I 
111TH CONGRESS 
2D SESSION 
H. R. 4889 
To establish a term certain for the conservatorships of Fannie Mae and 
Freddie Mac, to provide conditions for continued operation of such enter-
prises, and to provide for the wind down of such operations and the 
dissolution of such enterprises. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2010 
Mr. HENSARLING (for himself, Mr. PENCE, Mr. PRICE of Georgia, Mr. 
FLAKE, Mr. MARCHANT, Mr. AKIN, Mr. BARTLETT, Mr. LATTA, Mr. 
PITTS, Mrs. SCHMIDT, Mr. GARRETT of New Jersey, Mr. OLSON, Mr. 
DUNCAN, Mr. PLATTS, and Mr. SMITH of Texas) introduced the following 
bill; which was referred to the Committee on Financial Services 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘GSE Bailout Elimi-
nation and Taxpayer Protection Act’’. 
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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 Agen-
cy. 
(3) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation; and 
(B) the Federal Home Loan Mortgage 
Corporation. 
(4) 
GUARANTEE.—The 
term 
‘‘guarantee’’ 
means, with respect to an enterprise, the credit sup-
port of the enterprise that is provided by the Fed-
eral Government through its charter as a govern-
ment-sponsored enterprise. 
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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 enter-
prise is financially viable, immediately take all ac-
tions 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 enter-
prise is not financially viable, immediately appoint 
the Federal Housing Finance Agency as receiver 
under section 1367 of the Federal Housing Enter-
prises 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 sub-
section is, with respect to an enterprise— 
(1) except as provided in paragraph (2), the 24- 
month beginning upon the date of the enactment of 
this Act; or 
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(2) if the Director determines before the expira-
tion of the period referred to in paragraph (1) that 
the financial markets would be adversely affected 
without the extension of such period under this 
paragraph with respect to that enterprise, and upon 
making such determination notifies the Congress in 
writing of such determination, the 30-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 pur-
poses 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 En-
terprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4617(a)) exists at the time with respect to the en-
terprise. 
SEC. 4. LIMITATION OF ENTERPRISE AUTHORITY UPON 
EMERGENCE FROM CONSERVATORSHIP. 
(a) 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 fol-
lowing provisions shall take effect: 
(1) REPEAL OF HOUSING GOALS.— 
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(A) REPEAL.—The Federal Housing En-
terprises 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 pur-
poses’’ and all that follows through ‘‘des-
ignated disaster areas’’; 
(ii) in section 1324(b)(1)(A) (12 
U.S.C. 4544(b)(1)(A))— 
(I) by striking clauses (i), (ii), 
and (iv); 
(II) in clause (iii), by inserting 
‘‘and’’ after the semicolon at the end; 
and 
(III) by redesignating clauses 
(iii) and (v) as clauses (i) and (ii), re-
spectively; 
(iii) in section 1338(c)(10) (12 U.S.C. 
4568(c)(10)), by striking subparagraph 
(E); 
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(iv) in section 1339(h) (12 U.S.C. 
4569), by striking paragraph (7); 
(v) in section 1341 (12 U.S.C. 
4581)— 
(I) in subsection (a)— 
(aa) in paragraph (1), by in-
serting ‘‘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 semi-
colon at the end; 
(bb) by striking subpara-
graphs (B) and (C); and 
(cc) by redesignating sub-
paragraph (D) as subparagraph 
(B); 
(vi) in section 1345(a) (12 U.S.C. 
4585(a))— 
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(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 
(vii) in section 1371(a)(2) (12 U.S.C. 
4631(a)(2))— 
(I) by striking ‘‘with any housing 
goal established under subpart B of 
part 2 of subtitle A of this title,’’; and 
(II) by striking ‘‘section 1336 
or’’. 
(2) PORTFOLIO
LIMITATIONS.—Subtitle B of 
title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4611 et seq.) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN-
TERPRISES. 
‘‘(a) RESTRICTION.—No enterprise shall own, as of 
any applicable date in this subsection or thereafter, mort-
gage assets in excess of— 
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‘‘(1) upon the expiration of the period referred 
to in section 3(b) of the GSE Bailout Elimination 
and 
Taxpayer 
Protection 
Act 
or 
thereafter, 
$850,000,000,000; 
‘‘(2) upon the expiration of the 1-year period 
that begins on the date described in paragraph (1) 
or thereafter, $700,000,000,000; 
‘‘(3) upon the expiration of the 2-year period 
that begins on the date described in paragraph (1) 
or thereafter, $500,000,000,000; and 
‘‘(4) upon the expiration of the 3-year period 
that begins on the date described in paragraph (1), 
$250,000,000,000. 
‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur-
poses 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 in-
vestment 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 ac-
counting principles in effect in the United States as of 
September 7, 2008 (as set forth in the opinions and pro-
nouncements of the Accounting Principles Board and the 
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American Institute of Certified Public Accountants and 
statements and pronouncements of the Financial Account-
ing Standards Board from time to time; and without giv-
ing any effect to any change that may be made after Sep-
tember 7, 2008, in respect of Statement of Financial Ac-
counting Standards No. 140 or any similar accounting 
standard).’’. 
(3) INCREASE IN MINIMUM CAPITAL REQUIRE-
MENT.—Section 1362 of the Federal Housing En-
terprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4612), as amended by section 1111 
of the Housing and Economic Recovery Act of 2008 
(Public Law 110–289), 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 in-
serting ‘‘Federal Home Loan Banks’’; 
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(iii) by striking ‘‘for the enterprises,’’; 
(iv) by striking ‘‘, or for both the en-
terprises 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 oper-
ate’’; 
(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 ‘‘regu-
lated 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: 
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‘‘(g) ESTABLISHMENT OF REVISED MINIMUM CAP-
ITAL 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 meth-
ods 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 Direc-
tor’s discretion, deems to be necessary or appro-
priate in light of the particular circumstances of the 
enterprise. 
‘‘(h) FAILURE TO MAINTAIN REVISED MINIMUM 
CAPITAL LEVELS.— 
‘‘(1) UNSAFE AND UNSOUND PRACTICE OR CON-
DITION.—Failure of a enterprise to maintain capital 
at or above its minimum level as established pursu-
ant 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.— 
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‘‘(A) AUTHORITY.—In addition to, or in 
lieu of, any other action authorized by law, in-
cluding paragraph (1), the Director may issue 
a directive to an enterprise that fails to main-
tain capital at or above its required level as es-
tablished pursuant to subsection (g) of this sec-
tion. 
‘‘(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 en-
forceable 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 ap-
proval of the Director for any proposal which 
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would divert earnings, diminish capital, or oth-
erwise 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.’’. 
(4) REPEAL
OF
INCREASES
TO
CONFORMING 
LOAN LIMITS.— 
(A) REPEAL OF TEMPORARY INCREASES.— 
(i) 
CONTINUING
APPROPRIATIONS 
RESOLUTION, 2010.—Section 167 of the 
Continuing 
Appropriations 
Resolution, 
2010 (as added by section 104 of division 
B of Public Law 111–88; 123 Stat. 2973) 
is hereby repealed. 
(ii) AMERICAN RECOVERY AND REIN-
VESTMENT 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. 
(iii) ECONOMIC
STIMULUS
ACT
OF 
2008.—Section 201 of the Economic Stim-
ulus Act of 2008 (Public Law 110–185; 
122 Stat. 619) is hereby repealed. 
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(B) REPEAL OF GENERAL LIMIT AND PER-
MANENT
HIGH-COST
AREA
INCREASE.—Para-
graph (2) of section 302(b) of the Federal Na-
tional Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)) and paragraph (2) of sec-
tion 305(a) of the Federal Home Loan Mort-
gage 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 Hous-
ing and Economic Recovery Act of 2008 (Public 
Law 110–289) is hereby repealed. 
(E) ESTABLISHMENT
OF
CONFORMING 
LOAN LIMIT.—For the year in which the expira-
tion of the period referred to in section 3(b) of 
this section occurs, the limitations governing 
the maximum original principal obligation of 
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conventional mortgages that may be purchased 
by the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Cor-
poration, 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)), re-
spectively, 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). 
(F) PROHIBITION OF PURCHASE OF MORT-
GAGES
EXCEEDING
MEDIAN
AREA
HOME 
PRICE.— 
(i) FANNIE MAE.—Section 302(b)(2) 
of the Federal National Mortgage Associa-
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tion Charter Act (12 U.S.C. 1717(b)(2)) is 
amended by adding at the end the fol-
lowing new sentence: ‘‘Notwithstanding 
any other provision of this title, the cor-
poration may not purchase any mortgage 
for a property having a principal obligation 
that exceeds the median home price, for 
properties of the same size, for the area in 
which such property subject to the mort-
gage is located.’’. 
(ii) 
FREDDIE
MAC.—Section 
305(a)(2) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) is amended by adding at the 
end the following new sentence: ‘‘Notwith-
standing any other provision of this title, 
the Corporation may not purchase any 
mortgage for a property having a principal 
obligation that exceeds the median home 
price, for properties of the same size, for 
the area in which such property subject to 
the mortgage is located.’’. 
