169 
(A) IN GENERAL.—Upon the creation of 
any estate under subsection (b)(1) or (c)(2), the 
applicable covered bond regulator shall— 
(i) appoint the trustee for the estate; 
(ii) appoint 1 or more servicers or ad-
ministrators for the cover pool held by the 
estate; and 
(iii) give the Secretary, the applicable 
indenture trustee, the applicable covered 
bondholders, and the owner of the residual 
interest written notice of the creation of 
the estate. 
(B) TERMS AND CONDITIONS OF APPOINT-
MENT.—All terms and conditions of any ap-
pointment under paragraph (1), including the 
terms and conditions relating to compensation, 
shall conform to the requirements of this sub-
title and the oversight program and otherwise 
shall be determined by the applicable covered 
bond regulator. 
(C) QUALIFICATION.—The applicable cov-
ered bond regulator may require the trustee or 
any servicer or administrator for an estate to 
post in favor of the United States, for the ben-
efit of the estate, a bond that is conditioned on 
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the faithful performance of the duties of the 
trustee or the servicer or administrator. The 
covered bond regulator shall determine the 
amount of any bond required under this sub-
paragraph and the sufficiency of the surety on 
the bond. A proceeding on a bond required 
under this subparagraph may not be com-
menced after two years after the date on which 
the trustee or the servicer or administrator was 
discharged. 
(D) POWERS AND DUTIES OF TRUSTEE.— 
The trustee for an estate is the representative 
of the estate and, subject to the provisions of 
this subtitle, has capacity to sue and be sued. 
The trustee shall— 
(i) administer the estate in compliance 
with this subtitle, the oversight program, 
and the related transaction documents; 
(ii) be accountable for all property of 
the estate that is received by the trustee; 
(iii) make a final report and file a 
final account of the administration of the 
estate with the applicable covered bond 
regulator; and 
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(iv) after the estate has been fully ad-
ministered, close the estate. 
(E) POWERS AND DUTIES OF SERVICER OR 
ADMINISTRATOR.—Any servicer or adminis-
trator for an estate— 
(i) shall— 
(I) collect, realize on (by liquida-
tion or other means), and otherwise 
manage the cover pool held by the es-
tate for the purpose of winding down 
the related cover bond program in 
compliance with this subtitle, the 
oversight program, and the related 
transaction documents and in a man-
ner consistent with maximizing the 
value and the proceeds of the cover 
pool; 
(II) deposit or invest all proceeds 
and funds received in compliance with 
this subtitle, the oversight program, 
and the related transaction documents 
and in a manner consistent with maxi-
mizing the net return to the estate, 
taking into account the safety of the 
deposit or investment; and 
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(III) apply, or direct the trustee 
for the estate to apply, all proceeds 
and funds received and the net return 
on any deposit or investment to make 
distributions in compliance with para-
graphs (3) and (4); 
(ii) may borrow funds or otherwise ob-
tain credit, for the benefit of the estate, in 
compliance with paragraph (2) on a se-
cured or unsecured basis and on a priority, 
pari passu, or subordinated basis; 
(iii) shall, at the times and in the 
manner required by the applicable covered 
bond regulator, submit to the covered bond 
regulator, the Secretary, the applicable in-
denture trustee, the applicable covered 
bondholders, the owner of the residual in-
terest, and any other person designated by 
the covered bond regulator, reports that 
describe the activities of the servicer or ad-
ministrator on behalf of the estate, the 
performance of the cover pool held by the 
estate, and distributions made by the es-
tate; and 
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(iv) shall assist the trustee in pre-
paring the final report and the final ac-
count of the administration of the estate. 
(F) SUPERVISION OF TRUSTEE, SERVICER, 
AND ADMINISTRATOR.—The applicable covered 
bond regulator shall supervise the trustee and 
any servicer or administrator for an estate. The 
covered bond regulator shall require that all re-
ports submitted under subparagraph (E)(iii) do 
not contain any untrue statement of a material 
fact and do not omit to state a material fact 
necessary in order to make the statements 
made, in light of the circumstances under which 
they are made, not misleading. 
(G) REMOVAL
AND
REPLACEMENT
OF 
TRUSTEE, SERVICER, AND ADMINISTRATOR.—If 
the covered bond regulator determines that it is 
in the best interests of an estate, the covered 
bond regulator may remove or replace the trust-
ee or any servicer or administrator for the es-
tate. The removal of the trustee or any servicer 
or administrator does not abate any pending ac-
tion or proceeding involving the estate, and any 
successor or other trustee, servicer, or adminis-
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trator shall be substituted as a party in the ac-
tion or proceeding. 
(H) PROFESSIONALS.—The trustee or any 
servicer or administrator for an estate may em-
ploy 1 or more attorneys, accountants, apprais-
ers, auctioneers, or other professional persons 
to represent or assist the trustee or the servicer 
or administrator in carrying out its duties. The 
employment of any professional person and all 
terms and conditions of employment, including 
the terms and conditions relating to compensa-
tion, shall conform to the requirements of this 
subtitle and the oversight program and other-
wise shall be subject to the approval of the ap-
plicable covered bond regulator. 
(I) APPROVED FEES AND EXPENSES.—Un-
less otherwise provided in the applicable terms 
and conditions of appointment or employment, 
all approved fees and expenses of the trustee, 
any servicer or administrator, or any profes-
sional person employed by the trustee or any 
servicer or administrator shall be payable from 
the estate as administrative expenses. 
(J) ACTIONS BY OR ON BEHALF OF ES-
TATE.—The trustee or any servicer or adminis-
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