period referred 
        to in subparagraph (B) of this paragraph, 10 percent of the 
        appraised value of the property.''.
            (3) Requirement to pay state and local taxes.--
                    (A) Fannie mae.--Paragraph (2) of section 309(c) of 
                the Federal National Mortgage Association Charter Act 
                (12 U.S.C. 1723a(c)(2)) is amended--
                            (i) by striking ``shall be exempt from'' 
                        and inserting ``shall be subject to''; and
                            (ii) by striking ``except that any'' and 
                        inserting ``and any''.
                    (B) Freddie mac.--Section 303(e) of the Federal 
                Home Loan Mortgage Corporation Act (12 U.S.C. 1452(e)) 
                is amended--
                            (i) by striking ``shall be exempt from'' 
                        and inserting ``shall be subject to''; and
                            (ii) by striking ``except that any'' and 
                        inserting ``and any''.
            (4) Repeals relating to registration of securities.--
                    (A) Fannie mae.--
                            (i) Mortgage-backed securities.--Section 
                        304(d) of the Federal National Mortgage 
                        Association Charter Act (12 U.S.C. 1719(d)) is 
                        amended by striking the fourth sentence.
                            (ii) Subordinate obligations.--Section 
                        304(e) of the Federal National Mortgage 
                        Association Charter Act (12 U.S.C. 1719(e)) is 
                        amended by striking the fourth sentence.
                    (B) Freddie mac.--Section 306 of the Federal Home 
                Loan Mortgage Corporation Act (12 U.S.C. 1455) is 
                amended by striking subsection (g).

SEC. 5. REQUIRED WIND DOWN OF OPERATIONS AND DISSOLUTION OF ENTERPRISE.

    (a) Applicability.--This section shall apply to an enterprise upon 
the expiration of the 3-year period that begins upon the expiration of 
the period referred to in section 3(b).
    (b) Repeal of Charter.--Upon the applicability of this section to 
an enterprise, the charter for the enterprise is repealed and the 
enterprise shall have no authority to conduct new business under such 
charter, except that the provisions of such charter in effect 
immediately before such repeal shall continue to apply with respect to 
the rights and obligations of any holders of outstanding debt 
obligations and mortgage-backed securities of the enterprise.
    (c) Wind Down.--Upon the applicability of this section to an 
enterprise, the Director and the Secretary of the Treasury shall 
jointly take such action, and may prescribe such regulations and 
procedures, as may be necessary to wind down the operations of an 
enterprise as an entity chartered by the United States Government over 
the duration of the 10-year period beginning upon the applicability of 
this section to the enterprise (pursuant to subsection (a)) in an 
orderly manner consistent with this Act and the ongoing obligations of 
the enterprise.
    (d) Division of Assets and Liabilities; Authority to Establish 
Holding Corporation and Dissolution Trust Fund.--The action and 
procedures required under subsection (c)--
            (1) shall include the establishment and execution of plans 
        to provide for an equitable division and distribution of assets 
        and liabilities of the enterprise, including any liability of 
        the enterprise to the United States Government or a Federal 
        reserve bank that may continue after the end of the period 
        described in subsection (c); and
            (2) may provide for establishment of--
                    (A) a holding corporation organized under the laws 
                of any State of the United States or the District of 
                Columbia for the purposes of the reorganization and 
                restructuring of the enterprise; and
                    (B) one or more trusts to which to transfer--
                            (i) remaining debt obligations of the 
                        enterprise, for the benefit of holders of such 
                        remaining obligations; or
                            (ii) remaining mortgages held for the 
                        purpose of backing mortgage-backed securities, 
                        for the benefit of holders of such remaining 
                        securities.
                                 <all>