(5) REQUIREMENT OF MINIMUM DOWNPAYMENT 
FOR MORTGAGES PURCHASED.— 
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(A) FANNIE MAE.—Subsection (b) of sec-
tion 302 of the Federal National Mortgage As-
sociation 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 un-
less the mortgagor has paid, in cash or its equivalent on 
account of the property securing repayment such mort-
gage, in accordance with regulations issued by the Direc-
tor 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 
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(B) of this paragraph, 10 percent of the appraised 
value of the property.’’. 
(B) FREDDIE MAC.—Subsection (a) of sec-
tion 305 of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)) is amend-
ed by adding at the end the following new para-
graph: 
‘‘(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 mort-
gage, in accordance with regulations issued by the Direc-
tor 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 
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‘‘(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.’’. 
(6) REQUIREMENT TO PAY STATE AND LOCAL 
TAXES.— 
(A) FANNIE MAE.—Paragraph (2) of sec-
tion 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’’. 
(7) REPEALS RELATING TO REGISTRATION OF 
SECURITIES.— 
(A) FANNIE MAE.— 
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(i) 
MORTGAGE-BACKED
SECURI-
TIES.—Section 304(d) of the Federal Na-
tional Mortgage Association Charter Act 
(12 U.S.C. 1719(d)) is amended by strik-
ing 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 sub-
section (g). 
(8) RECOUPMENT
OF
COSTS
FOR
FEDERAL 
GUARANTEE.— 
(A) ASSESSMENTS.—The Director of the 
Federal Housing Finance Agency shall establish 
and collect from each enterprise assessments in 
the amount determined under subparagraph 
(B). In determining the method and timing for 
making such assessments, the Director shall 
take into consideration the determinations and 
conclusions of the study under subsection (b) of 
this section. 
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(B) DETERMINATION OF COSTS OF GUAR-
ANTEE.—Assessments under subparagraph (A) 
with respect to an enterprise shall be in such 
amount as the Director determines necessary to 
recoup to the Federal Government the full value 
of the benefit the enterprise receives from the 
guarantee provided by the Federal Government 
for the obligations and financial viability of the 
enterprise, based upon the dollar value of such 
benefit in the market to such enterprise when 
not operating under conservatorship or receiver-
ship. To determine such amount, the Director 
shall establish a risk-based pricing mechanism 
as the Director considers appropriate, taking 
into consideration the determinations and con-
clusions of the study under subsection (b) of 
this section. 
(C) 
TREATMENT
OF
RECOUPED 
AMOUNTS.—The Director shall cover into the 
general fund of the Treasury any amounts re-
ceived from assessments made under this para-
graph. 
(b) GAO STUDY
REGARDING
RECOUPMENT
OF 
COSTS FOR FEDERAL GOVERNMENT GUARANTEE.—The 
Comptroller General of the United States shall conduct 
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a study to determine a risk-based pricing mechanism to 
accurately determine the value of the benefit the enter-
prises receive from the guarantee provided by the Federal 
Government for the obligations and financial viability of 
the enterprises. Such study shall establish a dollar value 
of such benefit in the market to each enterprise when not 
operating under conservatorship or receivership, shall ana-
lyze various methods of the Federal Government assessing 
a charge for such value received (including methods involv-
ing an annual fee or a fee for each mortgage purchased 
or securitized), and shall make a recommendation of the 
best such method for assessing such charge. Not later 
than 12 months after the date of the enactment of this 
Act, the Comptroller General shall submit to the Congress 
a report setting forth the determinations and conclusions 
of such study. 
SEC. 5. REQUIRED WIND DOWN OF OPERATIONS AND DIS-
SOLUTION OF ENTERPRISE. 
(a) APPLICABILITY.—This section shall apply to an 
enterprise upon the expiration of the 3-year period re-
ferred 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 
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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 enter-
prise. 
(c) WIND DOWN.—Upon the applicability of this sec-
tion to an enterprise, the Director and the Secretary of 
the Treasury shall jointly take such action, and may pre-
scribe such regulations and procedures, as may be nec-
essary 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 ap-
plicability 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; AUTHOR-
ITY TO ESTABLISH HOLDING CORPORATION AND DIS-
SOLUTION TRUST FUND.—The action and procedures re-
quired under subsection (c)— 
(1) shall include the establishment and execu-
tion 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 
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may continue after the end of the period described 
in subsection (ca); 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 enter-
prise; and 
(B) one or more trusts to which to trans-
fer— 
(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 secu-
rities, for the benefit of holders of such re-
maining securities. 
Æ 
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